Mon. Nov 11th, 2019

book derives

Knowledge Peace

THE MARKETPLACE AND CUSTOMER NEEDS

5 min read
THE MARKETPLACE

As a first step, marketers need to understand customer needs and wants and the marketplace in which they operate. We examine 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
  5. Markets.

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 culture and individual personality. An American needs food but wants a Big Mac, french fries, and a soft drink. A person in Papua New Guinea needs food but wants taro, rice, yams, and pork. Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs. When backed by buying power, it wants to become demands. Given their wants and resources, people demand products with benefits that add up to the most value and satisfaction.

Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, french fries, and a soft drink. A person in Papua New Guinea needs food but wants taro, rice, yams, and pork. Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs. When backed by buying power, it wants to become demands. Given their wants and resources,
people demand products with benefits that add up to the most value and satisfaction. (the marketplace)

Market Offerings Products, Services, and Experiences

Consumers’ needs and wants are fulfilled through market offerings some combination of products, services, information, or experiences offered to a market to satisfy a need or a want. Market offerings are not limited to physical products. They also include services activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything. Examples include banking, airline, hotel, tax preparation, and home repair services.

More broadly, market offerings also include other entities, such as persons, places, organizations, information,
and ideas.  For  example,  the “Pure Michigan” campaign markets the state of Michigan as a tourism destination
that “lets unspoiled nature and authentic character revive your spirits.” And the U.S. Forest Service’s “Reconnecting
Kids with Nature” campaign markets the idea of encouraging urban young people to explore the joys of nature firsthand.  Its DiscoverTheForest.org Web site helps children and their parents figure out where to go outdoors and what to do there.

Many sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. These sellers suffer from marketing myopia. They are so taken with their products that they focus only on existing wants and lose sight of underlying customer needs. They forget that a product is only a tool to solve a consumer problem. A manufacturer of quarter-inch drill bits may think that the customer needs a drill bit. But what the customer really needs is a quarter-inch hole. These sellers will have trouble if a new product comes along that serves the customer ’s needs better or less expensively. The customer will have the same need but will want the new product.

Smart marketers look beyond the attributes of the products and services they sell. By orchestrating several services and products, they create brand experiences for consumers. For example, you don’t just watch a NASCAR race; you immerse yourself in the exhilarating, high-octane NASCAR experience. Similarly, HP recognizes that a personal computer is much more than just a collection of wires and electrical components. It’s intensely personal user experience. As noted in one HP ad, “There is hardly anything that you own that is more personal. Your personal computer is your backup brain. It’s your life. . . . It’s your astonishing strategy, staggering proposal, dazzling calculation. It’s your autobiography, written in a thousand daily words.” (the marketplace)

Customer Value and Satisfaction

Consumers usually face a broad array of products and services that might satisfy a given need. How do they choose among these many market offerings? Customers form expectations about the value and satisfaction that various market offerings will deliver and buy accordingly. Satisfied customers buy again and tell others about their good experiences. Dissatisfied customers often switch to competitors and disparage the product to others.

Marketers must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. If they set expectations too high, buyers will be disappointed. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships. (the marketplace)

Exchanges and Relationships

Marketing occurs when people decide to satisfy needs and wants through exchange relationships. Exchange is the act of obtaining a desired object from someone by offering something in return. In the broadest sense, the marketer tries to bring about a response to some market offering. The response may be more than simply buying or trading products and services. A political candidate, for instance, wants votes, a church wants membership, an orchestra wants an audience, and a social action group wants idea acceptance.

Marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences involving a product, service, idea, or other objects. Beyond simply attracting new customers and creating transactions, companies want to retain customers and grow their businesses. Marketers want to build strong relationships by consistently delivering superior customer value. (the marketplace)

Markets

The concepts of exchange and relationships lead to the concept of a market. A market is the set of actual and potential buyers of a product or service. These buyers share a particular need or want that can be satisfied through exchange relationships.

Marketing means managing markets to bring about profitable customer relationships. However, creating these relationships takes work. Sellers must search for buyers, identify their needs, design good market offerings, set prices for them, promote them, and store and deliver them. Activities such as consumer research, product development, communication, distribution, pricing, and service are core marketing activities.

Marketing means managing markets to bring about profitable customer relationships. However, creating these relationships takes work. Sellers must search for buyers, identify their needs, design good market offerings, set prices for them, promote them, and store and deliver them. Activities such as consumer research, product development, communication, distribution, pricing, and service are core marketing activities.

Although we normally think of marketing as being carried out by sellers, buyers also carry out marketing. Consumers market when they search for products, interact with companies to obtain information and make their purchases. In fact, today’s digital technologies, from Web sites and online social networks to cell phones, have empowered consumers and made marketing a truly interactive affair. Thus, in addition to customer relationship management, today’s marketers must also deal effectively with customer-managed relationships. Marketers are no longer asking only “How can we reach our customers?” but also “How should our customers reach us?” and even “How can our customers reach each other?” (the marketplace)

WHAT IS MARKETING

Designing A Customer-Driven Marketing Strategy

This post contain the content of book Principles of Marketing 

 

Copyright © All rights reserved. This site contains book's content to increase knowledge and develop keen interest toward book. | Newsphere by AF themes.