Marketing is a social and managerial process by which individuals and organisations
obtain what they need and want through creating and exchanging value with others
American Marketing Association: Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering and exchanging offerings that have
value for customers, clients, partners and society at large.
The five core concepts of marketing are (1) customer needs, wants and demands; (2)
market offerings – products, services and experiences; (3) customer value and
satisfaction; (4) exchanges and relationships and (5) markets.
Human needs are states of felt deprivation. They include physical, social and individual
needs (food, a sense of belonging and self-expression respectively)
Wants are the form taken by human needs as they are shaped by culture and individual
personality. They become demands when backed by buying power.
A product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a need or want. It can be a tangible good, service or
Customer value is the difference between the benefits the customer gains from having
access to or owning and using an offering and the costs of obtaining it.
Customer delivered value is the difference between the prospective customer’s
evaluation of all the benefits and all the costs of an offering as compared to the
Customer satisfaction depends on an offer’s perceived performance in delivering
value relative to a buyer’s expectations.
Exchange is the act of obtaining a desired object from someone by offering something
in return. It is the core concept of marketing.
A market is the set of all actual and potential buyers of a good or service.
The production philosophy holds that consumers will favour products that are
available and highly affordable.
The product philosophy holds that consumers favour products that offer the most