Marketing Is an Exchange System and Value Creation

Explain the idea that marketing is an exchange system, value creation activity. Include in your discussion the importance of marketing orientation in today marketing strategy.

The issue that people have needs and wants and can attach value to the product doesn’t speak out the meaning of marketing. Marketing appears when people decide to satisfy that needs and wants through exchange. Exchange is one of four ways for people to get the product. The first way is self-producing, the second way is robbery, the third way is begging and the fourth way is exchange. Marketing arise from the fourth methods. Exchange is the act of receiving desired products from someone by giving them certain things. Exchange is a decisive concept and creates the foundation for marketing.

There are some conditions that need to be satisfied to let an exchange be existed. But whether the exchange will actually occur or not depends on the issue that if the parties could see the benefits from that exchange or not. This is the time for marketing appearance. Marketing is a chain of activities throughout the value chain. There are appearance of marketing in all steps. To ensure the exchange could be done smoothly, marketing will analyze whether each party is expected to give and receive something, help parties to see the advantages they can get. According to the textbook, “Value is the ratio of the bundle of benefits a customer receives from an offering compared to the costs incurred by the customer in acquiring that bundle of benefit”. Because of this sense that marketing is regarded as an activity of value creation. It means that marketing often makes not only customers but also marketers more profitable than before.

Marketing is becoming more and more popular in society nowadays. If we want to do marketing well, we have to do marketing strategy well. And marketing orientation is a very important step to have a good marketing strategy. Why? Because marketing orientation is a model that focuses on customer desires, needs, and requirements, finds out what they want, and then produces it for them. It helps marketers to pay attention to customers and create a loyal relationship with them. Marketers want to keep their customers. The biggest reason