Marketing Management 3(2+1)

Lesson 02-Marketing, Selling and Merchandising

Exchange and Transaction

The existence of market is felt when humans satisfy needs and wants through exchange. It is the act of obtaining a desired product from someone by offering something in return. It is also a value-creating process that leaves both parties better off. Exchange is a process rather than an event.

When two parties negotiate and come upon an agreement it can be said that transaction has taken place. A transaction is a trade of values between two or more parties. It is different from transfers, gifts, subsidies and charitable contributions. It is the responsibility of a marketer to bring about the response in customer to a market