Definition : Transaction marketing is a business strategy that focuses on single, “point of sale” transactions. The emphasis is on maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer.
An accounting transaction is a business event having a monetary impact on the financial statements of a business. It is recorded in the accounting records of the business. Examples of accounting transactions are: Sale in cash to a customer.
The decade of the 90s saw the rebirth of relationship marketing. The issue of trust between customer and marketer is emphasized. Trust is an asymmetrical quality. It is built slowly over several Transaction but disappears in a flash. The relationship marketing approach emphasizes on both the hard and the soft aspects of marketing processes which help create reliability. The hard aspects relate to product reliability, use of interactive technologies both at the front and back ends (i.e., integrating customers with organizational functions), retail stores, and so on. The soft aspects concern human interactions and thereby, work on dependability issues among salespersons, service personnel, intermediaries, and so forth. The underpinning strength of relationship marketing is customer loyalty. Today the need for customer- centric organizations is increasingly being appreciated. For that, the organizational pyramid needs to be inverted and the customer placed on the top of the pyramid. The logic behind it is that, in any organization, communication flows from top to bottom and, generally the behavior of an average employee is to look up not only for guidance and help but also for recognition.