"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives." MARKETING THEORIES AND CONCEPTS
- A human need is a state of felt deprivation.
Ex: physical needs, social needs, individual needs
- As human needs are shaped by culture and individual personality, these take the form of human wants. - Wants are described in terms of objects that will satisfy the needs.
Ex: Need – Food
American will want a burger; Filipino will want adobe; Japanese will want sushi. Needs vs. Wants
Some sellers confuse wants and needs. Consider this...
“A customer does not need a drill bit; rather he needs a hole.” Demands
When backed by buying power, wants become demands. Consider this... “Unlimited wants Limited resources.”
Consumers view products as bundles of benefits. They choose products that give them the best bundle for their money. Differentiate the perceived bundle of benefits given by these products. Shirts: Bench, Lacoste / Soap: Safeguard, Neutrogena / Shampoo: Pantene, Palmolive Various States of Demand
(1) Negative Demand
(2) No Demand
(3) Latent Demand
(4) Falling Demand
(5) Irregular Demand
(6) Full Demand
(7) Overfull Demand
(1) Negative Demand
A major part of the market dislikes the product and may even pay to avoid it.
Ex: vaccinations, dental work, seat belts
Challenge: Marketers must analyze why the market dislikes the product, and whether product redesign, lower prices, or more positive promotion can change consumer attitudes. (2) No Demand
Target consumers may be uninterested in the product.
Ex: Farmers may not want new farming method; students may not care for foreign language courses. Challenge: Marketer must find ways to connect the product's benefits with the market's needs and interests. (3) Latent Demand
Consumers have a want that is not satisfied by any existing product or service. Ex: Non harmful cigarettes, safer neighbourhoods, biodegradable packages, fuel-efficient cars Challenge: Marketer must measure the size of the potential market and develop effective goods and services that will satisfy demand. (4) Falling Demand
Sooner or later, every organization faces falling demand for one of its products.
Ex: churches face membership decline, fewer applicants to colleges Challenge: Marketer must find causes of market decline and re-stimulate demand by finding new markets, changing product features, or creating more effective communications. (5) Irregular Demand
Demand varies on a seasonal, daily, or even hourly basis, causing problems of idle or overworked capacity.
Ex: MRT and museums
Challenge: Marketer must find ways to change the time pattern of demand through flexible pricing, promotion, and other incentives. (6) Full Demand
The organization has just the amount of demand it wants and can handle. Challenge: Marketer works to maintain the current level of demand in the face of changing consumer preferences and increasing competition. An organization maintains quality and continually monitors consumer satisfaction. (7) Overfull Demand
Demand is higher than the company can or wants to handle.
Ex: Overcrowding at parks, overloading of buses or ferries
Challenge: The marketing task, called de-marketing, is to find ways to reduce the demand temporarily or permanently. Examples include raising prices and reducing promotions. Aim is not to destroy demand but to reduce it. Products
A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a need or want. A product may be goods, services, persons, places, organizations, activities, ideas... anything capable of satisfying a need. Exchange
Exchange is the act of obtaining a desired object...