Transactional Marketing: Definition & Examples

Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

Transactional marketing has one focus: the sale and nothing but the sale! In this lesson, you'll learn more about transactional marketing, how the marketing mix figures in and see some examples of it in action.

Closing the Sale

You make a phone call to insurance company's toll-free number to check on the status of a claim. As your call comes to a conclusion, the representative offers you a limited-time deal on $100,000 of life insurance for a reduced rate. You politely decline and end the call.

As you're navigating the grocery store on your way home from work, you enter the laundry detergent aisle focused on picking up your favorite brand. Next to it, a competing brand has created a promotional display with a coupon for today's purchase. You opt for the new— and cheaper—product.

While you're watching television before bed, you notice an advertisement for a new set of non-stick cookware at a limited-time, ''buy one, get one free'' offer. Before nodding off, you log on to the website and complete your purchase.

All of these are example of transactional marketing in practice. But, what is transactional marketing and how does it apply to consumers? Read on.

What is Transactional Marketing?

Unlike marketing that focuses on building long-term relationships with consumers, transactional marketing is all about making the sale. As a strategy, it is built around single purchases and doing a lot of volume as opposed to nurturing customers through distributing content, building bonds, and fostering loyalty.

Transactional marketing has its roots in the ''four Ps'' of the marketing mix, a set of tactics used to help convince consumers to make a purchase. Included in this approach:

  1. Product: This category is about creating a product or service that meets consumer needs or demands. This is the very start of the transactional marketing process. Without a market for your product, there are no sales.
  2. Price: Setting a price is a tricky balance between being profitable for a business, but also perceived as attractive and worth the value being received.
  3. Place: This little tidbit will involve understanding who your target audience is and where best to reach them. Placement could include brick-and-mortar stores or online distribution channels.
  4. Promotion: How will you reach people to let them know about your product? This includes things like channels (radio, television or social media are just a few possibilities) and best times and days of the weekend to push out your message. It will also include things like special offers or coupons to encourage a purchase. The promotional piece will often help you ''close the sale.''

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