To describe the social and managerial process, which, according to the definition given by F. Kotler, is marketing, the following key concepts are used, in particular: need, desire, demand, market, product, exchange, transaction. The set of concepts and the sequence of their listing here are associated with a cyclical scheme for implementing the marketing process in real life. Needs individuals result in specific desires, which, if financial opportunities are available, are transformed into market V demand to specific products, which are available on the market in the form goods. Based demand and proposals are carried out exchange between producer and consumer. The exchange process, covering a number of acts, is formalized on the market in the form of a certain deals (or a series of transactions, taking into account intermediaries) between the seller and the buyer. The transaction must ultimately lead to the satisfaction of existing needs and in the ideal case, which is very characteristic of modern consumer society, to the emergence of other, more complex, diverse and modern needs. Thus, the consumer is cyclically stimulated to more efficient work and active consumption. Let's take a closer look at these concepts.
Need (English) need, sometimes human need - human need) - a state of dissatisfaction, often an unconscious attraction of a person. A person's perceived lack of something necessary. A need that needs to be satisfied. The concept of needs underlies the motivation theories of Freud, Maslow, and Herzberg, including those that determine consumer behavior in the market.
In marketing, the most popular classification of needs is according to Abraham Maslow. In many sources it is called Maslow's pyramid of needs (Figure 1). In this model, the hierarchy of human needs is built as follows: at the base is physiology, then above it is security, the individual’s belonging to a certain group, recognition of the individual’s merits, self-expression of the individual, which is the top of the pyramid. According to Maslow, an individual strives to satisfy needs at the next level only after he has satisfied the needs at the level below.
Scheme 1.
This model well structures the idea of the types of human needs and is therefore very popular in marketing textbooks. However, in practical activities it should be remembered that life is much richer than any, even very perfect, models of human behavior, therefore Maslow’s pyramid is not a universal template.
Maslow, Freud, Herzberg showed that basic needs cannot be created through marketing; they are determined by human nature and the fundamental basis of social relations.
Associated with the concept of “need” is the concept of “potential consumer”, i.e. a consumer who has a need, as opposed to an active consumer who already has a specific, targeted desire.
desire (English) want) in marketing, sociology, psychology and management is a need that has taken a specific form in accordance with the level of cultural and personal characteristics of the individual, as well as the conditions surrounding him. In some cases, desire is called a specific or particular need. Desire manifests itself in the desire to satisfy a need. For example, a general need to quench thirst in Moscow can transform into a more specific need for mineral water, which, in turn, can take shape in a specific need, the desire to buy a bottle of Narzan. In different environmental conditions, common needs are transformed into a wide variety of desires, determined by geographical, cultural, historical and other factors. An individual, while in Kislovodsk, can satisfy the same need for quenching thirst by visiting a pump room with Narzan (a pump room is a building above a mineral spring, from where mineral water is directly obtained) or by drinking another liquid, including such a well-known dairy product as kumis. An individual, when acquiring and consuming something, performs his actions, being primarily motivated by his desires, which are a reaction to his needs. Thus, “need” is the original concept, and “desire” is a derivative of it.
Demand demand, sometimes demands - requests) - the desire to receive (a specific need) something specific, secured by purchasing power. The concept of “demand” is usually considered as a category inherent in the commodity economy and manifests itself in the sphere of exchange and trade. Demand expresses a constantly changing social need and consists of many specific requirements of the mass of consumers.
Individuals, within their inherent resource constraints, satisfy their needs and desires by making purchases that they believe benefit them the most.
Market market) is a multi-valued concept. In a general sense, it is usually classified as a category. Historically, the market was the first to appear as a specific and specially organized place for trade, i.e. a place to make transactions.
The most modern definition: market - it is a physically or virtually represented population of active or potential sellers and buyers of certain products and services. This definition reflects the process of continuous invasion of information technology into all sectors of the economy, while many market processes began to take place in the virtual environment of the Internet.
In the market, contact between supply and demand is carried out, the degree of compliance of the characteristics of a manufactured product or service provided with a specific social need is identified, and the competitive capabilities of a given product or service are compared with others. It is in the market that the social significance of the labor spent on a manufactured product or provision of a service is determined, and the product or service itself gains recognition among consumers.
