Marketing on the one hand is a business philosophy and on the other an action oriented process. The philosophy – also termed as marketing concept – has its roots in market economy. There are four critical ideas that form the foundation of such an economy:
- Individuals pursue their self-interest to seek rewarding experience
- Their choices determine as to what would constitute such experience, the choices themselves being shaped by personal (taste) and external (cultural) influences.
- Consumers enjoy the freedom to choose; they are sovereign.
- This freedom ensures free and competitive exchange between “buyers and sellers”.
Marketing in turn is based on these four principles.