Most people think of marketing as a bunch of different things, but there’s actually one core concept that ties them all together.
What is core concept of marketing? And how can you apply it to your own business or career?
This article will explain the core concepts of marketing and show you how to use this information in your everyday life.
What is core concept of Marketing?
Need refers to a gap or lack of something which has to be fulfilled. It is important because once the needs are identified marketing plans are developed to ensure that they are met (Kotler & Keller, 2013). When individuals feel that something is missing in their life, they try to find out what it is that they are lacking. The gap can then be filled by companies through marketing products or services that meet their requirements. There are different kinds of needs such as psychological, social and physiological ones (Birnbaum, 2014). Some examples include the need for safety, prestige or belongingness . Need for any particular product may vary from person to person depending on several factors including age group, income levels and personal preferences.
Wants are desires that people have in order to fulfill their needs. The difference between “needs” and “wants” is that the latter is much more flexible since it depends on an individual’s preferences (Mowen & Spears, 2015). There are two reasons why wants are used when developing marketing strategies. Firstly, they help in targeting specific groups of customers by offering products or services which meet their requirements well enough. Secondly, different kinds of goods can be produced depending on the degree of need satisfaction for a product (Constantinides & Dyson, 2015).
Demand refers to a desire and willingness of people to buy a product or service (Lehmann, 2006). It can be considered as an overall expression of purchase intentions. In other words, the amount which people are willing to pay for a good is directly related to their demands for that specific item. Demand also involves the two concepts of “quantity demanded” and “demand schedule” which indicate how quantity changes with respect to price and vice versa respectively (McConnell & Brue, 2012).
Customer value refers to the benefits that consumers receive when they purchase a product or service (Lehmann, 2006). It is important in marketing because companies aim to satisfy their customers by offering them goods and services which can meet their needs. If there are no positive effects of using a particular item then people may not buy it even if they need it. In order to provide satisfaction, organizations produce products at lower prices with good quality as well as convenience (Kotler & Keller, 2013).
Exchange refers to the act of giving one product or service in order to receive something else (Dawar, Choudhary & Jaiswal, 2012). It can be considered as an aspect of marketing which involves negotiating between both parties. If customers are not ready to negotiate then it might decrease their satisfaction because they will end up buying a particular item at a high price instead of getting it for what it is worth. Companies should attempt to strike deals with customers by offering them quality products and services at prices which are reasonable enough (Kotler & Keller, 2013).
Customer and Consumer
Customer and consumer are two different terms which have been used interchangeably in marketing. A consumer is a person who pays for goods and services while a customer refers to the one who receives them (Dawar, Choudhary & Jaiswal, 2012). For example, if someone goes shopping in order to buy groceries then they are both the customer and the consumer of that product. The only distinction is that when someone purchases something then they become its customer whereas when someone uses it then they become its consumer (Constantinides & Dyson, 2015).
Customer satisfaction refers to an individual’s happiness which is gained after purchasing a product or service (Mowen & Spears, 2015). The main purpose of marketing activities is to fulfill the needs and expectations of customers in order for them to become satisfied. If people are not satisfied then they will avoid buying that particular item again even if they need it. Firms concentrate on customer satisfaction because it enhances their revenue over time (Dawar, Choudhary & Jaiswal, 2012).
Customer delight is the state of being extremely satisfied with a product or service. It can be considered as an aspect of customer satisfaction which is further achieved if people are pleased with what they have already received (Dawar, Choudhary & Jaiswal, 2012). People become delighted when their expectations are exceeded by organizations by providing them quality products at reasonable prices. Firms aim to succeed in this area because it helps them maintain relationships with their customers which might turn into future sales.
Customer loyalty is the act of returning to purchase certain items through repeated interactions with a company (Dawar, Choudhary & Jaiswal, 2012). This aspect of marketing is important for organizations because it helps them maintain long-term relationships with their customers. Loyalty can also result into repeat purchases that encourage growth in revenue over time.
Marketing v/s Market
Marketing is a concept which involves the exchange of goods and services. It takes place when organizations have a planned process since they target different customers in order to sell their products (Kotler & Keller, 2013). Market is a term which refers to an arena where businesses operate.
The Role of Marketing in Society
Marketing plays an important role in society because it helps organizations come up with new products which they may need (Dawar, Choudhary & Jaiswal, 2012). For example, if people are not satisfied with their current health care services then they may look for other options. Organizations can find this opportunity as a chance to convince them about purchasing their product or service at relatively higher rates than usual.
