Core Marketing Concepts
To have more clear view about the marketing and to understand the marketing process first we
should discuss the some basic concepts, which we will be discussing in the coming Lessons and
what is the main essence of the marketing process and we can say that the marketing revolves
around theses concepts.
- Needs, wants, and demandsNeeds Human
needs are the most basic concept underlying marketing. A human need is a state of felt deprivation.
1). Humans have many complex needs.
a). Basic, physical needs for food, clothing, warmth, and safety.
b). Social needs for belonging and affection.
c). Individual needs for knowledge and selfexpression.
2). These needs are part of the basic human makeup.
Wants A human want is the form that a human need takes as shaped by culture and individual
personality.
Demands are human wants that are backed by buying power.
1). Consumers view products as bundles of benefits and choose products that give them
the best bundle for their money.
2). People demand products with the benefits that add up to the most satisfaction.
Outstanding marketing companies go to great lengths to learn about and understand their
customer’s needs, wants, and demands. The outstanding company strives to stay close to the
customer.
- Products and Services
A product is anything that can be offered to a market to satisfy a need or want.
A service is an activity or benefit offered for sale that is essentially intangible and does not result
in the ownership of anything.
1). The concept of product is not limited to physical objects and can include experiences,
persons, places, organizations, information, and ideas.
2). Be careful of paying attention to the product and not the benefit being satisfied.
3). “Marketing myopia” is caused by shortsightedness or losing sight of
underlying customer needs by only focusing on existing wants.
- Value, satisfaction, and quality
Customer value is the difference between the values that the customer gains from owning and
using a product and the costs of obtaining the product. Customers do not often judge product
values and costs accurately or objectively--they act on perceived value.
Customer satisfaction depends on a product’s perceived performance in
Delivering value relative to a buyer’s expectations. If performance exceeds expectations, the buyer
is delighted (certainly a worthy goal of the marketing company).
1). Smart companies aim to delight customers by promising only what they can deliver, then
delivering more than they promise.
2). The aim of successful companies today is total customer satisfaction.
3). Customer delight creates an emotional affinity for a product or service, not just a
rational preference, and this creates high customer loyalty.
4). Quality has a direct impact on product or service performance. Quality is defined in
terms of customer satisfaction.
The term total quality management (TQM) is an approach in which all the
company’s people are involved in constantly improving the quality of products,
services, and marketing processes.
1). In the narrowest sense, quality can be defined as “freedom from defects.”
2). Quality has a direct impact on product or service performance. Quality is
defined in terms of customer satisfaction.
3). The fundamental aim of today’s total quality movement has become total
customer satisfaction.
- Exchange, transactions, And relationships
Marketing occurs when people decide to satisfy needs and wants through exchange.
Exchange is the act of obtaining a desired object from someone by offering something in return.
Exchange is only one of many ways to obtain a desired object. Exchange is the core concept of
marketing. Conditions of exchange include:
1. At least two parties must participate.
2. Each must have something of value to the other.
3. Each must want to deal with the other party.
Each must be free to accept or reject the other's offer Whereas exchange is a core concept of marketing, a transaction (a trade of values between two parties) is marketing’s unit of measurement. Most involve money, a response, and action.
Transaction marketing is part of a larger idea of relationship marketing. Beyond creating shortterm
transactions, marketers need to build long- term relationships with valued customers,
distributors, dealers, and suppliers. Ultimately, a company wants to build a unique company asset
called a marketing network (the company and all its supporting stakeholders). The goal of
relationship marketing is to deliver long-term value to the customer and thereby secure
customer satisfaction and retention of patronage.
1). Competition is increasingly between networks.
2). Build a good network of relationships with key stakeholders and profits will follow.
e. Markets
The concepts of exchange and relationships lead to the concept of a market. A market is
the set of actual and potential buyers of a product.
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