Marketing

1st Year POC - Principles of Commerce Notes

Marketing

 

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DEFINITION OF MARKETING



The term market and marketing are often very really used in ordinary
since but it has different meaning in commerce. marketing includes
business activities involved in the flow of goods and service from
production to consumption.



Mr. C.C Knight says: “ Marketing embraces all those efforts made in the
discovery of consumers actual and potential requirement for the
commodities and service and the steps taken fro securing their adequate
distributing”



According to Prof. Hall “ the word marketing describes number of
association activities which move towards a common objectives: the
determination of consumer demand for sale and distribution of goods and
services”



In simple words all those business activities which effect the transfer
of ownership of goods and services and provide for there physical
distribution come within the scope of marketing. Marketing activities
may be divided into two main groups;



1.those which effect the transfer of title of the goods 2. those which
are involved in the physical distribution of goods from one place to
another.



Market creates time, place and possession utility. It is for their
creation that study is becoming more and more important every day.





NATURE AND SCOPE



Marketing is a very comprehensive term and include all efforts to



1. discover the present and potential requirement of consumer.



2. the evolution of the product which would satisfy those requirements.



3. all the effective methods of production distribution



4. all the efforts to improve and modify the products.



FUNCTION OF MARKET



Marketing function can be defined as fundamental activities or services
carried out in the marketing process. These functions are performed by
manufactures, marketers, wholesalers etc. However the functions are as
follow.





BUYING:



Buying is an important marketing function for everyone connected with
the distribution and consumptions of good. Generally the wholesaler buy
from the manufactures, the retailers from the wholesalers and consumer
from the retailers. The performance of this function involves the
activities relating to determination of needs, selection of proper
source of supply, date of shipment etc. the function also considers the
quality of goods with prospects of high profit.





Selling:



The second important function is to arrange for the sale of goods.
Selling involves a a wide Varity of task. These include the discovery of
customers, introducing them with the available goods and encouraging
them to purchase them to purchase goods. Selling add possession utility
to commodities. Sometimes selling is a specialized function as in case
of brokers auctioneers and other sales agent who don’t handle the goods
at all but merely serves as a connection link between buyer and sellers.





Advertising:



The age of competition compels the seller to be alert in the creation of
demands for their goods through auxiliaries like advertisement and
salesmanship. The main objective is to draw attention of a large number
of people to the products and to convince them of the excellence of the
product. As a result the number of consumers increases. Without
publicity the goods may not be noticed and marketing may come to stand
still.





Transportation:



It creates place utility. In order to have goods must be transported
from one place to another. To a very great extent the marketing system
is built up upon economical and effective transportation. For the
distribution of goods over a wide area, effective transportation must be
available. and it should be adequate to meet the normal demands.
Therefore, the efficiency of marketing depends upon quick and cheap
means of transportation. With the increase in the distance between the
producer and consumer the importance of transportation has further been
increased.





Storage and warehouses:



Storage of good is an another important function of marketing. In many
lines of business goods are produced considerably in advance of their
consumption. Storing creates the utility. Because marketers often
maintain extensive inventories, the consumers desire to buy is satisfied
without waiting.





Standardization and grading:



It determines the form and classifies goods according to their quality.
The producer standardize his goods according to the requirement of the
market. It saves the time of consumers in selecting the goods. Consumer
relay upon manufacturers that their goods are of uniform quality and of
standard measure and size.



By grading we mean that actual sorting out the commodities according to
established specification relating to size , quality , color , weight
etc. Graded products facilitate buying and selling and the elements of
risk is also reduced .





Financing:



It consist of the supply and management of money of money and credit. A
considerable amount of time elapse between the production and the sale
of good, during that period finance is required at every step. The whole
marketing mechanism is based upon financing. The retailers demand
credit from the wholesalers , the wholesalers from the producers and the
producers from the banks and finance companies.





Risk taking:



The mere act of owning goods carries with it the burden of assuming
certain risks in connection with them. Some of the risks involved relate
to physical deterioration theft, damage , waste, change in demand or
supply or price. It is possible to minimize some of these risk through
shifting them to insurance company.





Packing:



Protecting goods from breakage, spoilage and leakage while they are
being transported or stored is another important function of marketing
process. Considerable efforts and research has been carried out in this
fields as packing represents a vital and expensive activity.





Branding:



It is applicable to all identifying marks by which a manufacturer or
wholesaler identifies his products. The brand enable the purchaser to
know what he is buying.





Recording:



A considerable amount of recording is recording in order to know who
made the purchase, the amount of investors. Therefore it is an important
function.





Sampling:



In order to show goods to distant customers the producer has to adopt
the prospect of sampling of the goods. It denoted the selection of apart
of commodity from a bulk in such a way that it would be representative
enough to render a correct idea about the commodity ti recipient of the
sample.





Having Market Information:



It is important function and it is extremely helpful to both the
consumer and the manufacturer. As markets for various articles are
widening the importance of research and information in increasing.
Producers are made aware of coming trends because marketers inform them
of changes in consumers want supply and demand and the new market
development, position of the computtors etc.





Salesmanship:



The chief objective of this stage of marketing process is to bring a
potential buyer into contact with the seller. Thus this is also an
important marketing function.