The Followings Are The Core Marketing concepts
* Needs, Wants And Demand
*Products, Services And Experience
* Value, Satisfaction And Quality
* Exchange, Transaction And Relationship
* Markets
1. Needs, Wants And Demand
Needs: The necessity of something is need. Food is needed when one is hungry, water is needed when one is thirsty. Human needs are of complex nature. When one want is fulfilled, another want is felt. There are different types of human wants, which the human tries to fulfill on after another. They are physical needs (foods, shelter and clothes), security needs (free from fear, security of job), social needs (giving importance by society, involvement in social activities), need ego (respected post,honor,praise) and self actualization needs (creativeness, expectation of challenging task, expectation to take part in decision making). Such needs were not found by marketers. They are basic aspects of human life.
Wants: Expectation of the things for meeting the need is called want. There are various types of wants of human being. Such wants are directly influenced by level of income, family, education, friends, school, personality, life style etc. Wants are also affected by religious, cultural and social components. For example, a hungry Indians wants to eat rice, curry, bread,water etc. but a hungry American wants hamburger, coke and french fries etc. Here needs are same but wants are different.
Demand: The want with willingness and ability to pay price of things is called demand. If a poor man wants to buy a car, it is not demand, because he does not have ability to pay the price of car even if he has willingness. Similarly, if a rich but miser wants to buy a car, he does not become ready to pay the bill of the car. So, it is compulsory to be both willingness and ability to pay the price to be a demand.
2. Product, Service And Experience
The thing which satisfies human wants and needs is called product. Product may or may not have physical existence. Machines, tools, foods, clothes etc. have physical existence but service, experience, ideas, personality etc. have no physical existence. The broad meaning of product includes characters, form, quality, diversity, branding, packaging, color, price, dignity of seller etc.
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3. Value, Satisfaction And Quality
Value: The capacity of the goods to satisfy the want of customers' as expected is called value. Costs of the goods is taken as the basis to estimate its value. Although wise customers can measure the value and cost of the goods but cannot measure it with accuracy. They select goods on the basis of their perceived value. Value may be in the form of status, image, benefit, beauty, attractiveness, confidence etc.
Satisfaction: The customer feels satisfied from the value of the goods what he/she expects to get from. Satisfied customer becomes brand loyal. He or she tells his friends and neighbors about the value of the goods that full satisfaction can be got from the goods. As a result, advertisement of the goods is done automatically. So, the goods should be produced according to the expectation of the customers to satisfy their wants.
Quality: Customers' satisfaction depends on the quality of the goods. In the recent years, most of the companies are found to have followed the total quality management- TQM. They are trying to improve the quality of goods, services and the process of marketing. Quality should be looked through customers' satisfaction not through absence of defects. The quality of goods or services starts from wants of customers and ends with their satisfaction.
4. Exchange, Transaction And Relationship
Exchange: Giving something and taking any other needed things from others is called exchange. In simple words, the task of giving and taking things to fulfill mutual interest is called exchange. Giving things for things is called barter system and giving money for things is called exchange money. In the ancient marketing (before the invention of money), the whole part of exchange was taken by barter system. But now it has been taken by money-exchange of money. Exchange is the main concept of marketing.
Transaction: Trade between two or more sides is called transaction. In other words, the result of exchange is transaction. Transaction can be made in barter system or in money exchange. For example, taking rice by giving any thing is called barter transaction. Taking(buying) a television by giving money is monitory transaction.
Relationship: The transaction taken place between two or more parties/sides establishes relationship among them. A marketer should establish good and long lasting relationship with customers, distributors, dealers and suppliers. Confidence should also be given to strengthen such relationship.
5. Markets
The process of buying and selling of goods or services is called market. Some concepts have been developed about markets. They are: place concept, product concept, area concept, demand concept and exchange concept. Market has been defined on the basis of all these concepts. Goods, buyer, seller, price and area are necessary to be a market.
