KEY WORDS:
1. Market: Market refers to a place where goods are purchased and sold. Example cotton market, fruit market, cloth market etc. It is a place where buyers and sellers meet to effect purchases and sales.
2. Marketing: Marketing in a process which carries goods from original producer to ultimate consumer. It bridges gap between producer and consumer. Marketing is concerned with handling and transportation of goods from the point of production to the point of consumption.
3. Selling: Selling refers to transfer of goods services to the consumers. It is mainly concerned with the plans to get the customers to exchange their money to goods and service.
4. Marketing Functions: The activities or operations which are mainly concerned with taking the goods from producer to ultimate consumer are called marketing functions. These are necessary to make the goods and services available to the consumers.
5. Marketing concept: It refers to an idea philosophy or attitude of an organization in relation to marketing of a product or service. It influences the management of marketing efforts.
6. Self-Sufficient stage: Under this stage each family produces as per its requirements i.e. there cannot be any surplus for exchange.
7. Exchange oriented stage: In this stage the families produce more than requirements. There will be some surplus meant for exchange.
8. Product oriented stage: Here producers give more emphasis to production than consumption.
9. Sales Oriented stage: According to this concept products cannot be sold automatically immediately after production. High pressure salesmanship and heavy doses of advertisement are essential to sell the goods in the market.
10. Consumer Oriented stage: The main task of any business unit is to know the needs, wants, desires and fashions of the people and produce goods accordingly.
11. Social Oriented stage: It is bases on the assumption that a business unit should offer long run public welfare. It should discharge its social responsibilities.
Saturday, June 26, 2010
Marketing | Selling | Differences between Marketing and Selling
MEANING OF MARKETING: In the ordinary sense, marketing and selling are used in the same sense but strictly speaking they are not synonymous, they differ in their meaning. There is a line of demarcation between marketing and selling.
Meaning of Marketing: Marketing includes all activities involved in the production and distribution of goods and services desired by the consumers. Marketing occupies an important place in all business activities. According to modern marketing concept, marketing is essentially consumer oriented and it starts with product idea and ends with customer satisfaction. According to William Stanton “ Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying products and services to present and potential customers”. Thus the main idea of modern marketing concept is customer-satisfaction.
MEANING OF SELLING: Selling is concerned with the transfer of goods and services to the consumers. It is mainly concerned with the plans to get the customers to exchange his money to goods and services. It is primarily concerned with the seller’s interest.
DIFFERENCES BETWEEN MARKETING AND SELLING: The main difference between marketing and selling lies in their approach. Marketing is basically consumer-oriented. Selling on the other hand is product-oriented.
1. Scope: The scope of the term ‘Marketing’ is much wider than that of the term “selling”. Selling is one of the activities performed in marketing. Marketing includes all activities starting with the idea of producing a commodity in accordance with the needs of the customers and ending with the satisfaction of customers even after selling the commodity. On the other hand selling refers to distribution of products already manufactured by the firm. Selling focuses on sellers needs of converting his goods into cash.
2. Objects of profit: The objects of marketing are to earn profits through satisfaction of customer’s needs and desires. The profitability of a marketing oriented firm mainly depends on production of qualitative products to win the appreciation of consumers. Selling concentrates on earning profit on sale of more quantity of products.
3. Orientation: Marketing is consumer oriented and therefore it includes pre-production and post sale activities. Selling is basically production oriented and concentrates much on production.
4. Emphasis: Emphasis is given on product planning and development to match products with markets. It emphasizes as introducing new technology. Whereas in selling, emphasis is placed on sale of goods already produced. It emphasizes on reducing cost of production with a view to maximize profits.
5. Principle: In marketing the principle of caveat vendor (let the seller beware) is followed, whereas in selling the principle of
caveat emptor (let buyer beware) is followed.
6. Importance: The consumer occupies the prime of place in marketing process. He is given supreme importance by treating customer as a king. Product occupies pride of place in selling i.e. product enjoys supreme importance.
Meaning of Marketing: Marketing includes all activities involved in the production and distribution of goods and services desired by the consumers. Marketing occupies an important place in all business activities. According to modern marketing concept, marketing is essentially consumer oriented and it starts with product idea and ends with customer satisfaction. According to William Stanton “ Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying products and services to present and potential customers”. Thus the main idea of modern marketing concept is customer-satisfaction.
