Friday 31 March 2017

EXCHANGE TRANSACTIONS IN SOCIAL MARKETING

Having put social products within an integrative framework of product offering, the next task in
developing the marketing approach to ideas is to examine methods by which concepts are marketed.
What is the nature of the exchange transaction? It is called an exchange transaction because
ordinarily something of approximately equal value to the product is given in return by the consumer
to the supplier. An exchange of values takes place in the marketing transaction.


Where does social marketing occur? The traditional transaction takes place in the open
marketplace. Goods and services are bought and sold through a bargaining process with each party
trying to obtain what it perceives are the best terms available. By contrast. exchanges of social
products occur in political, organizational, educational, leisure, health care, family and a multitude of
other settings. In its broadest meaning social marketing occurs virtually everywhere and all the time,
but under different labels -public service, organizational development, human interaction (for
example a marriage proposal) and so on.


A transaction takes place, for example, when a person decides to watch a television program; he is
exchanging his time for entertainment. A transaction takes place when a person votes for a particular
candidate; he is exchanging his time and support for expectations of better government. A transaction
takes place when a person gives money to a charity; he is exchanging money for a good conscience
 


Marketing as Exchange and Exchange as Marketing 
That the concept of exchange underlies marketing processes has been well developed and
documented, notably by Bagozzi (1974, 1975): "Exchange is a central concept in marketing and may
well serve as the foundation for that elusive "general theory of marketing" (1975, ). If marketing
is exchange, what about the converse? Are not many exchanges also market transactions? It turns
out that many forms of non-mercantile interaction among individuals and groups can be considered
and studied as marketing phenomena. That is the theme of this book and it is also the theme of a
work by the cultural anthropologist Belshaw who indeed maintains that "all enduring social relations
involve transactions which have an exhange aspect" (1965, ). Bagozzi concurs: "Social marketing
is the answer to particular question; Why and how are exchanges created and resolved in social
relationships?" (1975). Carrying the argument yet further, Issacson and Permut (1978) point
out that:


The extension of marketing theory and practice from the private/business arena to a host of other
contexts in which exchange processes take place . . . requires an appreciation for the very diverse
nature of these exchanges, including understanding the different backgrounds, structures, goals and
operating procedures of the institution and individual participants. We believe the insights gained by
considering more diverse settings have not only a value in their own right, but add to our ability to
comprehend and resolve problems in more traditional marketing settings 


The remainder of this section lists several methods of human interaction not usually seen as
marketing, but presented here within a marketing orientation. This list of transactional types is by no
means a serious review of exchange theory. Rather it is intended to serve as a convenient showcase
to demonstrate some of the ways in which social products are marketed. Each of the types -isted
below is susceptible to analysis in terms of the six key "marketing approach" questions raised earlier
in the chapter and they constitute the methods employed by the distribution channels
 

Information and education dissemination  
In a broad sense virtually all marketing activity consists of the dissemination of information. No
matter what the product the marketer must communicate information about benefits to the consumer
to be derived from an exchange transaction. That point is emphasized throughout Chapter 8 where
the product is information about government manpower training and strategic planning is
demonstrated from that viewpoint. Knowledge itself has been described by Gerald Zaltman (1979)
in terms of "items" designed and transmitted to satisfy users (see Chapter 4 of the present volume).
The acquisition of information and education is a consumption process and includes, for example,
participation in and attendance at lectures, as well as formal schooling. Swagler (1979) studied what
he called consumers' "information acquisition behavior" in which the price paid for tl:e purchase is
primarily in terms of time. He points out that the consumer's "stock of informational capital
becomes a dominant factor in the consumer's decision whether or not to seek additional
information." How similar this is to the situation of a food store buyer contemplating inventory
replenishment (It is interesting that both food and information might spoil with age!)
Interpersonal relationships offer many examples of educative exchanges in which the product is
information, knowledge, recounted experience, or skills. Many youngsters can attest to parental
efforts to promote some of the concepts shown in cells (3) and (4) . And the price paid
seems so high! Usually these products are packaged (couched) in "for-your-own-good" wrappings
and children become repeat customers to the extent that they find sense and validity in buying these
ideas.

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