Often in marketing, “market” also means the population of consumers for a particular product. There are terms: oil market, grain market, sheet steel and metal market, labor market.
In some cases, the word “market” is understood as the sphere of exchange of any property, the source of obtaining goods and services, the platform for the sale of goods, and, less often, an exchange.
The term “target market” is widely used in marketing. Target market - this is a market that ensures (in the present or future) for the manufacturer the receipt of the main share of profit or the achievement of other goals for bringing a product or service to the market. The target market is determined as a result of marketing research.
Product product) – currently there are many different definitions of this concept. For example:
product – everything that can be offered on the market for purchase for the purpose of use or consumption;
product - this is everything that can satisfy any needs (physical objects, services, organizations, activities, ideas);
product – a set of tangible and intangible properties (characteristics, functions, benefits and uses) designed to satisfy wishes buyers;
product - a specific result of material or spiritual production, possessing qualities that characterize its intended purpose and the properties for which it is acquired and consumed.
Each of the above definitions, to one degree or another, reveals the essence of the concept of “product”, but none of them, in the author’s opinion, can be considered completely perfect and complete. The concepts of “product” and “goods” should be clearly distinguished.
Product (English) article – item of trade, product; goods – goods, physically tangible goods; commodity - consumer item, product) - this concept generally belongs to the category of categories and has many definitions. Let's list some of them.
Product - This product, sold on the market.
Product - This is an object of purchase and sale.
Product - This is a set of basic consumer characteristics of a product that satisfy the specific needs of the buyer.
Product - it is a product of labor that has value and is distributed in society through exchange, purchase and sale.
Product – this is what is generally a subject of trade.
Product - it is anything that can be offered in the market to attract attention, awareness, use or consumption and that can satisfy a need or desire. Goods can be physical objects, services, a specific territory, organizations and ideas.
In business practice, there is a different definition of a product. Thus, the Customs Code of the Customs Union (CU) of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation establishes that product - This is any movable property moved across the customs border, including storage media, the currency of the CU member states, securities and (or) currency values, traveler's checks, electrical or other types of energy, as well as other transportable things equated to real estate . This must be kept in mind when solving international marketing problems.
It should be noted that in a number of publications, in particular in translated books on marketing, the concepts of “product” and “goods” are incorrectly used as synonyms.
The relationship that exists between the modern marketing concepts of “product” and “goods” can be explained as follows. An individual who processes an object directly for his own consumption creates a product, but not a commodity. The product as a commodity is not produced as a means of subsistence for the consumer himself, but is intended for others; the product turns into a commodity with the advent of private property and commodity production.
The product is interesting to the consumer due to its use value. It appears to him from two points of view: use value and exchange value or, if the latter is expressed in money, price. For the manufacturer and other participants in the distribution of goods, both exchange and use value are of interest. For the consumer, what matters first is the specific use value, and the price interests him only as the amount for which a given product can be purchased.
Participants in the commodity distribution chain, including the buyer, if he is not the final consumer, buy and sell goods. Only in the hands of the final consumer does the purchased product become a product again. Thus, in kind, the product is transformed into a commodity and then again into a product.
It is believed that within the framework of domestic terminological practice one can say: “certain companies and firms produce products.” But after these products enter the market, it is more correct to use the term “product”.
In trade and foreign economic activity, the practice of preferentially using the word “product” has developed; in most marketing texts, authors prefer the concept of “product”.
Service service – service, service, maintenance, operation, maintenance) is an important marketing concept. There are a large number of definitions of the concept “service”.
Service – These are benefits provided in the form of activities, and not in the form of things, while the provision of services itself creates the desired result.
Service – These are use values entering the market that predominantly do not acquire materialized forms.
Services have, according to some experts in the field of marketing, four main specific characteristics: intangibility, inseparability, variability of quality, and non-storability.
Exchange (English) Exchange) is the act of receiving a desired product in exchange for another. An exchange is possible when the following necessary conditions are met: there are two or more parties, each of them has goods that are valuable to the other; each party must be willing to make an exchange with the other party; each party must be free to choose whether to enter into an exchange or not; each party must be able to deliver its product. Compliance with the listed conditions makes the exchange possible, and its completion depends on the agreement of the parties regarding the conditions of this exchange.
