1. Principles of Marketing
Section 1
By: Ms. Eman Elfar

2. 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

3. 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

4. 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.

5. 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.”

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

7. 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.

8. 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)

9. 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.

10. 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.

11. A) maximize profits of the company B) make selling unnecessary
"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

12. A) Research B) Manufacturing C) Marketing D) Innovation E) Production
________ 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

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

14. A) brand positioning B) value proposition C) market segment
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

15. C) demand satisfaction D) need proposition
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

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