This is my own effort to learn marketing (courtesy : Principles of Marketing)
… hence from now onwards with every effort being made towards learning, I will try and make it easier for myself and also for few of us, who are not so sure about this process called Marketing…
Simply put, marketing is managing profitable customer relationships. The aim of marketing is to create value for customers and capture value from cus-tomers in return. we define marketing as the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
The Marketing Process:
Think of Marketing as a five-step model of the marketing process. In the first four steps, companies work to understand consumers, create customer value, and build strong customer relationships. In the final step, companies reap the rewards of creating superior customer value. By creating value for consumers, they in turn capture value from consumers in the form of sales, profits, and long-term customer equity.
Let’s see what is this five step model all about?
Understanding the Marketplace and Customer Needs
” Marketing is all about creating value for customers. So, as the first step in the marketing process, the company must
fully understand consumers and the marketplace in which it operates.”
As a first step, marketers need to understand customer needs and wants and the marketplace in which they operate. There are five core customer and marketplace concepts: (1) needs, wants, and demands; (2) market offerings (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets.
Let’s talk about in this post :
Customer Needs, Wants, and Demands :
The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers did not create these needs; they are a basic part of the human makeup.
Wants are the form human needs take as they are shaped by social, cultural and individual personality. An Indian Needs Food, but wants a Mac Burger, Pizza or a soft drink…for a person living in high society the same need may have a different want, than a person living in lower middle class society…another example would e a need to have a way to commute….a lower middle class would want a Nano, and probably would be satisfied, whereas a high or upper class would not go for less than a Merc…
Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs.
Here comes the Buying Power where by a Need from Wants becomes a Demand.
At Zappos, CEO Tony Hsieh uses Twitter to build more personal connections with customers and employees. Some 1.6 mil-lion people follow Hsieh’s Twitter feed. And at P&G, executives from the chief executive officer down spend time with consumers in their homes and on shopping trips.
Marketing companies want to understand as to what are the needs, wants and how they can be converted in to demand using or targeting a specific segment.