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BCP 402: Consumer Behavior Notes 4th Year

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Summary

TOPIC ONE
MARKETING OVERVIEW/REVISION

DEFINITION OF MARKETING

The Chartered Institute of Marketing of the United Kingdom defines marketing as, “The management process which identifies, anticipates, and supplies customer needs efficiently and profitably.”

Kibera (1996) defines marketing as “the performance of business and non-business activities which attempt to satisfy a target individual or group needs and wants for mutual benefit or benefits.”

Kotler (2006), the American marketing guru provides the definition of marketing as “A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others.”

Kotler and Armstrong (2008) define marketing as “The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.”

CORE MARKETING CONCEPTS

1. Needs – The basic concept underlying marketing is that of human needs. Needs comprise of those things that human beings feel they cannot do without e.g. food, clothing, shelter, safety, education etc.

2. Wants – Are forms of human needs that improve on their well being but which they can do without. Wants are the form of human needs taken as they are shaped by culture and individual personality for example urbanites want Television sets.

3. Demand –Demand is the quantity of a commodity that consumers are willing and able to buy at a given price over a given time period other factors held constant. When a want is backed by buying power it becomes demand.

4. Product – Is anything that can be offered to satisfy needs or wants. It can be tangible or intangible.

5. Market – A constituency of potential customers sharing particular needs or wants and who might be willing and able to engage in exchange to satisfy that need or want. A market also refers to where buyers and sellers meet to transact.

6. Marketing offer – Is a combination of products or service presented to the market to satisfy a need or a want.
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