Marketing Basic Terms

Marketing  Basic Terms

• Need arises with the state of felt deprivation. This happens when a situation, of an individual or a group
of individuals or a business, is less than the desired situation and there is an urge to achieve the desired
situation. Such needs can take many forms, including the following;
• Physical (food, clothing, warmth & safety etc...)
• Social (belonging, affection)
• Individual (knowledge, self expression)
The needs are basic part of human make-up, while some are also created by marketers
Wants:
Once needs are felt, humans and businesses look for solutions (or manifestations – physical shapes of
solutions for removing the states of felt deprivations). Wants are the manifested solutions of needs. Wants are
thus, forms taken by human needs, shaped by culture, individual personality etc.
Demands:
Human wants backed by buying power & choices translate into demands – what is chosen as the desired
solution from among the various available and viable options.
Products
Products are the offering of a firm (or individual/s) to a market or consumer to satisfy a need or want.
Products can be physical goods, services or other forms of satisfiers.
Quality:
The term quality is expressed more too often in the context of market transactions. Customers prefer to
acquire quality products and firms strive to offer better quality products than competitors can to remain
successful. Quality is referred as the ability of a firm (or individual) to satisfy customer needs & expectations.
Exchange:
Marketing is concerned with exchange of products and services. Exchange is the act of obtaining a desired
product from someone by offering something in return.
Satisfaction:
Focus of any marketer is to meet customers’ expectations when providing product solutions. The term
‘satisfaction’ in the context of marketing refers to the extent to which a product’s perceived performance
matches a buyer’s expectations
Relationship:
It is the process of creating, maintaining and enhancing strong value-laden relationships with customers &
other stakeholders (build good relationship & profitable transaction will follow)
Value:
• Another term that is often used in the context to marketing is ‘value’. It refers to the perceived net benefits
one gets from acquiring / owning a certain product (solution).
• ‘Value’ refers to the differences between the values the customer gains from owning and using a product
and cost/effort in obtaining the product. Often this is a perceived value rather than an objective one. The
sense of value of any product to anyone is subjective – in the opinion of the one according to ones own

In perceiving value of a product the buyers consider functional benefits as well as emotional benefits.
Costs of owning and using any product include monetary, time, energy and psychic costs.
• Value can be enhanced by;
• Raising benefits for same costs
• Reducing costs for same benefits
• Raise benefits by more than the raise in costs
• Lower benefits by less than the reduction in costs
Defining marketing:
Marketing is a process by which individuals and groups obtain what they need & want by creating and
exchanging products and value with others.
“International Marketing” refers to such exchanges across national boundaries for the satisfaction of
human needs and wants