MARKETING CONCEPTS Lesson Note
This SS1 Marketing lesson note covers MARKETING CONCEPTS for First Term, Week 4.
Learning Objectives
- By the end of the lesson, students should be able to:
- Explain the meaning of marketing concept.
- Identify the main marketing concepts.
- Explain each concept in simple terms.
- State the importance of marketing concepts to a business.
Lesson Note
A. INTRODUCTION
Every business wants to satisfy customers and make a profit. To achieve this, a business needs to understand what customers want and provide products or services that meet those needs. The ideas that guide a business in doing this are called marketing concepts.
B. MEANING OF MARKETING CONCEPTS
A marketing concept is a business idea or approach that guides a business on how to satisfy customers’ needs and wants while achieving its business goals.
In simple words, marketing concept means putting the customer at the centre of business activities.
C. MAIN MARKETING CONCEPTS
1. Production Concept
This concept believes that customers prefer products that are easily available and affordable.
A business therefore concentrates on producing goods in large quantities and reducing the cost of production.
Example: A company produces a large quantity of bottled water so that it can be sold at an affordable price.
2. Product Concept
This concept believes that customers prefer products that have good quality, useful features and good performance.
The business therefore concentrates on improving the quality of its products.
Example: A phone company produces phones with better cameras and longer-lasting batteries.
3. Selling Concept
This concept focuses on persuading customers to buy a product through advertising, sales promotion and personal selling.
The business believes that customers may not buy enough unless they are encouraged to do so.
Example: A supermarket advertises a product and offers a discount to encourage customers to buy it.
4. Marketing Concept
The marketing concept focuses on finding out what customers need and satisfying those needs better than competitors.
The business first studies customers’ needs before producing and selling its products.
Example: A clothing business asks customers what types of clothes they want before making new designs.
D. IMPORTANCE OF MARKETING CONCEPTS
Marketing concepts help a business to:
Understand customers’ needs and wants.
Produce goods that customers will buy.
Improve customer satisfaction.
Increase sales and profit.
Compete effectively with other businesses.
Build good relationships with customers.
Consider the welfare of society and the environment.
SUMMARY
Marketing concepts are ideas that guide businesses in producing and selling goods and services. The major concepts are production, product, selling, marketing and societal marketing concepts. Modern businesses mainly focus on understanding and satisfying customers while also considering society.
Evaluation
OBJECTIVE QUESTIONS
The marketing concept focuses mainly on ________. A. producing goods without considering customers B. satisfying customers’ needs and wants C. increasing the number of workers D. reducing the quality of products
The main focus of the marketing concept is the ________. A. customer B. factory C. government D. competitor
A business that follows the marketing concept will first try to understand ________. A. customers’ needs B. workers’ salaries C. government offices D. competitors’ buildings
Which of the following is an important feature of the marketing concept? A. Customer satisfaction B. Ignoring customers C. Producing without research D. Avoiding competition
The marketing concept believes that customer satisfaction can help a business to ________. A. lose customers B. achieve its objectives C. stop production D. avoid selling products
Which of the following is NOT associated with the marketing concept? A. Customer orientation B. Customer satisfaction C. Understanding consumer needs D. Ignoring customer complaints
A company conducts market research mainly to ________. A. discover customers’ needs and preferences B. prevent customers from buying C. increase its office space D. employ more workers
The marketing concept encourages businesses to provide products that ________. A. meet customers’ needs B. customers do not want C. are always expensive D. are difficult to obtain
Which of the following can help a business retain customers? A. Customer satisfaction B. Poor-quality products C. Ignoring complaints D. Poor customer service
The ultimate aim of applying the marketing concept is to satisfy customers while ________. A. achieving the organisation’s goals B. reducing sales C. avoiding customers D. stopping production
Theory Questions
1a. What is a marketing concept?
1b. What does the product concept focuses on?
1c. State three importance of marketing concepts
2a. What is the selling concept?
2b. Mention five marketing concepts
2c. How does the societal marketing concept benefit society?