satisfaction for their money.
When backed by an
Marketing is a social and managerial process by
which individuals and groups obtain what they
want and need through creating, offering and
exchanging products and value with others.
-Kotler 1991
Market, needs and want, product and value,
exchange process
A market is the set of actual and potential buyers
of a product. These buyers share a particular need
or want that can be satisfied through exchange.
Thus, the size of a market depends on the number
of people who exhibit the need, have resources to
engage in exchange, and are willing to offer these
resources in exchange for what they want.
Market Segmentation is the process of dividing a
market into distinct groups of buyers who might
call for separate products or marketing mixes.
Bases for Segmenting Consumer Markets
Geographic Segmentation consist of dividing the
market into different geographical units such as
Country, States, Regions, Counties and Cities.
Demographic Segmentation consist of dividing
the market into groups based on demographic
variables such as age, sex, family size, income,
occupation, education, religion and nationality.
Psychographic Segmentation – buyers are
divided into different groups based on social class,
life style or personality characteristics.
Behavior Segmentation – buyers are divided into
groups based on their knowledge, attitude, use, or
response to a product.
Benefits Sought – a powerful form of segmentation
is to group buyers according to the different
benefits that they seek from the product.
Benefit segmentation -requires finding out the
major benefits people look for in the product class,
the kinds of people who look for each benefit and
the major brands that deliver each benefit.
A human need is a state of felt deprivation. Humans
have many complex needs. These include basic
physical needs for food, clothing, warmth and
safety; social needs for belonging and affection; and
individual needs for knowledge and self-
expression.
Human wants are the form taken by human needs
as they are shaped by culture and individual
personality. People have narrow, basic needs (e.g.
for food or shelter), but almost unlimited wants.
However, they also have limited resources. Thus
they want to choose products that provide the most
ability to pay - that is, buying power - wants
become demands.
Negative Demand – A major part of the market
dislikes the product and may even pay to avoid it.
Examples are vaccinations, dental works and seat
belts.
No Demand – Target consumers may be
uninterested in the product. Thus farmers may not
care about a new farming method and people may
not be interested to get death insurance.
Latent Demand – Consumers have a want that is
not satisfied by any existing product or service.
There is a strong latent demand for non harmful
cigarettes and more fuel efficient cars.
Falling Demand – Consumers begin to buy the
products less frequently or not at all. For instance,
churches have seen their membership decline and
private colleges have seen fewer applications.
Full Demand – The organization has just the
amount of demand it wants and can handle. Thus,
consumers are adequately buying all products put
into the market place.
Overfull Demand – Demand is higher than the
company can or wants to handle.
Irregular Demand – Demand varies on a seasonal,
daily, or even hourly basis. In mass transit, much
equipment is idle during slow travel hours and too
little is available during peak hours. Parks are
under visited during weekdays and overcrowded
during weekends.
People satisfy their needs and wants with products.
A product is anything that can be offered to a
market to satisfy a need or want. Usually, the word
product suggests a physical object, such as a car, a
television set or a bar of soap. However, the
concept of product is not limited to physical objects
– anything capable of satisfying a need can be called
a product. Customer Value is the consumer's
assessment of the product's overall capacity to
satisfy his or her needs.
Consumers usually face a broad array of products
and services that might satisfy a given need. How
do they choose among these many products?
Consumers make buying choices based on their
perceptions of the value that various products and
services deliver.
The guiding concept is customer value.
Customer value is the difference between the
values the customer gains from owning and using a
product and the costs of obtaining the product.
Marketing occurs when people decide to satisfy
needs and wants through exchange. Exchange is the
act of obtaining a desired object from someone by
offering something in return.
Exchange is only one of many ways people can
obtain a desired object. For example, hungry people
can find food by hunting, fishing or gathering fruit.
They could beg for food or take food from someone
else. Finally, they could offer money, another good
or a service in return for food.
Referred to as The Marketing Mix
All four are essential to the success of Marketing
Plan for either a product or a service.

4 P’s stand for Product Price Place Promotion

A mix of four is necessary to sell a product
The same thing is true with the Marketing Mix. You
can vary the type of message you are sending out
about your product/ service by mixing different
elements of each of the P’s. For instance, if you want
your product to be seen as a luxury item – make the
price high & have limited selection. Refers to the
“benefits” of buying a product
What need does the product /service fulfill?
Quality
•What will be the quality of your product or
service?
Features
•How will your product/service differ from the
competition?
Design
•How is it going to look?
Packaging
Range of Products
•What complimentary products may you offer?
The Price is the amount a customer pays for the
product. The business may increase or decrease the
price of product if other stores have the same
product.
In pricing, you should consider the cost of all the
inputs (materials, labour, etc.)
Mark-up Price – How much profit do you want to
make on every product / customer?
Direct Distribution – selling directly your product
to the consumer.
Indirect Distribution – sold through a third party
(retailers) Strategies to make the consumer aware
of the existence of a product or service
Promotion is NOT just Advertising