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Integrated Marketing Association

Transactional Marketing

Transactional marketing is a common, traditional marketing strategy that centers on individual point of sale business transactions. Such strategies focus on increasing the efficiency and amount of sales a company generates, rather than placing emphasis on developing a meaningful relationship with the customer, as is the case in relationship marketing.

Transactional marketing is more traditional than some other strategies that have become popular in recent years. Company goals in a transactional marketing approach focus on providing customers with a high-quality product or service that meets their needs, offering a profitable but competitive price for those products or services, putting effective systems in place for distributing them, and promoting them in highly visible and appealing ways.

Transactional marketing is appealing because it is extremely cost-effective, compared to relationship marketing, which often requires a significant investment in cultivating consumer relationships and loyalty. The theory behind transactional marketing is a high-quality product will sell itself, so there’s no need to build a relationship to encourage customer loyalty or repeat business.

A component of transactional marketing frequently employed is offering customers rewards based solely on purchasing – including one-time purchases. These rewards can be discounts and coupons motivating customers to purchase a specific product or use a certain service. Cash-back offers, mail-in rebates, and buy-one, get-one-free promotions all fall under this umbrella. These promotions are not intended to foster an emotional connection or build customer loyalty but are instead aimed at front-loading sales to increase revenue.

Another helpful tactic for transactional marketing is offering customers several ways to pay for the product or service at the point of sale. A business that deals only in cash, for example, will likely struggle to attract customers against a competitor who accepts cash or credit card.

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