Relationship Marketing And Traditional Transactional Marketing Marketing Essay

Relationship Marketing And Traditional Transactional Marketing Marketing Essay The approach of a business towards the marketing discipline can generally be categorised as either being traditional or relationship based. Whilst the traditional approach has held sway for the last fifty years there are signs that relationship marketing may assume the dominant position in marketing thinking and application in the near future. This does not mean that traditional marketing will no longer have a role to play. The evidence from a study of the supermarket chain Asda is that its position as the UK number two supermarket brand has been largely achieved by following a traditional marketing approach. Equally, however, market leader Tesco has embraced relationship marketing using its Clubcard to help it build mutually beneficial relationships with its customers. This approach to its marketing has seen Tescos market share and profits continue to grow whilst Asdas have started to decline. On the face of it this would appear to demonstrate that, when it comes to supermarket marketing, the relationship approach is best. However, it is not that simple. The classic four Ps of the marketing mix, Product, Price Place and Promotion, are the cornerstone of traditional marketing with Price and Promotion having been Asdas primary focus. Also, there is an argument that says in the difficult economic times that consumers are currently experiencing then the price and value for money proposition advocated by Asda has more resonance with consumers than ever before. So, which is the most appropriate marketing path for Tesco and Asda to follow or should elements form both disciplines be adopted for optimum effect? This paper analyses the various points of view of both academics and marketing practioners and draws heavily on case study material to draw some conclusions for a possible way forward. Introduction and Background Relationship marketing, which involves the development, growth, and maintenance of long-term, cost-effective, and mutually beneficial relationships between a business and its customers, may be perceived as being a relatively new phenomenon (Grà ¶nroos, 1995). However, this is not the case as its origins actually pre-date the industrial revolution, a time when products were manufactured on a small scale and consumers had direct contact with the manufacturers and merchants from whom they purchased their goods. As industrialisation gathered pace the mass production of goods meant that direct contact between manufacturers and their end customers was no longer practical and middlemen evolved to bridge the gap. This, in turn, resulted in manufacturers becoming distant from their customers and adopting a transactional rather than customer relationship focus to their marketing and selling activities (Sheth and Parvatiyar, 1995). This transactional approach became increasingly sophisticated as marketing developed into a specialist and separate discipline within organisations, alongside the customer services and product quality control functions. The four Ps of marketing mix i.e. Product, Price, Place and Promotion, first muted by Borden (1964), have been a familiar and successful planning and execution framework for traditional marketing practioners since the 1960s. However, this traditional marketing philosophy has been facing an increasingly serious challenge to its dominant position from advocates of relationship-based marketing (Grà ¶nroos, 1995). The introduction of new technologies, such as the internet, has changed the way in which businesses are able to interact with their customers. This, together with the large scale removal of global trading barriers and the increasing homogenisation of consumer attitudes and purchasing behaviour, have all served to fuel what has become known as the globalisation of world markets (Doole, and Lowe, 2008). This new global marketplace for products has necessitated the adoption of new and more effective marketing techniques and concepts by rival businesses striving to compete for the same customers. So rather than rely on traditional marketing techniques, which are based on identifying new prospects, converting them to customers, and completing sales transactions, businesses have increasingly focussed on developing meaningful relationships with their customers in order to both retain their custom and encourage them to spend more. The management of relationship marketing has been greatly facilitated by a change in attitude to the structure of the marketing, customer service and product quality control functions. Rather than these functions being distinct and disintegrated, as is the case in businesses with a traditional marketing focus, relationship marketing integrates these functions to enable the business to get closer to its customers and thus helping it to benefit from increased customer retention, and the nirvana that all businesses strive for, customer loyalty (Fill and Hughes, 2003). Customer loyalty can be defined as a form of repeat