Question 3
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A). Explain the following concepts in marketing:
- product concept;
- selling concept;
- production concept;
- societal marketing concept.
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B). A product cost N4,000 to produce. The producer decided to sell the product for N6,000. Calculate the:
- markup;
- percentage markup on cost;
- percentage markup on selling price.
Observation
Most candidates attempted this question and their performance was good.
Expected responses are.
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Explanation of the concepts:
- Product concept; This is an orientation that assumes that the customer will favour products that are of high quality. Thus, companies concern themselves with quality, performance and innovative product features.
- Selling concept; The selling concept is based on the assumption that even when products are of high quality, available and affordable, consumers would still not buy unless they are persuaded to buy. Thus, companies engage in promotional efforts to break consumers’ resistance.
- Production concept; This concept assumes that consumers would buy products that are available and at lower prices, thus companies concern themselves with mass production.
- Societal marketing concept; It is the concept that assumes that when a company is making marketing decisions, she would put into consideration the societal long term interest. OR This concept assume that companies would take into consideration the needs of the society where it operates in while making business decisions.
