Other core concepts of marketing

1. SYBBA Sem-3
1.4.2 Core Marketing Concepts
Prof. Ajay Shukla
Rofel BBA

2. • 4.. Utility (value), Cost, and Satisfaction:
• Utility means overall capacity of product to
satisfy need and want. It is a guiding concept to
choose the product. Every product has varying
degree of utility. As per level of utility, products
can be ranked from the most need-satisfying to
the least need-satisfying.
• Utility is the consumer’s estimate of the
product’s overall capacity to satisfy his/her
needs. Buyer purchases such a product, which
has more utility. Utility is, thus, the strength of
product to satisfy a particular need.

3. • Cost means the price of product. It is an
economic value of product. The charges a
customer has to pay to avail certain services
can be said as cost. The utility of product is
compared with cost that he has to pay. He
will select such a product that can offer more
utility (value) for certain price. He tries to
maximize value, that is, the utility of product
per rupee.

4. • 5. Exchange, Transaction, and Transfer:
• Exchange is in the center of marketing.
Marketing management tries to arrive at the
desired exchange. People can satisfy their needs
and wants in one of the four ways – self-
production, coercion/snatching, begging, or
exchanging.
• Marketing emerges only when people want to
satisfy their needs and wants through exchange.
Exchange is an act of obtaining a desired
product from someone by offering something in
return. Obtaining sweet by paying money is the
example an exchange.

5. • 6. Segmentation ,Target Markets, and Positioning
• Not everyone likes the same cereal, restaurant,
college, or movie. Therefore, marketers start by
dividing the market into segments. They identify and
profile distinct groups of buyers who might prefer or
require varying product and service mixes by
examining demographic, psychographic, and
behavioral differences among buyers.
• After identifying market segments, the marketer
decides which present the greatest opportunities—
which are its target markets. For each, the firm
develops a market offering that it positions in the
minds of the target buyers as delivering some central
benefit(s). Volvo develops its cars for buyers to whom
safety is a major concern, positioning its vehicles as
the safest a customer can buy.

6. • Will continue…….
• Offerings and Brand
• Marketing Environment