Hazel’s Gourmet Spreads & Preserves Marketing Case

Exchange is the key concept in the definition of marketing. What is the concept of exchange? What are the five conditions of exchange that must be satisfied for marketing to occur?

The concept of exchange is quite simple. It means that people give up something to receive something they would rather have. Normally, we think of money as the medium of exchange. We give up money to get the goods and services we want. Five conditions must normally exist for an exchange to take place.

• There are at least two parties.

• Each party has something that might be of value to the other party.

• Each party is capable of communication and delivery.

• Each party is free to accept or reject the exchange offer.

• Each party believes it is appropriate or desirable to deal with the other party.

Hazel’s Gourmet Spreads & Preserves is located in Nova Scotia. Its owner, Hazel Mints, sells her products at arts and crafts shows and through mail order. The company has been in operation since 1994. Hazel has 15 employees and sells 47 different products. She packages her products in reusable glass containers that feature a four-color screen-printed label. Identify and describe the three types of competitive advantage and then discuss how this company can establish or maintain at least one of the three types of competitive advantage.

• Cost competitive advantage: Cost leadership can result from obtaining inexpensive raw materials, creating an efficient scale of plant operations, designing products for ease of manufacturing, controlling overhead costs, outsourcing and vertical integration. Having a cost competitive advantage means being the low-cost competitor in an industry while maintaining satisfactory profit margins. A cost competitive advantage enables