1.

      Marketing has often been defined in terms of satisfying customers’ needs and
wants. Critics maintain that marketing does much more than satisfying customers’
needs and wants and, in fact, create needs and wants that did not exist before.
According to these critics, marketers encourage consumers to spend more money ($$$)
than they should on goods and services they really do not need. (Group 1)

What is your opinion of this on-going debate? Take a stance and defend your position
using examples of companies that you perceive to have created or satisfied customer
needs.

*test will be no direct question, the question must refer to lecture key point

We disagree with what the above content of the title says. For our own opinions, the
job of marketing is to promote a good or service, and if marketers do it right, marketers
will create the desire to buy marketers product or service.

With  the  vast  amount  of  information  available  to  marketers  today  and  the 
emphasis  on  relational marketing, marketers are in more of a position to suggest needs
and wants to the public.

Certainly,  not  all  consumers  have  all  the  needs  and  wants  suggested  by  society 
today.  However, with  the  vast  amount  of  exposure  to  these  societal  needs  and 
wants  through the  media,  a  substantial  amount  of  consumers  will,  through  mere 
exposure,  decide  that  they  have  the  same  needs of others.

 For example, Sephora. The beauty brand uses technology to create a personalized
experience with a comprehensive app, virtual try-on of makeup products and a strong
online community for a seamless customer experience in order to attract more customers
to spend more money on their products.

https://www.youtube.com/watch?v=FYqVan_Mo30

Source: 

2.      For exchange potential to exist, five conditions must be satisfied. What are those
conditions? (Group 2)

A marketing exchange is what happens any time two or more people trade goods or
services. In marketing theory, every exchange is supposed to produce "utility," which
means the value of what you trade is less than the value of what you receive from the
trade.

For example, a man visiting a coffee shop might have enough money to buy a cup of coffee
while the cafe has the coffee. Both parties must be able to communicate with each other,
and both must want to exchange something and be able to do so.

The five conditions must be satisfied for an exchange to take place:

1.There must be at least two parties.

2.Each party has something that might be of value to the other party.

3.Each party is capable of communication and delivery.

4. Each party is free to accept or reject the exchange offer.

5. Each party believes it is appropriate or desirable to deal with the other party.

Exchange may not take place even if all of these conditions exist, but these conditions are
necessary for exchange to be possible. 

Source: https://www.slideshare.net/MuneeraZakaria/chapter1introduction (Page 18,19)

3.      List and briefly characterize the eight demand states described in the text (in
powerpoint slides). (Group 3)

There are eight demand states which are negative demand, non-existent demand, latent
demand, declining  demand, irregular demand, full demand, overfull demand and
unwholesome demand. 

Negative demand occurs when the major part of the consumer dislikes the product and
they may even pay a price to avoid it. For example, we buy Colgate to avoid seeing the
dentist.

https://www.youtube.com/results?search_query=toothpaste+commercial+malaysia

https://www.youtube.com/watch?v=w1f7U6q52lY

Non-existent demand occurs when  consumers are unaware or uninterested in the

product. For example, in the 1980s the first cell phone many people were not interested
in.

Latent demand occurs when consumers  share a strong need that cannot be satisfied by
an existing product. For example, people nowadays will choose a smart phone rather than
a normal phone. 

Declining demand occurs when consumer begin to buy the product less frequently or not
at all. For example, people are less likely to buy CDs nowadays because everyone can get
it online. 

Irregular demand happens when consumer purchases vary on a seasonal, monthly,

weekly, daily or even hourly basis. For example, most households will buy rice every
month, depending on how many people per household. .

Full demand happens when consumers are adequately buying all products put into the
marketplace. For example, people who are sick will buy all the medicine needed in order
to get well soon.

Overfull demand happens when more consumers would like to buy the product than can
be satisfied. For example, during Chinese New Year, the demand for buses and trains will
increase.

Unwholesome demand occurs when consumers may be attracted to products that have
undesirable social consequences. For example, people may be attracted to alcoholic
drinks, illegal drugs which will have a negative effect on society. 
Source: Explanation came from lecture note, Example came from Linkedin

https://www.linkedin.com/pulse/marketing-101-states-demand-james-
mccormack#:~:text=There%20are%208%20states%20of,task%20and%20a
%20marketing%20technique.

4.      We can distinguish among five types of customer needs. List and provide an example
of each of those customer needs. (Group 4)

The five types of customer needs are stated needs, real needs, unstated needs, delight needs,
and secret needs.

Stated needs

 Stated Needs are the ones which are specified clearly by the customer or the market
 For example, I want a laptop.

Real needs

 Real needs are at one level above the stated needs and put a boundary on the above.
Real needs define the parameters which are immediate to defining and fulfilling the
need.
 For example, I need to buy a laptop for educational purposes.

Unstated needs

 Unstated needs are which are not obvious but are expected by the customer. These are
the needs which can be used to differentiate by the companies while designing the
products to fulfill the needs of the customer.
 For example, I want to buy the laptop from the company that provides the best
customer service.

