In today’s modern business environment, the development of close and long-term relationships is a strategy which aims at creating competitive advantage and the successful revival of businesses. The scientific field of marketing has created “relationship marketing” which deals with the study of these relationships.
The present essay focuses on analyzing and comparing transactional and relationship marketing. It presents the IMP Group interaction approach which is considered as one of the most prevalent approaches of relationship marketing. The IMP Group approach is analyzed and more specifically its implementation in the purchasing process is studied. IBM is the company that is taken as an implementation example of the IMP Group approach. In IBM’s case study relationship marketing and IMP Group approach are successfully implemented and are in full accordance with the relevant theory.
Table of Contents
Introduction
Relationship Marketing – Definition
Transactional marketing & Relationship Marketing
Industrial network approach
Interaction approach and organizational buying
Conclusions
Research Objectives and Core Themes
This essay aims to analyze and compare the concepts of transactional and relationship marketing, while specifically examining the implementation of the IMP Group interaction approach within the organizational purchasing process, using IBM as a practical case study.
- Theoretical comparison between transactional and relationship marketing models.
- Examination of the IMP Group interaction approach in industrial settings.
- Strategic analysis of purchasing objectives and supplier relationships.
- Implementation of relationship-based strategies within multinational corporations like IBM.
- Evaluation of challenges in bridging the gap between marketing theory and practical application.
Excerpt from the Book
Purchasing Strategies and Objectives
It will be examined how interaction approach in purchasing strategies is implemented and as an example the case of IBM is taken.
The basic purchasing objectives include the need to select a supplier that has best prices, meets technical, quantity and delivery criteria. Apart from these objectives, there are additional strategic objectives that give emphasis to the interactionist approach i.e. having a balanced portfolio of supplier relations, accomplish an effective match with suppliers who have the adequate interaction characteristics and lastly, the ability to control the intensity of interaction (Sin et al., 2005).The number of a company suppliers suits to the number of items the company needs to buy and as a result the number of supplier relationships that need to be managed is determined by the above.
Some objectives and strategies can be applied to the whole range of bought products and services. These objectives are the ones that will show the company approach towards the selection and treatment of its suppliers. For instance, as a general strategy, it can be the encouragement of providing information, trust and co-operation. However, this strategy may include other objectives such as the willingness on behalf of the company to pay more than the minimum price, high quality of products and security of supplies. According to research (Gounaris & Venetis, 2002), the objectives and strategies of the above type are more prevalent in companies that have an organizational structure that is more centralized as it is the case of OTE.
Summary of Chapters
Introduction: This chapter introduces the shift towards relationship marketing in modern business and outlines the paper's focus on comparing transactional and relationship marketing using the IBM case study.
Relationship Marketing – Definition: This section explores various academic definitions of relationship marketing, highlighting its role as a core philosophy for managing successful, long-term business relations.
Transactional marketing & Relationship Marketing: This chapter contrasts traditional short-term transactional models with long-term relationship-based approaches, detailing their distinct operational requirements and organizational impacts.
Industrial network approach: This section presents the IMP Group's interaction model, which emphasizes continuous relations between companies, suppliers, and customers as the basis for successful networking.
Interaction approach and organizational buying: This chapter analyzes how the interactionist approach is applied to purchasing strategies, considering factors such as product life-cycles, technology, and organizational structure.
Conclusions: This chapter summarizes the effectiveness of the interaction approach in purchasing and acknowledges the practical challenges and complexities inherent in implementing relationship marketing.
Keywords
Relationship Marketing, Transactional Marketing, IMP Group, Interaction Approach, Purchasing Strategies, IBM, Supply Chain, Industrial Networks, Supplier Relations, Organizational Buying, Strategic Objectives, Internal Marketing, Vertical Integration, Business-to-Business, Market Orientation.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on comparing transactional marketing and relationship marketing, specifically analyzing how the IMP Group's interaction approach is implemented in organizational purchasing processes.
What are the primary themes discussed in the work?
Key themes include the shift from short-term transactions to long-term relational strategies, the role of internal marketing, supplier selection criteria, and the management of complex industrial networks.
What is the main research objective?
The primary objective is to demonstrate, through the example of IBM, how the interaction approach can be successfully integrated into purchasing strategies to improve overall business efficiency.
Which scientific methods or approaches are utilized?
The work employs a descriptive and comparative analysis of existing marketing literature and models, supplemented by a focused case study analysis of IBM's purchasing strategies.
What content is covered in the main body of the paper?
The main body covers the theoretical foundations of marketing paradigms, the specific dynamics of the industrial network approach, and a detailed look at how companies set and achieve purchasing objectives.
Which keywords best characterize this research?
Essential keywords include Relationship Marketing, Transactional Marketing, Interaction Approach, Purchasing Strategies, and Industrial Networks.
How does the author define the difference between transactional and relationship marketing in terms of price?
In transactional marketing, price is the dominant factor for customer retention, whereas in relationship marketing, companies offer comprehensive packages where price remains important but is balanced by quality and additional benefits.
Why does IBM serve as a central example for the author?
IBM is used as a case study because it demonstrates a successful, multidimensional implementation of relationship marketing and the interaction approach within its complex organizational structure.
What limitations to relationship marketing does the paper identify?
The paper highlights that developing successful relationships requires significant investments in time and money, a potential lack of practical experience, and the risk of the company becoming trapped in rigid relationships that limit its flexibility.
- Arbeit zitieren
- Fotini Mastroianni (Autor:in), 2014, Analyzing and comparing transactional and relationship marketing, München, GRIN Verlag, https://www.hausarbeiten.de/document/355383