Mutual exchange between producers of the results of their activities is a necessary condition for the functioning of social production. Exchange links production and distribution, on the one hand, and consumption, on the other.
In exchange and through the exchange of one use value for another, social needs are satisfied, i.e. sale of manufactured products as social use values. In the exchange process, one of the central positions belongs to marketing.
One of the forms of exchange implementation is barter (English) barter). This term defines the exchange of goods and services directly without the participation of money. In conditions of an unstable economic situation and the underdevelopment of the legal framework of the economy, barter ensures the continuation of production activities with limited working capital and evasion of taxes. In foreign trade, barter allows direct exchange of goods (services) without attracting foreign currency.
International barter is most often carried out by countertrading companies.
Today, the development of network communication technologies has led to the fact that more and more value for consumers is information exchange. Internet users are familiar with the Torrent service, which is used to exchange information between interested parties on the network. The name of the service comes from a type of special peer-to-peer network protocol BitTorrent (lit. “bit stream”), which was developed by the American programmer Bram Cohen in 2001. The essence of his approach to solving the problem is that the transferred file is not downloaded to the server, but is directly transferred from user to user, while the file is transferred not only from the user who has this file, but also from those who download it.
Deal (English transaction - when buying and selling, less often - bargain) in economics - this is an operation that is a kind of unit of measurement of exchange.
A transaction is a commercial exchange of value between at least two parties and involves an agreement on the conditions, timing and place of its implementation. There are two main types of transactions in economics: monetary transactions, when products are exchanged for money, and barter transactions. A number of sources separately distinguish a compensation transaction in which the buyer of goods or services pays their cost partly by supplying other goods or providing services and partly in cash. A relatively often used option is when the supplier sells his goods to the buyer, with the condition that as payment he will receive products made using the goods supplied.
Legal transactions are governed by civil law. The Civil Code of the Russian Federation gives the following definition of a transaction: transactions actions of citizens and legal entities aimed at establishing, changing or terminating civil rights and obligations are recognized.
The most common type of transaction is an agreement - a bilateral or multilateral transaction. However, transactions can also be one-sided, expressing the will of one person, for example a will.
The essence of the marketing system is revealed through a set of socio-economic categories presented in Fig. 1.1.
Let us consider a brief description of these categories, which will be constantly used in the further presentation of the material.
Marketing is based on people's needs. Need- this is the feeling experienced by an individual of the lack of something, the need for something.
The needs of people are diverse and complex, and are inherent in human nature itself. They can be classified into:
- physiological needs (food, clothing, warmth, safety);
- social needs (spiritual intimacy, influence, affection);
- personal needs (knowledge, self-expression).
Each of us has repeatedly experienced similar feelings and the more important this or that need was, the deeper the experiences turned out to be. There can only be two ways out of such a situation - either find a means to satisfy the need, or suppress it.
Need - This is a specific form of satisfying a need, corresponding to the cultural level and personality of the individual. The feeling of thirst experienced by many in hot weather can be satisfied by a resident of Russia with good cold kvass, in Germany with beer, in the equatorial islands somewhere in the Indian Ocean with coconut milk, etc.
Social progress contributes to the development of the needs of its members. In turn, manufacturers take deliberate actions to create goods and products that can satisfy these needs, as well as stimulate the desire to purchase them. People's needs are almost limitless, but the possibilities for satisfying them are limited. Often the main limiter is finances, so an individual will choose those goods that will give him the greatest satisfaction within the limits of his financial capabilities. The ability to satisfy a need brings us to the next basic category of request.
Request represents a need backed by purchasing power.
The demands of a particular society or region at a particular point in time can be determined with varying degrees of accuracy. For example, you can take a statistical reference book and look at the volumes of consumption of certain products or services. However, the needs of the population are not entirely reliable indicators. People get bored with things that are not in fashion today or they are looking for variety in order to be different from the mainstream. The memory of the middle and older generation of the Soviet Union still remembers the times when the shelves of shoe stores were littered with tarpaulin boots and felt boots of various sizes, and people felt the need for more fashionable and modern goods. What is a product?