purchasing behaviour reflecting a conscious decision to continue buying the same brand. (Solomon et al. 2001, p. 259). Additionally, the financial efficacy of customer retention versus new customer acquisition is well established. Indeed most academic studies on the subject propound the view that the costs of acquiring new customers can be up to five times higher than tho se costs associated with retaining existing customers (Heskett et al., 1994; Webster, 1994; Cespedes, 1995). In the current global marketplace, Jones (1992) believes that businesses have no choice but to build and retain the loyalty of existing customers if they are to survive and grow. Supermarket chains, such as Tesco and Asda, act as a reference point for attitudes to loyalty, with 72% of consumers feeling loyal to at least one organisation operating in the highly competitive supermarket sector, according to a study by the Logic Group, a specialist in loyalty programmes management, and researcher Ipsos MORI (Fernandez, 2009). Tesco Clubcard a key relationship tool Tesco has been the dominant force in supermarket retailing for the last ten years (Seth and Randall, 2001). It remains the market leading supermarket chain in the UK with a 30.4% market share and has, in the early part of 2010, further widened the gap between itself and its arch rival ASDA, a position which has largely been attributed to the success of its recent Clubcard double points promotion (MacDonald, 2010). To succeed, relationship marketing requires the development and maintenance of strong personal relationships with customers. These relationships should include a high degree of mutual interaction and social exchange (Zineldin and Philipson, 2007). Tescos Clubcard is the cornerstone of its customer relationship marketing strategy. Launched in February 1995, Tescos Clubcard gained five million users within its first month of operation and, significantly and somewhat ironically for a loyalty card, 200,000 new customers also joined the scheme (Seth and Randall, 2001). Clubcard works by enabling its users to collect points when shopping at Tesco stores and online at Tesco.com and also at Tescos catalogue store, Tesco Direct. In addition, points can be collected at Tesco petrol stations and by paying for any goods or services using a Tesco credit card. Tesco Clubcard holders can also collect points when making non Tesco purchases, such as paying for gas or electricity through utilities supplier e.on (Tesco website, 2010). These points are then converted into money-off vouch ers for customers to use in store. However, Clubcard is much more than simply a vehicle to reward customer loyalty. By collecting customer data at registration, Clubcard is also a powerful marketing planning tool for Tesco. It enables the retailer to track customer shopping habits, including the products bought and their purchase frequency, thus enabling Tesco to target specific product and service promotions to specific customers, either at the point of sale or at the customers home via direct marketing. Tesco has attracted some criticism for using its loyalty scheme in this way but it argues that it works in the interests of its customers by aiding the business and product development process. Indeed, Tesco Chief Executive, Sir Terry Leahy, states that: We could not have created the dot-com business without the data from the loyalty card (Humby et al, 2007, page 4). As well developing relationships by creating highly targeted and personalised communications for its customers, Tesco has fulfilled another one of the key objectives of relationship marketing with its Clubcard, namely getting its existing customers to purchase more products. For example, using its Clubcard customer data, Tesco can identify possible target customers for its non-food products. It then mails these customers about such products via the medium of its quarterly Clubcard newsletter. This strategy has resulted in half of all Tescos traditional grocery customers also purchasing non food items from the chain (Humby et al, 2007). Data collected from Clubcard users has also been credited with helping to fuel Tescos recent dramatic international expansion with one third of its entire staff now working outside the UK (Humby et al, 2007). Tesco has extended its Clubcard brand into specific customer market segments in order to enhance its relationships with certain groups with a view to increasing sales to those specific customer segments. Clubcard data revealed that families with babies and toddlers who shopped regularly at Tesco did not believe that they could trust the Tesco brand as the best place to buy baby and toddler related products. These customers tended to place their trust in Boots for such products (Humby et al, 2007). A key identified element of successful relationship marketing is trust: The resources of the seller personnel, technology and systems have to be used in such a manner that the customers trust in the resources involved and, thus, in the firm itself is maintained and strengthened (Grà ¶nroos, 1990, p.5) Tesco decided that it needed to