MANAGEMENT

Detailed explanation-1: -The central idea of the marketing is the exchange of product between the seller and the buyer. Exchange covers the distribution aspect and the price mechanism of the product.

Detailed explanation-2: -The objective of a marketing exchange is to receive something that is desired more than what is given up to get it. In other words, it involves a reward in excess of costs. Fourth, the parties involved in the exchange must be able to communicate with each other in order to make their something of value available.

Detailed explanation-3: -For example, if a woman calls in an order for lunch to be delivered and pays with a credit card over the phone, and the restaurant employs a delivery driver to bring the food, then the woman gives utility to the restaurant, but receives utility from the driver.

Detailed explanation-4: -The area concept of the market is related to the exchange concept. This concept gives emphasis on free association between buyers and sellers to fix the price of goods for buying and selling.

Detailed explanation-5: -It means that marketers must design offers that offer superior value in relation to customers’ expectations and in relation to competitors. It means that marketers must set very low expectations so that they are always able to delight their customers.