Question

QUESTION (2): (5 Marks) Read the following examples of firms (A) Production Concept statements and match the firm to the (B) Sales Concept concept that they most appear to follow. (C) Marketing Concept (Note: Write only one letter for each answer. Use (D) Management oriented Concept the box provided) 1. "We are the type of organization that gathers information regarding its service levels and how their customers perceive them. Our corporate culture is highly customer focused and they work hard to meet the changing needs of the market". ( ) 2. "Our products are always being enhanced and improved upon and, quite simply. they're the best in the market and no product can compete ours" () 3. "We're an importer of various products that are suited to direct marketing promotion. In particular, we are heavy users of late-night TV info-commercials. Our goal is to create short-term profits" () 4. "In today's world, running a successful business is quite a complex challenge. It's a real balancing act to constantly provide a fair return to our shareholders, whilst meeting the ever-changing needs of the consumers. Therefore, marketing must be integrated and controlled" () 5. For many years, there has been a trend of manufacturing firms to physically produce their goods internationally, in countries where labor costs are significantly lower (such as China, India, Mexico) in order to produce larger quantities at lower costs.

Answer 1

1. (C) Marketing Concept

Reason: Marketing concept refers to analyzing the needs of the customers and providing them with products satisfying their needs / requirements.

2. (A) Production Concept

Reason: Production concept concentrates on showing the best attributes of the product available at the most reasonable prices.

3. (B) Sales Concept

Reason: Sales concept focuses on the sale of goods and the profit it derives. It emphasises on profit rather than on marketing of the products.

4. (D) Management Oriented Concept

Reason: Management oriented concept focuses on providing higher customer satisfaction and at the same time, provides a fair return to the stakeholders.