specifically address the issue of trust for these customers and created the Tesco baby and toddler club. Membership of the club enables families with babies and toddlers to get double Clubcard points on certain products as well as giving them free parking spaces close to store entrances, a free magazine and access to specialist parenting advice (Tesco baby and toddler club website, 2010). This relationship marketing initiative directly led to an increase of trust in the Tesco brand for baby and toddler products from this market segment and a consequent transfer of market share from Boots. Now Tescos sales volume of baby and toddler products is more than that of Boots and Mothercare combined (Stone et al, 2010). Effective relationship marketing that truly enhances customer relationships and leads to business improvement also requires that the marketing discipline in an organisation transcends all functions and embeds itself in the ethos of the business (Zineldin and Philipson, 2007). Tesco is totally focussed on its customers and information about customer needs and purchasing trends are disseminated to all parts of the organisation not just marketing. Indeed, Tesco claims that everything its does is rooted in customer knowledge (Tesco Careers Website, 2010). So it can be seen that Tescos Clubcard has certainly played a major role in securing and enhancing its market leading position and, as far as contributing to the bottom line is concerned, then there is evidence that it has also generated incremental sales and profits (Humby et al, 2007). Equally it has not caused an increase in overall marketing spend for Tesco as much of the funding for Clubcard has come from the reallocation of resources from other areas of marketing spend, such as TV advertising (Humby et al, 2007). However, it should also be remembered, of course, that Tesco has not completely disowned the traditional marketing concept as its ongoing aggressive price promotions demonstrate. Asda a traditional price-led approach Some academics suggest that here has been a paradigm shift from traditional to relationship marketing (Grà ¶nroos, 1995) and that traditional marketing does not fulfil the requirements demanded by the modern-day marketing concept (Gummesson, 1995, 2000). Kotler (1997), however, argues that the decision whether to use relationship marketing or transactional marketing depends on the industry type and, more importantly, on the needs and wants of the particular consumer. Some consumers will always adopt a short-term attitude in their relationships with suppliers (Zineldin and Philipson, 2007). In these cases traditional marketing based on the transactional approach will always have an important role to play. Asda is the second largest supermarket chain in the UK with around 17% market share (Macdonald, 2010). Its market ambitions are summed up in it mission statement which is to be Britains best value retailer exceeding customer needs always and in its stated purpose which is to make goods and services more affordable for everyone (Times 100, Asda Case Study, 2010, p.34). Asda has recognised the fickle nature of some consumers relationships with their supermarkets and acknowledges that the purchasing motivation of those consumers will always be based on obtaining best value (Zineldin and Philipson, 2007). Asda has, therefore, consistently adopted a transactional approach to its marketing by focussing heavily on two of the four Ps of the marketing mix advocated by traditionalists namely, Price and Promotion. Asda has built its market position around price and value for money, supporting these propositions through heavyweight TV advertising with its TV commercials having now propounded the virtues of Asda price for well over thirty years. Asdas strategic communications director, Nick Agarwal, defends Asdas traditional marketing approach, which focuses on attracting new customers and increasing transactions through its price and value led proposition, by stating that the current economic times dictate this type of offer in the supermarket sector. He says : Our internal data suggests that people are still very nervous about what will happen on the economic front this year. We need to make sure we serve new customers as well as those who are still feeling financially challenged, especially with the increase in VAT and public sector cuts that are to come. We are very conscious that value is still going to be at the heart of what people want in the coming 18 months.'