MASTER OF BUSINESS ADMINISTRATION
Varsha R Swaroop
MB0046 - 01
Q.1 Marketing involves satisfaction of consumer needs’. Elucidate the statement.
Ans: Marketing is a social process which alleviates individuals and groups to get what they need and want through creating and exchanging products and value with others. This definition rests on the core concepts as shown and discussed below: •
Needs, wants, and demands
Value and satisfaction
Exchange and transactions
Needs, wants and demand – A need can be defined as a felt state of deprivation of some basic satisfaction. The human needs can be further divided into three types:- a) Physical needs – It addresses the basic need for food, clothing, warmth, and safety. (b) Social needs – It calls for belongingness and affection. (c) Individual needs – It includes needs for knowledge and self expression.
Wants are desire for specific satisfiers of deeper needs. Wants are shaped by culture and individual personality. For example, if you are thirsty, this is your need but if you want coca-cola to quench your thirst then this is your want. Human needs and wants are unlimited, while the resources available to meet them are limited.
Demand is want for specific products that are backed by an ability and willingness to buy them at a price. For example, you have money to buy coca-cola. Marketing aims at identifying the following:
(a) Human (and social) needs and wants
(b) Consumers’ demand
(c) Endeavours to satisfy them by creating, communicating, and delivering products and services •
Products and services – A product is a mix of intangibles and tangibles offered by the marketer at a price. For example, cars, food, air conditioner, mobiles, etc. Services may be described as intangible products such as banking and other financial services, teaching, cleaning, hairdressing, counselling, transportation, medical treatment. etc.
Sometimes, it becomes difficult to distinguish services from product as it is
closely associated with the product. For instance, if you visit a doctor, the
combination of diagnosis with the administration of a medicine may confuse
Value and satisfaction – Value is the benefit that the customer gains from owning and using a product compared to the cost of obtaining the product. A lot depends on consumers’ perceptions about the value that different products or services are expected to deliver. The sources that build customer expectations include experience with products, friends, family members, neighbours, associates, consumer reports, and marketing communications.
Customer satisfaction is based on the product’s performance and expectations. Customers generally experience satisfaction when the performance level meets or exceeds the minimum performance expectation levels. Performance ≥ Expectations → Satisfaction
Performance < Expectation → Dissatisfaction
Exchange, transaction, and relationship – Building relationship with the customers is an important part of business transactions. Of late, marketers have realised its relevance and are now focusing on relationship marketing. It is an approach that focuses on developing a series of transactions with consumers. •
Markets – A market can be viewed as any person, group, or organisation with which an individual, group, or organisation has an existing or potential exchange relationship. Without the existence of a marketplace, whether physical or virtual, no marketing would take place.
Marketing is a mixture of various activities that will get the consumer to buy a product. These activities are referred to as marketing functions.
1. Marketing research – Marketers need to approach their customers in a scientific manner. Marketing research provides a basis for it as it is basically...
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