INTRODUCTION TO

MARKETING
What do you think Markerting is?
Which do you prefer?
WHY ?
 The Chapter objectives

Define marketing and outline the steps in the marketing process.

Explain the importance of understanding the marketplace and
customers and identify the five core marketplace concepts.
Identify the key elements of a customer-driven marketing strategy
and discuss the marketing management orientations that guide
marketing strategy.
Discuss customer relationship management and identify strategies
for creating value for customers and capturing value from customers
in return.
Which of the following is NOT an accurate description of marketing?

a) Marketing is the creation of value for customers.

b) Marketing involves managing profitable customer
relationships.
c) Marketing emphasizes selling and advertising exclusively.
d) Marketing involves satisfying customers' needs.
e) Marketing is building value-laden exchange relationships with
customers.

Answer: C
The aim of marketing is to ________.

A) maximize profits of the company

B) emphasize customer wants and not customer needs
C) make selling unnecessary
D) fulfill unrealistic customer expectations sell products

Answer: C
Marketing is defined as a social and
managerial process by which individuals and
organizations obtain what they need and
want through ________.

A) research and development

B) innovation and creativity
C) manufacturing efficiencies
D) value creation and exchange
E) sales and revenue creation

Answer: D
■ When you think of shopping online, chances are good that you think first of Amazon.
The company sells everything from books, music, electronics, tools, housewares,
apparel, and groceries to loose diamonds and Maine lobsters.

■ Amazon wants to deliver a special experience to every customer. Most regulars feel a
surprisingly strong relationship with the company, especially given the almost
complete lack of actual human interaction.

■ Visitors to Amazon.com find a huge selection, good value, low prices, and
convenience. But it’s the “discovery” factor that makes the buying experience really
special. Amazon.com has become a kind of online community in which customers
can browse for products, research purchase alternatives, share opinions and reviews
with other visitors, and chat online with authors and experts. That ability to share
opinions and reviews builds relationships with the company and with other
customers.
■ Amazon’s obsession with serving the needs of its customers derives the
company to take risks and innovate in ways that other companies don’t.
For example when it noted that its book- buying customers needed better
access to e-books and other digital content, Amazon developed the Kindle
e-reader, its first original product. The kindle in one of the company’s best
selling products , and amazon now sells more e-books than hard covers
and paperbacks combined.
Questions for Discussion

■ Describe Amazon’s market

offering?
■ What is amazon’s value
proposition?
■ Does amazon understand
the marketplace and the
customer needs? Justify
your answer
 Question for Discussion

Marketing has been criticized because

it “makes people buy things they don’t
really need.” Refute or support this
accusation.
Needs include all of the following EXCEPT ________.

• A) food
• B) knowledge
• C) affection
• D) the newest iphone
• E) belonging

Answer: D
Greg Williams now has the buying power to
purchase the desktop computer that he has
wanted for the last six months. Greg's want
now has become a(n) ________.
• A) need
• B) necessity
• C) demand
• D) exchange
• E) transaction

Answer: C
When marketers set low expectations for a
market offering, they run the risk of ________.

• A) disappointing loyal customers

• B) having to use an outside-in rather than an inside-out
perspective
• C) failing to attract enough customers
• D) failing to understand their customers' needs
• E) incorrectly identifying a target market

Answer: C
When are sellers most effective?

• A) when they focus more on their specific products and services

• B) when they focus more on the price of their products and services
• C) when they focus more on the benefits and experiences produced
by their products and services
• D) when they focus more on where their products and services can
be purchased
• E) when they focus more on cost to produce the product or service

Answer: C
What should sellers consider if they
wish to avoid marketing myopia?
When marketers set low expectations for a
market offering, they run the risk of ________.

• A) disappointing loyal customers

• B) having to use an outside-in rather than an inside-out
perspective
• C) failing to attract enough customers
• D) failing to understand their customers' needs
• E) incorrectly identifying a target market

Answer: C
When are sellers most effective?

• A) when they focus more on their specific products and services

• B) when they focus more on the price of their products and services
• C) when they focus more on the benefits and experiences produced
by their products and services
• D) when they focus more on where their products and services can
be purchased
• E) when they focus more on cost to produce the product or service

Answer: C
Which of the following marketing
management orientations focuses primarily
on improving efficiencies along the supply
chain?
• A) production concept
• B) product concept
• C) selling concept
• D) marketing concept
• E) societal marketing concept

Answer: A
Which of the following marketing
management concepts is most likely to lead
to marketing myopia?

■ A) customer-driven marketing concept

■ B) customer-driving marketing concept
■ C) societal marketing concept
■ D) marketing concept
■ E) product concept

Answer: E
Which of the following statements is
true of the production concept?

