3 Disadvantages of Transactional Marketing

Transactional marketing is a business strategy that focuses more simply on just making the sale, henceforth “transaction”. Transactional marketing could be used for something that already has a high demand. Since the product is so desired, the efficiency of the transaction process is what makes the most money for the business. The sale of commodities like milk for example would use a transactional marketing strategy.

The 3 disadvantages of using transactional marketing tactics are:

1. Little effort emphasised on customer service

Customers may at times feel stranded if they have an issue with their purchase or may feel that the company they have just purchased from doesn’t appreciate their business.

2. High volume sales with lower margins leaves little room for error

If a company puts an order in to produce thousands of units and an error turns up, it can become costly fast and can eat at the very little margins that are made on the sales.

3. Focus may shift to making sales as opposed to satisfying needs

When the focus of the marketing strategy gets too far over on the “making the sale” side and takes away from satisfying the markets’ want or need, customer delight is hampered. Customers may even begin to feel ripped off or scammed.

There will always be a place for transactional marketing tactics in business, but with the addition of the internet into our daily lives, more and more customer interaction with traditionally transactional marketed products is beginning to arise turning very automated products into ones that can make the customer feel more appreciated.