a. Explain the following concepts in marketing (i) Product concept (ii) Selling Concept (iii) Production concept (iv) Societal marketing concept b. A produc...

Answer Details

a.

(i) Product Concept: The product concept is a marketing philosophy that focuses on creating high-quality products and improving them over time. This approach assumes that customers will be attracted to products that offer superior quality, performance, or unique features. Companies that follow the product concept aim to produce the best product possible and invest in research and development to continually improve their offerings.

(ii) Selling Concept: The selling concept is a marketing philosophy that assumes that customers will not buy a product unless it is aggressively promoted and sold. Companies that follow the selling concept focus on promotional activities, such as advertising and personal selling, to persuade customers to buy their products. This approach is commonly used for products that are difficult to sell or in highly competitive markets.

(iii) Production Concept: The production concept is a marketing philosophy that emphasizes producing large quantities of products at low cost. This approach assumes that customers are primarily concerned with product availability and price. Companies that follow the production concept aim to minimize production costs, increase efficiency, and maximize output to offer products at low prices.

(iv) Societal Marketing Concept: The societal marketing concept is a marketing philosophy that recognizes the importance of social responsibility and ethical considerations in marketing. This approach aims to balance the interests of customers, the company, and society as a whole. Companies that follow the societal marketing concept aim to offer products that meet the needs of customers while also contributing to the greater good of society.

b.

(i) Markup = Selling price - Cost price = #6,000 - #4,000 = #2,000

(ii) Percentage Markup on Cost = (Markup/Cost price) x 100% = (#2,000/#4,000) x 100% = 50%

(iii) Percentage Markup on Selling Price = (Markup/Selling price) x 100% = (#2,000/#6,000) x 100% = 33.33%

To calculate the markup, we simply subtract the cost price from the selling price. In this case, the markup is #2,000. To calculate the percentage markup on cost, we divide the markup by the cost price and multiply by 100%. This gives us a percentage markup on cost of 50%. To calculate the percentage markup on selling price, we divide the markup by the selling price and multiply by 100%. This gives us a percentage markup on selling price of 33.33%. This means that the producer is making a profit of 50% on the cost price and 33.33% on the selling price.