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Unit Seven What is all about marketing? Objectives Get the student to be familiar with the concept of marketing. Cultivate the students’ ability of problem-solving. Help the students to grasp the techniques for fast reading. Section A Introduction “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and value with others.” —Philip Kotler Pre-reading Before reading the following passage, answer the question: What do you think are the key ingredients in marketing? Text Core Marketing Concepts (I) To explain this definition—“Marketing”, we will examine the following important terms: needs, wants, and demands; products and services; value, satisfaction, and quality; exchange, transactions, and relationships. The following Figure shows that these core-marketing concepts are linked, with each concept building on the one before it. 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 self-expression. These needs were not invented 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. An American needs food but wants a hamburger, French fries, and a soft drink. A person in Mauritius needs food but wants a mango, rice, lentils, and beans. Wants are shaped by one’s society and are described in terms of objects that will satisfy needs. People have almost unlimited wants but limited resources. Thus, they want to choose products that provide the most value and satisfaction for their money. When backed by buying power, wants become demands. Consumers view products as bundles o
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