To
explain the definition of marketing given in part 1 of this article, we will
examine the following important terms: needs, wants, and demands; products and services; value, satisfaction,
and quality; exchange, transactions, and relationships; and markets.
NEEDS,
WANTS AND DEMANDS.
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. These needs were not invented by marketers; they are basic
part of the human makeup.
WANTS
– These are the form human needs take as they are shaped by culture and individual
personality. A person may need food but wants hamburger, French
fries, and a soft drink. Wants are shaped by one’s society and are described in
terms of objects that will satisfy needs.
DEMANDS
– People have almost unlimited wants but limited resources. Thus, they want to
choose products that provide the most value and satisfaction for their money.
When backed by buying power, wants become demands. Consumers view
products as bundles of benefits and choose products that give them the best
bundle for their money.
PRODUCTS
AND SERVICES.
People
satisfy their needs and wants with products and services. A product is anything
that can be offered to a market to satisfy a need or want. The concept of
product is not limited to physical object. Anything capable of satisfying a
need can be called a product. In addition to tangible goods, products include
services, which are activities or benefits offered for sale that are
essentially intangible and do not result in the ownership of anything. Example
include banking, airline hotel, tax preparation, and home repair services.
More
broadly defined, products also include other entities such as
experiences, persons, places, organizations, information and ideas. For
example, by orchestrating several services and goods, companies can create,
stage and market experiences. Disneyland is an experience; so is a visit to
Nikeworld or Barnes & Noble. In fact, as products and services increasingly
become commodities, experiences have emerged for many firms as the next step in
differentiating the company’s offer. In recent years, for example, a rash of
theme stores and restaurants have burst onto the scene offering much more than just
merchandise or food:
Stores
such as Niketown, Cabella’s, and Recreational Equipment Incorporated draw
consumers in by offering fun activities, fascinating displays, and promotional
events (sometimes labeled “shoppertainment” or “entertailing”). At theme
restaurants such as the Hard Rock Café, Planet Hollywood, or the House of
Blues, the food is just a prop for what’s known as entertainment.
Thus,
the name product includes much more than just physical
goods or services. Many sellers make the mistake of paying more attention to
the specific products they offer than to the benefits produced by these
products. They seen themselves as selling a product rather than providing a
solution to a need. A manufacturer of drill bits may think that the customer
needs a drill bit , but what the customer really needs is a hole. These sellers
may suffer from “marketing myopia”.
They forget that a product is only a tool to solve a consumer problem. These sellers will have
trouble if a new product comes along that serves the customer’s need better or
less expensive. The customer with the same need
will want the product.
WATCH
OUT FOR THE PART 3 OF THIS ARTICLE ON
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