Running head: ESSAYShift in Marketing DefinitionName of the StudentName of the UniversityAuthor’s Note
1ESSAYThere has been a shift in the definition of marketing in American ManagementAssociation. The paper describes the shift in the definition of marketing between the periods of1985 to 2004, where it shifted from exchange perspective to value creation (Sheth & Uslay,2007). This assignment will be focusing on the concepts through application to the specificmarketing problem with references of real world examples. A detailed understanding of themarketing concepts is provided and an in-depth explanation is given through its application tothe specific marketing problems related to it. This information is utilized in the later part foranalyzing and evaluating a marketing context. A brief recommendation is provided in the finalpart of the essay.The concept of exchange had been the fundamental for many decades. It was defined as away of meeting the society’s problem. This exchange framework is a concept that relates thenumber of exchange with the number of outcomes. Marketing according to this definition is tocreate exchanges to satisfy individual and organizational goals (Sheth & Uslay, 2007). Threetypes of exchange can be identified broadly by different scholar that are generalized, restrictedand complex. The first type of exchange that is generalized exchange denotes the reciprocalrelationship among a minimum of three actors in exchange. These actors are related indirectly toeach other. Whereas, restricted exchange is the type of exchange that involves only two partiesand it represents the reciprocal relationship in-between the parties (Hill & Martin, 2014). Lastbut not the least, the complex type of exchange refers to a system of mutual relationship betweenat least three parties. It can also be referred as the channel distribution. Generalized and complexexchanges are mostly visible in present day marketing scenario (Achroll & Kotler, 2014). Whereas, value creation concept reaches out the aspects of value other than exchange.These other types of values are taken into consideration for value creation for the growth in the
2ESSAYbusiness. It also gives a proper explanation for the development and growth of intra and extra-networks (Sheth & Uslay, 2007). These non-financial factors that are considered into valuecreation help the organization to create long-term value. There are certain themes of valuecreation that supports its definition (Lusch, 2007). Value creation takes place within a contextout of which it is meaningless. The financial value of a company is obviously important for acompany, but it is insufficient for assessing value creation. The value of an organization iscreated from both tangible and intangible assets. Value is created utilizing both public andprivate resources. Purpose off the value creation is to satisfy the needs of the organization andothers. Connectivity between wide ranges of factors facilitates the creation of the value. Various assumptions have been made in due time regarding the shift of marketingparadigm from exchange to value creation. The traditional exchange paradigm of marketingconveyed the message to the customers about the benefits of the products and services in solvingproblems or to enhance a situation. On the other hand, value creation which introduced therelationship marketing. In this, the organization focuses on the need of the consumer, andprovides the product and services to meet that need, which helps them to build up a long termrelationship with their customer. This minute detail explains various reasons behind the changethat occurred. The market pressure can be identified as the first factor that play crucial role in thechange. The Corporate Social Responsibility is the second reason for that is involved in thechange of marketing paradigm that can be identified. Present market situation demands thebusiness organizations to look after the societal sustainability and also the sustainability of thecompany. It also helps the company to differentiate themselves from other similar companies(Suliman, Al-Khatib & Thomas, 2016).