MEANING OF SELLING: Selling is concerned with the transfer of goods and services to the consumers. It is mainly concerned with the plans to get the customers to exchange his money to goods and services. It is primarily concerned with the seller’s interest.
DIFFERENCES BETWEEN MARKETING AND SELLING: The main difference between marketing and selling lies in their approach. Marketing is basically consumer-oriented. Selling on the other hand is product-oriented.
1. Scope: The scope of the term ‘Marketing’ is much wider than that of the term “selling”. Selling is one of the activities performed in marketing. Marketing includes all activities starting with the idea of producing a commodity in accordance with the needs of the customers and ending with the satisfaction of customers even after selling the commodity. On the other hand selling refers to distribution of products already manufactured by the firm. Selling focuses on sellers needs of converting his goods into cash.
2. Objects of profit: The objects of marketing are to earn profits through satisfaction of customer’s needs and desires. The profitability of a marketing oriented firm mainly depends on production of qualitative products to win the appreciation of consumers. Selling concentrates on earning profit on sale of more quantity of products.
3. Orientation: Marketing is consumer oriented and therefore it includes pre-production and post sale activities. Selling is basically production oriented and concentrates much on production.
4. Emphasis: Emphasis is given on product planning and development to match products with markets. It emphasizes as introducing new technology. Whereas in selling, emphasis is placed on sale of goods already produced. It emphasizes on reducing cost of production with a view to maximize profits.
5. Principle: In marketing the principle of caveat vendor (let the seller beware) is followed, whereas in selling the principle of
caveat emptor (let buyer beware) is followed.
6. Importance: The consumer occupies the prime of place in marketing process. He is given supreme importance by treating customer as a king. Product occupies pride of place in selling i.e. product enjoys supreme importance.
Functions Of Marketing
FUNCTIONS OF MARKETING: A Marketing function is an act or operation or services by which the original producer final consumers are linked together. If marketing functions are not properly carried out, the business unit may not be in a position to dispose off its products and all the efforts made for production may not bear fruits. The prime objective of marketing is to take the goods from the producer and perform all functions necessary to make them available to the ultimate consumers. In the process of marketing place, utility is created when goods and services are available at the places where they are needed, time utility when they are needed and possession utility when they are transferred to those people who need them.
All marketing functions can be divided into two types
i. Concentration
ii. Dispersion.
The process of concentration is concerned with gathering raw materials, manufactured goods at a central place namely market.
Dispersion means distribution of goods to final consumers.
Concentration involves a number of marketing functions like: (a) buying (b) Trading (c) Storing (d) Grading (e) Financing etc.
The process of distribution may include the following.
(a) Selling (b) Transportation (c) Grading (d) Risk Bearing etc.
Another classification of marketing functions is given by professors Clark and Clark, which is widely accepted by one and all.
Functions of marketing is classified into three types
1.Functions of Exchange.
2.Functions of Physical Supply.
3.Facilitating Functions.
FUNCTIONS OF EXCHANGE: Exchange refers to transfer of goods and services from money’s worth. This process can be divided into (a) Buying and assembling and (b) selling
A. Buying and Assembling: Buying is the first step in the ladder of marketing functions. A Manufacturer has to buy raw materials for production, wholesaler has to buy finished goods for the purpose of sale to the retailers, a retailer has to buy goods for resale to the consumers. Efficient buying is essential for successful selling. Large sized business concerns maintain a separate department namely purchasing department for the purpose of buying.
Modes of Buying: Goods may be purchased in any of the ways given below:
i. By Inspection: Under this method goods are bought after examining the goods by the buyer in the seller’s premises.
ii. By Sample: A purchase by sample is made after the buyer examines the sample of goods supplied by the seller.
iii. By Description: Some sellers issue catalogues containing description of goods offered for sale. The intending buyer places an order specifying a particular number mentioned in the catalogue.
iv. By Grading: This refers to standard quality of goods. Under this method purchase can be made by telegram, telephone, or mail.
Assembling begins after the goods have been purchased. It refers to gathering of goods already purchased from different places at one central place. Assembling facilitates transportation and storage. It is significant in cases of seasonal goods and agricultural products.
B. Selling: The ultimate aim of every business is to earn profits and in realizing this aim selling plays an important role. Nothing really happens until somebody sells something. Selling enables a firm to satisfy the needs of consumers. It is the process through which ownership of goods id transferred from the seller to the buyer. Sales are the source of income for the manufactures, wholesalers and retailers.
