(a) What is the marketing concept?
(b) Explain the four elements of the marketing mix.
(a) Marketing concept; refers to the principle which states that the consumer is sovereign, that is, that the satisfaction of the consumer’s wants is to be emphasized at all stages of production and distribution.
(b) Four elements of the marketing mix are:
(i) Product: A product is anything that satisfies a consumer’s need. The firm must decide as to what product it will sell. Other decisions are branding, packaging, labelling etc. Products include raw materials, manufactured goods, services, etc.
(ii) Price: Price is defined as the exchange value for the goods and services supplied. It determines the extent to which goods will be demanded and serves as the mechanism of exchange. The components of the price mix include allowances, discount structure, financial services, and credit terms etc. It is the most important factor in the marketing mix. Pricing policies are demand and supply curve, product. line promotion, market skimming, etc.
(iii) Promotion: This is the communications dimension of the marketing mix. It deals with how the business should inform its customers about its products. It stimulates demand and increases sales. Promotion includes advertising, trade fairs and exhibition, personal selling.
(iv) Place: This is concerned with the distribution of goods and services to consumers at the required places, Distributed goods should be packaged in such a way as to create and maintain demand for the product. The place, as a marketing mix concerns such variables as location, channel strategy, transport facilities, etc.