Principles of Marketing Section 1 By Ms Eman

Principles of Marketing Section 1 By: Ms. Eman Elfar

There are four basic function of business organization Finance • Focuses on providing funds for business operations Marketing • Focuses on identifying customer needs and wants and promoting the organization’s goods and services Human resources management • It deal with all issues related to workforce like: workforce planning , recruitment, selecting , training, performance management Operation • It’s related to producing the goods or providing the services offered by the organization

Why the studying of marketing is important ( the importance of marketing) There are four basic reasons to study marketing Ø It’s high cost compared with other business functions (it’s cost represent about 50% of total product cost. Ø It’s critical to firm’s success (it focuses on firm’s customers) Ø About 25 to 33% of work force work on marketing jobs Ø Marketing decisions have a great effect on customer and society

What is Marketing ? The simple definition of marketing is that : Marketing is managing profitable customer relationships The Marketing is The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return The Main goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

Kotler’s social definition “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. ”

Customer needs, wants, and demands Customer needs: is the states of felt deprivation. There are three types of human needs: 1) Physical needs : like a need for food, clothing, safety 2) Social needs: like a need for belonging and affection. 3) Individual needs: like a need for knowledge and self-expression.

Customer needs, wants, and demands Human Wants : are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, French fries, and a soft drink.

Customer needs, wants, and demands Demands: are human wants that are backed by buying power. Market offerings: are some combination of products, services, information, or experiences offered to a market to satisfy a need or want. Many things can be marketed: (goods, services, events and experiences, persons , places and properties, information, ideas)

Value and satisfaction Customer value: the difference between all the benefits customer get from using the product and all the cost of getting this product. Customer’s decisions to buy a product depend on his expectations about the value and satisfaction he will get from various market offerings.

Which of the following is NOT an accurate description of modern marketing? A) Marketing involves managing profitable customer relationships. B) Marketing is building value-laden exchange relationships with customers. C) Marketing emphasizes selling and advertising exclusively. D) Marketing involves satisfying customers' needs. E) Marketing is the creation of value for customers.

"The aim of marketing is to ____. “ A) maximize profits of the company B) make selling unnecessary C) emphasize customer wants and not customer needs D) sell products E) fulfill unrealistic customer expectations

____ is defined as a social and managerial process by which individuals and organizations obtain what they needs and wants through value creation and exchange. A) Research B) Manufacturing C) Marketing D) Innovation E) Production

When backed by buying power, wants become ____. A) social needs B) physical needs C) exchanges D) self-esteem needs E) demands

A ____ is some combination of products, services, information, or experiences provided to consumers to satisfy a need or want. A) brand positioning B) value proposition C) market segment D) market offering E) market mix

What do companies call a set of benefits that they promise to consumers to satisfy their needs? A) market offering B) value proposition C) demand satisfaction D) need proposition

True or false 1. The marketing concept focuses only on selling and advertising products. 2. Marketing has no effect on the society as whole and affect on individuals. 3. The firm can’t success without effective marketing plan. 4. The firm can market only physical products 5. Customer expectations play an important role in evaluating product performance