The importance of selling has increased significantly with an increase in the number articles offered for sale by a large number of producers. When the production was on a small basis the producers had no problem to dispose off their products. But now, with the increase in the volume of production, selling has become a problem and the producer has to induce to sell his products.
FUNCTIONS OF PHYSICAL SUPPLY: There are two important functions under this classification: (a) Transportation (b) Storage and ware housing.
A. Transportation: Transport means carrying of goods, materials and men from one place to another. It plays an important role in the marketing. It creates place utility by moving goods from the place where they are available in plenty, to places where they are needed. Both assembling and distribution of goods from the places of production to the places of consumption but it also enables consumers to go to marketing areas where there is wide choice of goods than in the places where they like, Transportation is also useful in stabilizing the prices of various commodities by moving them from the areas where they are in surplus to the areas where they are scarce. Various types of transport are used for carrying goods like (a) Land transport, (b) Water transport and (c) Air transport.
B. Storage and Ware Housing: Storage is another function of marketing process and it involves the holding and preservation of goods from the time they are produced to the time they are consumed. Generally, there is a time gap between the production and consumption of goods. Therefore, there is need for storing so as to make the goods available to the consumers and when they are required. By bridging the gap between production and consumption, storage creates time utility; it also creates place utility by holding goods at different places.
The importance of storage can be studied as follows.
a. Generally, goods are produced in anticipation of demand of the product in future market. All the goods are not sold immediately after production. For the unsold stock of goods storage in indispensable.
b. Some goods are produced throughout the year but demand for them is only in a particular season. For example rain coats, umbrellas, crackers etc. These commodities are to be stored till the arrival of season.
c. Many commodities are produced during a particular season but they are used through out the year. Such goods have to be stored so as to make them available through out the year. For example agricultural products.
d. Certain products which can get higher prices in future market are stored for a longer period. For example, tobacco, liquor, rice, etc.
Warehouse is a place for storage of goods. The functions of storage can be carried successfully with the help of warehouses. Warehouses create time utility by storing the goods through out the year and releasing them as and when they are needed. Several types of warehouses are used for storage of goods, which are as follows.
i. Private warehouses: Private warehouses are owned by big business units for the storage of their own goods. Only big business houses can afford to have such type of warehouses.
ii. Public warehouses: These are the business concerns which offer storage space on rent. These ware houses are licensed by the government. They are helpful to businessmen who cannot afford to maintain their own warehouses. These warehouses are generally located near railway lines and main roads.
iii. Bonded warehouses: These are located near the ports for the storage of imported goods. When the importer cannot pay customs duties immediately on the goods imported by him, he can store them in bonded houses. Importer can remove the goods in parts after paying import duty.
Facilitating Functions: There are the functions which help or facilitate in the transfer of goods and services from the producer to the consumer. They are not directly connected with the transfer of goods. Under this category the following functions are included.
a) Financing: Finance is the life blood of every business. It is needed for marketing of goods and services. The goods produced or purchased cannot be sold immediately to the ultimate consumers and much time is involved in marketing process. Hence there is need for finance for the purchase of raw material, meeting transportation, storage costs, insurance etc. Further, generally goods are passed on from manufacturer to wholesaler and from wholesaler to retailer on credit basis. Ultimate consumers also prefer to purchase goods on credit. Therefore, all agencies engaged in marketing have to make some arrangement for finance. Prof J.F Pile has rightly stated that “Finance is the lubricant of marketing machinery”.
There are three main sources of finance. They are as follows.
i. Long-term finance: It is needed for purchasing fixed assets like land, building, plant and machinery, furniture etc. The main sources of this finance are shares, debentures, financial institutions.
ii. Medium-term finance: It is needed for raising working capital. The main sources are financial institutions and commercial banks.
iii. Short-term finance: It is mainly required for meeting short term payment normally for less than one year. It can be raised from commercial banks and trade creditors.
b) Risk Bearing: Risk means he possibility of loss due to some unforeseen circumstances in future. Marketing process is confronted with risks of many kinds at every stage. Risk may arise due to changes in demand, a fall in price, bad debts, natural calamities like earthquakes, rains etc. The marketing risks may be classified under the following heads:
I. Time risk: Goods are bought by the business with a view to sell them at a profit out of anticipated rise in prices in future. During the time lag conditions might change and the price my fall. Thus time risk is involved in marketing.
