marketing exchange

Examples of marketing exchange in the following topics:

• The Marketing Exchange

  • This is the mystery, or the "black box," of buyer behavior that makes the exchange process so unpredictable and difficult for marketers to understand.
  • When we use the term "buyer", we are referring to an individual, group, or organization that engages in market exchange.
  • When potential buyers are not satisfied, the exchange falters and the goals of the marketer cannot be met.
  • In order to better understand the marketing exchange, it is important for marketers to grasp how consumers go about making purchase decisions.
  • Marketers must take into account technology's impact in order to foster successful market exchanges.

• Defining Marketing

  • Marketing is the activity of facilitating exchange of a given commodity for goods, services, and/or money for the purpose of delivering maximum value to the owner of the commodity.
  • Marketing satisfies these needs and wants through exchange processes and building long-term relationships.
  • Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value.
  • The official American Marketing Association definition published in July 2013 defines Marketing as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. "
  • Marketing differs from the other functional areas in that its primary concern is with exchanges that take place in markets outside the organization.

• What Are Markets

  • The Market is People: Since exchange involves two or more people, the market can be thought of as people, individuals, or groups.
  • The Market is a Place: The market can also be thought of as a place or as a geographical area within which trading occurs.
  • International markets, American markets, a shopping center, and even the site of a single retail store can be called a market.
  • The terms buyer's market and seller's market describe different conditions of bargaining strength.
  • The primary types of markets are consumer markets, industrial markets, institutional markets, and reseller markets.

• Changes in Pricing

  • Pricing is the process of determining what a company will receive in exchange for its products.
  • In the global marketing mix, pricing factors are manufacturing cost, market place, competition, market condition, and quality of product.
  • The goal of pricing in global marketing strategies falls under three criteria:
  • Like national marketing, pricing in global marketing is affected by the other variables of the marketing mix.
  • Price will always vary from market to market.

• The Communication Process

  • Likewise, integrated marketing communications uses this communications process to persuade target audiences to listen and act on marketing messages.
  • People play different roles – friend, parent, boss, client, customer, or employee – depending on the exchange during the communications process.
  • Thus, organizations must keep in mind the different subsystems of their target audiences when devising integrated marketing communications strategies.
  • Companies must also consider other consumer stimuli such as past experiences, education, health, and genetics when developing communications for certain target markets.
  • The communications process involves two or more persons exchanging words or symbols.

• Global Marketing in the U.S.

  • Example: The primary objective of the company is to achieve a synergy in the overall operation, so that by taking advantage of different exchange rates, tax rates, labor rates, skill levels, and market opportunities, the organization as a whole will be greater than the sum of its parts.
  • When a firm chooses to market internationally, it must decide whether to adjust its domestic marketing program.
  • Some firms customize their market programs, adjusting their marketing mix for each target market.
  • Others use a standard marketing mix everywhere.
  • As such, the decision sequence in international marketing is much larger than that of domestic markets.

• The Importance of Market Segmentation

  • Segmenting example: Kellogg's Frosties are marketed to children, while Kellogg's Crunchy Nut Cornflakes are marketed to adults.
  • While there may be theoretically 'ideal' market segments, in reality, every organization engaged in a market will develop different ways of imagining market segments, and create product differentiation strategies to exploit these segments.
  • By emphasizing a segmentation approach, the exchange process should be enhanced, since a company can more precisely match the needs and wants of the customer.
  • The problem is not competition; the problem is the acknowledgment that people within markets are different and that successful marketers must respond to these differences.
  • Rather, one or more target markets (segments) must be selected.

• Evaluating Market Segments

  • The problem is not competition; the problem is the acknowledgment that people within markets are different and that successful marketers must respond to these differences (see for a recap of the different market approaches).
  • By emphasizing a segmentation approach, the exchange process should be enhanced, since a company can more precisely match the needs and wants of the customer.
  • An organization that adopts a concentration strategy chooses to focus its marketing efforts on only one market segment.
  • Thus, only one marketing mix is developed.
  • When an organization adopts this strategy, it focuses its marketing efforts on two or more distinct market segments.

• Introduction to Integrated Marketing Communications

  • Marketing was a one-way feed.
  • Now, marketing is viewed more as a two-way conversation between marketers and consumers.
  • the move from a manufacturer-dominated market to a retailer-dominated, consumer-controlled market
  • the growing use of data-based marketing as opposed to general-focus advertising and marketing
  • The organization simultaneously consolidates its image, develops a dialogue, and nurtures its relationship with customers throughout the exchange.

• Relationship Marketing and Management

  • Relationship marketing is a form of marketing that shifts focus away from sales transactions to emphasize customer satisfaction.
  • Relationship marketing is a form of marketing that shifts focus away from sales transactions to emphasize customer satisfaction.
  • It refers to a short-term arrangement where both the buyer and seller have an interest in providing a more satisfying exchange.
  • This approach tries to disambiguiously transcend the simple post-purchase exchange process with a customer to make more truthful and richer contact by providing a more holistic, personalized purchase.
  • Examples of markets in which relationship marketing can be crucial include: