Marketing versus Advertising - Transactional versus Transcendent Relationships

by: Edward Hampton

Tue, Aug 12 2008 12:21 PM

Have you ever lost a customer or potential sale?  

It could have been prevented! - especially if the issue was based upon sustaining or developing the wrong relationship.  Before getting into relationships, an exploration of the difference in marketing and advertising will be helpful.

In operational terms, marketing is positioning.   The intent is to position what one is offering - organization, goods, services - in the hearts and minds of others in such a way that the other person feels positive and open to what is being positioned.  There is no overt solicitation of a response from the recipient - although one may be implied.

On the other hand, advertising is the offer of a transaction, i.e. a good or service is provided in return for something of value from the recipient.  It is communicating that I have something of value which I will provide in return for something of commensurate or fair value.

In reality, one rarely does pure marketing or pure advertising.  Rather, the two activities form a Venn diagram.   In some instances Marketing is the larger domain; in others advertising is.   Most people operate in the blended or overlaping union of the two.  Still, it is useful to differentiate the two activities; especially when determining the kind of relationship one seeks to maintain with clients, customers or stakeholders.  For example, when one networks, one probably starts as marketing.  However, if one gets into a conversation that leads to an offer, then one has crossed the line into advertising.  Same event, both domains operating.

With the above in mind, now lets tie into relationships.

Essentially, there are two broad types of relationships with customers or potential customers:

Transactional:  In a transactional relationship, the focus is on the transaction.

Transcendent:  In a transcendent relationship, the focus is on the relationship, i.e. the focus transcends the transaction or potential transaction.

A good general rule of thumb is to use advertising for transactional relationships and marketing for transcendent relationships.

However, in practical terms it is not this cut and dried!   Sometimes one starts transcendent and moves to transactional; sometimes the other way around.  A better way to look at the situation is to say "I market if I am seeking to build a transcendent relationship; one that I can patiently nurture for a transactional event in the future.  I advertise if I am seeking to gain an immediate transaction."

In both marketing and advertising, the key ingredient being developed is trust.  In marketing it is trust in the brand; in advertising it is trust in the transaction.  Trust enables risk taking.  Making a purchase or entering into a relationship is risk taking.

There are two basic strategies to consider:  First, one can be strategic in the sense of building for the long term.  In this strategy, one typically markets.  The metaphor would be to plant an orchard knowing it might be years before fruit is yielded.  In the business world, a professional - consultant, lawyer, coach, might build a relationship over several months or even years in order to build enough trust to gain a transaction.   The key word is trust.  One is building trust that will serve as a basis for risk taking on the part of the client or customer.

The second strategy is to build a relationship thru sustained excellence in transactions.  Dr. Christoper Avery states:  "Trust is the residue of successful risk taking."  Each time s customer takes a risk with you and comes away satisfied or more than satisfied, a residue of trust builds.  If enough trust builds, then one should move to transcendent relationship.  Think of the restaurant owner who allows a long time patron to use a corner of the restaurant as a meeting room - no charge - on a familial basis.

It goes without saying that there is a blended straegy of combining the two strategies.

A mistake some businesses make is advertising to a transcendent relationship and/or marketing to a transactional relationship.   Advertising cheapens a transcendent relationship as it seems to take advantage of trust.  On the other hand, marketing to a transcational relationship causes a "where's the beef" question; i.e. wondering what the point of your action is.   So, take care to match marketing or advertising to  appropriate relationship - desired or existing. And allow your approach to grow appropriately as your relationship with client or customer changes.

Good luck in your marketing and advertising.  I think you will find your chances for luck will increase if you emply the proper approach with the appropriate relationship in mind.

Ed Hampton

Drive On!

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