CORE MARKETING CONCEPTS
The Market = Actual Buyers + Potential Buyers
Share a common need that can be satisfied by a specific product, who have the resources, willingness and
authority to make an exchange. A market requires:
●A buyer
●A seller
●An exchange
●Information and knowledge
●Something (a “product”) which is exchanged
●Potential for mutual benefit
Industry is the opposite of market
The marketplace is any medium or location used to conduct an exchange.
Human needs - the most basic concept underlying marketing, inherent to human makeup
●The recognition of a difference between the consumer’s actual state and an ideal/desired state (e.g. to be
hungry); states of recognised deprivation
●Include basic physical needs (hunger), social needs (belonging and affection), individual needs (knowledge
and self-expression)
●When a need is not satisfied, a person will either try to reduce the need, or look for an object that will
satisfy it
●Marketers stimulate
needs rather than create them
Human wants are the form taken by human needs shaped by culture and individual circumstance (personality,
context)
●The desire to satisfy a need in ways that are culturally and socially influenced
●Described in terms of objects that will fulfil needs
●If a human need is hunger, two people from two different countries will want different things to satisfy
the need because each will think of different products to do so
Demands are human wants supported by purchasing power
●Customer view products as benefits, and will choose the product that provides the best value for money
●Satisfying human needs + wants = utility
●Demand = new customers + repeat customers
●Marketers must understand demand patterns
A market offering is a product
that is some combination of goods, services and experiences, that can be offered to
a market. In the broadest sense, this can include:
●Goods
●Services and experiences
●Persons
●Places
●Organisation
●Information
●Ideas
