Core Concepts and Importance of Marketing

Core Concepts and Importance of Marketing

Published by: Mandira

Published date: 01 Feb 2022

Core Concepts and Importance of Marketing

Marketing

Marketing is the selling and buying of goods and services. The seller sales goods and services and in returen, he receives payment from the buyer in the form of money or somthing else. In othe words Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services.

In today’s world, a buyer is regraded as king, as the success of failure of the marketing depends upon the degree of the customers satisfaction. There are two popular definitions of modern marketing they are given below:

“Marketing is the activity, set of instructions, and process for creating, communicating, delivering, and exchanging offering that have value for customers, clients, partners, and society at large.” By American Marketing Association.And by philip kotler, "Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other”.

Core Concepts of Marketing

Core concept of marketing refers to the essential components that constitude the whole marketing system. They form the essence of a proper marketing system.

The core concept of marketing are as below:

  • Need
  • Want
  • Demand

Need

Need refers  something necessary for people to live a healthy, stable and safe life. When needs remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be objective and physical, such as the need for food, water, and shelter; or subjective and psychological, such as the need to belong to a family or social group and the need for self-esteem.

Want 

Want refers something that is desired, wished for or aspired to. Wants are not essential for basic survival and are often shaped by culture or peer-groups.For example, when a person is hungry in Nepal he/she prefers daal,bhat,t arkari as a food. Likewise as a person living in America may opt, for burger, French fry, etc. This difference in  preference of food id shaped by the different eating pattern of two different countries.

Demand

 When needs and wants are backed by the ability to pay, they have the potential to become economic demands.

Market:Market refers to the pool of all potential customers who share similar needs or wants and are willing to exchange to satisfy their need and want.

Exchange:Excgange is the act of getting desired product from someone by offering something in return.

Transaction:A transaction is the basic unit of exchange. For the transaction, there must be at least two parties, one giving and another taking.

Relationship:Relationship refers to the long term interconnectedness between buyers and sellers.

Customer Value and Satisfaction

Customer value and satisfaction refers to customer perceived product performance. It is the function of match between customers requirement and value added by the organization on a product/service/experience.

Importance of Marketing

Marketing has a greater role in making businesses successful, espacially in a cometitive situation.Marketing is important not only from company's point of view, it is equally important from the customer and nation's point of view, which can be mentioned as follows.

From an Organizational Perspective: Marketing supports all organizations for their existence and success in the following ways.

  • Basic of organization's existence.
  • Source of revenue
  • Information for planning and decision making.
  • Management  of innovation and change.
  • Distrubution of product.
  • Adaptation.

From a Customer's perspective: Marketing is important activity to the customers, which can be justified from the following point of view.

  • Creation of utilities.
  • Information.
  • Satisfaction.
  • Facility of selection.
  • Upgrade in living standard.

From an Economy and Society's Perspective: Maketing plays a vital role not only in the nation's economy but also in the global economy, which can be jusdtified from the following point of view.

  • Source of massive employment.
  • Maintains sypply and demand situation in the country.
  • Assures the desired rate of economic growth.