Marketing Management Complete Assignment 1.docx - 1 At its...

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1. At its core, marketing is meant to facilitate exchanges. As marketing managers, the most prevalent view we may take of exchange is that of our product for our customers’ money. What other exchanges may occur between marketers and customers? a. At the surface level, traditional exchanges involve “obtaining something of value from someone by offering something in return; this usually entails obtaining products for money” (Ferrell & Hartline, 2014, p.9). However, as it is discussed in further detail, exchanges require five prerequisites before the exchange is allowed: there must be at least two parties to exchange, each party has something of value to the other party, each party must be capable of communication and delivery, each party must be free to accept or reject the exchange, and each party believe is desirable to exchange with the other party (Ferrell & Hartline, 2014). Generally speaking, marketing managers tend to search for exchanges that are beneficial to both the buyer and the seller. For instance, my mother once encouraged my sister to design the interior of the rental home that she owned in exchange for my mother creating a mural for my sister. In this particular instance, my sister can either accept or deny the exchange. Furthermore, if she feels as though she is contributing to something greater, then she may impose that my mother should contribute more to the initial offer. According to the text, once the exchange has been accepted, both parties will provide each other with a product to satisfy a want (Ferrell & Hartline, 2014). In contrast to monetary exchanges, non- monetary exchanges such as ideas, life experiences, inventories, projects, etc. There is a plethora of exchanges that are made on a daily basis. While most of those exchanges include someone gaining monetary value, there are exchanges where both parties benefit with any money being involved in the process. For instance, a parent will more than likely give their child advice on the ins and outs of life in exchange for their kids making better decisions than they did at that age. Although this exchange is more minute than other exchanges, it still demonstrates how exchanges are dynamic and can include more than goods and monetary values. Conversely, from the business perspective, exchanges such as equipment and investments in stock prove to be more beneficial than monetary exchanges in some instances. For example, when one decides to trade their old car in for another vehicle, this would be
considered an exchange between the car dealership and the customer. Both parties would still need to meet the five prerequisites before making the exchange as discussed briefly earlier on. Ferrell, O. C., & Hartline, M. D. (2014). Marketing strategy: Text and cases (7th ed.). Mason, OH: South-Western/Cengage Learning.

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