MARKET AND MARKETING

Marketing

Market and marketing

Market- is any established operating means of exchange for business between buyer and seller.

Market can also be defined as the sum total of the situation or environment in which the resources, activities, and altitude of buyer and seller affect the demand for the product. It should be clearly understood that the term market is used to mean not any particular geographical meeting place of a buyer and a seller but as the getting together of buyer and seller in person by mail, telephone, telegraph, cable or any other means of communication.

Classification of market.

Market has been classified in various ways on the basis of different approaches, some of this classification is briefly discussed below:-

1.      According to geographical areas

2.      On the basis of the position of the sellers

3.      On the basis of the volume of business transaction

4.      On the basis of the nature of transaction.

1.      According to geographical areas: according to geographical area market is further classified into:- (a) local market, (b) Regional market, (c) National market and (d) International market.

(a)    Local market: buyer and seller belong to a small local area usually a town or a village. Even the modern commerce, the local market has retained its important in case of the marketing of perishable goods like fish vegetable and the certain kind of fruits.

(b)   Regional market: buyer and sellers from the few villages and town or even a district  come into contract through the mechanism of marketing

(c)    National marketing: when for a certain commodity  or commodities a country as a whole is regarded as one market, it is called  National market, in this case buyer and seller of any foreign country do not come into picture

(d)   Word or international market: when sale and purchase of goods involves buyers and sellers from beyond the boundaries as nation, it is called word or international market.

2.      On the basis of the position of the sellers: Taking into consideration the position of the sellers in the market, market are classified as:-

(a)    Primary market,

(b)   Secondary market and

(c)    Terminal market.

(a)    Primary market: is the one in which producers of the farm products sell their goods to the whole sellers or their argent.

(b)   Secondary market: here in whole sellers sell goods to retailers for reselling them to consumer.

(c)    Terminal market: it marks the end of the journey of the goods from the place of their origin. Here in consumer purchase goods from the retailers

3.      On the basis of volume of Business transaction: 

-          Whole seller : where goods are sold in bulk to dealer

-          Retail market. Here goods are sold in small quantities to the consumers.

4.      On the basis of the nature of transaction: Market have been classified into 

-          Spot market: where goods are physical transferred from the seller to the buyer. this is the market with immediately available goods.is the market in which commodities security or currencies are traded for immediately payment and delivery.

-          Future market: it refers to those produce and commodity exchange which are organized from making ‘future contract’ which does not require actual delivery of goods from seller to the buyer.

5.      On the basis of goods transacted:  in this category market is classified into:-

-          Commercial market:-  these are the market where  goods and services are sold and purchased . These goods and services include agriculture and industrial goods, capital and consumer goods.

-          Capital market: - capital market consists of the stock exchange in which different securities are bought and sold and the money market where short term fund is are bought and sold.

MARKETING

Introduction

Marketing is the process by which a product or services originates and then priced, promoted and distributed to the consumers.

In large cooperation the principle marketing functions precede manufacture of the product, they involves market research, and product development, design and testing.

Also marketing can be defined as “the performance of business activities that direct the flow of goods and services from the producers to the consumers or users.

Marketing is the process of planning and executing the conception, pricing promotion, and distribution of ideas, goods and services to create exchanges that will satisfy individual and organizational objectives.

Marketing includes planning, organizing, directing, and controlling the decision marking regarding product line, pricing, promotion, and servicing.

In addition the market department of a business firm is responsible physical distribution of the product, determining the channel of distribution that will be used, and supervising the profitable flow of goods from the factory or warehouse.

In general meaning, marketing involves all the activities involved in the creation of place, time and possession utilities.

Significant of marketing

i.  Marketing helps in the efficient performance of talks of exchange and the movement of goods through time and space. Ie it stimulates specialization and division of labor

ii.Marketing help to archive, maintaining and  raise standard of  living of the community

iii.    Marketing is essential for full or near full employment. Effective and continuous employment in the production  of goods depends upon equally continuous marketing of the product

iv.    Specifically to the firm it provide the channel of communication between the firm and the society.

It gives continuous information to the top management about demand for product and services.

Marketing functions

Marketing processes:

In their journey from the point of production to the point of consumption goods necessary pass through certain essential process.

The major marketing processes are:-

i.                     Concentration

ii.                   Dispassion

iii.                  Equalization

i.                     Concentration:

The first phase of the journey of the goods involves the process of concentrating the basic raw materials and the goods at the central point. Raw materials are needed by the manufactures are produced at different place by relatively small producers. It is necessary to collect the entire small surplus from these innumerable agricultural producers before they are transported to the whole sale market from where they can be sent to different consuming centers.

Similarly manufactured goods are collected to be made available to numerous retails dealer so that they have adequate stock of the products of different qualities to meet the requirements of their customers.

ii.                   Dispassion:

Goods thus concentrated in the center market are dispersed through the various channel of trade to the ultimate consumers. Raw materials are dispersed to manufacturers. Products ready for final consumption are dispersed to middle men for further dispersion to final consumers. this process of dispersion consists in :-

a.       Arranging the supply of goods  in proper quality for use by the manufacturer

b.      Splitting up of the goods into smaller and smaller lots which reach the consumers through retailer.

iii.                  Equalization:

The activity which occurs between the process of concentration and dispersion has been called equalization. It consists of adjustment of supply to demand on the basis of time, quantity, and quality.