II. Place risk: place risk arises when the prices of the same product are different in different places. The businessmen may purchase goods in market where prices are low with a view to sell them at other places where the prices are high. But the price in the other market may come down causing loss.
III. Competition risk: Businessmen have to face risk arising from the forces of competition. The competing firms may introduce modern methods of production due to which quality may be improved or cost of production may be reduced. Under such circumstances, a firm may be forced to sell at a loss which is called risk of competition.
IV. Risk of change in demand: The manufacturers produce goods on large on large scale in anticipation of demand in future. But, sometimes the demand of the product may not come to expectations resulting n losses.
V. Risk arising from natural calamities: Risks from natural causes are beyond human control. These include rains, earthquake, floods, heat and cold. These risks cause heavy loss.
VI. Human risks: These risks arise due to adverse behavior of human beings like theft, strikes, lockouts, bad debts etc.
VII. Political risks: Political risks arise due to change in political factors such as changes of government/ changes in government policies etc.
c) Market Information: According to Clark and Clark market information means “all the facts, estimates, opinions and other information used in marketing of goods”. The main object of any business is to create and maintain demand for the product produced. For this purpose market information is useful. On the basis of information the seller can know what type of goods are needed by the consumer, when and where they are needed and in what quantity.
d) Standardization: Standardization means establishment of certain standards based on intrinsic qualities of a commodity. The quality may be determined on the basis of various factors like size, colors, taste, appearance etc. It is helpful to the consumers as they safely rely on the quality of the standardized products.
e) Grading: Grading means classifications of standardized products in to certain well defined classes. In the words of Clark and Clark “It involves the division of products into classes made up of units possessing similar characteristics of size and quality”. Grading is very important for agricultural products like wheat, cotton etc.
Grading is of two types, fixed and variable. Fixed grading refers to the grading of goods according to fixed standards whereas variable grading refers to the application of varying standards.
f) Branding: Branding means giving a name or symbol to a product in order to differentiate it from competitive products. It helps the consumers in identifying their products. Branding may be done by selecting symbols and marks such as charminar cigarettes, camel inks, binny textiles or by using the name of manufactures such as Ford cars, Godrej street furniture. A Good brand should be brief, simple, and easy to spell and remember.
g) Packing: Packing means wrapping and crating of goods before distribution. Goods are packed in packages or containers in order to protect them against breakage, leakage, spoilage and damage of any kind. It consists of placing the goods in boxes, tins, bottles, cans, bags, barrels of convenient size to the buyers.
All marketing functions can be divided into two types
i. Concentration
ii. Dispersion.
The process of concentration is concerned with gathering raw materials, manufactured goods at a central place namely market.
Dispersion means distribution of goods to final consumers.
Concentration involves a number of marketing functions like: (a) buying (b) Trading (c) Storing (d) Grading (e) Financing etc.
The process of distribution may include the following.
(a) Selling (b) Transportation (c) Grading (d) Risk Bearing etc.
Another classification of marketing functions is given by professors Clark and Clark, which is widely accepted by one and all.
Functions of marketing is classified into three types
1.Functions of Exchange.
2.Functions of Physical Supply.
3.Facilitating Functions.
FUNCTIONS OF EXCHANGE: Exchange refers to transfer of goods and services from money’s worth. This process can be divided into (a) Buying and assembling and (b) selling
A. Buying and Assembling: Buying is the first step in the ladder of marketing functions. A Manufacturer has to buy raw materials for production, wholesaler has to buy finished goods for the purpose of sale to the retailers, a retailer has to buy goods for resale to the consumers. Efficient buying is essential for successful selling. Large sized business concerns maintain a separate department namely purchasing department for the purpose of buying.
Modes of Buying: Goods may be purchased in any of the ways given below:
i. By Inspection: Under this method goods are bought after examining the goods by the buyer in the seller’s premises.
ii. By Sample: A purchase by sample is made after the buyer examines the sample of goods supplied by the seller.
iii. By Description: Some sellers issue catalogues containing description of goods offered for sale. The intending buyer places an order specifying a particular number mentioned in the catalogue.
iv. By Grading: This refers to standard quality of goods. Under this method purchase can be made by telegram, telephone, or mail.
Assembling begins after the goods have been purchased. It refers to gathering of goods already purchased from different places at one central place. Assembling facilitates transportation and storage. It is significant in cases of seasonal goods and agricultural products.
