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) Marketing concepts explained

1. Product concept: This holds that consumers favour products that offer the best quality, performance and innovative features. The firm therefore concentrates on making superior products and improving them continuously, believing that a good product will sell itself.
2. Selling concept: This holds that consumers will not buy enough of the firm's products unless the firm undertakes aggressive selling and promotion. Emphasis is on pushing what is already produced through hard selling, advertising and persuasion.
3. Production concept: This holds that consumers favour products that are cheap and widely available. The firm therefore concentrates on high-volume production, low cost and wide distribution/efficiency.
4. Societal marketing concept: This holds that the firm should satisfy customer needs and earn profit in a way that also protects and improves the long-term welfare of the consumer and society (health, environment, ethics), balancing company profit, customer wants and society's interest.

(b) Calculations

Cost price = \( \text{N}4{,}000 \), Selling price = \( \text{N}6{,}000 \)

(i) Markup

\[ \text{Markup} = \text{Selling price} - \text{Cost price} = 6{,}000 - 4{,}000 = \text{N}2{,}000 \]

(ii) Percentage markup on cost

\[ \frac{\text{Markup}}{\text{Cost}} \times 100 = \frac{2{,}000}{4{,}000} \times 100 = 50\% \]

(iii) Percentage markup on selling price

\[ \frac{\text{Markup}}{\text{Selling price}} \times 100 = \frac{2{,}000}{6{,}000} \times 100 = 33\tfrac{1}{3}\% \approx 33.33\% \]