N.B The above three process at marketing involves several functions

- According to  ‘Pyle’ The concentration process involves

·         Buying and assembling

·         Transporting

·         Storage

·         Financing

·         Risk bearing

Dispersion involves:-

·         Selling

·         Transporting

·         Storage

·         Standardization and grading

·         Financing

·         Risk bearing

·         Dividing.

General functions of marketing.

From analysis of various functions involved in the main process of marketing it is clear that the following functions are necessary to be performed for successful marketing of goods.

1.       Buying and assembling

2.       Selling

3.       Financing or marketing finance

4.       Risk bearing

5.       Market information

6.       Standardization

7.       Transportation

8.       Storage and warehousing.

1.    Buying and Assembling.

The buying function in the marketing is concerned with the selection of goods to be sold or to be used in the process of manufacture on the basis of price, service rendered by the seller and the quality of goods.

Buying is important to the marketing in several levels. Marketer must determine how and why consumers buy certain goods and services. To be successful, they must seek to understand consumer behavior. The buying involves taking the following decisions:-

a.       What kinds of goods are required?

b.      In what quantity these goods are to be bought?

c.       When are they to be bought?

d.      From when are these goods to be bought?

Methods of buying

There are main four methods of buying which are:-

i.            By inspection

This is the method of buying which implies physical presence of the goods which are inspected by the buyer or his agent in the presence of the seller or his agent. Purchase is made after the buyer is satisfied in regard to the quality of the goods on actual examination.

ii.          Buying by sample.

This method of buying avoids the need of physical presence of goods to be purchased. Only sample of good is given to the buyer. Buyer examines the sample and decides to purchase the goods on the clear understanding that the bulk of the goods to be purchased will be of the same quality as that of the sample.

iii.         Buying by description:

It refers to the purchase of the goods made on the basis of description of goods in catalogue etc. Popularity of this method of buying depends upon the reputation of the seller in regards to his honesty and integrity at character. This method saves the cost of sample.

iv.        Buying by grade:

Goods which are standardized and graded are purchased in required quantity simply by mentioning their grades. Cotton, eggs, coffee, grapes, etc have been divided into certain grades based on quality etc. They are bought by mentioning the grade of required quality.

Assembling :  Assembling means bringing together collecting and concentrating goods of the same the same type from the various sources of supply at centrally located places. The distribution of those concentrated supplies may involve the performance of the some, or even all functions of marketing.

Assembling is of considerable importance and requires special skills in the marketing of following kinds of goods:-

a.       Goods which are produced by numerous small producers or manufactures scattered over wide area.

b.      Non- standardized goods and those goods which vary widely inequality

c.       Goods seasonal in regard to their supplies

Advantages of Assembling

i.         Saving in the cost of handling goods is made possible

ii.       Goods are collected in large quantities therefore standardization and grading of those goods can be made economically

iii.      Goods whose supply is of seasonal nature are made available throughout the year.

iv.     Market for goods assembled is widened

v.       Goods in large quantity are made available.

2.    SELLING

Selling has been defined as the personal or impersonal process of assisting or persuading prospective customers to buy a commodity.

Selling and buying represent exchange function. Selling is the second half of the exchange process. it involves Advertising, personal selling, and sales promotions in attempt to match the firm’s goods and services to consumer’s needs.

Important of selling

The primary objective of the marketing is to sell goods for profits. Sales are the source of income which cover the cost of marketing and leaves a reasonable margin of profit.

Selling sustained large scale mass production. The increase in the volume of production with the help of modern machines improvement in the method of selling has assumed the virtual role in the modern economic life.

3.    BRANDING

The word brand is comprehensive term which includes brand name, designs and symbols.

A brand is defined as a name, term, symbol or a design or a combination of them which is intended to identify the good of one seller and to differentiate them from those of competitors “identification of product with manufacturer”

A brand consists of word, latter and a number which can be pronounced.

A brand mark is the part of which take the form of symbol, design or distinctive coloring or lettering

A brand mark can be recognized by sight but cannot be pronounced.

Trade mark

In common usage a brand and trademark are used as the same term but the two terms do not mean one and the something

Trademark- is the brand is given legal protection. Thus trademark is essentially a legal term. All trademarks are brands, but all brands are not trademarks.

Trademarks are not only pictorial part of brands, they includes the words, letters, or number which may be pronounced. They may also include a pictorial design.

Brand names and trademarks are registered with the government in order to prevent other manufacturers or sellers or using them.

Advantages of branding for trademark
The practice of selling of goods under a brand name or trade mark bring advantages to:-

i.            Manufacturers

ii.          Wholesalers

iii.         Retailers

iv.        Consumers

i.        Advantages to manufactures

1.      Distribution of the products in a wider market with the help of effective advertising is made possible

2.      The individually of the product is established. This helps the manufacturer to distinguish his product from those of competitors. Thus a fixed demand and preference for the branded product are created.

