Marketing: Meaning, Nature & Functions

Need, Want and Desire

Needs wants and demands are a part of basic marketing principles. Though they are 3 simple worlds, they hold a very complex meaning behind them along with a huge differentiation factor.

In fact, A product can be differentiated on the basis of whether it satisfies a customers needs, wants or demands.

Need
Human needs are the basic requirements and include food clothing and shelter. An extended part of needs today has become education and healthcare. In simple words these are Roti, Kapda aur Makaan. Generally, the products which fall under the needs category of products do not require a push. Instead the customer buys it themselves.

But in todays tough and competitive world, so many brands have come up with the same offering satisfying the needs of the customer, that even the needs category product has to be pushed in the customers mind.

Needs Examples

House Expenses Child Education Medical Expenses School/College fees and expenses Saving Money for Future Basic Communication Basic FMCG Products

Want

These are things which you wish to have but they are not Above your Needs. PS: Some peoples Wants can be a Need for others and vice versa.

Wants Examples

Hospitality Industry Consumer Durables Automobiles Above Your Budget Expensive Apparels
Watch this video to get a clear idea on what Want is: http://www.youtube.com/watch?v=4haEYOZ9dTE

Desire
A Step Ahead of Want is Desire. Or When wants are backed by buying power.

Desires Examples
5 or 7 Star Hotels Luxury Cars/Airlines/Living Cruises Highly Expensive Gadgets Again We Are Asking you to watch the video that gives an absolute idea of what Desire is
http://www.youtube.com/watch?v=NF9nsoncn4U

Market Offerings Products, Services & Experiences

Anything that can be offered to satisfy a need or Want. Psychical Products, Services, Experiences, Persons, Places, Organizations, Information, Ideas, Etc.

Categorize the followings

Parle-G Essel World Pizza Hut Door Bell Samsung Note 2 Shaadi.com Accenture Levis Sony Entertainment TV Net Garnier Men Facebook.com MS Swift Dezire Narendra Modi Hotel Taj, Mumbai Big Cinemas Irctc.co.in Congress I Aamir Khan Stud Gents Salon

Marketing Myopia
marketing myopia as a company's short-sighted, temporary or narrow-minded approach while marketing their product. The diseased pay more attention to the specific products than to the benefits and experiences produced by these products.

Hindustan Motors : A Case Study

Customer Value & Satisfaction

Value Difference between Value gained by owning and using a product and Cost of obtaining the product. Value gained not necessarily monetary Similarly cost of obtaining not necessarily monetary Customers act on perceived value [and perceived cost]

Satisfaction Narrow Definition: No defects Broad Definition: Ability to satisfy customers needs

Exchanges & Relationships

Exchanges
An act of obtaining a desired object from someone by offering something in return.

Relationships
Going beyond short term transactions. Long-term bond through delivering superior customer value.

Market
As per an economists definition, is a place where buyers and sellers meet. As per a marketers definition, is the set of actual and potential buyers of a product.

What is Marketing?
1. 2. 3.

Market >> Identify needs, wants and demands >> Offer products to satisfy Customers needs, wants or demands. Marketing is all about satisfying customers needs, Wants or Desires better than the competitors while earning profit.

Elements of A Modern Marketing System

Marketing Management
The art and science of choosing target markets and building profitable relationships with them.

What must a customer-driven Marketing Manager find?

What customers will we serve (Whats our target market)? How can we serve these customers best (Whats our value proposition)?

Marketing Management Orientations

1. The Production Concept The idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency. Ex. Lenovo in China or HP with Uttar Pradesh Governments Laptop Distribution Scheme

2. The Product Concept The idea that consumers will favour products that offer the best quality, performance and features and that the organization should therefore devote its energy to making continuous product improvements. Ex. Ambassador Car 3. The Selling Concept The idea that consumers will not buy enough of the firms products unless it undertakes a largescale selling and promotion effort. The concept is typically practised with unsought goods.

4. The Marketing Concept The marketing management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better Than competitors do.
Ex. Every successful company like HUL, HP, Samsung is trying this. 5. The Societal Concept A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers wants and Societys welfare as a whole.

Ex. Padega India Tabhi to Badhega India Campaign from P&G, Classmate Notebooks from ITC, etc

Marketing vs Selling
Part of the Process vs Wider Term Transfer of Title vs Satisfying Customer Needs Profit through Maximising Sales vs Customer Satisfaction Start and End of The Activities Difference in the Emphasis Difference in the Strategies

Thank You :)