Marketing is an important
function of management. It sets the economy revolving. It makes strong and
stable. Production of goods and services has no meanings unless the goods
and services are exchanged for money or money’s worth.
This involves the movement
of goods from the producers to the ultimate consumers. With the development of
speedy means of transport and communication, growing multiplicity and the complexity of demand on account of the rising standard of a living establishment of
huge joint stock companies engaged in mass production and expanding frontiers
of trade and commerce, the science and art of marketing has been attracting
more and more attention of all concerned businessman; governments, public and
theorists.
But to different persons,
the term marketing means differently. To some, it means selling of goods and
to some others, it is nothing but advertising and publicity. The concept of
marketing, as a matter of fact, has been becoming broader and having a wider
scope with the passage of time.
Meaning of Market and
Marketing
Market
The word ‘Market’ is derived
from the Latin word ‘Marcatus’ which means merchandise, ware, traffic, trade or
a place where business is conducted. It is usually to refer to a place where
actual buying and selling take place. In the old days, buying and selling were done
by coming together in periodical fairs held at specific places and on
particular dates. The intending buyers will take their commodities there and
buyers will buy them according to their needs, in the days of ‘barter system’
the exchange was of goods with goods only. People having surplus goods will
exchange them with the goods they need. The invent of money as a means of
exchanges revolutionized the market system.
According to American
Marketing Association, “At every point at which a specific commodity is
concentrated for sale a market is found”
CLASSIFICATION OF MARKETS
A market may be classified
according to various factors they may be classified according to an area such as
local, regional, national and international.
Marketing
To Know the meaning of
marketing we have to know the approaches to marketing;
1)Old or Traditional
Approach.
2)New or Modern Approach.
1)Old or Traditional
Approach to Marketing; Tills Approach View marketing as a sum total of physical
activities, which are involved in the movement of goods from the producers to the
ultimate consumers. As traditionally defined, “Marketing consists of those
efforts which effects transfer in ownership of goods and care for their
physical distribution.” It is thus a process by which goods are made available
to ultimate consumers from their point of origin.
In this concept, the focus
is on a product; the means are selling and promoting, and the end objectives are
maximization of profits through sales volume.
 |
OLD APPROACH TO MARKETING (SALES CONCEPT)
2)New or Modern Approach to
Marketing: The modern approach has recognized that marketing process begins
long before the goods go into production and it does not end with the final
sale. Today, the customer is the ‘king’. The needs of the customers have to be
identified, studied and analyzed and the business activities so directed that
the needs of the customers are fulfilled to their satisfaction Thus, according
to a modern approach, marketing involves all efforts to create customers for the
product and provide maximum satisfaction to them.
The new modern approach to
marketing can be depicted as:
 |
| New or Modern Approach to Marketing |
“Marketing is concerned with
all the resources and activities involved in the flow of goods and services
from producer to consumer” According to Wheeler
Conclusions
1. Marketing is primarily
concerned with the movement of goods and services from the producer to the ultimate
consumer.
2. Marketing creates a place,
time and possession utilities.
3. Marketing is a concept,
a point of view and a way of thinking.
4. Marketing is directed
towards the satisfaction of consumer
wants. It begins and ends with customers.
5. Marketing is a total function which is concerned with such activities as product planning,
development, changes, pricing, packaging, advertising, and selling, etc.
NATURES OF MARKETING
1)Marketing in
Customer-Focused
2)Marketing Must Deliver
Value
3)Marketing is Business
4)Marketing is Surrounded by
Customer Needs
5)Marketing is a part of
total Environment
6)Marketing as a Discipline
Scope and Functions of
Marketing
The scope of marketing can
be understood in term of functions that a marketing manager/director/department
performs. In most of the business enterprises, the marketing department is set up under the supervision of the Marketing Manager.
Marketing manager performs
the following functions
1)Marketing research.
2)Product planning and
development.
3)Buying and assembling
4)Selling.
5)Standardization, grading, and branding.
