Final answer:
Relationship marketing is the strategy focused on nurturing and enhancing relationships with current customers. It contrasts transactional marketing, aiming for sustained engagement and mutual benefits, aligning with social exchange theory's perspective on human relationships.
Step-by-step explanation:
The type of marketing that focuses on keeping and improving current customers, rather than concentrating on acquiring new customers, is Relationship marketing. This approach is designed to foster customer loyalty, engagement, and long-term engagement, with the aim of developing strong ties with customers by providing them with value over time. In contrast to transactional marketing, which is about one-time sales, Relationship marketing is about building a sustainable customer base.
Also, as the reference information about social exchange theory suggests, humans tend to want to maximize benefits while reducing costs in their relationships. Similarly, in Relationship marketing, the company seeks to maximize the benefits for both the customer and itself, creating a win-win situation that underlines the long-term value of maintaining those relationships.
For example, a company that offers a loyalty program to reward customers for their repeat business is practicing relationship marketing. By offering exclusive discounts, special promotions, and personalized recommendations, the company aims to strengthen the bond with their existing customers and encourage them to continue doing business with them.