he promotion feature of point-of-sale activities can be leveraged with a shopping cart to collect preliminary data regarding consumers’ tastes and desires.
- The product is ideal for delivering a service/need for customers.
- How can you build a product such that it is appealing while still being cost-effective?
- The product would be sold in a particular location.
- How can you get the message out?
“Purchasing-based” marketing (transactional marketing) refers to maximizing the number of transactions by continuously recruiting potential buyers, rather than promoting regular purchases with the consumer, as with partnership marketing. You can find how to buy bitcoins on https://bitcoin-investor.app
A promotional presentation on QVC, which, if you are unaware, is a retail platform that deals in televised home shopping, is an indication of the way we want to be sold to. When you flip this channel, you can see some of the changing advertisements with electrical goods being marketed during the day; when marketing a particular product, each demo is expected to sell a certain number of products during a certain period. Their consumers do not feel that the food suppliers have the time to get to know their customers with a conversation. Instead of being an in-depth interview, the conversation is a one-way dialogue where the members use deals, rewards, and buzzwords (the clock is ticking) to produce as many sales as possible.
Pros and Cons of Transactional Marketing:
As in any marketing campaign, you should be prepared for all gains and drawbacks. It is how the world functions. In transactional marketing, here is what to give focus to:
Low Costs:
The reduced cost is a positive gain so that we can recognize this as a feature. Point-of-sale ads draw less interest from healthcare professionals and save less money than adding a TV commercial. Another bonus of making point-of-sale sales is that they are quick and really fast to execute.
Little Emotional Attachment:
These consumers are almost all worried about price and would not hesitate to make the order, regardless of the cost of the goods. This indicates that they’re definitely not going to be long-term clients while they are hoping for a short-term cure to their addiction. If you do not enforce the requested pricing strategy or nurture the partnership we mentioned earlier in the article, they will end their relationship with you. If you drop your rates, rivals might steal your money, so you must hold prices strong.
Inventory Turnover:
Here, we count this as a benefit because we realize that keeping inventory and trying to handle certain products at cheaper rates is a very high expense, and transactional marketing attempts to easily manage this by having each product off the store shelves. To create space for more high-demand products, you have to remove some of the lower-quality items first of all.
Transactional Marketing Example:
Many advertisers say that loyalty is no longer a feasible marketing strategy. According to a new study commissioned by Kantar Retail, over 70% of customers deny that rewards services are successful at keeping them loyal. Consumers are searching for products that can appeal to them at the moment. Let’s look at an illustration of how the company should create a more affordable shopping experience.
Imagine that the fence has to be mended. You have the wood, nails, and color but are lacking a hammer. You step into a hardware store to see a self-lined of numerous hammers with differing costs. A marketer is not comfortable with the very various styles of products. As a consequence, most brands react to the marketer the same. So, you compare the goods based on the 4 Ps as any marketer does.
- Product: They all have the same size and form, except one hammer has a padded handle with a soft feel.
- Price: Prices are offered compared to any of the various items except the hammer, which is marginally more costly.
- Promotion: The hammer has gentle padding on the handle, allowing it to be more convenient to use. This hammer has no coupons bundled with it, making the lower price sound like a great buy.
Place: The hammers are placed right next to the nails, making it easier for the buyer to decipher the price and obtain the additional discount.
