This document outlines core concepts of marketing including needs, wants, demands, products, services, value, satisfaction, exchange, transactions, markets, and marketers. It defines these terms and discusses how consumers choose among products based on comparing value and satisfaction. The functions of marketing are also summarized, including marketing research, product development, buying/assembling, selling, transportation, storage, standardization, branding, packaging, pricing, financing, promotion, customer service, and more. Finally, the importance of marketing for firms, consumers, and society is highlighted.

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

5. 2.VALUE AND SATISFACTION
Benefits
functional benefits
emotional benefits
Costs
Monetary costs
Time costs
Energy costs
Psychic costs

6. VALUE AND SATISFACTION
benefits
Value = -----------------
costs

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

10. MARKETING MANAGEMENT
Marketing management
is the marketing concept
in action.

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

13. 3.Derlivering Costumers value
Utility – the benefits or customer value received
by users of the product

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

19. PROMOTION
 (i) Advertising,
 (ii) Personal selling,
 (iii) Sales promotion and
 (iv) Publicity.

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