Basic Concepts Underlying Marketing

Needs 

Needs : The most basic concept underlying marketing is that of human needs.  Human needs are states of felt deprivation. These needs include basic  physical needs for food, clothing, shelter and safety; social needs for belonging and affection; and individual needs for knowledge and self- expression. The needs are in-built in human nature itself. It is not invented by marketers. That is, they naturally exist in the composition of  human biology and human condition. When the needs are not satisfied,  a person will try to reduce the need or look for an object that will satisfy it.

SELF-ASSESSMENT EXERCISE
Before you proceed further, what do you understand by the term  marketing?

 Wants

Human wants are desires for specific satisfaction of deeper needs. For  example, a man in the village needs rain and food and wants fertilizer. Also, a man may want yam, rice, body cream, a bag, a wrist-watch, etc. but needs money. Human needs may be few, but their wants are numerous. These wants are continually shaped and re-shaped by social forces and institutions such as families, church, schools and business corporations. Marketers do not create needs; needs pre-exist in marketing. Marketers, along with other operatives in society, influence wants. They suggest and inform consumers about certain products and persuade them to purchase, stressing the benefits of such products.

 Demands

People have almost unlimited wants but limited resources. They want to choose products that provide the most value and satisfaction for their money. When backed by purchasing power, wants become demand. That is, demand want for specific products that backed up by an ability  and willingness to buy them. For example, many desire a car such as  Mercedes Benz, Toyota, BMW, Honda, etc. but only a few are really willing and able to buy one. It is therefore important for marketing executives to measure not only how many people want their company’s  products, but also measure how many of them would actually be willing and able to buy them.

 Products

People normally satisfy their wants and needs with products offered in the market. Broadly, a product can be defined as anything that can be  offered to someone to satisfy a need or want. Specifically, a product can be defined as an object, service, activity, person, place, organisation or  idea. It should be noted that people do not buy physical objects for their own sake. For example, a lipstick is bought to supply service (beautify); toothpaste for whiter teeth – prevent germs or give fresh breath or sex

appeal. The marketer’s job is to sell the service packages built into physical products. If one critically looks at physical products, one realises that their importance lies not so much in owning them as in using them to satisfy our wants. For example, we do not buy a bed just to admire it, but because it aids resting better.

 Exchange

Marketing takes place when people decide to satisfy needs and wants through exchange. Exchange is therefore the act of obtaining a desired  object from someone by offering something in return. Exchange is only one of the many ways people can obtain a desired object. For example,  hungry people can find food by hunting, fishing or gathering fruits.

They could offer money, another food or a service in return for food.
Marketing focuses on this last option. As a means of satisfying needs, exchange has much in its favour, people do not have to depend on others, nor must they possess the skills to produce every necessity for themselves. They can concentrate on making things they are good at in exchange for the needed items made by others. Thus, exchange allows a society to produce much more than it would.

However, Kotler (1984) states that for exchange to take place, it must satisfy five conditions, namely:
(i) There are at least two parties.

(ii) Each party has something that might be of value to the other  party.

(iii) Each party is capable of communication and delivery.

(iv) Each party is free to accept or reject the offer.

(v) Each party believes it is appropriate or desirable to deal with the  other party.

These five conditions make exchange possible. Whether exchange  actually takes place, however depends on the parties coming to an agreement. It is often concluded that the act of exchange has left both of them better off, or at least not worse off. Hence, exchange creates value just as production creates value. It gives people more consumption possibilities.