Page 12 - DMGT408DMGT203_Marketing Management

Unit 1: Marketing: Scope and Concepts

puff, the third asks for a chicken burger, and the fourth buys a huge ice cream. All of them are Notes
eating some variation of food to satisfy hunger. The specific satisfier that an individual looks for
defines the want. Therefore, wants are specific satisfiers of some needs.
Individual wants are shaped by culture, life style, and personality.

Example: An individual buys a Mercedes as a status symbol and a tribal chief in some
remote area of Amazon rain forests sticks an eagle feather in his headgear as status symbol.
To satisfy any given need, different people may express a variety of wants and the total number of
wants for all sorts of needs is apparently unlimited. Just because people have needs and wants is
not enough to affect exchanges. The resources to acquire the products are limited for every
individual and hence people want to buy products that they believe will provide the maximum
value and satisfaction for their money. When the want is backed by purchasing power, it is called
the demand and marketers are particularly interested in demand rather than just needs or wants.
Marketing aims at identifying human and social needs and endeavours to satisfy them by
creating, communicating, and delivering products and services. According to Kotler, marketers
are involved in marketing 10 different entities: tangible products, services, events, information,
ideas, places, persons, experiences, properties, and organisations to accomplish the objective of
delivering satisfaction to customers.
People buy products only because these are seen as means to satisfy certain needs or wants. The
concept of product is broad in its meaning and includes everything that is capable of satisfying
a need and can be a physical product, service, idea, person, place, or organisation. Marketers
make a sensible distinction between goods and services to place them in right perspective.
Physical products are tangible and services are intangible. People acquire products or buy the
services not so much for the sake of being the owner or consumer, but to derive the benefits they
provide. Who would buy food just to look at it? No one presumably would buy a refrigerator to
just own it but for the reason that it provides the benefit of protecting the food from becoming
stale and keeping it fresh. A large family with more resources will probably buy a bigger two-
door refrigerator, while a nuclear two or three member family with lesser resources may
perhaps want a smaller capacity refrigerator.
1.1.4 Marketing Components

Marketing is the effective procedure of generating responses, hopefully in a predictable manner.
The components of marketing are:
1. Ongoing review, Augmentation of business, Marketing Strategies: Continuing to assess
the strengths and weakness of the business and its marketing strategies with reference to
continuously improving strategies.

2. Conducting Market Research: Estimation the size, potential of your customer market and
understanding the industry and economic drivers with reference to the strengths and
weaknesses of your competitors.
3. Customer Perspective: Understand the customer perspective. Very often, this is where the
seed of innovation begins as we learn more about the customer perspective, we start to be
able to identify new, emerging customer needs.
4. Differentiating: Standing out from your competitors based on price or value or developing
a niche market where you are the dominant player.
5. Creating Visibility: Keep your business clearly visible to your target customer groups. If
not, what things you need to do to become more visible to each of the customer groups

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