Product- anything that can satisfy a need and is offered to the market for the purpose of attracting attention, acquisition, use or consumption.
There may be different degrees of correspondence between a need and a product, or between a product it can bring different degrees of satisfaction to a potential consumer. Fig. 1.2.
Rice. 1.2. Degree of satisfaction with the product
All goods that satisfy a need are called a choice product mix. In the above example about satisfying thirst - kvass, beer, coconut milk will be the assortment choice. When we go to a supermarket and experience a whole range of needs related to the organization of any special event, we are faced with a wide variety of product options to choose from.
As society develops, the needs of its members increase and expand. Some of the needs only become relevant to us, which encourage (motivate) a person to look for ways and means of satisfying them. There are a number of theories of need motivation. The most famous theory of needs motivation is Abraham Maslow.
Maslow believes that human needs are arranged in a certain hierarchical sequence depending on their importance to a person. First, physiological needs, which have a higher degree of significance, are satisfied (Fig. 1.3), and then incentives appear to satisfy the needs of self-preservation. After satisfying these needs, the driving motives in human activity are successively: social needs, esteem needs and self-affirmation needs.
The task of marketers is to create conditions that ensure full satisfaction of real needs and requirements. To do this, in each specific case it is necessary to find consumers and establish the factors influencing the formation of the corresponding needs, conduct an analysis and determine how these needs will develop in the future. Based on this, it is necessary to justify and organize the production of appropriate goods designed to more fully satisfy the identified needs.
Rice. 1.3. Hierarchy of human needs
Having chosen a specific product, we make an exchange with representatives of the supermarket. Exchange- the act of receiving a desired object from someone in exchange for something. This is the most civilized way to satisfy a need, although history knows other ways to satisfy a need - begging, theft, gathering or another method of natural self-sufficiency.
The act of civilized exchange is carried out in the presence of the following necessary conditions:
1. Presence of at least two subjects.
2. Each entity must possess a product that is valuable to the other party.
3. Each subject must have communication abilities (capabilities) and ensure delivery of their goods.
4. Each subject must be free to make decisions (agree or refuse to make an exchange).
5. Each party must be confident in the appropriateness and desirability of relations with the other party.
If a positive answer is given to all 5 conditions, then the exchange becomes a real action and acquires the nature of a transaction.
Deal- commercial exchange of values between entities. It can be classical (monetary) and barter (exchange of goods or services in kind). To complete a transaction, certain conditions must also be met. These include:
1. The presence of at least two objects of equal value.
2. Agreed terms of the transaction (price, time, place, delivery conditions, etc.).
The place for transactions is the market, which has gone through a long historical path of evolutionary development. The starting point of its formation was the period of human awareness of the ineffectiveness of complete self-sufficiency with all necessary food and household products. Starting with a decentralized exchange, people eventually came to a civilized market. This evolution is well described in the course of economic theory.
Market- this is a set of existing (real) and possible (potential) buyers of goods.
Market- a set of socio-economic relations in the sphere of exchange through which the sale of goods and services is carried out.
The formation and development of the market is determined by the social division of labor. The market in marketing must always be specific and have very specific characteristics: geographical location; consumer needs that generate corresponding demand; capacity. That is why the first definition from a marketing point of view is more accurate.
Depending on what needs determined the demand for the corresponding product, five main types of markets can be distinguished:
- consumer market;
- producers' market;
- intermediary market;
- government market;
- international market.
Consumer market(consumer goods market) - a collection of individuals and households that purchase goods and services for personal consumption.
Manufacturers Market(market for industrial goods) - a set of individuals, organizations and enterprises purchasing goods and services for their further use in the production of other goods and services.
Intermediary market(intermediate sellers) - enterprises, organizations and individuals purchasing goods and services for their further resale for the purpose of making a profit.
Government market- government organizations and institutions that purchase goods and services to carry out their functions.
international market- consumers of goods and services located outside the country and include individuals, manufacturers, intermediate sellers and government agencies.
From the point of view of geographical location, we can distinguish:
o local market - a market that includes one or more regions of the country;
o regional market - a market covering the entire territory of a given state;
o global market - a market that includes countries around the world.
An important characteristic of the market is the relationship between supply and demand for a given product. Taking into account the last factor, they talk about seller's market and buyer's market.
