(a) What is marketing concept? (b) Explain the four elements of the marketing mix.

Answer Details

(a) What is the marketing concept?

The marketing concept is a business philosophy which holds that the key to achieving organizational goals lies in identifying the needs and wants of the target customers and satisfying them more effectively and efficiently than competitors. It puts the customer at the centre of all business decisions, so that the firm produces what it can sell rather than trying to sell what it produces, and earns its profit through customer satisfaction.

(b) The four elements of the marketing mix (the 4 Ps)

1. Product: This is the good or service offered to satisfy customer needs. It covers decisions on quality, design, brand, packaging, features and after-sales service.
2. Price: This is the amount of money customers pay for the product. It covers pricing methods, discounts, and credit terms; the price must be attractive to buyers yet profitable to the firm.
3. Place (distribution): This refers to the channels and methods used to make the product available to customers at the right place and time, including wholesalers, retailers, transport and warehousing.
4. Promotion: This covers all the activities used to inform, persuade and remind customers about the product, such as advertising, personal selling, sales promotion and publicity.