Marketing Exam Manual

The Marketing Exam Manual 2012

Question 1: Marketing Concept

Marketing is defined as 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.

* 1. Needs – states of felt deprivation.

- e.g. physical need for food, clothing. Individual need for knowledge.

* 2. Wants – the form taken by human needs as they are shaped by culture and individual personality.

- e.g. American needs food but wants Big Mac, Malaysian wants rice.

* 3. Demands – human wants that are backed by buying power.

- Given their wants and resources, people demand products with benefits that add up to most value and satisfaction.

* 4. Marketing offers – anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. E.g. product, services and experiences

* 5. Value – the difference between the values the customer gains from owning and using a product and the costs of obtaining the product.

* 6. Satisfaction – the extent to which a product’s perceived performance matches a buyer’s expectations.

* 7. Exchange – the act of obtaining a desired object from someone by offering something in return. It is a value creating process because it normally leaves both parties better off.

* 8. Relationship marketing – the process of creating, maintaining and enhancing strong, value – laden relationships with customers and other stakeholders.

* 9. Market – the set of all actual and potential buyers of a product or service.

Qustion 2: Philosophies of Marketing

* 1. The production concept – holds that consumers will favour products that are available and highly affordable.

* Therefore management should focus on improving production and distribution efficiency.

* 2. Product concept – holds that consumers will favour products that offer the most quality, performance and innovative features.

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