- Needs, Wants and Demand: Marketing starts with human needs and wants. People have to satisfy different needs like need for food, air, water, clothing and shelter to exist or survive. Need means requirement or necessity. A human need is a state of deprivation of some basic satisfaction. Human needs exist because of human biology and human conditions. Human needs include basic physical needs for food, clothing, shelter, social needs for belongings and affection and individual needs for knowledge and self-expression. Wants are desires for satisfying specific needs. Wants are shaped by culture and individual personality. Want is a specific intention of satisfying particular need. According to Philip Kotler, “When a need is shaped by culture or an individual personally, it is called as want.” For example, A person’s need is clothes but want may be western/ causal outfits. A person’s need is food but specific desire (want) is may be Punjabi food. Demand means desire backed up by willingness and ability to pay. Demand equals to need, want and purchasing power. Thus, wants become demand when they are backed by ability to pay (purchasing power) and willingness to pay. For instance, a beggar would like to have a dinner in five-star hotel but he is unable to pay for it. Thus, in order to convert want into demand, it is essential that he should be willing to pay and should have ability to pay.
- Product: A product is something which is viewed as capable of satisfying a need or want. Consumer will demand any product, only if it satisfies their needs and wants.
- Value, Cost and Satisfaction: Value refers to estimate or overall capacity of a product to satisfy the needs. If a product fails to satisfy the needs of the customers, it is of no value for them. Cost refers to price to be paid for the purchase of the product. Before, making a choice, consumer has to consider actual and opportunity cost of purchasing any product. Satisfaction is a post consumption evaluation of a chosen alternative course of action to determine if it meets or exceeds expectations. Satisfaction is an emotional response derived from consumption experience. If performance of the product exceeds expectation, the customer is delighted and highly satisfied.
- Exchange and Transaction: Exchange means the act of obtaining a desired product from someone by offering something in return. Transaction means a deal or an agreement. Transaction takes place between two parties when they negotiate and reach on agreement. Transaction consists of a trade of value between two parties.
- Relationship and Network: Relationship means connection or association with two or more parties. A marketer has to build a good business relationship with key parties such as customers, distributors, dealers and suppliers so that they can be retained for long-term or for continuous business. Marketers can build such relationships by promising and delivering high quality, good services and fair prices to the other parties. Such relationship helps in reducing transaction costs and time. Network indicates interconnection and interdependence. A good network of relationships with key stakeholders directly leads to higher profit.
- Quality and Total Quality Management : Quality means property or attribute. It is level of excellence or freedom from the defect. Quality adds beauty to the product. In fact, consumer satisfaction is closely linked with quality. Total Quality Management (TQM) aims at constantly improving quality of products, services and marketing processes.
- Markets: Market is the place where selling and buying of goods and service takes place. Market is a set of all actual and potential buyers of a product. A market consist of all potential customers sharing a particular need or want who might be willing and able to engage to satisfy that need or want.
- Marketers and Prospects: Marketers can be sellers (producer or traders). It means a marketer is someone seeking a resource from someone else and willing to offer something of value in exchange. The second party is known as prospect.