The Social View on Marketing¶
Kotler’s Definition¶
"Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others."
Kotler’s definition of marketing touches upon several important aspects. Let’s break it down for a deeper understanding.
1. Societal Process¶
Marketing called a Social Process because it is not just a singular activity; it’s a process that takes place within a society. This implies that marketing activities are shaped by and respond to societal needs and the behaviors of people within a society. It is a process as it involves multiple steps and activities that work together. And at the same time it is societal as it operates within society, aiming to meet societal needs.
2. Individuals and Groups¶
Kotler distinguishes between individual behavior and group behavior because the two influence purchasing decisions differently. When an individual shops alone, their choices are often based on personal needs and preferences. For example, buying a shirt alone might involve choosing based on color, fit, and style without external influence. Shopping with a group can change preferences. An individual may go to buy a simple shirt but, due to peer influence, end up purchasing something entirely different, like a pair of shoes or a flashy shirt. This shift highlights group influence on individual choices.
Certain purchasing decisions, especially for high-value items like houses or cars, involve group input. For instance, the color, model, and features of a car or the layout of a house may be decided collectively within a family. These are group-driven decisions where each person’s input contributes to the final choice.
3. Needs and Wants¶
Kotler also clearly distinguishes between basic necessities (needs) and desires (wants). Needs are basic human requirements, such as food, water, clothing, and shelter. While wants are specific preferences for satisfying needs, shaped by culture and individual personality. For example, while everyone needs shelter, some might want a luxurious apartment while others prefer a small house.
4. Creating, Offering, and Exchanging Value¶
- Creating: This includes developing products or services that fulfill customer needs and wants.
- Offering: It means presenting these products or services to potential customers in a way that appeals to them.
- Exchanging: This is the process of transactions in which products or services of value are provided to customers in exchange for money, feedback, or other forms of value.
In summary, Kotler’s definition emphasizes that marketing is about satisfying needs and wants within a societal context, considering both individual and group behaviors, and involving the creation, offering, and exchange of value.
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