Principles of Marketing Session-4

Satisfaction It is a sense of psychological contend relative in nature function of one’s Expectation to Outcome / Performance If Performance equals Expectation then Satisfaction If Performance more than Expectation then Delight If Performance less than Expectation then Dissatisfaction Each marketer should try to delight the consumers.

Need, Wants & demand Need: Sense of Deprivation e.g. thirst, hunger etc Want: Desire out of alternatives which satisfy need e.g. chicken to satisfy hunger Demand: Want + ability to purchase + qualification to purchase

Exchange, Transaction & Transfer involves obtaining a desired product from someone by offering something in return five conditions must be satisfied: There are at least two parties. Each party has something that might be of value to the other party. Each party is capable of communication and delivery. Each party is free to accept or reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party. When an agreement is reached, we say that a transaction takes place transaction involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. In a transfer, A gives a gift, a subsidy, or a charitable contribution to B but receives nothing tangible in return

Product product is any offering that can satisfy a need or want 10 basic products: goods, services, experi- ences, events, persons, places, properties, organizations, information, and ideas.

Value Benefits Divided Costs Benefits= Functional benefits + emotional benefits Value =Costs Monetary costs + time costs + energy costs + psychic costs increase the value of the customer offering by (1) raising benefits, (2) reducing costs, (3) raising benefits and reducing costs, (4) raising benefits by more than the raise in costs, or (5) lowering benefits by less than the reduction in costs.