• A) It considers customer focus and value to be the paths to sales and

profits.
• B) It follows the customer-centered sense-and-respond philosophy.
• C) It takes an outside-in perspective.
• D) It calls for sustainable marketing.
• E) It leads to companies focusing too narrowly on their own
operations.

Answer: E
The ________ concept is aligned with the
philosophy of continuous product
improvement and the belief that customers
will choose products that offer the most in
quality, performance, and innovative
features.
• A) product
• B) production
• C) societal marketing
• D) marketing
• E) selling

Answer: A
Which of the following is the aim of the
product concept?

• A) improve the marketing of a firm's best products

• B) market only those products with high customer appeal
• C) focus on the target market and make products that meet those
customers' demands
• D) focus on making continuous product improvements
• E) ensure that product promotion has the highest priority

Answer: D
Railroads were once operated based on the thinking
that users wanted trains that would offer the most in
quality, performance, and innovative features. The
railroad managing companies overlooked the fact
that there could be other modes of transportation.
This reflects the ________ concept.

• A) product
• B) production
• C) selling
• D) marketing
• E) societal marketing

Answer: A
Which of the following statements is
true of the selling concept?

• A) It requires minimum promotion efforts.

• B) It creates long-term, profitable customer relationships.
• C) It takes an outside-in perspective.
• D) It is typically practiced with unsought goods.
• E) It follows the customer-centered sense-and-respond
philosophy.

Answer: D
Which of the following marketing
orientations calls for aggressive promotional
efforts and focuses on creating transactions
rather than long-term customer
relationships?
• A) the marketing concept
• B) the production concept
• C) the product concept
• D) the selling concept
• E) the societal marketing concept

Answer: D
Jolene's firm markets preplanning services for a
mortician. She finds that most of her target
market avoids discussing future funeral needs.
She convinces people to invest in the firm's
services through her large-scale promotional
efforts. Jolene's firm most likely practices the
________.
• A) production concept
• B) marketing concept
• C) selling concept
• D) product concept
• E) societal marketing concept

Answer: C
The selling concept is typically
practiced ________.

• A) to balance consumers' wants, company's requirements, and the society's

long-run interests
• B) with products that offer the most in terms of quality, performance, and
innovative features
• C) when the company focuses on building long-term customer relationships
• D) with goods that buyers normally do not think of buying
• E) by customer-driven companies

Answer: D
Which of the following uses a customer-
centered "sense-and-respond" philosophy
rather than a product-centered "make-and-
sell" philosophy?
■ A) market segmentation
■ B) the production concept
■ C) the marketing concept
■ D) the inside-out perspective
■ E) marketing myopia

■ Answer: C
Some fast-food restaurants offer tasty and
convenient food at affordable prices, but in
doing so they contribute to a national
obesity epidemic and environmental
problems. These fast-food restaurants
overlook the ________philosophy.
• A) marketing concept
• B) product concept
• C) production concept
• D) societal marketing concept
• E) selling concept

Answer: D
Which of the following statements reflects
the marketing concept?

• A) Focus on making continuous product improvements.

• B) Undertake a large-scale selling and promotion effort.
• C) Emphasize an inside-out perspective.
• D) Consider customer focus and value as the paths to sales and
profits.
• E) Focus on a product-centered make-and-sell philosophy.

Answer: D
When demand for athletic shoes produced by
Nike and endorsed by Michael Jordan is high,
Nike limits how many pairs of shoes are
manufactured. This action maintains strong
demand by limiting supply. This decision
contradicts the philosophy of which marketing
concept?
• A) marketing concept
• B) product concept
• C) production concept
• D) societal marketing concept
• E) selling concept

Answer: C
 True/ False

The selling concept holds that consumers will not buy enough of the firm's
products unless the firm undertakes a large-scale selling and promotion
effort.
• Answer: TRUE

Fast Food, Inc. views marketing as the process of finding and retaining
profitable customers by providing them with the food they want. Fast Food,
Inc. practices societal marketing.
• Answer: FALSE
■ Healthy Veggies, LLC, believes that marketing is a tool to use in
finding customers and keeping them by providing vegetables
that are grown using chemical-free farming techniques and
selling through small family-owned stores. Healthy Veggies,
LLC, practices societal marketing.
■ Answer: TRUE
Questions for Discussion

■ Under what circumstances would you expect firms to use

Product Orientation?

■ What are the five different marketing management orientations?

Which orientation do you believe your university follows when
marketing itself?
Company X, a manufacturer of office supplies, follows the selling concept.
Explain how the firm may lose sight of customer relationships with this
marketing orientation.