B. Selling: The ultimate aim of every business is to earn profits and in realizing this aim selling plays an important role. Nothing really happens until somebody sells something. Selling enables a firm to satisfy the needs of consumers. It is the process through which ownership of goods id transferred from the seller to the buyer. Sales are the source of income for the manufactures, wholesalers and retailers.
The importance of selling has increased significantly with an increase in the number articles offered for sale by a large number of producers. When the production was on a small basis the producers had no problem to dispose off their products. But now, with the increase in the volume of production, selling has become a problem and the producer has to induce to sell his products.
FUNCTIONS OF PHYSICAL SUPPLY: There are two important functions under this classification: (a) Transportation (b) Storage and ware housing.
A. Transportation: Transport means carrying of goods, materials and men from one place to another. It plays an important role in the marketing. It creates place utility by moving goods from the place where they are available in plenty, to places where they are needed. Both assembling and distribution of goods from the places of production to the places of consumption but it also enables consumers to go to marketing areas where there is wide choice of goods than in the places where they like, Transportation is also useful in stabilizing the prices of various commodities by moving them from the areas where they are in surplus to the areas where they are scarce. Various types of transport are used for carrying goods like (a) Land transport, (b) Water transport and (c) Air transport.
B. Storage and Ware Housing: Storage is another function of marketing process and it involves the holding and preservation of goods from the time they are produced to the time they are consumed. Generally, there is a time gap between the production and consumption of goods. Therefore, there is need for storing so as to make the goods available to the consumers and when they are required. By bridging the gap between production and consumption, storage creates time utility; it also creates place utility by holding goods at different places.
The importance of storage can be studied as follows.
a. Generally, goods are produced in anticipation of demand of the product in future market. All the goods are not sold immediately after production. For the unsold stock of goods storage in indispensable.
b. Some goods are produced throughout the year but demand for them is only in a particular season. For example rain coats, umbrellas, crackers etc. These commodities are to be stored till the arrival of season.
c. Many commodities are produced during a particular season but they are used through out the year. Such goods have to be stored so as to make them available through out the year. For example agricultural products.
d. Certain products which can get higher prices in future market are stored for a longer period. For example, tobacco, liquor, rice, etc.
Warehouse is a place for storage of goods. The functions of storage can be carried successfully with the help of warehouses. Warehouses create time utility by storing the goods through out the year and releasing them as and when they are needed. Several types of warehouses are used for storage of goods, which are as follows.
i. Private warehouses: Private warehouses are owned by big business units for the storage of their own goods. Only big business houses can afford to have such type of warehouses.
ii. Public warehouses: These are the business concerns which offer storage space on rent. These ware houses are licensed by the government. They are helpful to businessmen who cannot afford to maintain their own warehouses. These warehouses are generally located near railway lines and main roads.
iii. Bonded warehouses: These are located near the ports for the storage of imported goods. When the importer cannot pay customs duties immediately on the goods imported by him, he can store them in bonded houses. Importer can remove the goods in parts after paying import duty.
Facilitating Functions: There are the functions which help or facilitate in the transfer of goods and services from the producer to the consumer. They are not directly connected with the transfer of goods. Under this category the following functions are included.
a) Financing: Finance is the life blood of every business. It is needed for marketing of goods and services. The goods produced or purchased cannot be sold immediately to the ultimate consumers and much time is involved in marketing process. Hence there is need for finance for the purchase of raw material, meeting transportation, storage costs, insurance etc. Further, generally goods are passed on from manufacturer to wholesaler and from wholesaler to retailer on credit basis. Ultimate consumers also prefer to purchase goods on credit. Therefore, all agencies engaged in marketing have to make some arrangement for finance. Prof J.F Pile has rightly stated that “Finance is the lubricant of marketing machinery”.
There are three main sources of finance. They are as follows.
i. Long-term finance: It is needed for purchasing fixed assets like land, building, plant and machinery, furniture etc. The main sources of this finance are shares, debentures, financial institutions.
ii. Medium-term finance: It is needed for raising working capital. The main sources are financial institutions and commercial banks.
iii. Short-term finance: It is mainly required for meeting short term payment normally for less than one year. It can be raised from commercial banks and trade creditors.
b) Risk Bearing: Risk means he possibility of loss due to some unforeseen circumstances in future. Marketing process is confronted with risks of many kinds at every stage. Risk may arise due to changes in demand, a fall in price, bad debts, natural calamities like earthquakes, rains etc. The marketing risks may be classified under the following heads:
I. Time risk: Goods are bought by the business with a view to sell them at a profit out of anticipated rise in prices in future. During the time lag conditions might change and the price my fall. Thus time risk is involved in marketing.
