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The
original expression of the Marketing Concept, dating from the late 1940's and
early 1950's. Our culture still viewed American society as a man's world. Today,
in these politically correct times, we would probably say, "The Customer Is
Royalty." But the message is the same -- the wants and needs of our target
customers should drive our business decisions.
We often see this statement displayed in businesses,
particularly those that offer services (e.g. dry cleaners, car repair shops). In
some businesses, however, we see a picture of a bunch of people laughing
hysterically, with the caption "You Want It When?" These businesses
have lost the Marketing Concept -- they've forgotten who pays the bills.
This updated version of the Marketing Concept identifies that needs provide the motivation for our customers' purchases. We buy poroducts for the benefits they provide, i.e., for the needs they satisfy.
The Marketing Concept as described by Peter Drucker, the management
guru. If you can provide the right product, at the right price, in the right
place, and at the right time, consumers will demand your product -- you won't
have to "sell" it to them.
If you don't take care of the customers, maybe they'll stop bugging you.
In most large organizations, folks in the marketing department can get by without speaking computerese. The smaller the organization, the more value you are if you can translate computerese into English and even speak a little yourself.
That's not true with marketing jargon. As an MBA, you're expected to know it cold. The jargon is the code marketers use to keep out the riff-raff and justify their own salaries.
Most marketing jargon looks like jargon: consumer price index; demographic variable; POP; mind-share.
Other marketing terms are everyday words that have special meanings in a marketing context.
We must control for the demographic variables at the
POP, which is proven to have a positive correlation to the inverse ratio of the
consumer price index to our current-quarter mind-share.
Uh-huh.
Please use the following words very carefully in a marketing context. In addition, you may want to learn the U.S. Commerce Department's definitions.
Physical, social, and individual needs emerge from a state of felt deprivation.
Wants are the form taken by human needs as the needs are shaped by culture and individual experience. How are different wants based upon geographical differences, gender, age, wealth? How is culture linked to socio-economic standing, education? That is, marketers apply demographics to segment wants.
Demands are wants backed by buying power. Dream vacations or favorite cars illustrate differences between wants and demands (want an Acura Legend but drive a Subaru Justy). Demands are often for a bundle of benefits, and may address a number of related needs and wants.
Products are anything offered for sale to satisfy a need or want, including services and ideas.
An exchange is the act of obtaining desired objects by offering something in return, including barter and promises to pay (credit, checks).
A transaction is an actual trade of value between at least two parties. Transaction marketing is part of the concept of relationship marketing, where parties build long-term ties to enhance quality and customer-delivered value.
A market is the set of actual and potential buyers of a product whether decentralized or centralized. A market exists wherever something of value is desired, e.g. labor market, money market, donor market.
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