• Answer: The selling concept of Company X focuses on selling its office

supplies rather than making what the market wants; such a strategy creates
sales transactions but not long-term customer relationships. The company
would most likely have a faulty assumption that customers who are
persuaded to buy the product will like it or that they will buy the product
again later even if they weren't really initially satisfied. Company X will
not foster customer loyalty with this approach.
Cathy's Clothes is a small yet successful retail chain that sells women's
clothing and accessories with a focus on buyers who have relatively modest
means. For this specific purpose, the firm has rolled out several marketing
initiatives aimed at women of a specific demographic. This is an example of
________.

• A) societal marketing
• B) target marketing
• C) cause marketing
• D) market segments

Answer: B
An organic farmer has identified three distinct groups that might be interested
in his products: vegetarians, health-conscious individuals, and people
identified as trendsetters who try out new products in the market before
others. These three groups are examples of ________.

• A) marketing mixes
• B) market segments
• C) value propositions
• D) market offerings
• E) marketing intermediaries

Answer: B
Which of the following customer questions is answered by a company's value
proposition?

• A) "Why should I buy your brand rather than a competitor's?"

• B) "What is your company's estimated customer equity?"
• C) "What are the costs involved in the production of your brand?"
• D) "What is the budget allocated by your company for research and
development?"
• E) "What is the financial stability of your company?"

Answer: A
True/ False

For most marketers, customer relationship management is

exclusively a matter of customer data management.
Answer: FALSE

Customer-perceived value is defined as the customer's evaluation

of the difference between all the benefits and all the costs of a
market offering relative to those of competing offers.
Answer: TRUE
In which of the following situations has a company most actively embraced
customer-managed relationships?

• A) American Airlines awards frequent flyer points to returning customers.

• B) Paige Premium Denim jeans provide superior quality and perfect fit.
• C) iRobot invites enthusiastic Roomba owners to develop and share their
own uses for the company's robotic vacuum cleaner.
• D) Best Buy distinguishes between its best customers and its less
profitable customers, stocking merchandise to appeal to each group.
• E) Toyota develops a marketing presence on social networks and other
online communities.

Answer: C
Which of the following statements is true about creating customer loyalty?

• A) Losing a customer means losing the entire stream of purchases that the
customer would make over a lifetime of patronage.
• B) Customer delight creates a rational preference and not an emotional
relationship with the brand.
• C) The aim of customer relationship management is to focus solely on
customer delight.
• D) Losing a customer hardly makes a difference to a company's sales.
• E) The aim of customer relationship management is to focus solely on
customer satisfaction.

Answer: A
FedEx offers its customers fast and reliable package delivery. When FedEx
customers weigh these benefits against the monetary cost of using FedEx
along with other costs of using the service, they are acting upon ________.

• A) brand loyalty
• B) customer equity
• C) customer-perceived value
• D) customer lifetime value
• E) a societal marketing campaign

Answer: C
 Which of the following marketing strategies should marketing managers
focus on to manage detailed information about individual customers and
carefully manage customer touch points to maximize customer loyalty?

• A) customer divestment
• B) customer-managed relationships
• C) the societal marketing concept
• D) partner relationship management
• E) customer relationship management

Answer: E
It is most accurate to say that when customers purchase products they act on
________ as they judge values and costs.

• A) objective value
• B) perceived value
• C) customer lifetime value
• D) company image
• E) society's interests

Answer: B
Sally recently purchased Brand X lotion. In comparing her perception of how
the lotion made her skin feel and look to her expectations about Brand X
lotion, Sally was measuring her level of ________.

• A) share of customer
• B) customer satisfaction
• C) customer equity
• D) customer-perceived value
• E) customer lifetime value

Answer: B
"Losing a customer once means losing the entire stream of possible
purchases that the customer would make over an extended period of
patronage." This statement specifically indicates loss in terms of ________.

• A) customer-perceived value
• B) marketing offerings
• C) partner relationship management
• D) customer lifetime value
• E) value proposition

Answer: D
 Assignment

■ What are the five different marketing management orientations?

Which orientation do you believe Apple follows when marketing
products such as the iPhone and iPad?
 Assignment
■ Think of a company to which you are loyal to.
■ Describe their marketing offering.
■ What has caused this loyalty? What could a competing company
do to break this loyalty?
■ Describe the relationships they have with their customers.
Mention if you had any personal experience.
■ Choose a product that you recently bought from this company
and tell me what need it fulfilled.
■ Which of the 5 business orientations best describe the
Company?
 Think of
Trending products/ services in
Egypt