Some basic terms used often in Marketing are:

Needs:

A need is a state of being deprived of something. Human need is the most basic concept of marketing. Since, need is a part of human nature, there are many kinds of needs like physical needs, social needs, spiritual needs, etc. Needs are basically shaped up by the culture, surroundings, personality, religion.

Wants and demands:

Want is explained in terms of an object which will define the need. For instance, if thirst is need, then water, cola drink, or a fruit juice may be the want. Or if hunger is need, then pizza, burger, bread, etc is a want. Wants depend upon the internal as well as external factors. There may be more than one object that may fulfill a need. This list of objects is called a want-list.

People have various choices from the want-list to fulfill a particular need. However, due to limited resources, people seek best value of their money. When a want is backed by purchasing power, it becomes a demand. Therefore, lack of buying power, means no demand. A marketer has to know of the potential want list of his target market and then make them available the best value for their money. Note here that, money is required to create and also fulfill a demand. This is the most fundamental concept of marketing.

Product:

Anything tangible or intangible which is offered to satisfy a need or want is defined as a product. The goods are called tangible and services are called intangibles. The tangible products are physical products, while the intangible products can only be experienced. For instance, a service of a hotel can be experienced (hence, intangible) while food in the restaurant in the same hotel can be tested (hence, tangible).

When products are offered in the markets, they are known market offering. A good market offering must have a good value for money.

Value & Satisfaction:

It is the fundamental concept of marketing, that when there are many offerings in the market, the customer makes a purchase based on their perception. The customers estimate the product value and judge whether the product has the capacity to fulfill their need. In a potential want list there may be many products, which have potential to fulfill the need and want of a customer. However, a customer chooses the one which gives him or her the best value for money and satisfaction of fulfilling a want.

Exchange:

Since, the wants that are backed by purchasing power create demand. The demand is fulfilled through the process of exchange. Exchange is defined as the act of obtaining a desired object from someone by offering something in return. Barter is a type of exchange. For an exchange to happen, more than one person are required. people must have something of value to offer each other. Each of the participants must be free to accept or reject the offer of exchange. The participants should be able to communicate with each other about their requirements and also be able to deliver the products. These are some basic conditions to make an exchange happen. Exchange may be for profit or also for no profit.

Transactions:

A successful exchange is known as a transaction. Whether for profit or no profit , an exchange must give some value to the exchange partners. The transaction is used as an unit of measurement in marketing. The values associated with transactions are the trade values. A monetary transaction involves exchange of money for goods or services and a barter transaction involves good or service for good or service.

Relationships:

As you might be aware, a marketer does not want just a single transaction. The aim is to continuously make market offerings and incur continuous exchanges / transactions which create relationships. Today’s marketing is hence , relationship marketing. The focus of marketing is not merely to get maximum profit from a single transaction but to develop long running relationship with the customers. A good relationship will be followed by the transactions and also run long term.