Marketing Involves:
A) Conducting Exchanges: A marketing exchange is what happens any time two or more people trade goods or services. In marketing theory, every exchange is supposed to produce “utility,” which means the value of what you trade is less than the value of what you receive from the trade. Of course, all exchanges in the real world are much more complicated. Marketing theorists consider exchange to be the central concept without which there would be no such thing as marketing. For an exchange to happen, both parties have to have something of value for each other. For instance, a man visiting a coffee shop might have enough money to buy a cup of coffee while the cafe has the coffee. Both parties must be able to communicate with each other, and both must want to exchange something and be able to do so. If the customer in the coffee shop can’t make himself understood, or if he decides he doesn’t want a cup of coffee, or if he turns out not to have quite enough money, then there will be no exchange. If all of the needed conditions are met, there will be an exchange of money for coffee.
B) Creating Value: Marketers must create value for products by providing education, creating a need, and reaching the target market. Another important aspect of marketing a product is educating the internal employees and shareholders of a company to get their support, input, and participation in marketing the new product. Value is created just as much by a focus on processes and systems as much as it is by mind-set and culture. Mind-set and culture are much more difficult to change, and also difficult to emulate. It is easier to copy products and systems than to change mind-sets and culture. Therefore, for long term success, mind-set and culture are important and lasting. These, along with systems create great experience and value. Creating Customer Value increases customer satisfaction and the customer experience. (The reverse is also true. A good customer experience will create value for a Customer). Creating Customer Value (better benefits versus price) increases loyalty, market share, and price, reduces errors and increases efficiency. Higher market share and better efficiency leads to higher profits.
C) Satisfying Customer needs and wants: In marketing, satisfying customer needs and wants is the easiest way to increase profits and sell more products and services. The definition of desire in marketing is finding what the consumer is longing for and needing. Marketing strategies look to fulfil different needs to get the consumer to buy the product. Often several needs are fulfilled at the same time to build stronger client satisfaction. Fulfilling the consumer needs start with understanding what your product does and how it helps people. Taking the time to fully research and understand how you help consumers is the best way to properly target marketing campaigns. Proper targeting generates the best sales results. Consumers fall into what is referred to as the “Awareness Pyramid” with people at the base of the pyramid unaware of their need or your product. As people move up the pyramid, they understand more about how your problem solves the need.