The Exchange Of Value

The aim of marketing is to develop mutually benificial exchanges.

Consider this Example. A customer buys a 127 centermeter, 3D television for $3299. The retailer and manufacturer receive money for the purchase and clear one stock unit, which contributes to their profits. The customer receives their much-wanted television which they hang on their wall at home. The customer enjoys better quality sound and picture and a more aesthetically pleasing television, along with manny other benifits. Both parties have received a benifit and both parties have to give something upto receive something in return.

To be considered a successful marketing <strong>exchange</strong>, the transaction must satisyfy the following conditions:

- two or more parties must participate, each with something of value desires by the other parties

- All parties must benifit from the trasaction

- The exchange must meet both parties' expectation (e.g. Quality, price).

Once again, wxchange can occure for all different type of organisations: large and small, for profit and not-for-profit, and private and public.

Like exchange, value is a core marketing concept. <strong>Value</strong> is a customers overall assessment of the utility of an offering based on perceptions of what is received abd what is given. Some marketers veiw this simply as ratio between quality and price. Another way to veiw value is as a comparison between what a customer gets and what a customer gives; in other words, the <em>benifits</strong> a customer receives from a product is relation to its price.

The idea that value has a ratio between quality and price is a simple veiw of value to help you understand the concept. Marketers know that the idea of value is more complicated. Value refers to the 'total offering'. This includes all aspects, from the reputation of the organisatiob to how the employees act, the features of the product, the after sales service, quality and price. Most companies have competitors and value is relative to competition ad the competing offerings influence how a customer preceives value.

Value evolves continullay. Value changes sith each purchase, experience and conversation that a person has. For example, a student purchases a laptop online and tells ger friend that by purchasing online she saved $100. Her friend has purchased the same model laptop at the recommended retail price at a department store because it was convenient and she does not have a credit card. While she was happy with her purchase at the same time because it was quick and convenient, she no longer feels satisfied with her purchase because her perception has changed.

Value means different things to different people. Value is unique for each individual. Some customers perceives value when there is a low price while others perceive value when there is a balance between quality and price.

A brief breakdown of Marketing Concepts

Market

A group of customers with heterogeneous needs and wants.

Customers/Consumers

People who purchase and services for their own or other peoples use. People who use their good or service.

Clients

'Customers' of the products of not-for-profit organisations

Partners

Organisations or individuals who are involved in the activities and processes for creating, communicating and delivering offering for exchange.

Society

Society is a body of individuals living as members of a community. A society is a highly structures system of human organisation for large-scale community living that normally furnishes protection, continually, security and an identity for its members.

Marketers must understand the needs of the societies in which they operate.

Successful marketers demonstrate an awareness of community concern about the natural environment, responsible use of resources, sustainable practices and social equity. Studies suggest that companies that demonstrate social responsibility have higher profits and market capitalisation.