The core concept of Marketing explained in simple language

The core concept of Marketing

1. 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.

2. Need, Wants,
Demands
Products
Value, Cost,
Satisfaction
Exchange,
Transaction,
Relationship
Market
Marketing &
Marketers
Core Concept Of Marketing

3. •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.

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

•Value, Cost & Satisfaction –
1. Product value 1. Monitory cost
2. Service value 2. Time cost
3. Personnel value 3. Energy cost
4. Image value 4. Psychic cost

5. •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.

6. ▪Five conditions of exchange –
1.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 &
delivery.
4.Each party is free to accept or reject the
offer.
5.Each party believes it is appropriate or
desirable to deal with the other party.

7. •Transactions – These are basic unit of
exchange. A transaction consists of a trade
of values between two parties.
•Dimensions of transactions –
1.At least two things of value.
2.Agreed upon conditions.
3.A time of agreement.
4.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.

8. •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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 5. The Societal Marketing Concept.

•The societal marketing concept holds that
the organization’s 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
consumer’s & society’s well being.