Concepts of Marketing

Many people confuse the word marketing with selling and advertising. The reason is that there is widespread advertisement now days in the form of newspaper ads, TV commercials, direct-mail campaigns, sales calls etc. But actually marketing and advertising are only two of many other important marketing functions such as satisfying customer needs, creating long term customer relationship, finding new customers etc. The basic difference between marketing and advertising is that the advertisement starts after the product is produced whereas marketing starts with a well-defined market, focuses on customer needs and establishes long term customer relation to earn profit.

 

Core Concepts of Marketing

 

There are various core concepts of marketing. some of them are given and explain below.

 

  • Need

Need is the state of felt deprivation and includes all those things without which the survival of human beings is difficult. For example human beings need food, clothing, shelter, social interaction, self expression etc.

 

  • Want

A want is the desire to get and use goods and services. Wants are the root cause of all human activities. One of the important characteristic of wants is that they are unlimited i.e. there is no end to human wants.

 

  • Demand

Demand refers to the quantity of commodity which people are ready to purchase at various prices. Demand is the ability and willingness to purchase a commodity therefore it should not be confused with want which only refers to the willingness to buy goods. 

 

  • Products

All those things, which are offered to a market to satisfy human needs and wants are called products. The concept of product is very broad i.e. it includes everything capable of satisfying a need.

 

  • Services

Those actions of individuals, which can satisfy the wants of other people, are called services. For example service of a doctor, lawyer, mason, tailor etc.  Basically services are intangible and do not result in the ownership of anything.

 

  • Customer value

Before defining customer value we should know the meaning of value. Value is a relative term which refers to the amount of other goods and service which is obtained in exchange for the product. For example if a book is exchanged with two pens then the value of a book is two pens. Similarly customers pay money to obtain goods and services, therefore the difference between the cost of obtaining a product and benefits which a customer gain from using a product is the value of a product.

 

  • Customer Satisfaction

When customers are purchasing a product they do not accurately judge the value and costs of the product therefore they have to rely on perceived value. Satisfaction and dissatisfaction of customers depend upon the degree to which a perceived performance of a product matches the expectations of a buyer. For example, if the performance is higher than the expectation, the buyer is satisfied.

 

  • Product Quality

There is close relationship between the product quality and customer satisfaction. Improvement in the quality of product increases the product performance which results in customer satisfaction. Therefore many organizations are involved in improving the quality of their products for which they have adopted total quality management programs. 

 

  • Exchange

When a person obtains a particular object from someone he will have to give something in return. This act of give and take is called exchange.

 

  • Transaction

Transaction is an agreement between buyers and sellers to exchange goods and services for money as well as other items of value. The important types of transaction are: money transaction (which involves exchange of goods for money) and barter transaction (which involves exchange of goods for goods).

 

  • Relationship Marketing

In the early age, marketers try to increase the profits through large-scale selling and promotion efforts. But they soon realize that they should build long-term relationships with valued customers, suppliers, dealers, and distributors by providing them high quality products. Such relationship will increase the profit of organization in the long term.

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