What is Marketing? Needs, Wants and Customer Value - Principles Of Marketing (textbook) - Chapter 1
What is Marketing?
What are the basic concepts?
Why do companies need a good marketing team?
This presentation is based on the book Principles of marketing from the open textbook initiative by the University of Minnesota.
Visit the link in the description to access the book.
https://open.lib.umn.edu/principlesma...
The American Marketing Association defines marketing as a set of activities and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
The standard components of the marketing mix, known as the four Ps, are product, promotion, place, and price.
They are designed to help businesses create a plan for reaching their target market and achieving their marketing goals.
Marketing is the process of understanding and satisfying customers' needs and wants profitably.
What is a need?
A need is something essential for an organism's survival and well-being.
The needs can be physical, such as the need for food, water, and shelter, or psychological, such as love, belonging, and self-esteem.
What is a want?
A want is a desire or a wish for something.
Unlike needs, which are essential for an organism's survival and well-being, wants are not necessary for survival.
They can vary significantly from person to person.
For example, a person may need food to survive, but they may want a specific type of food, such as pizza or sushi.
In general, wants are shaped by individual preferences, cultural background, and social circumstances.
Maslow's hierarchy of needs is a good representation of human needs and wants.
It includes physiological, safety, love, belongingness, esteem, and self-actualization.
The most basic needs are at the bottom, and the need for self-actualization is at the top.
The four P, or marketing mix, are the critical components of a marketing plan.
These include the product or service offered, the promotion or communication strategy, the place where the product is sold, and the price.
By carefully considering these elements, businesses can create a comprehensive plan to reach their target market and achieve their marketing goals.
The four P of marketing work together to help businesses reach their target market and achieve their goals.
For example, a person might see a promotion for a product, go to a store to purchase it, and then pay a specific price.
Each of these elements is important in the overall marketing plan.
They must be carefully considered and integrated to create a successful marketing strategy.
Marketing activities focus on creating, communicating, delivering, and exchanging value to make the customer's experience as positive and profitable as possible.
Creating value involves developing products or services that meet customer needs and provide value.
Communicating value involves effectively promoting the product or service benefits to the customer.
Delivering value involves ensuring that customers receive the product or service as promised, and exchanging value consists in facilitating the exchange of the product or service for money or other benefits.
The equation value equals benefits received minus the price and hassle. This is what we call the customer's value of a product or service.
Simply put, value is determined by the product's price and the hassle the customer experiences when shopping or using the product.
If you still have doubts about value, you can replace the word "value" with the word "benefits." It will work well most of the time.
For example, suppose a customer buys a product that costs $100. In that case, the customer experiences some hassle when shopping for the product but receives significant benefits.
The value in the customer's mind will be the benefits received minus the $100 and the inconvenience when acquiring the product. In the end, we hope the result or the customer value, is positive.
In this case, the customer would likely consider the purchase a good value because the product's benefits outweigh the price and hassle.
On the other hand, if the customer experiences a lot of hassle and the product's benefits are not significant, the product's perceived value would be negative.
In this case, the customer would likely not consider the purchase a good value because the product's benefits do not outweigh the price and hassle.
The equation value assesses the benefits received by subtracting price and hassle. It is a way of measuring whether a product or service has a good value for the customer.
Creating value for the customer is at the heart of marketing.