Delight needs

 Delight needs are the needs which provide the 'wow' factor. These needs like unstated
needs can make some products more popular than the other if they meet these needs
 For example, I want the seller to include some free gifts such as earphones with the
laptop.

Secret needs

 These are the needs which a customer might not state or realize but can be one of the
main reasons for choosing a particular product to fulfill the basic stated need. 
 For example, I want a laptop for the status symbol. I want people to know I can afford
the premium laptop.

Source: Lecture notes, MBA Skool Team

https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/1916-
needs.html#:~:text=Delight%20needs%20are%20the%20needs,sandwich%20would
%20be%20below%202%24.
 Examples come from own idea.

5.      Distinguish between the concepts of value and satisfaction. (Group 5)

Value and Satisfaction

Successful if it delivers value and satisfaction to the target buyer. 

Value is a central marketing concept. Value is when a consumer perceives that they will get a
good deal from the company, brand, product or service. To put this in more marketing
terms, the consumer will see value when the benefits they expect to receive exceed the
expected costs and effort involved in acquiring the product.

Satisfaction reflects a person’s judgment of a product’s perceived performance. Customer

satisfaction, on the other hand, occurs after the consumer has become a customer. That
means they have purchased the product or have had dealings with a service firm with.
Customer satisfaction is their assessment of how well that value was delivered

Eg. Value: A person buys a McDonald burger because he/she thinks the value of the burger is
what he/she wants.

Satisfaction: A person feels satisfied after eating the burger.

Source: THE Marketing Study Guide, 2022, What is the difference between customer
satisfaction and customer value, viewed 24 January 2022,
https://www.marketingstudyguide.com/what-is-the-difference-between-customer-
satisfaction-and-customer-value/

6.      Discuss the marketing management philosophies.  (Group 6)

Production Concept

The production concept holds that consumers will prefer products that are widely
available and inexpensive. 

Production concept expresses that customers will favor products that are generally
accessible and not very expensive. Achieving high efficiency in production, low cost as
well as distribution on a mass scale is the usual focus of the managers. This sort of
business orientation is efficient in developing nations where buyers are more attracted to
getting the product than its attributes.

The best example of the production concept is Vivo, the Chinese smartphone brand. Their
phones are available in almost every corner of the Asian market. You can walk into any
phone shop in Asia and can walk out with the latest and greatest smartphone from Vivo.

Product Concept

The product concept holds that consumers will favor those products that offer the most
quality, performance, or innovative features.
 The product concept recommends that shoppers will favor items that have better quality,
performance and attributes instead of an ordinary product.

Two organizations which stand separate from the crowd when we discuss the product
concept are Apple and Google. Both of these organizations have strived hard on their
products and offer rich, ground-breaking as well as different application products and
individuals are passionate about these brands.

Logitech makes very high-quality computer products such as keyboard, mouse, and
webcams. These high-quality products are priced higher, but people still buy, and they get
almost free advertisement from independent reviews.

Selling Concept

The selling concept holds that consumers and businesses will ordinarily not buy enough
of the organization’s products, therefore, the organization must undertake aggressive
selling and promotion efforts.

This concept is utilized for merchandise which consumers do not normally purchase,
unsought products like insurance and so on. These products are forcefully sold by finding
the target fragment and sold on the high caliber of the product benefits.

This concept lives up to expectations under poor suppositions that if consumers are
coaxed into purchasing a product then they will fundamentally like it. Regardless of the
fact that they dislike it, they’ll overlook their displeasure over a period of time and
purchase the product later on.

Almost all soft drinks and soda drinks follow the selling concept. These drinks have no
health benefits; consumers can easily replace them with water. So, the soft drink
companies know it, and they run ads 24×7, spending millions on it. 

The marketing concept holds that the key to achieving organizational goals consists of
the company being more effective than competitors in creating, delivering, and
communicating superior customer value to its chosen target markets.

Restaurants and startups do follow the marketing concept. They try to understand the
consumer and deliver the best product or service, which is better for the competition.

Holistic marketing can be seen as the development, design, and implementation of

marketing programs, processes, and activities that recognizes the breath and
interdependencies of their efforts. 

Holistic marketing recognizes that “everything matters” with marketing—the consumer,

employees, other companies, competition, as well as society as a whole. 

Internal marketing. 

Socially responsible marketing. 

Integrated marketing. 
 Relationship marketing

In marketing strategy, a product is not viewed as a tangible product, but the source of
value to be delivered to the customers. For example, value to the customers of Genting
Gaming can be delivered in numerous ways such as financing plans to purchase the
products, convenience of availability , physical product , priming and pre purchase
education provided by sales staff, installation and repair services, quality assuring brand
name, word of mouth references, point of sale equity.

Sources: Lecture notes, https://studiousguy.com/marketing-management-philosophies/