3.      Advertising cost are reduced. Once the brand has been made popular retailers are forced to keep the product in their stock because of its popularity.

4.      Wholesalers and retailers have preference for branded products because they can be sold easily.

5.      After sometime, if possible for the manufacturer to dispense with the services of the wholesalers in such a case  manufacturer reduces the expenses in distribution of goods

6.      Manufacturer can directly control the price of product because in case of branded product retail – selling price  is fixed by the manufacturer

7.      Manufacturer has not to depend upon the wholesaler and retailer for the creation of demand for his product. Branding aids the manufacturer to maintain contract with customers.

8.      Branding insures steadier demand which leads to economies of planned and continuous production

ii.      Advantages to wholesalers and retailers

1.      No efforts for promoting sales are necessary. Consumers often know and accept many branded products. Therefore consumers come to the retailers for purchase of such product.

2.      Less risk is involved in the case of branded product  of the manufacturer for the retailers

3.      In case of products with manufacture’s brand less time is required to sell them. This may help in the turnover  of sales in retail shop

4.      Retailer is assured of a more or less stabilized demand for  the branded products  which have been brought to the notes of the consumers

5.      It reduces price comparison and help to stabilize price.

6.      It facilitates the introduction of a new item. A firm selling one or more lines of product much more easily than a firm selling a branded goods

7.      It helps in increasing control and share of the market.

iii.    Advantages to consumers.

1.      Consumers cannot charge higher prices by the retailer.  Prices of branded products are fixed by the manufacturer and they are advertised. Thus the consumer knows what the price is.

2.      Consumers are assured of goods quality. Manufacturer has to maintain the quality of branded products, their reputation is to be retained, and product of inferior quality cannot be sold.

3.      Quality goods are easily available. Retailer has to keep ready in stock goods of all the popular brands. Therefore consumers can get such goods easily whenever they want.

4.      Quality of the branded goods is protected. Branded goods are usually sold in sealed packages. Thus they are protected from the effect of heat, dust, and moisture

5.      Stability in price. Generally  manufacturers do not find it advisable to change the prices as frequencies as those of un branded goods

4.    PACKING AND PACKAGES

Packing means the wrapping and crating of goods before they are transported or stored. Many goods must be packed in order to be preserved or delivered to the buyers. Liquid must be placed in barrels, bottles or cans. Bulky goods such as cotton and Jute are compressed into bales.

Goods must be placed in boxes or bags delivery to dealers.

Packaging is sub- division of packing. It means placing of goods in small packages- boxes, bottles or cans, bags, barrels etc. for sale to ultimate consumers. It is concerned with putting goods in the market in the size convenient to the buyers

Packaging has been defined as the general group of activities which involves designing and producing the container or wrapper for a product.

The need of packaging and packing.

1.       Protection for damage.

Goods are likely to get damaged in transit or while in store. Therefore they must be kept in suitable containers

2.       Prevention of evaporation

Products like gas, spirit etc are volatile in nature. If they are not kept properly packed they will evaporate.

3.       Protection against spoilage. Product like sugar, tea, etc are likely to get spoiled in transit or in store if they are not protected against dust and other particles.

4.       Protection against pilferage:

To protect goods from getting stoles also packing becomes essential.

5.       Protection against leakages.:

To prevent liquid articles like oil flow away while in storage or in transit, this must be kept in barrels or containers.

6.       Protection of the quality of goods

Packing is also necessary to prevent deterioration in the quality of goods because of the effects of light, air, or other atmospheric effects.

7.       Convenience of a consumer

Goods are packed in convenience size and units which are easily to handle by the consumers.

Advantages of packing and packaging

Packing is very useful in the marketing of goods. Most of the products are packed for their protection. Apart from this “protective packaging” package is also used as a “powerful selling tool” this is particularly so in the marketing of consumer goods.

The major advantages of packing and packaging.

1.       It facilitates branding and advertising the products

2.       It protect goods on it route from the manufacturer  to the consumers  or industrial user against breakage , spoilage, leakage  or pilferage

3.       It is useful in getting display in retail stores which usually suffer from the shortage of space because of very small window space and non-availability of counter space

4.       It help the sellers to increase his sales and obtain higher price than could for similar goods handled in bulk

5.       It protects the quality of the products.

6.       It ensures the supply of goods of right quality in desired quantity to consumers.

7.       Packaging gives the product a prestige, some individual are proud to buy the product of a certain package and they becomes prestige on it. This kind of individual does not prefer to buy goods in loose form.

8.       A company with several products gets the advantage of goodwill of one product to push the sale of other products by using similar packages with the same color schemes and the names.

9.       Printed literature containing information about the method of using the product can be easily passed on the consumers by putting it in the package.

10.   Compared with the products sold in bulk, packed goods usually are more convenient cleaner and less susceptible to losses from evaporation, spilling and spoilage.

11.   An increase in case of handing or a reduction of losses due to damage  may cut market cost

to be continued next time..........