Which strategic activity involves the buying, selling, and exchanging of goods and services?

Marketing is the strategic activity that encompasses the buying, selling, and exchanging of goods and services. It involves understanding customer needs, promoting products and services to potential buyers, and ultimately facilitating transactions. Marketing not only includes advertising and communication efforts but also the research and analysis necessary to identify market trends and customer preferences.

This broad definition captures the essence of how businesses operate in a competitive landscape, making it clear that marketing plays a central role in generating revenue by connecting products and services with customers. The other options, while important components of a business strategy, focus on more specific functions: price setting determines how much a product will sell for but does not encompass all aspects of transactions; product development centers on creating new offerings; and sales forecasting involves predicting revenue but does not directly involve the exchange process itself. Thus, marketing is the correct answer as it embodies the entire ecosystem of trade activity.