In a seller's market The seller dictates his terms. This is possible when existing demand exceeds available supply. Under such conditions, it makes no sense for the seller to research the market; his products will still be sold, and if the research is carried out, he will incur additional costs.
In a buyer's market The buyer dictates his terms. This situation forces the seller to spend additional efforts to sell his product, which is one of the stimulating factors for the implementation of the marketing concept.
Hello, friends. We continue to study the topic of marketing. Now that we've figured out the definitions of marketing, let's begin to understand basic marketing concepts. As they say, let's start with the basics and dwell in detail on each of the marketing concepts.
The essence of the marketing system can be revealed through a combination of nine socio-economic categories. We will often talk about them in the following articles, so I propose to consider their main features.
Need
Need- this is a feeling of a person’s lack of something, the need for something.
The needs of people are very diverse and can be divided into three types:
- physiological needs (food, clothing, safety)
- social (spiritual intimacy, influence, affection)
- personal (knowledge, self-expression)
The need for something causes a person to feel dissatisfaction and discomfort. A person who needs something feels unhappy and unsatisfied. And the more important this or that need is for him, the more deeply he worries.
There can be two ways out of such a situation - to find a means to satisfy the need, or to suppress it.
Needs, unlike wants, are not created by marketers. They are determined by human nature and the nature of social relationships.
Needs
Want- this is a specific form of satisfying a need, corresponding to the cultural level, the personality of the person who experiences it, the stereotypes of his behavior and perception.
For example, a resident of Russia quenches his thirst with fruit drink or kvass, a resident of Germany with beer, a resident of tropical islands with coconut milk.
To satisfy hunger, one person needs a cutlet with a side dish, another needs a salad, and a third prefers Italian dishes.
The same person, depending on the situation, may simply want to eat a chocolate bar, or order a set lunch.
Need is the original concept of marketing. A need can be considered any state of dissatisfaction that a person wants to interrupt, or a state of satisfaction that he wants to prolong.
Individual needs of people become so relevant that they encourage (motivate) people to look for ways and means to satisfy them. There are several theories of need motivation. You can read about the most famous of them - Maslow's theory.
Of course, any theory, even the best one, does not always fully correspond to practice. Rather, it is worth assuming that a person usually wants to simultaneously satisfy needs of different levels, for example, food and education.
This is the task of marketers - to create conditions under which the different needs and wants of people are fully satisfied.
The needs and desires of consumers are not always obvious, so before you start producing certain goods, you need to find out which group of buyers they are intended for and what needs they can satisfy.
Consumer needs must be constantly studied, taking into account the difference between needs and wants. Understanding the needs and desires of customers is very important for the long-term and successful operation of a company in a competitive market.
The desires of customers are constantly evolving, changing under the influence of fashion, age, environment, and new technologies. Businesses are also creating new requirements, and this is an ongoing process.
For example, in the middle of the 20th century, companies did not feel the need to purchase computer equipment. In the 80s and 90s of the 20th century, absolutely all companies felt this need.
At the same time, the consumer chooses those goods and services that bring him maximum satisfaction within certain financial capabilities. This means that not just any need matters for the market, but specifically the solvent need of a person, that is, consumer demand.
Request
Request is a need backed by purchasing power. The request is always aimed at a specific product, that is, something that can satisfy a need, and is offered to the market in order to attract attention, purchase, use or consumption.
The totality of requests forms demand.
Consumer demand– the quantity of goods and services that consumers are willing and able to buy at a certain price during a certain time in a certain market.
Factors determining consumer demand:
- price for goods and services;
- buyer income level;
- tastes and preferences of consumers;
- fashion;
- advertising effectiveness;
- sales conditions;
- consumer expectations.
The object to which consumer demand is directed is a product.
Product
Product- the result of human activity that satisfies a specific need and is intended for exchange (sale) in order to attract attention, acquisition, use or consumption.
Main forms of goods:
- products(physical objects of a material nature)
- services(labor activity, the results of which benefit the consumer, but do not take material form)
- ideas(include concept, philosophy, visual images)
There can be different degrees of correspondence between the need and the product; the product can bring different degrees of satisfaction to the potential consumer.
