The core concept of Marketing

The core concept of Marketing

Marketing is a social & managerial process by which

individuals & groups obtained what they need &

want through creating, offering & exchanging
products of value with others.

Need, Wants,
Demands

Exchange,
Transaction,
Relationship

Products

Market

Value, Cost,
Satisfaction

Marketing &
Marketers

Core Concept Of Marketing

Human Needs.

It is a state of felt deprivation of some basic satisfaction.

Wants.

These are desires for specific satisfiers of these deeper

needs.

Demands.

These are wants for specific products that are backed by an

ability & willingness to buy them.

Products.

These are anything that can be offered to satisfy a need or a

want.
The importance of physical product lies not so much in
owing them as in obtaining the services they render.

Vehicle of services.
1. Person.
2. Place.
3. Activity.
4. Organization.
5. Ideas.

Value, Cost & Satisfaction.

1. Product value
2. Service value
3. Personnel value
4. Image value

1. Monitory cost
2. Time cost
3. Energy cost
4. Psychic cost

Exchange, Transactions & Relationship.

Exchange is one of the four ways people can obtain

products.
a. Self production.
b. Coercion.
c. Begging.
d. Exchange.
Exchange is the act of obtaining a desired product

from someone by offering something in return.

Five conditions of exchange.

1.

At least two parties.

Each party has something that might be of value to
the other party.
Each party is capable of communication & delivery.
Each party is free to accept or reject the offer.
Each party believes it is appropriate or desirable to
deal with the other party.

2.
3.
4.
5.

Transactions These are basic unit of exchange.

A transaction consists of a trade of values between
two parties.

Dimensions of transactions.

1.
2.
3.
4.

At least two things of value.

Agreed upon conditions.
A time of agreement.
A place of agreement.

Transaction v/s Transfer

The process of trying to arrive at mutually agreeable

terms is called Negotiation.
Transaction marketing, Relationship marketing,
Marketing network.

Markets.

It consists of all potential consumers sharing a

particular need or want who might be willing & able to
engage in exchange to satisfy that need or want.
Marketing.

It means Working with markets to actualize potential

exchanges for the purpose of satisfying human needs &
wants.
Marketer.

It means someone seeking a resource from someone

else & willing to offer something of value in exchange.

1. The Production Concept.

The production concepts holds that customers will

favor those products that are widely available & low in

cost. Managers of production oriented organizations
concentrate on achieving high production efficiency &
wide distribution coverage.

2. The Product Concept.

The product concept holds that consumers will favor

those products that offer the most quality,

performance or innovative features. Managers in these
product oriented organizations focus their energy on
making superior products & improving them over
time.

3. The Selling Concept.

The selling concept holds that consumers, in left alone,

will ordinarily not buy enough of the organizations

products. The organization must therefore undertake
an aggressive selling & promotion effort.

4. The Marketing Concept.

The marketing concept holds that the key to achieving

organizational goals consists in determining the needs

& wants of target markets & delivering the desired
satisfaction more effectively & efficiently than
competitors.

5. The Societal Marketing Concept.

The societal marketing concept holds that the

organizations task is to determine the needs, wants &

interests of target markets & to deliver the desired
satisfaction more effectively & efficiently than
competitors in a way that preserves or enhances the
consumers & societys well being.