(Costa, 2010). However, whilst Asda has enjoyed considerable success with its traditional marketing strategy, there are now indications that its approach has failed to reverse a slow decline in sales. According to research from Kantar Worldpanel, Asdas sales have fallen by 0.4% in the second quarter of 2010 and its market share has dropped by 1.7% to 16.9% in the same period (Baker, 2010). Asda seems determined to continue to pursue its traditional approach but independent observers are urging the chain to change to reflect new consumer attitudes. Ed Garner, retail analyst at Kantar Worldpanel says. The market has changed considerably and now consumers feel there is more to life than low prices (Baker, 2010). There are even dissenting voices within Asdas own ranks with Asdas new marketing director Jon Owen believing that the supermarket chain must cease its blinkered focus on traditional price-led marketing in order to compete more effectively (Baker, 2010). Asda has, however, made some concessions to relationship marketing through its corporate social responsibility initiatives. These include community involvement projects through its Asda Foundation (Your Asda website, 2010) and the provision of credit to those customers who have been refused credit by other lenders (Hemingway, 2002). However, it would seem that there are still strong forces inside and outside the business questioning whether or not a predominantly traditional marketing approach remains a viable strategy for future success. Summary and Conclusions From the evidence of two contrasting case studies it is apparent that both traditional and relationship marketing have proven to be appropriate for business success within the supermarket retail sector. However, there are indications that consumers are now beginning to expect more than just low prices and value for money from their shopping experience, they have also demonstrated a desire to engage in a meaningful relationship with their supermarket of choice. This relationship, if managed effectively by the supermarket chain, can increase customer loyalty and can encourage customers to their purchasing behaviour for specific product segments, as well as generating incremental sales from new and existing customers. Tesco, has also shown that a customer relationship strategy based on the development of mutually beneficial relationships can, and indeed does, positively impact the bottom line. Asda, for its part appears to be the subject of a struggle between the opposing forces of traditional and relationship marketing. However, this need not be the case. There is no reason why both disciplines should be in opposition. Even if there is a shift towards relationship marketing, many academics believe that traditional marketing, in terms of the four Ps of the marketing mix, remains valid in all types of businesses including supermarket retailing. The argument being that if a business does not have the right price, product promotion or place (distribution) for its products then it will be impossible for it to enter into a mutually beneficial relationship with its customers (Zineldin, and Philipson, 2007). There is, therefore, strong evidence to suggest that a mix of both the traditional and relationship approach is the most appropriate for the Supermarket sector in the UK. Tesco has achieved this balance but Asda has yet to fully embrace the value of relationship marketing acting alongside a more traditional approach. The view that it needs to do this and quickly in order to grow its business appears to be gathering momentum.

Mari Evans’ “I Am a Black Woman”

Imani Newbill Professor Simms-Burton English 2140 21 March 2010 Mari Evans’ â€Å"I Am a Black Woman† â€Å"Mari Evans is one of the most energetic and respected poets of the Black Arts movement† (1850). The themes of her poems are very direct, but the simple lyrics make the poem eloquent (1850). â€Å"Lost love, a lost Africa, failed relationships between black woman and black men† are usually the tails of her poems (1850). Yet she also portrays that â€Å"losses summon from us the courage to struggle , to continue in the face of adversity and pain† (1850). ‘I Am a Black Woman’ whose title poem first appeared in Negro Digest, links the themes of black enslavement and impoverishment with the global oppression of the wretched† (1850). â€Å"The volume [â€Å" I Am a Black Woman†] heralded the arrival of a poet who took her subject matter from the black community, and who celebrated its triumphs, especially the focus on the beauty of blackness that characterized the black arts and civil rights movements. †(Gale ) Therefore, understanding Mari Evans’ themes and tone fuels the greatness of â€Å"I Am a Black Woman†.Mari Evans’ usually deals with the despair and loss of the African American citizen in her literary work. In â€Å"I Am a Black Woman†, Evans chooses to tell the story of the black woman. She portrays the roles and relationships of the black woman. Evans’ includes the story of all black women’s pain, their fight for civil rights, the black lover, and the black mother. The narrator of this poem describes, in lines 1-4, the pain black women experience because they are black woman:I am a black woman the music of my song some sweet arpeggio of tears is written in a minor key The â€Å"music of my song/some sweet arpeggio of tears† tells of the internal struggle of being a black woman. Also what it means to be a black woman. Evans’ portr ays the despair felt from her husband’s death in lines 11-12 when the narrator describes more pain â€Å"I saw my mate leap screaming to the sea/ and I/with these hands/cupped the lifebreath/? from my issue in the canebrake†.The mother receives more grief in