Relationship marketing in three dimensions

In recent times there has been a call for a revision of the paradigm that underpins the marketing process, from a transaction marketing (TM) to a new relationship marketing (RM) model. This paper argues that it is more productive to consider RM to be a third dimension of the existing TM model than to develop a separate paradigm. The two-dimensional marketing model is described as reflecting the marketing of products (dimension one) to market segments (dimension two), facilitated by channels and supported by promotion and pricing. The third dimension, relationships, is introduced as a spiral diagram that elevates the customer above the two planes of products and markets, and in doing so, generates a barrier to entry of predator sellers. For the practicing marketer, the paper illustrates the structure of relationships and identifies the potential power of RM, along with the fragility that calls for the careful and effective management of RM. A competing values framework is used to plot the development profile of a relationship over time or compare it to competitors’, benchmarks, and conceptual profiles of the kind of relationships a firm is trying to develop. The paper adds to the academic debate by encouraging the view that RM is a third dimension of the TM model rather than an entirely new concept. Relationships are essential but on their own are not sufficient to bring about exchange in markets which is the essence of marketing.