Marketing: Meaning, Nature

& Functions

Need, Want and Desire• Needs wants and demands are a part of

basic marketing principles.

• Though they are 3 simple worlds, they hold a very complex meaning behind them along with a huge differentiation factor.

• In fact, A product can be differentiated on the basis of whether it satisfies a customers needs, wants or demands.

Need Human needs are the basic requirements and include

food clothing and shelter. An extended part of needs today has become education and healthcare. In simple words these are Roti, Kapda aur Makaan.

Generally, the products which fall under the needs category of products do not require a push. Instead the customer buys it themselves.

But in today’s tough and competitive world, so many brands have come up with the same offering satisfying the needs of the customer, that even the “needs category product” has to be pushed in the customers mind.

Needs Examples House Expenses Child Education Medical Expenses School/College fees and expenses Saving Money for Future Basic Communication Basic FMCG Products

Want

These are things which you wish to have but theyare not Above your Needs.

PS: Some people’s Wants can be a Need for othersand vice versa.

Wants Examples• Hospitality Industry • Consumer Durables• Automobiles Above Your Budget• Expensive Apparels

Watch this video to get a clear idea on what ‘Want’ is:http://www.youtube.com/watch?v=4haEYOZ9dTE

Desire“A Step Ahead of Want is Desire.”

Or “When wants are backed by buying power.”

Desires Examples

5 or 7 Star HotelsLuxury Cars/Airlines/LivingCruisesHighly Expensive Gadgets

Again We Are Asking you to watch the video that gives an absolute idea of what Desire ishttp://www.youtube.com/watch?v=NF9nsoncn4U

Market Offerings Products, Services & ExperiencesAnything that can be offered to satisfy a need orWant.

Psychical Products, Services, Experiences, Persons, Places, Organizations, Information, Ideas, Etc.

Categorize the followingsParle-G Facebook.comEssel World MS Swift DezirePizza Hut Door Bell Narendra ModiSamsung Note 2 Hotel Taj, MumbaiShaadi.com Big CinemasAccenture Irctc.co.inLevi’s Congress ISony Entertainment TV Net Aamir KhanGarnier Men Stud Gents’ Salon

Marketing Myopiamarketing myopia as a company's short-sighted,

temporary or narrow-minded approach while marketing their product.

The diseased pay more attention to the specific products than to the benefits and experiences

produced by these products.

Hindustan Motors : A Case Study

Customer Value & SatisfactionValue Difference between “Value gained by owning and using a product” and “Cost of obtaining the product.” Value gained not necessarily monetary Similarly cost of obtaining not necessarily monetary Customers act on perceived value [and perceived cost]

Satisfaction• Narrow Definition: No defects• Broad Definition: Ability to satisfy customers’ needs

Exchanges & RelationshipsExchangesAn act of obtaining a desired object from someoneby offering something in return.

RelationshipsGoing beyond short term transactions.Long-term bond through delivering superiorcustomer value.

Market

As per an economist’s definition, is a place wherebuyers and sellers meet.

As per a marketer’s definition, is the set of actualand potential buyers of a product.

What is Marketing?1. Market >> 2. Identify needs, wants and demands >>3. Offer products to satisfy Customers’ needs, wants

or demands.

Marketing is all about satisfying customers’ needs, Wants or Desires better than the competitors

while earning profit.”

Elements of A Modern Marketing System

Marketing Management“The art and science of choosing target marketsand building profitable relationships with them.”

What must a customer-driven MarketingManager find?What customers will we serve (What’s our targetmarket)?How can we serve these customers best (What’s ourvalue proposition)?

Marketing Management Orientations

1. The Production ConceptThe idea that consumers will favour products thatare available and highly affordable and that theorganization should therefore focus on improvingproduction and distribution efficiency.

Ex. Lenovo in China or HP with Uttar Pradesh Government’s ‘Laptop Distribution Scheme’

2. The Product ConceptThe idea that consumers will favour products thatoffer the best quality, performance and featuresand that the organization should therefore devoteits energy to making continuous productimprovements. Ex. Ambassador Car

3. The Selling ConceptThe idea that consumers will not buy enough ofthe firm’s products unless it undertakes a large-scale selling and promotion effort. The concept istypically practised with unsought goods.

4. The Marketing ConceptThe marketing management philosophy that achievingorganizational goals depends on knowing the needs and wants

oftarget markets and delivering the desired satisfactions betterThan competitors do.

Ex. Every successful company like HUL, HP, Samsung is trying this.

5. The Societal ConceptA principle of enlightened marketing that holds that a companyshould make good marketing decisions by considering

consumers’wants and Society’s welfare as a whole.

Ex. Padega India Tabhi to Badhega India Campaign from P&G, Classmate Notebooks from ITC, etc

Marketing vs Selling Part of the Process vs Wider Term Transfer of Title vs Satisfying Customer Needs Profit through Maximising Sales vs Customer Satisfaction Start and End of The Activities Difference in the Emphasis Difference in the Strategies

Thank You :)