Core Mktg Concepts

8/9/2019 Core Mktg Concepts

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Core MarketingConcepts


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Core

Marketing

Concept


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Core Marketing Concepts

To have more clear view about themarketing and to understand the

marketing process first we should discuss

the some basic concepts, which we willbe discussing in the coming Lessons and

what is the main essence of the

marketing process and we can say thatthe marketing revolves around these

concepts.


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Needs, wants, and demands Needs Human needs are the most basic concept

underlying marketing.

A human needis a state of felt deprivation.

1). Humans have many complex needs.

a). Basic, physical needs for food, clothing, warmth, andsafety.

b). Social needs for belonging and affection.

c). Individual needs for knowledge and self expression.

2). These needs are part of the basic human makeup.


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Wants A human wantis the form that a humanneed takes as shaped by culture and individualpersonality.

Demands are human wants that are backed by

buying power. Consumers view products as bundles of benefits

and choose products that give them the bestbundle for their money.

Outstanding marketing companies go to greatlengths to learn about and understand theircustomers needs, wants, and demands.


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Products and Services

A product is anything that can be offered to a marketto satisfy a need or want.

A service is an activity or benefit offered for sale that isessentially intangible and does not result in theownership of anything.

1). The concept of product is not limited to physicalobjects and can include experiences, persons, places,organizations, information, and ideas.

2). Be careful of paying attention to the product andnot the benefit being satisfied.

3). Marketing myopia is caused by shortsightednessor losing sight of underlying customer needs by onlyfocusing on existing wants.


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Marketing OffersProducts, Services, and Experiences

Companies address needs by putting forth a valueproposition, a set of benefits that they promise

to consumers to satisfy their needs.

a.The value proposition is fulfilled through a marketingoffersome combination of products, services, information,or experiences offered to a market to satisfy a need or want.

b.The concept of product is not limited to physical objectsand can include experiences, persons, places, organizations,information, and ideas.

c.Be careful of paying attention to the product and not thebenefit being satisfied.

d.Marketing myopia is caused by shortsightedness or losing

sight of underlying customer needs by only focusing onexisting wants.

e.Smart marketers create brand meaning and brandexperiences for consumers.


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Markets

The concepts of exchange and relationships lead to theconcept of a market.

A market is the set of actual and potential buyers of aproduct.

1). originally a market was a place where buyers andsellers gathered to exchange goods (such as a villagesquare).

2). Economists use the term to designate a collection ofbuyers and sellers who transact in a particular productclass (as in the grain or housing market).

3). Marketers see buyers as constituting a market andsellers constituting an industry.

4). Marketers are keenly interested in markets.


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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.


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Customer satisfaction depends on a products perceived

performance in Delivering value relative to a buyers

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.

Documents

Core Mktg Concepts