Lecture one: Marketing concepts
Define what marketing is and discuss its core concepts:
Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others
When we talk about the core concepts of marketing we have to talk about needs, wants, demands, products, exchange and market.
Marketing isabout meeting the needs and wants of customers and the marketplace in which they operate, because the consumer is motivated by:
- Needs: a person feels that they are missing something from their life until the need is satisfied
- Wants: Are the object that appear to satisfy needs
- Demands: Human wants that are backed by buying power
Marketing is about understandingcustomers and finding ways to provide
products or services which customers demand, consumers are satisfied by:
- Product: is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. It includes physical objects, services, persons, places, organizations and ideas.
- Service: are activities or benefits offered for salethat are essentially intangible and do not result in the ownership of anything
The exchange is the process of offering something in your possession for
something that you feel will satisfy your wants or needs if an exchange is to take place both parties must feel that they will benefit more from what they are receiving than what they are giving away and the concepts of exchange andrelationship lead to the concept of a market.
A market is to set of actual and potential buyers of a product. These buyers share
a particular need or want that can be satisfied through exchange relationship.
The size of a market depends in the number of people who exhibit the need, have resources to engage in exchange, and are willing to exchange these resources for what they want.Explain the relationship between customer value, satisfaction and quality.
Consumers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly.
In order to not disappoint at consumers marketers must be careful to set the right level of expectations, the consumers expectations are based on post buying experiences, the opinions offriends, and marketer and competitor information and promises.
Customer value and satisfaction are key building blocks for developing and managing customer relationship, so customers make buying choice based upon their perceptions of the value that products and services deliver but they do not judge product values and cost accurately or objectively, they act on perceived value and consumer value is thedifference between the values the customer gains from owning and using a product and the cost of obtaining the products.
Despite customer value is important, customer satisfaction in important too, customer satisfaction with a purchase depends on how well the product’s performance lives up to the customer’s expectations, by the one hand a good satisfaction with the product, that will influenceon future buying behavior, a satisfied customer buy again and tell others about their good experiences but by the other hand a dissatisfied customer often switch to competitors and disparage the product to others.
Define marketing management and understand how marketers manage demand and build profitable customer relationship.
Marketing management can be defined as the analysis, planning,implementation and control of programs designed to create, build and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.
For managers the application of marketing principles involves both, how they operate as individuals and how they ensure the integration and co-ordination of activities within organization.
In order to manage demand...
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