Marketing:

Core Concepts

Dr. Devkant Kala

 Introduction to Marketing

Marketing:

 “Satisfying customer needs profitably.”

 “Attracting, developing & retaining profitable

customers better than the competition”.

Dr. Devkant Kala, UPES

Core Concepts of Marketing
Need, Want & Demand

Market

Product

Exchange

Marketing Mix

Customer Value

Customer Satisfaction
Dr. Devkant Kala, UPES
 Need, Want and Demand
 Need
 Basic human requirements
 State of felt deprivation
 Example: Hunger Food

 Want
 Needs directed to specific objects
 Example: Hunger Food Pizza

 Demand
 Availability of Product
 Ability to Pay for Product
 Willingness to Pay
Dr. Devkant Kala, UPES
 Market
 A market may be described as a place or
geographical area where buyers and sellers meet and
function, products are offered for sale and transfer of
title of ownership occur.

 Market Space: Due to Growth of Internet &

Communication Technologies.

 Matching of Minds of buyer and seller is more

important.

 Seller’s Market

 Buyer’s Market
Dr. Devkant Kala, UPES
 Product
 Anything that can be offered to a market to
satisfy a need.

 Goods  Property
 Service  Event
 Idea  Experience
 Person  Information
 Place  Organization

Dr. Devkant Kala, UPES

 Exchange
 The act of obtaining a desired object from someone
by offering something in return

Essential Condition:
 Atleast two parties.
 Each party has something that might be of value to the
other party.
 Each party is capable of communication and delivery.
 Each party is free to accept or reject the offer.

Dr. Devkant Kala, UPES

 Marketing Mix
The set of controllable variables that a firm can use to
influence the buyer’s response or to market firm’s
products within a given marketing environment.

Product Price

Place Promotion

Dr. Devkant Kala, UPES

4Ps (Seller) and 4Cs (Buyer) View

Product
Price
Customer
Customer Cost
Solution

Place Promotion
Convenience Communication

Dr. Devkant Kala, UPES

 Customer Value

Customer Perceived Value (CPV) is the difference

between prospective customers evaluation of all benefits
& costs of an offering & perceived alternatives.

Customer Perceived Value (CPV) = Benefit - Cost

Dr. Devkant Kala, UPES

 Customer Value

Benefits = Functional + Psychological

Cost = Monetary + Time + Efforts

Customer Perceived Value (CPV) = Benefit - Cost

Dr. Devkant Kala, UPES

 Customer Value
 Value is subjective in nature.

 Value is a dynamic concept (Competitors, context,

consumers).

 Organization needs to sustain the process of value

creation over the period of time to sustain itself in the
market.

Dr. Devkant Kala, UPES

 Customer Satisfaction

Satisfaction is the relationship between:

 Consumer’s Expectations

 Product’s Performance

Expectation = Performance (Satisfaction)

Expectation > Performance (Dissatisfaction)

Expectation < Performance (Delight)

Dr. Devkant Kala, UPES
Thank You.

Dr. Devkant Kala, UPES