Marketing Lesson

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To explain the this definition, I will examine the following important terms: needs wants and demands. Following the products, quality and satisfaction, relationships and the markets.

This is picture above shows these core marketing concepts are linked, with each concept building on the one before it.

The first stage of the circle describes Needs, wants and demands. When we speak of Needs we include basic physical needs for food, clothing, warmth and safety. Social needs for belonging and affection and individual needs for knowledge and self-expression. This is not invented by marketers but they are a basic part of the human. When a need is not satisfied, a person will:

• Look for an object that will satisfy it or
• Try to reduce the need

Wants are the form human needs take as they are shaped by culture and individual personality. For example a hungry person in Hong Kong may want a bowl of noodles, but a hungry person in The Hague may want a ham or cheese roll. As a society evolves the wants of its members expand, as people are exposed to more objects arouse their interest and desire. To fulfill the wants producers try to provide more want-satisfying products and services.

People have narrow basic needs but almost unlimited wants, however they also have limited resources. So they will choose products that provide the most satisfaction for their money.
When backed by an ability to pay, that's called 'the buying power' wants become demands.

A product is anything that can be offered t a market to satisfy a need or want. Product is not limited to physical objects, such a s a phone, car, television it also includes services for example banking, repair services and an airline.

Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the product. And customer satisfaction depends on a products performance in delivering value relative to a buyer expectations.

The next step in the circle that I think is interesting is relationship marketing. Its important to work on a long-term relationship with valued customers, distributors, dealers and suppliers. The company achieve this through consistently delivering high quality products, good services and fair prices.

Market is the set of actual and potential buyers of a product, these buyers share a particular need or want. Originally the term market stood for the place where buyers and sellers gathered to exchange their goods, such as a village square.