II. Place risk: place risk arises when the prices of the same product are different in different places. The businessmen may purchase goods in market where prices are low with a view to sell them at other places where the prices are high. But the price in the other market may come down causing loss.
III. Competition risk: Businessmen have to face risk arising from the forces of competition. The competing firms may introduce modern methods of production due to which quality may be improved or cost of production may be reduced. Under such circumstances, a firm may be forced to sell at a loss which is called risk of competition.
IV. Risk of change in demand: The manufacturers produce goods on large on large scale in anticipation of demand in future. But, sometimes the demand of the product may not come to expectations resulting n losses.
V. Risk arising from natural calamities: Risks from natural causes are beyond human control. These include rains, earthquake, floods, heat and cold. These risks cause heavy loss.
VI. Human risks: These risks arise due to adverse behavior of human beings like theft, strikes, lockouts, bad debts etc.
VII. Political risks: Political risks arise due to change in political factors such as changes of government/ changes in government policies etc.
c) Market Information: According to Clark and Clark market information means “all the facts, estimates, opinions and other information used in marketing of goods”. The main object of any business is to create and maintain demand for the product produced. For this purpose market information is useful. On the basis of information the seller can know what type of goods are needed by the consumer, when and where they are needed and in what quantity.
d) Standardization: Standardization means establishment of certain standards based on intrinsic qualities of a commodity. The quality may be determined on the basis of various factors like size, colors, taste, appearance etc. It is helpful to the consumers as they safely rely on the quality of the standardized products.
e) Grading: Grading means classifications of standardized products in to certain well defined classes. In the words of Clark and Clark “It involves the division of products into classes made up of units possessing similar characteristics of size and quality”. Grading is very important for agricultural products like wheat, cotton etc.
Grading is of two types, fixed and variable. Fixed grading refers to the grading of goods according to fixed standards whereas variable grading refers to the application of varying standards.
f) Branding: Branding means giving a name or symbol to a product in order to differentiate it from competitive products. It helps the consumers in identifying their products. Branding may be done by selecting symbols and marks such as charminar cigarettes, camel inks, binny textiles or by using the name of manufactures such as Ford cars, Godrej street furniture. A Good brand should be brief, simple, and easy to spell and remember.
g) Packing: Packing means wrapping and crating of goods before distribution. Goods are packed in packages or containers in order to protect them against breakage, leakage, spoilage and damage of any kind. It consists of placing the goods in boxes, tins, bottles, cans, bags, barrels of convenient size to the buyers.
Classification Of Markets
CLASSIFICATION OF MARKETS:
Markets can be classified in several ways from different approaches:
1.On Geographic or Area Basis: From the stand point of geographical area, market are divided into: (a) Local Markets, (b) National Market, (c) International Market.
a) Local Market: These markets relate to a particular locality. In the case of these markets, commodities are sold within geographical limits. Such commodities are difficult to be sold outside local limits. Generally, commodities which are heavy and perishable have local markets. For example bricks, vegetables, fruits, milk etc have local markets.
b) National Market: The growth of industries has widened the scope of market on national level. With the growth of transportation and communication, most of the goods are marketed at national level.
c) International Market: These are known as foreign markets where goods are sold beyond national boundaries. With the growth of transportation and communication systems, a number of products have acquired an international level.
2.On the Basis of importance: On the basis of importance markets may be divided into: (a) Primary Market, (b) Secondary Market (c) Terminal Markets.
(a) Primary Markets: In primary markets, primary producers of agricultural products or manufactured goods sell to wholesalers, who assemble the goods from different sources of production. Those markets are generally found in villages.
(b) Secondary Markets: In the secondary markets, wholesalers sell the goods to retailers for further selling. Semi-processed and semi-manufactured goods are generally sold and purchased in secondary markets. Ex: Yam market.
(c) Terminal Market: It is the market where final products are sold to final consumers i.e. consumers purchase goods in the terminal markets from the retailers.
