Answer:
The marketing concept that is most suitable to Cost Leadership Strategy is the Production Concept.
The production concept of marketing places a strong emphasis on operations and how it can be constantly fine-tuned to deliver the required products as and when required at the quantity required and at the lowest cost possible. Minimal costs is crucial here because the market being played by the entrepreneur or the business is a growing one, most concerned about product availability and low prices than on quality.
So in order to come out on top as the leader with the lowest production cost, the business must invest in processes that help them do just that.
In this market, the quality is approximately standard across board. This means people worry less about quality and are focused on getting the same quality at the lowest price possible. In a perfect market, people who do large purchases will gravitate to the business with the lowest price even if the difference in the price of that of other producers are only a small margin.
Explanation:
The product concept marketing approach focuses on delivering the most exquisite product in the market. This an example of a company/companies in the mobile telecommunications market that do this are: Apple and Samsung.
In business, the trade-offs are usually between quality, cost and time.
It speaks to the fact that the higher the quality, the higher the cost. This Product concept as a marketing strategy rests on the premise that there are enough potential customer for the product and that existing ones are too loyal to shift their focus because of the added cost required for their products;
The selling concept: the premise for this concept derives from the assumption that the degree to which people purchase a product is directly proportional to the intensity of selling efforts. A company that adopts this concept will most likely have a very huge advertising budget and a large sales team/outlets.
The Marketing Concept: This concept takes root in the notion that for a business to succeed, it must outdo its rivals with regard to value delivery. Companies that adopt this approach seem to combine all the other concepts into one holistic marketing strategy because the focus is on gaining the most competitive advantage.
The Societal Marketing Concept:
As consumers grew more aware of the impacts of business activities on the environment and society, buying decisions started to be influenced by whether or not the company was being ethical. Ethical issues under consideration were:
a) does the production process of the company impact the environment negatively?
b) is the company involved in any social development project?
c) are there any illegal and or unethical issues on their supply chain? such as child labor, illegal acquisition of raw material, human trafficking etc.
Several global brands in the clothing business for instance, have recently been put in the spotlight for tolerating child slavery in one of the countries of origin for their raw material. This modern-day concept has become very important for most if not all multinational companies.
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