Assortment, range- composition of products sold by the company by groups, types, types, grades, sizes and brands. It differs in breadth (number of product groups) and depth (number of models, brand types in each group).
Brand- a sign, symbol, words, or combination thereof that helps consumers distinguish the goods or services of one company from another. A brand is perceived as a well-known trademark or company that occupies a special place among its peers in the minds and psychology of consumer segments.
All goods that satisfy a particular need are called product range of choice. In the above example of satisfying hunger and thirst, this or that product or drink will be the assortment choice.
When visiting a store, we are faced with a variety of product assortment options. Having selected certain goods, we make an exchange.
Exchange
Exchange- receiving any desired object with an offer of something in return. With the development of the market, goods and services began to be exchanged for money or other services.
Exchange is the most civilized way to satisfy needs, in contrast to theft, begging, gathering and other methods of providing in kind.
Each person has his own exchange criteria depending on his goals. For example, what does a donor receive for donating blood? Money, a feeling of relief, joy for a saved life?
Mutually beneficial exchange between the seller and the buyer assumes that the buyer receives the product he needs (service, value, satisfaction), and the seller at the same time achieves his goals - makes a profit. Therefore, marketers should always look for an answer to the question: “What are the key benefits that consumers want from purchasing your company’s product?”
Mutually beneficial exchange requires the following conditions:
- Presence of at least two subjects
- Availability of goods of interest to the other party by each entity
- Each subject must have communication abilities (capabilities) and ensure delivery of their goods.
- Each subject must be free to make decisions (agree or refuse to make an exchange)
- Each party must be confident in the feasibility and desirability of relations with the other party
If all these conditions are met, then the exchange becomes a real action and acquires the nature of a transaction.
Deal
Transaction- commercial exchange of values between two parties. It can be classical (goods in exchange for money) or barter (exchange of goods and services in kind).
To complete a transaction, the following conditions must be met:
- The presence of at least two objects that are equivalent to each other
- Agreed terms of the transaction (price, time, place, delivery conditions)
The place where transactions are made is the market, which has come a long way in evolutionary development from the moment a person realized the inefficiency of fully providing himself with the necessary food products and household goods to the civilized market that exists now.
Market
Market- this is a set of existing (real) and possible (potential) buyers of a product.
From a marketing point of view, the market is always specific and has certain characteristics - geographical location, consumer needs that generate corresponding demand, and capacity.
As the number of products intended for exchange, the number of persons participating in the exchange and the transactions performed increases, the number of markets also increases. Depending on what needs determined the demand for the corresponding product, several types of markets are distinguished.
Market Participants
Market segment is a large, clearly defined group of buyers within a market with similar needs and characteristics as distinct from other target market groups.
Suppliers- subjects of the marketing system, whose function is to provide partner organizations and other companies with the necessary material resources.
Competitors- legal entities or individuals who compete, that is, acting as rivals in relation to other business structures or entrepreneurs at all stages of organizing and carrying out business activities.
Intermediaries (Distributors)- legal entities or individual individuals who help manufacturing organizations promote, deliver to consumers and sell their products.
Consumers- legal entities, individual individuals or their potential groups who are ready to purchase goods or services on the market and have the rights to choose a product, a seller, and present their conditions in the purchase and sale process.
Types of markets
Consumer market (consumer goods market)– a set of individuals and households that purchase goods and services for personal consumption.
Producers market (market for industrial goods)– a set of individuals, organizations and enterprises that purchase goods and services for their further use in the production of other goods and services.
Market of intermediaries (intermediate sellers)– enterprises, organizations and individuals who purchase goods and services for their resale for profit.
Government market– government organizations and institutions that purchase goods and services to carry out their functions.
international market– consumers of goods and services (individuals, producers, intermediate sellers and government agencies) who are located outside the country.
Classification of markets in terms of geographical location
- Local market(includes one or more regions of the country)
- Regional market(covers the entire territory of the state)
- World market(all countries of the world)
An important characteristic of the market is the relationship between supply and demand for a given product. Taking this factor into account, they speak of a seller's market and a buyer's market.
In a seller's market terms are dictated by the seller. This is possible when existing demand exceeds available supply. Under such conditions, there is no point for the seller to engage in market research - his products will still find sales.
