fileassignment1 - Exchange Theory, the Marketing...

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1) Although at a first glance the Exchange Theory might seem to be obvious. Why, however, does it represent the “marketer’s dilemma” at the most basic level? With the Exchange Theory there are two or more parties involved, and each one has something to contribute to the other and vice versa and both parties feel they are receiving the same value. The dilemma with the Exchange Theory is competition because it’s everywhere and a company must market themselves so their customers feel their getting the better deal from them rather than another company. Today, practically everything sold on the market has a substitute. For example, there are so many different kinds of cleaning supplies and competition plays a huge part in the dilemma of how a company should price their product. For instance, do you price the product lower than competitors or higher if you have a more recognizable brand? Therefore, the Exchange Theory represents the “marketer’s dilemma” at the most basic level because there is competition everywhere due to the fact that there are so many substitutes for nearly all products on the market. It’s the marketer’s tough task of setting the products of their company apart from other companies who have similar products or even services available in the same market. 2) What is the “marketing concept” and how does it differ from the traditional sales oriented business? The “marketing concept” is about firms meeting people’s needs and how the economic and social justifications for a firms existence is the customers need for satisfaction. Also it’s the concept that all activities should be coordinated in an organized way. Lastly, the marketing concept requires a business to have profitable, long-term sales volumes. This differs from a traditional sales oriented business where sales have more to
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do with the simplistic concept of give and take, such as bartering. With traditional sales you have two parties each empowering and motivating the other to get what each side feels is the better end of the deal. For example, a cars salesman does whatever it takes to close the deal and get rid of inventory. For instance, the salesman might use haggling and negotiate a price that is not completely set in stone. Therefore, the difference between the
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This note was uploaded on 12/22/2010 for the course BUS 8854 taught by Professor Purdy during the Fall '09 term at University of Southern Maine.

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fileassignment1 - Exchange Theory, the Marketing...

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