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Core Concepts-1

The document defines marketing and discusses core marketing concepts like needs, wants, demands, products, exchange, transactions, relationships, value, satisfaction and quality. It also covers the importance of customer retention, lifetime value, markets, contrasting marketing and sales concepts, and marketing management philosophies.

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Sunidhi Das
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
77 views

Core Concepts-1

The document defines marketing and discusses core marketing concepts like needs, wants, demands, products, exchange, transactions, relationships, value, satisfaction and quality. It also covers the importance of customer retention, lifetime value, markets, contrasting marketing and sales concepts, and marketing management philosophies.

Uploaded by

Sunidhi Das
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Defining Marketing

Marketing is a societal process by


which individuals and groups obtain
what they need and want through
creating, offering, and exchanging
products and value with others.

1
Core Marketing Concepts
Needs, wants,
and demands

Markets Products

Exchange, Value,
transactions,
satisfaction,
and relationships and quality

2
Need, Wants, Demands
• Need. A human need is a state of felt
deprivation. Examples include the need for
food, clothing, warmth and safety.
• Wants. Wants are how people communicate
their needs. A hungry person may want a
hamburger, noodles, or cheese and bread.
• Demands. When backed by buying power,
wants become demands.

3
Product

A product is anything that can be offered to satisfy a


need or a want.

4
Value, Satisfaction, and
Quality
• Customer value is the difference between the
benefits that the customer gains from owning
and/or using a product and the costs of
obtaining the product.
• Customer satisfaction depends on a product’s
perceived performance in delivering value
relative to a buyer’s expectations.
• Quality begins with customer needs and ends
with customer satisfaction.

5
Exchange, Transactions, and
Relationships
• Exchange is the act of obtaining a desired
object from someone by offering something in
return.
• A transaction is marketing’s unit of
measurement and consists of a trade of
values between two parties.
• Relationship marketing builds relationships
with valued customers, distributors, dealers,
and suppliers by promising and consistently
delivering high-quality products, good service,
and fair prices.
6
Importance of Customer
Retention

5% increase adds 25 - 125% to bottom


line

7
The Life Time Value of the
Customer

 Revenue and profits by average


customer over a lifetime by segment
 Increase average purchase, frequency
of visit, life

8
Markets

A market is a set of actual and potential buyers


who might transact with a seller.

9
Marketing and Sales Concepts
Contrasted
Starting
Focus Means Ends
Point
Selling Profits
Existing
Factory and through
Products Promoting Volume

The Selling Concept

Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction

The Marketing Concept


10
Marketing Management
Philosophies
•Consumers favor products that are
Production Concept available and highly affordable.
•Improve production and distribution.

•Consumers favor products that offer


Product Concept the most quality, performance, and
innovative features.

Selling Concept •Consumers will buy products only if


the company promotes/ sells these
products.
Marketing Concept •Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors.
Societal Marketing Concept •Focuses on needs/ wants of target
11
markets & delivering superior value.
Marketing’s Future
• “It (marketing) encompasses the entire
business. It is the whole business seen
from the point of view of the final result,
that is, from the customer’s point of
view.”
• Peter Drucker
• Marketing has become the job of
everyone.
12

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