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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
 It’s high cost compared with other business functions (it’s
cost represent about 50% of total product cost.
 It’s critical to firm’s success (it focuses on firm’s
customers)
 About 25 to 33% of work force work on marketing jobs
 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