AUG 05 2015 CLASS 2 FUNDAMENTAL MARKETING CONCEPTS

Today I taught the fundamental marketing concepts to final year students of hospitality.

batch x 

batch y 

It was a very interactive session in which I gave them examples to make them understand the fundamental marketing concepts. Some of the things that I mentioned are written below:

Fundamental Marketing Concepts

1. Needs, Wants and Demands
2. Product
3. Exchange, Transaction and Relationship
4. Value and Satisfaction
5. Markets
6. Customer Requirement
7. Target Market

These are essentially taught so that marketing concepts can be further elaborated in the form of market management philosophies, marketing segmentation, marketing mix and so on and so forth.

1. 

We all know that Needs are the basic human requirements. People need food, air, water clothing and shelter to survive. People have strong need for recreation, education and entertainment.

The needs become wants when they are directed to specific objects that might satisfy the need.

and finally, Demands are wants for specific products backed by an ability to pay.

2. 

Anything that can be offered to satisfy a specific need or want is called a product. Products are tangible as in PHYSICAL GOODS or intangible as in SERVICES, IDEAS, and ORGANIZATION etc.

3. 

Exchange is a process of obtaining a desired product from someone by offering something in return. Exchange is the basic requirement for a marketing activity to take place.

Transaction is the marketing unit of exchange. Transaction is an activity during the exchange process in which two items of value change hands.

Relationship Marketing is the new buzz word in which profiteering from single transactions is considered as poor business strategy.

 4.

Value is the perceived need satisfaction from the product against the offered exchange item (Money).  It is a central marketing concept. Marketing can be seen as the identification, creation, communication, and delivery and monitoring of customer value.

Satisfaction is the desired aim for any marketer and it occurs when the customer perceives that he got the value for his money.

5. 

MARKET Is the place where buyers and sellers assemble to carry out the exchange process.

6. 

The assessment of customer’s requirements or needs is a bit more difficult than defining the target market. This is because, customer might not be able or willing to state the true nature of his/her needs. The needs of the customer have to be further checked for its behavioural, habitual overtones so that useful product is presented to the customer.

7. 

A Target Market is defined as a set of actual and potential buyers of a product, service or idea. A buyer who is interested in buying the product and has the income and willingness to buy can be broadly classified as “Potential Buyer.”