3. On The Basis Of Business: On the basis of volume of business, the market may be divided into:
(a) Wholesale Market
(b) Retail Market
(a)Wholesale Market: In wholesale market goods are bought and sold in huge quantities. In these markets sellers are wholesalers and the buyers are retailers. Wholesalers purchase goods in bulk quantities and sell the same to retailers in small quantities.
(b)Retail Market: In this market retailers who purchase goods from wholesalers, sell to ultimate consumers in individual units i.e. very small quantities.
4. On Economic Basis: In economics, markets are classified into: (a) Perfect Market
(b) Imperfect Market
(a) Perfect Market: In perfect market there will be perfect competition between buyers and sellers who have full knowledge of other buyers and sellers. Due to this only one price will prevail in the market for the commodity. The following are the essentials features of perfect market.
I. Groups of buyers and sellers
II. Effective competition between buyers and sellers
III. One price for the commodity throughout the market
(b) Imperfect Market: Imperfect market is a market which is not a perfect market. In this market we find some kind of maladjustment in demand and supply; buyers and sellers have no knowledge of other buyers and sellers.
5. On Time Basis: On the basis of time markets may be classified into
a. Very short period Markets
b. Short period Markets
c. Long Period Markets
a) Very Short Period Markets: It refers to markets which exist for a very short period normally a day. Such markets generally sell fruits, flowers, vegetables, milk etc.
b) Short Period Markets: These markets include weekly markets held in villagers. Fairs are also included in this category.
c) Long Period Markets: Durable goods are purchased and sold in long periods markets. In these markets goods may be held for a long period without any deterioration in quality.
6. On The Basis Of Nature of Goods: On the basis of the nature of goods that are purchased and sold, markets may be divided into.
a. Commodity Markets
b. Capital Markets:
c. Foreign Exchange Markets:
a) Commodity Markets: These markets deal in different commodities. Consumer goods are purchased by ultimate consumers and industrial goods are purchased by manufacturers.
b) Capital Markets: These include money markets, stock markets etc. In money markets borrowings and lending take place. In stock market shares, debentures, bonds etc are brought and sold.
c) Foreign Exchange Markets: Foreign exchange markets deal in currencies of different foreign countries. These markets arrange foreign currencies to make payments for the imports from other countries. They convert home currency into currencies of foreign countries.
Markets can be classified in several ways from different approaches:
1.On Geographic or Area Basis: From the stand point of geographical area, market are divided into: (a) Local Markets, (b) National Market, (c) International Market.
a) Local Market: These markets relate to a particular locality. In the case of these markets, commodities are sold within geographical limits. Such commodities are difficult to be sold outside local limits. Generally, commodities which are heavy and perishable have local markets. For example bricks, vegetables, fruits, milk etc have local markets.
b) National Market: The growth of industries has widened the scope of market on national level. With the growth of transportation and communication, most of the goods are marketed at national level.
c) International Market: These are known as foreign markets where goods are sold beyond national boundaries. With the growth of transportation and communication systems, a number of products have acquired an international level.
2.On the Basis of importance: On the basis of importance markets may be divided into: (a) Primary Market, (b) Secondary Market (c) Terminal Markets.
(a) Primary Markets: In primary markets, primary producers of agricultural products or manufactured goods sell to wholesalers, who assemble the goods from different sources of production. Those markets are generally found in villages.
(b) Secondary Markets: In the secondary markets, wholesalers sell the goods to retailers for further selling. Semi-processed and semi-manufactured goods are generally sold and purchased in secondary markets. Ex: Yam market.
(c) Terminal Market: It is the market where final products are sold to final consumers i.e. consumers purchase goods in the terminal markets from the retailers.
3. On The Basis Of Business: On the basis of volume of business, the market may be divided into:
(a) Wholesale Market
(b) Retail Market
(a)Wholesale Market: In wholesale market goods are bought and sold in huge quantities. In these markets sellers are wholesalers and the buyers are retailers. Wholesalers purchase goods in bulk quantities and sell the same to retailers in small quantities.
(b)Retail Market: In this market retailers who purchase goods from wholesalers, sell to ultimate consumers in individual units i.e. very small quantities.
4. On Economic Basis: In economics, markets are classified into: (a) Perfect Market
(b) Imperfect Market
(a) Perfect Market: In perfect market there will be perfect competition between buyers and sellers who have full knowledge of other buyers and sellers. Due to this only one price will prevail in the market for the commodity. The following are the essentials features of perfect market.