6)Packaging.
7)Storages.
8)Transportation.
9)Salesmanship.
10)Advertising.
11)Financing.
12)Insurance.
 |
| Scope of Marketing |
A) RESEARCH
i) Marketing Research-It means
the intelligence service of the organization. Marketing popularity of a
product, the effectiveness of advertisement media, etc. Its major task is to
provide the marketing manager with timely and accurate information so that a better
decision can be made. The scope of marketing research is very wide. it may
cover all the areas of business, which have to bear on the marketing function.
ii) Product Planning and
Development - A Product is something which is offered by a business firm to a customer to satisfy theirs. It has great importance in all other areas of
marketing management. For instance, research is mainly directed towards knowing
the needs of the customer and increasing the sale of the product; and storage
and transportation activities depend upon the nature of the product. Therefore,
it is necessary to plan and develop a product, which meets the specification of
the customers.products are the foundation of any marketing programme. The
success of the marketing department depends upon the nature of the product offered
to the customer. The product Must be so designed and developed that it meets
the requirement of the customers.
decision - What to manufacture or
buy? How to have its packaging? How to fix its price and How to sell it?
The design, quality, colors,
size and other features of the product can be determined by conducting
marketing research.
B) Buying and Assembling-
Procurement of raw materials, semi-finished products have gained great
importance for modern industrial and commercial enterprises. A raw material
is purchased for production by the industrial enterprises and finished goods
are purchased for resale by the commercial enterprises. it is the marketing
department which will supply the information regarding the needs and tastes of
the customers.
purchasing is different from
assembling. purchasing involves a determination of requirement, finding the
sources placing the order and receiving the goods. But assembling means
collection of goods already purchased from different sources at a common point. it is also
used in an anoter sense. The raw material is purchased and assembled in order to
produce goods and services.
ii) Selling - This is an
important aspect of marketing under which ownership of goods is transferred
from the seller to buyer sales may take the form of i) a negotiated and ii)
an auction sale. in case of a negotiated sale, bargaining or haggling arrives at
the terms and conditions between the buyer and the seller. But in the case of an auction sale, there is no scope for negotiation between the seller and the
buyer. The buyer assembles at the place of auction and bids against one another
for the goods on sale. the goods are sold to the highest bidder.
A negotiated sale may take the
following forms, namely, a) sale by inspection b) sale by sample, c) sale by
description, d) sale by grade, and e) sale by brand.
C) PHYSICAL TREATMENT
i) Standardization, Grading and
Branding -
standardization means setting up a specification of the product. Grades of agricultural product are based on the
specification and standards. Industrial goods are given a brand name by their
manufactures to convey to the customers that their goods conform to certain
well- defined standards. These activities promote the sale of products.
ii) Packaging-
Packaging is traditionally
done to protect the goods from damage in transit and to facilitate easy
transfer of goods to a customer. But now the manufacturer to establish his branded
products as distinct from those of his rivals also uses it.
Another activity connected with packaging
is labeling Labeling means putting identification marks on the package. The
label is an important feature of the product it is part of a product.
Sometimes, packages are duly
sealed to ensure products of the right quality to the customers. In the absence of
selling, unscrupulous dealers may distribute duplicate product to the
consumers.
iii) Storage- Goods are generally
produced in anticipation of the demand They have to be stored properly
in warehouses to protect them from any damages, which may be caused, by ants,
rates, moistures, sun, theft, etc.
iv) Transportation- This calls
for the transportation of goods from the place of production to the place of
consumption.
Transportation provides the
physical means, which facilitate the movement of persons, goods, and services
from one place to another.
It is against transportation that
facilitates the movement of goods from the producers to the users. By doing so,
transportation removes distance problems and creates place utility.
D) FACILITATING EXCHANGE
i) Salesmanship - Personal
selling an important method of selling goods. It is widely used in retail
marketing.
ii) Advertising
iii) Pricing
iv) Financing
v) Insurance
0 Comments