Ever wondered what is that very true picture of what should count as the main function of the marketing exchange which in other words is majorly set about receiving something that is desired more than what is given up to get it.
Also, it involves a reward in excess of costs and the parties involved in the exchange must be able to communicate with each other in order to make their something of value available. Just like the old way of buying and selling without the modern means of exchange, money, marketing exchange is a renewed strategy among big businesses today.
It is not to be argued that marketing theorists consider exchange to be the central concept without which there would be no such thing as marketing. And in this case, the agreement is that what you give must be of no value to you unlike what you desire to get in return for it. Utility is what motivates people to engage in a marketing exchange. In theory, both parties must receive more than what they give.
Kinds of Exchange Today
Over the years, there have been several types of exchanges that can be made or that are made across the civilized world. Here are the exchanges:
- Restricted Exchanges
One of the types of exchange in marketing is known as the simple or “restricted” exchange, so called because there are only two parties to the exchange. Restricted exchanges are one-on-one relationships, so both parties must receive approximately equal utility if the exchange is to be repeated. For example, if the person you buy coffee from is rude to you, you receive less utility from the exchange because you feel dissatisfied. This decreases the chances that you will buy coffee from the same person again. In a successful restricted exchange, both parties are motivated to treat each other fairly.
- Generalized Exchanges
A generalized exchange involves at least three parties, and each party gives utility to one participant, but receives utility from a different participant. For example, if a woman calls in an order for lunch to be delivered and pays with a credit card over the phone, and the restaurant employs a delivery driver to bring the food, then the woman gives utility to the restaurant, but receives utility from the driver.
- Complex Exchanges
Most types of relationship marketing are complex, meaning they involve networks of participants who both give and receive in more than one relationship with each other.
For example, a car manufacturer hires an advertising agency, which places an ad on a TV show, which provides entertainment to its viewers, some of whom will see the ad, then buy the car from a dealer, which buys its cars from the manufacturer. The manufacturer, ad agency, TV station, consumer and dealer are all involved in a complex network of marketing exchanges with each other, and all of them receive utility from the relationship.
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The Function: Marketing Exchange
Below are are the very functions with the main function of the marketing exchange floating over them:
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Buying and Selling Functions
Buying and selling of goods and services are the crux of marketing exchange. Call it whatever so far it is without the use of money which is identified as the legal tender. These functions have a common feature in one respect, that they are directly concerned with the change in ownership of goods.
Once the right type of product or service value is established, it then must be transferred to the one who seeks it. Products are exchanged from different sources to meet diverse needs of the consumers. Thus, buying and selling are the activities of exchange.
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Identification and Satisfaction of Needs
To identify the needs, wants and demands of the consumers and then analyzing the identified information to arrive at various decisions for the successful marketing of a firm’s products and services is one of the most important functions of marketing.
The analysis involves judging the internal weaknesses and strengths of the organization as well politico-legal, social and demographic data of the target market. This information is further used in market segmentations.
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Uniformity
Standardization in marketing exchange ensures that product offerings meet established quality and quantity. It helps in achieving uniformity and consistency in the output.
