A major success factor for small businesses lies in how well they tell the world about their product. Marketing attracts prospects, prospects become buyers, and buyers provide profit. According to the U.S. Small Business Administration, marketing must create a connection

Marketing is everything an organization does to build a relationship between the company and consumer.

Marketing is the cumulative of business activities (identifying, creating, pricing, promotion and distribution of ideas, goods and services) that result into an exchange that satisfy consumers want.

Marketing and its core concepts for small business
marketing core concept

American Marketing Association defined marketing as “the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives” in fact individuals and organizations are considered as consumers of that particular production.

From the various definitions of marketing rest the following core concepts: needs, wants, demand, product, satisfaction, and exchange.

Generally speaking we all a need, want and demand.  

Need

Needs are necessity. It is refer to an individual basic requirement that must be fulfilled in order to survive. A person requires food, clothing for his survival. These needs are neither created by their society or producer, they are intrinsic in nature.

Want

Wants can be said to be the “ good to have”. Its man’s desires for specific satisfiers of deeper needs. For example, a hungry man needs food but want Rice, needs clothing and wants a pair of Suit. As human our needs are satisfied differently as per society, geographical location and culture.

We have to know that people’s needs are few, but their wants are many. Our wants as humans are continually shaped and reshaped by social forces, environment and institutions.

See also Word Of Mouth Advertising – Steps To Create Awareness

Demand

Demands on the other hand are regarded as desire (want) for specific products that are backed up by the ability and willingness to buy them. Wants becomes demand when you are willing and able to purchase the desire want. You may need a car but want a particular product like Range Rover 2019 model, but do we have the purchasing capability to purchase one, if not that want become extinguished.

Marketers do not create the need but only point out that a particular product would satisfy that need. For example you are thirsty, marketer will point out that coca cola will cool you down. In reality marketers try to influence demand by making the product attractive, affordable and easily available.

Exchange

The fact that people have needs and wants and can also place value on products does not clearly define marketing. Marketing can only emerge when people decide to satisfy needs and wants through exchange. Exchange is one of the basic ways people get their needs.

Exchange is the process by which two or more individuals, it could be organizations give and receive something for value. An exchange could be money, goods, services, idea, people, and so on. Every exchange is expected to produce utility which means getting value for your exchange. Therefore, it is important that both the marketer /seller and buyer gets value for their exchange.

Consumer Satisfaction

Customer satisfaction should be the main focus of every business because customers drive business. Great customer satisfaction is strongly linked high to customer retention. To stay in business ensure consumer gets value for their exchange.