Core concepts of marketing are the essential elements that make the whole marketing system complete. They are the essence to make a proper marketing system.
The idea behind the core or key concepts of marketing is Philip Kotler who made it possible to understand how marketing works and what are its essences.
So the core concepts of marketing are,
- Need, Want, and Demand
- Product, Service, and Experience
- Exchange, Transaction, and Relationship
- Customer Value and Satisfaction
Now, let’s know
The 5 Core Concepts of Marketing
Need, Want, and Demand
Need. The beginning point of marketing is the need for people and organizations. Need is a state of felt deprivation. The need may be physiological, learned, or emotional, or even passive or active. The primary needs such as food, shelter, clothing, safety, warmth, etc. And, secondary needs may be love intimacy, belongingness, etc.
Want. Want is a desire for a specific satisfier of need. Wants are shaped by social culture, social class, and individual personality. What a person will want when he/she is hungry depends upon his/her consumption behavior shaped by social culture, class, individual taste, and preferences, and eating patterns of the country. For instance, when a Nepali is hungry, he or she may prefer Daal, Bhat, Tarkari as food. Similarly, when an Ameican is hungry, he may opt. for a burger, french fry, etc.
Demand. Demand is a human want that is backed by ability and willingness to buy. Demand can’t imply a demand when it lacks buying ability. Consumers may have unlimited wants but limited resources. Thus, they should have to choose products or services that deliver the most utility and satisfaction.
Product, Service, and Experience
Product. Product is anything that might satisfy’s people’s needs, wants, and demands. Product may be any physical products, services, or ideas. For instance, a product is a food, house, clothes, car, etc.
Service. Service is also a kind of product that is mostly intangible and does not specify any particular ownership. For example, doctor’s services, banking, insurance, transportation, etc.
Experience. Experience is something that customers get after the products and services. For the experiences, customers may do bungee jumping, surfing, paragliding, etc.
A market is a place where all the actual and potential sellers & buyers and products & services are made sale, purchase, and consume. In order words, the market is a combination component of product, service, seller, and buyer. The market is the third of the essential elements of core concepts of marketing.
The market can be anywhere when the consumer and sellers start making transactions. And with the transactions, may all are influenced by the internal and external forces of marketing environment.
Exchange, Transaction, and Relationship
Exchange. You may obtain your desired products in many ways. One of the forms is through the exchange. Simply, exchange means giving or getting something from (to) someone by receiving or offering something in return. For the exchange there is no compulsory need it should be done in money term, it can be goods for goods or service for service. For example, you ask Ram for Organe and give him your Apple.
Transaction. The basic unit of exchange in a transaction. For a transaction, there must be two parties one is a giver and another is a receiver and it must be done in monetary terms. Just like we said, an exchange can be without monetary terms but for any transactions, it must be expressed in monetary terms. For example, you buy an Apple for Rs. 100.
Relationship. The relationship is a long-term interaction between buyers and sellers. The relationship aims to build mutually satisfying long-term relations with the company, seller, customers, suppliers, and all the stakeholders.
Customer Value and Satisfaction
Customer value and satisfaction are the consumer’s perceived performance.
Customer Value. Customer value is the difference between the values consumers get after owing & using and the cost of buying the product or service. Value is a combination of QSP (quality, service, and price). In the market, sellers sell different types of values named to products. Some products may have price value, services value, and image value.
Customer Satisfaction. Customer satisfaction is the ending point of marketing, a marketing is asid to be successful only when customers are fully satisfied. It depends upon the products or services’ performance in delivering values as per customers’ expectations. If the products meet customers’ expectations the customer’s satisfaction increases and vice versa. And if the products exceed customers’ expectations the customers become delighted and highly satisfied and they become brand loyal to that companies products or services.