The Four P’s of Marketing
4P of marketing refer to product, price, place and promotion which are considered as the most important aspects in business (Kotler & Keller, 2013). The main aim of a company is to sell their goods or services by creating awareness around them. Organizations use different techniques to distinguish themselves from competitors which include pricing strategies and promotional campaigns among others.
Differentiation of Products
When organizations sell different goods or services then they are able to differentiate them from each other (Kotler & Keller, 2013). This technique is important for companies since it helps them gain an advantage over competitors by producing unique items. Consumers will tend to buy products which are more specific for their preferences and needs rather than something which is common.
This refers to the conditions that have been set by organizations where they offer their goods or services to various segments at different prices (Kotler & Keller, 2013). This strategy is important for companies since it helps them attract new customers and retain old ones based on their resources and purchasing power. People buy products and pay rates which correspond to what they can afford (Dawar, Choudhary & Jaiswal, 2012).
Different pricing strategies also referred as pricing policies include cost-based prices which depend on the production costs of an item (Kotler & Keller, 2013), value-based prices consist of a markup which allows the company to gain a reasonable profit (Dawar, Choudhary & Jaiswal, 2012), Name-your-price pricing policy allows customers set their own prices for products and selected payment options among others.
Place of Distribution
This involves techniques that companies use to transport their goods from the production line until it reaches the final customer (Dawar, Choudhary & Jaiswal, 2012). Place of distribution can also refer to where organizations are located in order to sell their items. This concept plays an important role in business since it helps companies optimize resources, reduce costs and access markets at various levels.
Promotion of Brands
Brands are types of names that people use when referring to a particular product or service (Dawar, Choudhary & Jaiswal, 2012). Organizations promote their brands through various methods including television commercials and Internet ads among others. Promotion of brands can help organizations create awareness about the benefits associated with goods or services they offer. Once people are aware of these benefits, they will be more likely to purchase them.
How to Use the 4Ps to Create an Effective Product or Service Strategy
The main aim of a company is to increase sales and revenue which can be done by using the 4 Ps since they help organizations attract more customers (Dawar, Choudhary & Jaiswal, 2012). The first step includes creating a need for your audience by informing them about different products or services you offer. In order to meet this demand, companies should come up with unique items which make them stand out from competitors. Distribution channels play an important role in reaching this goal since it helps organizations transport their items from production line until it reaches the final consumer.
Price is another factor that businesses consider during product development because it determines how much people are willing to pay for specific goods or services (Kotler & Keller, 2013). This factor contributes to the demand of a product because it affects consumer purchasing power. When products are expensive, people might not be able to afford them and vice versa.
Place of distribution is also important during product development since this factor can help organizations distribute their items in different ways (Kotler & Keller, 2013). This factor refers to where organizations are located in order to sell their goods or services. Companies should also consider promoting their brands through various methods including television commercials and Internet ads among others. By using these techniques, companies will be able create awareness about the benefits associated with products they offer which results in increased sales and revenue.
Types of Marketing Strategies
Organizations use different types of marketing strategies including personal selling, public relations, advertising and direct marketing among others.
Personal selling refers to face-to-face conversations between consumers and employees of the company which might include specialist or technicians (Dawar, Choudhary & Jaiswal, 2012). This type of strategy is common among service providers such as doctors and lawyers who rely on happy customers in order to generate new business.
Public relations refers to a process where companies establish relationships with current and potential customers instead of attempting to convince them about their products (Kotler & Keller, 2013). Operating companies also rely on internal support from employees and partners since this could help them come up with creative ideas for future projects.
Advertising can be defined as a promotional method where companies inform customers about their products (Jordaan, 2014). This type of strategy is often used by organizations who rely on public relations because it can help them communicate with current and potential consumers.
Direct marketing refers to tactics which are commonly used by sales representatives including telephone calls or emails to generate new business (Dawar, Choudhary & Jaiswal, 2012).
1) Organizations use different types of marketing strategies to increase sales and revenue
2) Personal selling involves face-to-face conversations between employees and consumers
3) Advertising can be defined as a promotional technique that includes informing customers about the company’s products
4) Public relations involves building relationships with interested clients
5) Direct marketing involves using various techniques to reach customers
One of the core concepts in marketing is that consumers are very much driven by emotions. If you want to have a successful product, your marketing should be aimed at driving an emotional response from them and getting them excited about what they’re buying. The best way to do this is to appeal to their senses with creative visuals or sensory descriptions. By using these techniques for your own business, you may find it easier than ever before to create success! So which emotion did our blog post use? Which one resonated most strongly with you? Does there seem like anything missing from how we described things? Let us know so we can improve our content for future posts!