I. Groups of buyers and sellers
II. Effective competition between buyers and sellers
III. One price for the commodity throughout the market
(b) Imperfect Market: Imperfect market is a market which is not a perfect market. In this market we find some kind of maladjustment in demand and supply; buyers and sellers have no knowledge of other buyers and sellers.
5. On Time Basis: On the basis of time markets may be classified into
a. Very short period Markets
b. Short period Markets
c. Long Period Markets
a) Very Short Period Markets: It refers to markets which exist for a very short period normally a day. Such markets generally sell fruits, flowers, vegetables, milk etc.
b) Short Period Markets: These markets include weekly markets held in villagers. Fairs are also included in this category.
c) Long Period Markets: Durable goods are purchased and sold in long periods markets. In these markets goods may be held for a long period without any deterioration in quality.
6. On The Basis Of Nature of Goods: On the basis of the nature of goods that are purchased and sold, markets may be divided into.
a. Commodity Markets
b. Capital Markets:
c. Foreign Exchange Markets:
a) Commodity Markets: These markets deal in different commodities. Consumer goods are purchased by ultimate consumers and industrial goods are purchased by manufacturers.
b) Capital Markets: These include money markets, stock markets etc. In money markets borrowings and lending take place. In stock market shares, debentures, bonds etc are brought and sold.
c) Foreign Exchange Markets: Foreign exchange markets deal in currencies of different foreign countries. These markets arrange foreign currencies to make payments for the imports from other countries. They convert home currency into currencies of foreign countries.
Friday, June 25, 2010
Marketing Management
MARKET INTRODUCTION:
Market provides a mechanism for the sale of goods. According to the prof.Philip Kotler market is an area or atmosphere for a potential exchange. Marketing includes all activities involved in the production and distribution of goods and services. Marketing concept refers to the philosophy of an organization in relation to marketing of a product of service.
MEANING OF MARKET:
The term market is derived from the Latin word 'Marcatus' which means merchandise, trade i.e. purchasing and selling of goods. It is a place where buyers and sellers meet together for the exchange of title of goods. i.e. it is a place where business is conducted. The market provides a mechanism for the sales of goods, but the actual delivery of goods may not take place in all the cases.
According to Prof. Mitchel market is not a geographical meeting place but as any getting together of buyers and sellers, in person, by mail, telephone, telegraph and internet or any other means of communication. Prof Philip Kotler expressed in his famous book ' Marketing Management' the term 'market' as area or atmosphere for a potential exchange.
Market is an arrangement that provides opportunity of exchanging goods and services for money or money's worth. Thus in market there are two groups of persons, one group holding the goods which they want to sell and another group of prospective buyers who want to pay for the goods they are going to buy. It means that three points are interlinked; namely place, atmosphere, and demand. Place stands for a convenient place for the buyers and sellers to come together for the exchange of goods and services; atmosphere stands for the contact between the buyers and sellers; demand stands for the people with needs and wants to satisfy and purchasing power.
Market provides a mechanism for the sale of goods. According to the prof.Philip Kotler market is an area or atmosphere for a potential exchange. Marketing includes all activities involved in the production and distribution of goods and services. Marketing concept refers to the philosophy of an organization in relation to marketing of a product of service.
MEANING OF MARKET:
The term market is derived from the Latin word 'Marcatus' which means merchandise, trade i.e. purchasing and selling of goods. It is a place where buyers and sellers meet together for the exchange of title of goods. i.e. it is a place where business is conducted. The market provides a mechanism for the sales of goods, but the actual delivery of goods may not take place in all the cases.
According to Prof. Mitchel market is not a geographical meeting place but as any getting together of buyers and sellers, in person, by mail, telephone, telegraph and internet or any other means of communication. Prof Philip Kotler expressed in his famous book ' Marketing Management' the term 'market' as area or atmosphere for a potential exchange.
Market is an arrangement that provides opportunity of exchanging goods and services for money or money's worth. Thus in market there are two groups of persons, one group holding the goods which they want to sell and another group of prospective buyers who want to pay for the goods they are going to buy. It means that three points are interlinked; namely place, atmosphere, and demand. Place stands for a convenient place for the buyers and sellers to come together for the exchange of goods and services; atmosphere stands for the contact between the buyers and sellers; demand stands for the people with needs and wants to satisfy and purchasing power.
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