In a buyer's market The buyer dictates his terms. This forces the seller to spend additional efforts to sell his product, which is one of the stimulating factors in the implementation of the marketing concept.
Marketing
Now we can give a more complete definition of the concept of “marketing”. Marketing involves managing the market to facilitate exchanges and create relationships to deliver customer value and satisfy consumer needs and demands.
Marketing is the process by which individuals and groups obtain what they need and want by creating and exchanging goods and consumer value with each other. Marketing occurs when someone decides to satisfy their needs or requests using an exchange. In fact, exchange is one of the ways that a person can get what he is striving for.
Exchange processes do not occur on their own. Sellers must search for buyers, find out their needs, create goods and services, determine their cost, advertise, store, deliver, that is, carry out basic types of marketing activities.
Many people believe that marketing is primarily done by salespeople. In fact, shoppers actively participate in it when they search for the products they want at affordable prices.
Modern marketing involves serving the end consumer market in a competitive environment. The company and its competitors send manufactured products and information about them to end consumers, directly or through intermediaries.
All participants in the marketing system are influenced by the same factors - demographic, economic, environmental, scientific and technical, political, legal, social, cultural.
Competitive benefits- factors that determine a company’s superiority over its competitors, measured by economic indicators such as: additional profit, higher profitability, market share, sales volume.
Macroenvironment- factors influencing the microenvironment of the company. These include: demographic, economic, natural, scientific and technical, political and cultural.
Microenvironment of the company- factors closely related to the company and affecting its ability to serve target customers. It includes: the company itself, intermediaries, suppliers, competitors, target consumers and contact audiences.
We have reviewed the basic concepts of marketing, each of which contributes to the creation of customer value. It can be concluded that the success of any company depends not only on its own actions, but also on how well all the needs of the end consumer are met by all links in the chain.
Marketing functions form the following concepts: need, requirements, demand, product, exchange, transaction and market. The original idea underlying marketing is the idea of human needs.
Need- a feeling felt by a person of lack of something. People's needs are diverse and complex. Here are the basic physiological needs for food, clothing, warmth and safety; and social needs for spiritual intimacy, influence and affection; personal needs for knowledge and self-expression. Most of these needs are determined by the basic components of human nature. If the need is not satisfied, the person feels unsatisfied and strives either to find an object capable of satisfying the need, or to try to drown it out.
The second basic idea of marketing is the idea of human needs.
Need- a need that has taken a specific form in accordance with the cultural level and personality of the individual. People's needs are practically limitless, but a person purchases only those goods that give him the greatest satisfaction within the limits of his financial capabilities.
Request is a need backed by purchasing power.
Product- anything that can satisfy a need or need and is offered to the market for the purpose of attracting attention, acquisition, use or consumption.
Products may not meet needs, may meet partially and, finally, fully meet needs, that is, be the so-called ideal product. The more fully a product meets the consumer’s desires, the more successful the manufacturer will be.
Exchange- the basic concept of marketing as a scientific discipline. To complete this, five conditions must be met:
- There must be at least two sides.
- Each party must have something that could be of value to the other party.
- Each party must be able to communicate and deliver their goods.
- Each party should be completely free to accept or reject the other party's offer.
- Each party must be satisfied that it is advisable or desirable to deal with the other party.
These five conditions only create the potential for exchange. Whether the exchange takes place depends on the agreement between the parties on its terms. If exchange is the basic concept of marketing as a scientific discipline, then the basic unit of measurement in the field of marketing is the transaction.
Deal- commercial exchange of values between two parties. For example, the buyer gives the seller a certain amount and receives the goods he needs. This is a classic money transaction. In a barter transaction, things are exchanged - sunflowers are exchanged for metal, or services - a lawyer makes a will to a doctor in exchange for a medical examination.
The deal is subject to a number of conditions:
- at least two value-significant objects;
- agreed conditions for its implementation;
- agreed upon time of execution;
- agreed upon venue.
As a rule, the terms of the transaction are supported and protected by law.
