Core concepts of marketing Part 2
Download as PPTX, PDF0 likes113 views
This document discusses key marketing concepts including utility, cost, satisfaction, exchange, and segmentation. It defines utility as a product's ability to satisfy needs and wants, with customers choosing products with the highest utility. Cost is the price paid for a product. Customers aim to maximize value by getting the highest utility for the lowest cost. Exchange is at the core of marketing, with people satisfying needs through trading something of value for a desired product. Segmentation involves dividing the market into groups with similar product preferences in order to target specific market segments effectively.
Core concepts of marketing Part 2
- 1. SYBBA Sem-3 1.4.2 Core Marketing Concepts Prof. Ajay Shukla Rofel BBA
- 2. • 4.. Utility (value), Cost, and Satisfaction: • Utility means overall capacity of product to satisfy need and want. It is a guiding concept to choose the product. Every product has varying degree of utility. As per level of utility, products can be ranked from the most need-satisfying to the least need-satisfying. • Utility is the consumer’s estimate of the product’s overall capacity to satisfy his/her needs. Buyer purchases such a product, which has more utility. Utility is, thus, the strength of product to satisfy a particular need.
- 3. • Cost means the price of product. It is an economic value of product. The charges a customer has to pay to avail certain services can be said as cost. The utility of product is compared with cost that he has to pay. He will select such a product that can offer more utility (value) for certain price. He tries to maximize value, that is, the utility of product per rupee.
- 4. • 5. Exchange, Transaction, and Transfer: • Exchange is in the center of marketing. Marketing management tries to arrive at the desired exchange. People can satisfy their needs and wants in one of the four ways – self- production, coercion/snatching, begging, or exchanging. • Marketing emerges only when people want to satisfy their needs and wants through exchange. Exchange is an act of obtaining a desired product from someone by offering something in return. Obtaining sweet by paying money is the example an exchange.
- 5. • 6. Segmentation ,Target Markets, and Positioning • Not everyone likes the same cereal, restaurant, college, or movie. Therefore, marketers start by dividing the market into segments. They identify and profile distinct groups of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers. • After identifying market segments, the marketer decides which present the greatest opportunities— which are its target markets. For each, the firm develops a market offering that it positions in the minds of the target buyers as delivering some central benefit(s). Volvo develops its cars for buyers to whom safety is a major concern, positioning its vehicles as the safest a customer can buy.
- 6. • Will continue……. • Offerings and Brand • Marketing Environment