Page 3 - Lesson Note 1

perceptions of the value of the product or service in satisfying their need, in relation to

its cost.

A product will be purchased only if it is perceived to be giving greatest benefit or value

for the money.
In other words, the process of marketing involves exchange of products and services for

money or something considered valuable offering the same by giving something in

return.
For any exchange to take place, it is important that the following conditions are

satisfied:

(i) Involvement of at least two party’s viz., the buyer and the seller.
(ii) Each party should be capable of offering something of value to the other. For

example, the seller offers a product and the buyer, money.
(iii) Each party should have the ability to communicate and deliver the product or

service. No exchange can take place if the buyers and sellers are not able to

communicate with each other or if they cannot deliver something of value to the
other.

(iv) Each party should have freedom to accept or reject other party’s offer.

(v) The parties should be willing to enter into transaction with each other. Thus, the

acceptance or rejection of the offer takes place on voluntary basis rather than on

the bases of any compulsion. Functions of Marketing

Marketing is the process that comprises of all the activities involved from the concept of

the product all the way till it reaches the final consumer. So there are a lot of activities in this

process, which we call the functions of marketing.

1. Identify Consumer Needs

One of the first steps the company needs to take is to identify the needs and wants of the
consumers in the market.

To do so they must gather information and analyze this information. Once you understand

your customer thoroughly you can base your product design on this information.