Concept of marketing
Marketing has been defined in various ways. The definition that best serves our purpose is:
Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others.
This definition of marketing rests on the following core concepts: needs, wants, and demands, products, value, cost, and satisfaction; exchange and transactions; relationships and networks; markets; and marketers and prospects.
Needs, Wants, and Demands
Marketing thinking starts with human needs and wants. People need food, air, water, clothing, and shelter to survive. Beyond this, people have strong desire for recreation, education, and other service. They have strong preferences for particular versions and brands of basic goods and services.
It is important to distinguish among needs, wants, and demands. A human need is a felt deprivation of some basic satisfaction. People require food, clothing, shelter, safety, belonging, esteem, and a few things for survival. These needs are not created by their society or by marketers; they exist in the very texture of human biology and the human condition.
Wants are desire for specific satisfiers of these deeper needs.
Demands are wants for specific products that are backed by an ability and willingness to buy them. Wants become demand when supported by purchasing power. Many people want Mercedes; but few are able and willing to buy one.
