Transactional Marketing - Meaning & Definition

Published in Marketing and Strategy Terms by MBA Skool Team

What is Transactional Marketing?

Transactional marketing is based on single transaction which focuses on maximizing the output from the ‘point of sale’. In contrast, relationship marketing focuses on creating a relationship with the customers which will help the marketers in the long term. Transactional marketing emphasizes on the sales transaction as it will help the company to increase sales which is their main motive.

Transactional marketing follows the 4 P’s of the marketing

1) Product – Creating the product which satisfies the needs of the customers. Since it is the beginning of the transaction, it plays a very important role.

For example: A detergent which cleans clothes better than any other product in the market. The aim here will be to satisfy the customer’s needs to clean the stubborn stains off the clothes.

2) Price – Providing the product at a price which is convenient and attractive for the customer once he considers the product based on his requirement. At the same time, there should be some margin for the profit while giving the customers the price he cannot resist.

For example: If the detergent is priced lower than the other products in the market, then there is more chance that customers will try the product to see its worth.

3) Place – Using an efficient distribution system to help increase the reach of the product. The product should be placed where the customer can easily find it. Because if the customer does not find the product at right place, then that may lead to loss in sales

For example: The detergent here needs to be placed in all the grocery and convenient stores so that the customers can pick it up while shopping

4) Promotion – Effective communication about the product and using buzz words like discounts in order to attract the customer. The promotions should urge the customer to buy the product immediately. There can be in-store promotions or some online coupons to attract the customer.

For example: Some kind of in-store discounts on the detergent may help the customer make the choice.


Hence, this concludes the definition of Transactional Marketing along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.

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