Definition of marketing exchange

For an exchange to take place, four conditions must be met.

First, two or more individuals, groups, or organisations must participate. Second, each party must possess something of value that the other party desires. Third, each party must be willing to give up its something of value to receive the something of value held by the other party.

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.