11 Questions
What is the difference between needs and wants?
Needs are basic requirements like food and shelter, while wants are desires for specific satisfiers of those requirements.
What should businesses do to satisfy their customers?
Understand who their customers are and what they need and want.
What does marketing start with according to the text?
Human needs and wants.
Which of the following is NOT mentioned as a core concept of marketing in the text?
Increasing product quality regardless of customer preferences.
What is one way businesses can attract customers according to the text?
Providing products/services customers want.
Which term is used in the text to describe a state of deprivation of some basic satisfaction?
Needs.
How does a product differ from a want?
Products satisfy needs or wants, wants are needs themselves.
According to DeRose, how is 'value' defined?
Value is the estimate of a product's overall capacity to satisfy needs.
What does 'cost' refer to in the context of acquiring a product?
The money that will be spent or already incurred to acquire the product.
In economic terms, what does 'exchange' involve?
Providing money in return for the desired product.
How does a 'transaction' differ from an 'exchange'?
'Transactions' are the trade of values between two parties, while 'exchanges' refer to obtaining a desired product in return for something offered.
Study Notes
Customer Needs and Wants
- Customers have different needs and wants, and businesses need to understand these to satisfy them and improve sales.
- Customers want to explore various products to choose what they like best.
- Some customers prioritize design, while others prioritize high quality and are willing to pay extra.
Understanding Customers
- To satisfy customers, businesses need to understand who they are and what they need and want.
- Businesses should find out:
- What products or services customers want.
- How much customers are willing to pay.
- The ideal business location to reach customers.
- The most effective promotion strategies to attract customers.
Core Concepts of Marketing
Needs, Wants, and Demand
- A person's need arises from physical or psychological imbalances.
- Marketing starts with human needs and wants.
- People have basic needs (food, air, water, clothing, and shelter) and desirable needs (recreation, education, and other services).
Key Marketing Terms
- Need: A state of deprivation of some basic satisfaction, such as food, clothing, shelter, safety, and belonging.
- Want: A desire for specific satisfiers of needs, shaped by social forces and institutions.
- Demand: Wants backed by the ability and willingness to buy, requiring purchasing power.
- Product: Anything that can satisfy a need or want, classified as tangible or intangible.
- Value: The consumer's estimate of a product's capacity to satisfy their needs.
- Cost: The amount of money expended or incurred to acquire a product.
- Exchange: Obtaining a desired product by offering something in return.
- Transaction: The trade of values between two parties.
- Market: All potential customers sharing a particular need or want who might engage in exchange to satisfy their need or want.
Learn about understanding and satisfying your customers' needs and wants to improve sales. Explore strategies to identify customer preferences and provide better products or services. Understand the importance of product variety, design, quality, and customer satisfaction.
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