lines 14-15 â€Å"and heard my son scream all the way from Anzio/for Peace he never knew† (Gates 1852). Evans’ tells of the pain of the black mother. The mothers who birth the black children whose rights are being spit on and dragged through the dirt. The mother whose black sons who fight in wars for a country that despises the black skin that they have at birth. This also portrayed in lines 16-17 â€Å"learned Da Nang and Pork Chop Hill/? in anguish† (Gates 1852) Evans’ theme of pain of the black woman is clearly shown.Evans’ shows the blues of being a black woman in stanza’s one and two, but in the last stanza she shows that even threw the pain and anguish black woman are still strong: I am a black woman ?tall as a cypress ?strong beyond all definition still ?defying place ?and time and circumstance ?assailed ?impervious ?indestructible ?Look ?on me and be ?renewed Evans’ chooses a public persona to work through her understanding of what it means to be black in the Western world, and she hopes to inspire others through their witnessing her quest. Gale ) In line 29, the narrator indicates that as a black women are imperious and one can not set their boundaries Black women can not be boxed into in situations based on circumstance because the odds can be defied place time and the black women’s indestructibility. The narrator is saying look at me defy the odds and anyone can be renewed because of the triumph from my despair. The narrator has most clearly defied the odds because of all the stress and drama that is in her life and she still stands strong. The tone changes from stanza to stanza in the poem, â€Å"I Am a Black Woman.The tone in the first stanza is filled with stress and she use humming to relieve the stress. She is actually crying in the first stanza. The tone of the second stanza is despair. She watches her mate and son die along with important figures like Nat Turner (Gates 1852) In stanza two the narrator indicates, â€Å"Now my nostrils know the gas/ and these trigger tire/d fingers† (Gates 1852) . Again the tone is despair because she attempts and contemplates suicide. However, stanza three's tone is about renewal , inspiration and strength.She indicates look at me and my struggles and still I stand strong like a cypress tree. The tone of the poem is sad at the beginning and inspirational at the end. Evan remains strong to her themes of negative love affairs between black men and women and global perspective in her writing of â€Å"I Am a Black Woman. However, the tone changes in this poem, and the lyrics are simple. An ultimately she provides encouragement and hope, which is still done in her poem â€Å"I Am a Black Woman. Therefore, understanding Mari Evans’ themes and tone fuels the greatness of â€Å"I Am a Black Woman†.Works Cited| Gates, Henry Louis Jr. and Nellie Y McKay, ed. Norton Anthology of African American Literature. 2nd ed. New York: WW. Norton, 2004. 2096| Gates, Henry Louis Jr. and Nellie Y McKay, ed. â€Å"I Am a Black Woman. † Norton Anthology of African American Literature. 2nd ed,. New York: WW. Norton, 2004. 1851-1852. | Gates, Henry Louis Jr. and Nellie Y McKay, ed. â€Å"The Black Arts Era 1960-1975. † Norton Anthology of African American Literature. 2nd ed. New York: WW. Norton, 2004. 1831-1850. Print. | |

Shakespeare Writes About Issues That Are Still Relevant Today

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In the play it is seen that Macbeth starts believing in the witches’ predictions and his des tined fate. He soon forms a reliance on the witches’ predictions and seeks them out for more prophesies. In today’s society we see that now more than ever do people want to know about their future, with the businesses of taro reading, psychics and astrology booming. There are also many television programs and movies like Charmed and Harry Potter, whose main theme is superstition. In the play the line â€Å"Macbeth shall never vanquished be until/Great Birnam wood to high Dunsinane hill/Shall come against him† (Act 4, Scene 1), shows us that this theme was one that Shakespeare wished to communicate with his audience. Therefore through the theme of superstition it can be seen that Shakespeare is still significant to people in modern day times. Shakespeare writes about themes that are still relevant because his theme of gender is still seen in modern societies. 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The steady decline in black Americans playing baseball could also be contributed to other sports like basketball and football startedRead MoreShould College Athletes Be Paid?1591 Words   |  7 Pagescollege sports are very popular in the United States. Colle ge athletes should remain unpaid because it wouldn’t be fair to the other less watch sports that don’t bring in a lot of revenue, it wouldn’t be fair to the female athletes they wouldn’t be paid equally, college athletes already have advantages and receive benefits, and paying the athletes would only benefit the big named universities and not the smaller schools. College athletes were all recruited out of high school to play a sport for a university