Core concept of marketing

 Core concept of marketing

According to Philip Kotler,” Marketing is social and managerial process by which individuals and groups obtains what they needs and wants through creating and exchanging product and value with others.”

1. Needs

• Marketing tries to satisfy needs of consumers.

• A need is the state of mind that reflects the lack-ness and restlessness situation.

• Note that needs are not created. They are pre existed in human being. 

• Needs create physiological tension that can be released by consuming/using products.

2. Wants

• Wants are the options to satisfy a specific need. They are desire for specific satisfiers to meet specific need. 

• For example, food is a need that can be satisfied by variety of ways, such as sweet, bread, rice etc. These options are known as wants.  

• Marketer can influence wants, not needs. He concentrates on creating and satisfying wants.

3.  Demand

• Wants which are supported by ability and willingness to buy can turn as demand.

• Marketer tries to influence demand by making the product attractive, affordable and easily available. Marketing management is also called demand management.

4. Product

• Referred as a bundle of satisfaction, physical and psychological both.

• Product includes core product (Basic contents or utility), product-related features (colour, branding, packaging, lebeling, varieties etc), and product related services (after sales services, guarantee and warrantee, free home delivery, free repairing, and so on) 

• Marketer should consider product benefits and services.

• As per definition, anything which can satisfy need and want can be a product.

• Product may be ini forms of physical object, person, idea, activity or organization that can provide any kind of services that satisfy some needs or wants.

5. Utility (Value), cost, and satisfaction

• Utility is the consumer’s estimate of the product’s overall capacity to satisfy his/her needs.

• Economic value of product is called cost. Cost is just proportional to the utility of the product.

• Satisfaction means fulfillment of needs.More utility/value with less cost results into more satisfaction.

6. Exchange, Transaction, and Transfer

• Marketing management tries to arrive at the desired exchange.

• People can satisfy their needs and wants in one of the four ways- self-production, coercion/snatching, begging, or exchanging.

• Exchange is an act of obtaining a desired product from someone by offering something in return. Obtaining sweet by paying money is the example an exchange. 

• Exchange is possible when following five conditions are satisfied:

1. There should be at least two parties.

2. Each party has something that might be of value to the other party.

3. Each party is capable of communication and delivery.

4. Each party is free to accept or reject the exchange offer.

5. Each party believes it is desirable to deal with the other party.

      7.  Relationships and Network

• Relationship marketing is the practice of building long term profitable or satisfying relations with key parties like customers, suppliers, distributors and others in order to retain their long term preference in business.

• Relationship marketing needs trust, commitment, cooperation, and high degree of understanding.      

• A marketing network consists of the company and its supporting stakeholders- customers, employees, suppliers, distributors, advertising agencies, colleges and universities, and others- whose role is considered to be essential of business.    

      8. Market, Marketing, Marketer, and Prospect

• Market- All potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy this need or want.

• Marketing- Social and managerial process by which individuals and groups.

• Marketer- One who seeks one or more prospects (buyers) to engage in an exchange.

• Prospect- Consumer or customer who buys product from a company for satisfying his needs or wants can be said as the prospect.