Is a social and managerial process by which individuals a
nd groups obtain what they need and want through creating and exchanging products and value with others (Kotler & Armstrong, 2008)
The Five Core Marketing Concept
Needs, Wants, and Demands
Value, Satisfaction, and quality
Exchange, Transactions, and Relationships
Needs-are states of felt deprivation, personal requirements that motivate behavior, and things that people cannot live without like food, clothing and shelter.
Wants-are the form taken by human needs as they are shaped by culture and individual personality. These are needs translated into specific satisfiers that may differ from person to person. For instance, all people may want different kinds of food when they are hungry.
Demands-When backed by purchasing power, or the ability to buy, wants become demands
For example, Mr. A wants a Mercedes Benz. There can only be a demand for the Mercedez Benz if Mr. A has the ability to buy the car. Otherwise, it is merely a want.
ProductIs anything offered for sale to satisfy a need or a want.
2 types of products
Tangible products are called goods
Intangible products are known as services
- is too much focus on the product to the point of losing sight of underlying customer needs
Customer value-Is the difference between the value of buying, owning and using the product, and the cost of the product.
• If the benefit exceeds the cost, there is a positive customer value and the customer usually decides to buy the product.
• If the cost exceeds the benefit, there is negative customer value and the customer would most likely avoid the product and look for something else.
Cutomer satisfaction-Refers to the difference between the buyer’s expectation and the perceived performance of the product.
• If product performs less than expected, the customer is dissatisfied.
• If the product performs as expected, the customer is satisfied.
But if... [continues]
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