Marketing Exchange Process
Oct 2, Needs, wants and demands; Products; Value and satisfaction; Exchange, transactions and relationships; Markets; Marketing in a connected. Marketing Exchange Transactions and. Relationships by Franklin S. Houston, Jule B. Gassenheimer, and James M. Maskulka (Westport, Connecticut: Quorum . May 8, The exchange process extends into relationship marketing. With relationship marketing we purposefully look at the long-term relationship with.
Marketing Management: EXCHANGE,TRANSACTIONS,AND RELATIONSHIPS
Exchange is only one of many ways people can obtain a desired object. For example, hungry people can find food by hunting, fishing or gathering fruit. They could beg for food or take food from someone else.
Finally, they could offer money, another good or a service in return for food. As a means of satisfying needs, exchange has much in its favour. People do not have to prey on others or depend on donations. Nor must they possess the skills to produce every necessity for themselves. They can concentrate on making things they are good at making and trade them for needed items made by others. Thus exchange allows a society to produce much more than it would with any alternative system.
Marketing: Exchange, Transactions and Relationships
Exchange is the core concept of marketing. For an exchange to take place, several conditions must be satisfied. Of course, at least two parties must participate and each must have something of value to offer the other. Each party must also want to deal with the other party and each must be free to accept or reject the other's offer.
Finally, each party must be able to communicate and deliver. These conditions simply make exchange possible. Whether exchange actually takes place depends on the parties coming to an agreement.
If they agree, we must conclude that the act of exchange has left both of them better off or, at least, not worse off. After all, each was free to reject or accept the offer. In this sense, exchange creates value just as production creates value.
Marketing Exchange Process
It gives people more consumption choices or possibilities. Whereas exchange is the core concept of marketing, a transaction is marketing's unit of measurement.
A transaction consists of a trading of values between two parties.
In a transaction, we must be able to say that one party gives X to another party and gets Fin return. This is a classic monetary transaction, but not all transactions involve money. In a barter transaction, you might trade your old refrigerator in return for a neighbour's second-hand television set. Going Back lo Barter With todays high prices, many companies are returning to the primitive but time-honoured practice of barter - trading goods and services that they make or provide for other goods and services that they need.
Exchange is the act of obtaining a desired object from someone by offering something in return.
Armstrong et al For example you go into a restaurant and order your favourite meal. You eat the food and then you pay for it with your credit card. You use your Android or iPhone to download an app and you pay for it using PayPal.Transactional vs Relationship
Again you have gone through and completed an exchange process. You see a newspaper advertisement asking you to donate blood and you return a coupon to become a blood donor. You watch the news on TV and listen to the views of a political candidate, and on polling day you vote for that person.
Can you think of any more examples of marketing as an exchange process? Write down three more examples in addition to those above. Marketing managers attempt to engender a response from a marketing stimulus.
This is the exchange process as it begins.