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QUESTION 1.

3 Explain the various elements of the marketing concepts


Marketing management is the process by which marketing works. They have certain core concepts to study and follow. Let's have a look of each of these concepts briefly.

Customer Needs Wants and Demands


The most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and selfexpression. These needs were not created by marketers; they are a basic part of the human makeup. Wants are the form human needs take as they are shaped by culture and individual personality For example if we take tooth paste tooth paste is a need and Colgate, Clogard, Supiriviky, and Signal comes as wants

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Human wants that are backed by buying power is Demand. Given their wants and resources people demand products with benefits they add up to the most value and satisfaction. The needs and demands of products essentially depend on the place, nature and living style of the people. Like what can be required in Srilanka may not be required in America, and what is required in America cannot be afforded by Srilanka.

Marketing offer
Consumers needs and wants are fulfilled through a marketing offer. Its defined as some combination of products, services and information offered to a market to satisfy a need or want. Marketing offers are not limited to physical products. Marketers must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. If they raise expectations too high, buyers will be disappointed. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships. For example in play station marketing if we give free game cds and deliver our products to the customers door they will be delighted..

VALUE AND SATISFACTION


These 2 share a rapport amongst themselves. When a customer chooses a certain product he has to take into consideration all the two. Let's take an example to illustrate this stage: X works in an office which is 5kms, from his home, he has to travel everyday from his house to reach his office. X has several options in front of him as choice of transport: bicycle, motorbike, car, taxi, bus. This is called the product choice set. Now he has to judge what is of maximum value, the transport facility which is most economical and which will satisfy his needs. Value is a subjective thing which every individual chooses for himself. If X wants something which is very economical then he would choose a bicycle, which is less safe, more effortful and as well as very slow. If X wants speed then he would choose a car. Now X has to see whether he can afford a car because a car costs much more than any of the options available and also maintaining it after buying, so he has to consider the cost and satisfaction.

EXCHANGE AND RELATIONSHIP


Marketing occurs when people decide to satisfy needs and wants through exchange. It is defined as, the act of obtaining a desired object from someone by offering something in return. Whereas exchange is the core-concept of marketing a transaction, in return is marketings unit of measurement. Nowadays most of the people using credit card and money to buy the products and services

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Marketers want to build strong relationships by consistently delivering superior customer value. We will expand on the important concept of customer relationship management later in the chapter.

Transactions
A transaction consists of a trade of a value between two parties. The marketer tries to bring about a response to some marketing offer. The response may be more than simply buying or trading products and services. For example if we sell our play station to customer we will get money from the customer. This is called as transaction.

Customer satisfaction
Customer satisfaction is defined as, the extent to which a products perceived performance matches a buyers expectation. If the product performance falls short of expectations, the customer is dissatisfied. If performance matches expectations the customer is satisfied. If performance exceeds expectations the customer is delighted. If we take an example of play station we should give them the best quality and warranty for our products. If we do like these the customer will be delighted.

Customer relationship management


This is defined as, the overall process of building and maintaining profitable customers relationships by delivering superior customer value and satisfaction. It involved managing detailed information about individual customers and carefully managing customers touch points in order to maximize customer loyalty. For example when a customer comes to buy our play station we have treat him in a good manner. If we treat him well he will be delighted and he will recommend our products to others as well.

MARKET
Market is the place where exchange and business takes place. It is the ground for the selling and buying. The study of the market is essential for the launching and the success of any product. In this, statistics plays a great role. For keeping track of sales, profit during years, statistical comparisons can help the company to make faster and logical decisions quickly.

My conclusion for question 1.3

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Human needs are common for everyone. But wants are not common for everyone. We will choose which way we are going to satisfy our wants. The needs and demands of products essentially depend on the place, nature and living style of the people. Like what can be required in Srilanka may not be required in America, and what is required in America cannot be afforded by Srilanka. One of the major functions of marketing is to create an environment for exchange An exchange arises when one person gives something of value, in return for something of value from another person. When exchanging At least two parties must be involved to exchange. Each party must have something to offer to the other. The parties must involve themselves voluntarily and each party must consider the other desirable or at least acceptable to deal. Each party must be in a position to communicate and deliver the product. Each party must be free to accept or reject any offer from the other party. Customer satisfaction or dissatisfaction is a feeling derived by the customer when he compares the actual performance with the performance that he expects of it. Customer expectations: depend on past buying experiences, advice of reference groups and the promises of the marketers and their competitors. The better a company understands its people, their psychology, their financial capacity, the better they can serve the customer to his satisfaction. Unlike earlier, it is now the buyer's market, therefore the demands of the customers are of ultimate importance. The attitude of the market is now not as relaxed as it used to be, now they want to serve the customer