Final answer:
The marketing concept is based on customer needs, wants, and satisfaction and advertising helps differentiate products. Supply and demand determine prices in the market.
Step-by-step explanation:
The marketing concept is built on the foundation stones of customer needs, wants, and satisfaction. It emphasizes the importance of understanding and meeting the preferences and requirements of customers. In the realm of monopolistic competition, advertising plays a key role by either making the perceived demand curve more inelastic or by increasing demand—shifting the demand curve to the right. This successful advertisement strategy leads to the ability to sell greater quantities or to charge higher prices. In terms of market mechanics, supply and demand interact to determine prices, production decisions, and the overall market equilibrium.