As far as I'm concerned, the business of marketing is all about forming and building the right relationships. Commodity selling systems, like auctions, are adversarial by their very nature. The only way the seller gains is at the expense of the buyer - and vica versa. This discourages relationships, rather than encouraging them.
Auction systems effectively create transactions, whereas relationships encourage interaction. What is the difference?? A transaction is fleeting, an instant in time, execution of a trade at a price point and to a an agreed quality. Interaction may in fact involve a great many transactions, where each is a learning experience for the buyer and the seller.
Relationships exist based upon mutuality. Each participant in the relationship must get something over time for their participation. If this reward were not there, the relationship would not exist, it would wither and die.
Customers love relationships with producers because at the simplest level it can provide them a source of differentiation - maybe it's even an exclusive relationship. Producers also dearly want relationships with customers. Producers, often described as 'salt of the earth' types know that once you've shared a bbq'd chop and a cold beer, you've got a fair chance at an enduring relationship.
Christina Jensen from Nike, USA meets Roberts Wool Link Tasmanian Wool Producers in '07.
We knew we had something special at TMC when we brought a customer from Nike, Marks & Spencer, or Muji to meet with some of the dedicated farmers.
