Core Principles of Marketing

Topics: Marketing, Pricing, Marketing management Pages: 9 (2185 words) Published: August 27, 2013
priciples of mar
A. DEFINITION AND CORE CONCEPTS OF MARKETING

MARKETING – social and managerial process by which individuals and groups obtain what they want through creating and exchanging products and value with others - managerial process of producing, pricing, distributing, and promoting products to satisfy the needs, wants and demands of their respective markets

NEEDS – states of self – deprivation
- natural elements designed for survival
- anything required to survive
- results of human drives
3 KINDS:
1. Physical needs – include food, clothing, warmth and safety 2. Social needs – include sense of belonging and affection 3. Individual needs – knowledge and self- expression

WANTS – forms of human needs shaped by culture and individual personality - pertain to the preferences of people regarding their survival requirement - described in terms of objects that will satisfy needs

DEMANDS – needs and wants that are backed up by consumer purchasing power

MARKET – customers and consumers of a business
- characterized by:
a. groups of people
b. with money to buy
c. willingness to spend the money they have
Customers – buyers of a product
Consumers – end – users of the product

PRODUCTS – bundles of attributes and benefits designed to be offered to buyers to satisfy their needs, wants and demands - may be termed as goods if they are tangible, and services if generally intangible - those that are tangible and services as those which are intangible - may be classified into events, places, and ideas

- anything capable of satisfying a need

CUSTOMER VALUE – technically defined as the difference between what the customer gains from the product and what the customer loses from the costs of acquiring such a product Perceived value – how customers perceive the value of the product CUSTOMER SATISFACTION – extent to which a product tends to meet the expectations of buyers of a particular product which they bought to fulfill their need or want - depends on a product’s perceived performance in delivering value relative to a buyer’s expectations

QUALITY – originally refers to the product’s freedom from defects

EXCHANGE – known as the act of obtaining a desired object from someone by offering something in return - core concept of marketing
CONDITIONS :
- at least two parties must participate
- each must have something of value to the other
- each party also must want to deal with the other party - each must be free to accept or reject the other’s offer - each party must be able to communicate and deliver

TRANSACTION – marketing’s unit of measurement
- refer to an agreement between two parties where both give up something to receive something else - consists of trade of values between two parties
KINDS:
1. Monetary transaction – money in change of a good 2. Barter transaction – trading one good in exchange for another

RELATIONSHIPS – human interaction between an enterprise and its customers designed to create value-laden dealings and associations

B. THE MARKETING ENVIRONMENT
- all factors and forces ever present in their environment affecting the enterprise’s marketing abilities - factors and forces outside marketing that affect marketing management’s ability to develop and maintain successful transactions with its target customers

INTERNAL ENVIRONMENT – consists of all the various departments in a company

THE COMPANY’S INTERNAL ENVIRONMENT

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TOP MANAGEMENT – sets the company’s mission, objectives, broad strategies, and policies FINANCE DEPARTMENT – concerned with finding and using funds to carry out the marketing plan RESEARCH AND DEVELOPMENT – focuses on the problems of designing safe and attractive products PURCHASING – concerned...
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