Market- a set of existing and potential buyers of a product. Different economic systems have different ways of meeting people's needs. In primitive social structures, self-sufficiency prevails - there are few needs and each person provides himself with everything necessary. In the case of decentralized exchange, each producer of a certain product searches for and enters into a transaction with each consumer of the goods of interest to him. The third method is centralized exchange, which requires the appearance of an additional participant in the exchange - a merchant and a specific place of exchange - the market.
Seller's Market- This is a market in which sellers have more power and where buyers have to be the most active. A buyer's market is a market in which buyers have more power and where sellers must be the most active.
Purchasing behavior of final consumers - individuals or families who purchase goods and services for personal consumption.
Consumer market- individuals and families purchasing goods and services for personal consumption.
The marketing mix (or marketing mix) represents the main factors that are the subject of marketing management. It consists of four elements, the so-called “four Ps” - product, price, distribution and promotion (English: Product, Price, Place, Promotion).
The social foundations of marketing are associated with the following concepts: needs, demands, requests, goods, exchange, transaction and market.
Needs (primary needs). Marketing is based on the idea of human needs.
Need - a person's sense of lack of something.
These are physiological needs - for food, clothing, warmth and safety, and social needs - for spiritual intimacy, influence and affection, and personal needs - for knowledge and self-expression. These needs are not created by someone else's efforts, but are natural characteristics of a person.
Needs. The second basic idea of marketing is the idea of human needs.
Need – it is a need that has taken a specific form in accordance with the cultural structure and personality of the individual.
As society develops, the needs of its members grow. People encounter more and more objects that awaken their curiosity, interest and desire. Manufacturers, for their part, take targeted actions to stimulate the desire to own goods. They try to form a connection between what they put out and people's needs. A product is promoted as a means of satisfying one or more needs.
Requests. People's needs are almost limitless, but the resources to satisfy them are limited. A person will choose goods that will give him the greatest satisfaction within the limits of his financial capabilities.
Request - it is a need backed by purchasing power.
It is not difficult to assess the needs of a particular society in a certain period. The society could plan production volumes for the next year based on the totality of requests from the previous year.
Goods. Human needs, demands and demands presuppose the existence of goods to satisfy them.
Product - anything that can satisfy a want or need and is offered to the market for the purpose of attracting attention, acquisition, use or consumption.
Scientific discoveries and inventions make it possible to create new products that can satisfy new, previously unknown needs. New needs must be created through the implementation of the marketing mix.
A product can be called anything that can bring benefit, i.e. satisfy the need. In addition to products and services, these may include persons, places, organizations, activities and ideas. A person decides what kind of entertainment program to watch on television, where to go on vacation, what organizations to help, what ideas to support, what educational institution to send his child to study.
Exchange. Marketing problems arise and are solved by satisfying needs and demands through exchange. Exchange - This is the act of receiving a desired object from someone and offering something in return.
To complete a voluntary exchange, five conditions must be met.
1. There must be at least two parties.
2. Each party must have something that is of value to the other party.
3. Each party must be able to communicate and deliver their goods.
4. Each party must be completely free to accept or reject the other party's proposal.
5. Each party must be sure of the advisability or undesirability of dealing with the other party.
Deal. If exchange is the basic concept of marketing as a scientific discipline, then the basic unit of measurement in the field of marketing is the transaction. Deal – it is a commercial exchange of value between two parties. It presupposes the presence of at least two value-significant objects and agreement on the conditions, time and place of its implementation.
Market. The concept of “transaction” is associated with the concept of “market”. Market - This is a collection of existing and potential buyers of a product.
To understand the nature of the market, let's imagine three different ways for people to satisfy their needs. The first way is self-sufficiency when everyone can independently obtain everything they need for themselves. The effectiveness of such activities is very low. Second way - decentralized exchange, when each person views everyone else as potential “customers.” This is very difficult and ineffective in terms of exchange.
Third way - centralized exchange. A new face appears on the scene - a merchant. He is an intermediary between producers and buyers in a place called the “market square”.
Marketing. The concept of “market” finally leads to the final concept of the cycle – “marketing”. Marketing is a human activity that is somehow related to the market. Marketing is working with the market to carry out exchanges, the purpose of which is to satisfy human needs and wants. Thus, we return to the definition of F. Kotler: marketing – a type of human activity aimed at satisfying needs and wants through exchange.