Understanding Exchanges and Relationships in Markets
A tutorial for Understanding how Exchanges and Relationships create a Market for Consumers
Exchanges and Relationships
When consumers decided they want to satisfy their needs and wants they do so through what is known as exchange relationships. Exchange relationships or exchanges is the act of obtaining a desired object from someone by offering something in return.
Marketers try to bring about a response to some market offering. Responses by consumers may be buying or trading products or services or something more. As an example, a church may want new membership or a social action group may want the acceptance of their ideas.
As a result, marketings’ goal is to create, maintain, and grow desirable exchange relationships with target audiences to sell or exchange, or gain acceptance of products, services, ideas, and other objects.
A market exists when there are actual and potential buyers of products and services. A market is based on the concept of exchange and relationships and consumers share a particular need or want that can be satisfied through the exchange relationship.
While a market refers to an exchange and relationship coexistence, the act of marketing means the management of these markets to bring about profitable customer relationships. Creating these relationships requires work. As an example, sellers must:
- search for buyers
- identify the buyers needs
- create market offerings that meets customer expectations
- set competitive pricing for the products or services
- promote them
- warehouse them, and
- deliver the product
Core marketing activities include:
- consumer research
- product development
In closing, marketing is carried out by both sellers and buyers. In today’s digital marketing environment, it allows consumers (buyers) to market for products easily. Consumers search for products online. They interact with companies through the company website or social media sites and make purchases. In today’s market environment, marketing is truly a two-way affair.