2. CORE CONCEPTS OF MARKETING
Needs, wants,
and demands
Products
and services
Value and
satisfaction
Exchange, and
transactions,
Markets and marketers
3. CORE CONCEPTS OF MARKETING
Need
Basic human requirements
Example: Need food
Wants
Needs directed to specific objects
The form of needs as shaped by culture
and the individual
Example: Want a Burger
Demands
Wants which are backed by buying
power
4. Products
Anything that can be Offered to a Market to Satisfy a Need or Want
Persons Places
Organizations IdeasInformation
PRODUCTS
Services
Activities or Benefits Offered for Sale That Are Essentially
Intangible and Don’t Result in the Ownership of Anything
7. HOW DO CONSUMERS CHOOSE AMONG
PRODUCTS & SERVICES?
Value - the value or benefits the customers gain from
using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction
7
8. EXCHANGE
Get something (product /service) by offering
something in return.
Eg. kind (barter) or money (value )
Exchange is a value creating process because it
leaves both parties better off
(win – win situation)
9. CORE CONCEPTS OF MARKETING
Market
Set of actual and potential
buyers of a product
Marketers seek buyers that
are profitable
11. DEFINITIONS OF MARKETING MANAGEMENT
Traditional
Narrow
Whatever is produced
by the manufacturer
will be acceptable to
the consumer.
Modern
Boarder
Emphasis on
satisfaction of the
consumers
Product oriented Customer oriented
12. FUNCTIONS OF MARKETING
• Marketing research
• Product development
Research
functions
• Buying and assembling
• selling
Exchange
functions
• Transportation
• Storage and warehousing
• Standardisation and grading
Physical
functions
• Branding ,Packaging ,Pricing
• Financing, Promotion ,Risk
bearing ,Customer services
Facilitatiting
functions
14. FUNCTIONS OF MARKETING
Gathering and Analysing Market Information
Standardisation and Grading
Packaging and Labelling
Branding
Customer Support Service
Pricing of Products
Promotion
Physical Distribution
Storage or Warehousing
15. BUYING AND ASSEMBLING
It involves what to buy,
of what quality,
how much from whom,
when and at what
price.
16. STANDARDISATION AND GRADING
Standardisation refers to determining of standard
regarding:
size,
quality,
design,
weight,
colour,
raw material
to be used, etc., in respect of a particular product.
17. CUSTOMER SUPPORT SERVICE
(i) After-sales-services
(ii) Handling customers’ complaints
(iii) Technical services
(iv) Credit facilities
(v) Maintenance services
18. PRICING OF PRODUCTS
The price of a product is affected by its
cost,
rate of profit,
price of competing product,
policy of the government, etc
20. PHYSICAL DISTRIBUTION
(i) Transportation,
(ii) Inventory,
(iii) Warehousing and
(iv) Order Processing.
21. IMPORTANCE OF MARKETING
A. Importance of marketing for
the firms
Helpful in business planning and
decision making
Helpful in distribution
Helpful in increasing profits
Helpful in communication between
firm and society
22. IMPORTANCE OF MARKETING FOR THE
CONSUMERS
Increase in customer satisfaction
Facilitates choice
Increase in knowledge
Providing good quality products
Price stabilization
Increase in standard of living
23. IMPORTANCE OF MARKETING FOR THE
SOCIETY
Provides employment
Increase in national income
Reduction in distribution cost
Protection from depression
24. IMPORTANCE OF MARKETING AS A BUSINESS
ACTIVITY
Basis for business function
Basis for economic activity
Creation of utility
Production of socially useful
products