Core concept of marketing refers to the essential components that constitute the whole marketing system.
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1.) Needs, Wants, and Demands:
- Needs refer to the basic human necessities required for survival, such as food, water, shelter, and clothing. Needs are inherent and universal to all individuals.
- Wants are the specific preferences individuals develop based on culture, society, and personal experiences. For example, a person needs food but may want a pizza or a burger.
- Demands occur when wants are backed by purchasing power. Customers demand products that they desire and can afford, influencing market demand.
2.) Market Offerings:
- A market offering refers to the combination of products, services, experiences, and solutions that businesses provide to satisfy the needs and wants of consumers.
- It includes tangible goods (such as electronics and clothing) and intangible services (such as banking and healthcare).
3.) Value and Satisfaction:
- Value refers to the perceived benefits a customer gains from using a product or service compared to the cost incurred to acquire it. A product is considered valuable if it provides more benefits than the price paid.
- Satisfaction is the degree to which a product or service meets or exceeds customer expectations. If the actual experience of using a product matches or surpasses expectations, the customer feels satisfied.
4.) Exchange and Transactions:
- Exchange is the process in which two or more parties give something of value to each other to satisfy their respective needs and wants. For example, a customer exchanges money to purchase a product from a business.
- Transactions refer to the actual exchange of value that takes place, involving elements such as price, payment method, and delivery terms.
5.) Markets:
- A market is a group of actual and potential buyers who have the willingness and ability to purchase a particular product or service.
- Markets can be classified into different types, such as consumer markets, business markets, and global markets.
6.) Marketing Mix (4Ps of Marketing):
- Product is the goods or services offered by a company to meet the needs and wants of customers. It includes features, quality, branding, and packaging.
- Price is the amount of money customers must pay to acquire a product. Pricing strategies vary based on demand, competition, and value perception.
- Place is the distribution channels through which a product reaches consumers. It includes physical stores, online platforms, and supply chains.
- Promotion is the communication strategies used to inform, persuade, and influence potential customers. It includes advertising, sales promotion, public relations, and personal selling.
7.) Customer Relationships:
- Customer relationships refer to the strategies and efforts businesses use to build long-term engagement with customers by delivering consistent value and maintaining satisfaction.
- Businesses use customer relationship management (CRM) systems to enhance customer interactions and foster loyalty.
8.) Segmentation, Targeting, and Positioning (STP):
- Segmentation is the process of dividing a broad market into smaller groups of consumers with similar needs, characteristics, or behaviors to create targeted marketing strategies.
- Targeting involves selecting specific market segments that a company aims to serve based on their attractiveness and potential profitability.
- Positioning refers to the strategy of creating a unique and favorable image of a product or brand in the minds of consumers to differentiate it from competitors.