It refers to a place where the buyers and sellers meet each other for sale and purchase of the commodity.<\/p>\n
Marketing<\/strong><\/p>\n Marketing may be defined as all activities that are facilitating the movement of goods and services from producer to the ultimate consumer.<\/p>\n Features of Marketing<\/strong><\/p>\n Marketer<\/strong><\/p>\n Any person, who takes more active role in the exchange process is called marketer.<\/p>\n Marketing Management<\/strong><\/p>\n It refers to planning, organising, directing and controlling of the activities which facilitate exchange of goods and services between producers and consumers.<\/p>\n Differences between Marketing and Selling<\/strong><\/p>\n Marketing:<\/p>\n Selling:<\/p>\n Marketing Concepts<\/strong><\/p>\n 1) The Production Concept: This concept believed that profits could be maximised by producing at large scale, thereby reducing the cost of production. Here greater emphasis was given on improving the production and distribution. Functions of Marketing<\/strong><\/p>\n 1) Marketing Research: Marketing Research is a process of collecting and analysing market information to identify the needs and wants of the customers. Role\/Objectives of Marketing<\/strong><\/p>\n 1) Role in a Firm: Modern marketing emphasises that customer satisfaction is the key to the survival and growth of an organization. A satisfied customer is the most valuable asset of any firm. So product must be designed according to the needs and wants of the consumers, ensure fair distribution and determine an appropriate pricing strategy.<\/p>\n 2) Role in the Economy: Marketing plays a significant role in the economic development of a nation. Marketing helps to increase the standard of living of the people by providing quality goods at reasonable prices. Marketing accelerates the economic activity leading to higher incomes, more consumption and increased savings and investment.<\/p>\n Marketing Mix<\/strong><\/p>\n It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.<\/p>\n Elements\/4 P\u2019s of Marketing Mix<\/strong><\/p>\n 1) Product: Product means goods or services or \u2018anything of value\u2019, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.<\/p>\n 2) Price: Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered before fixing the price of a product.<\/p>\n 3) Place: Place or Physical Distribution includes activities that make firm\u2019s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.<\/p>\n 4) Promotion: Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.<\/p>\n Product<\/strong><\/p>\n Product may be defined as anything that can be offered to a market to satisfy a want or need. Products may broadly be classified into two categories.<\/p>\n Consumers\u2019 products<\/strong><\/p>\n Products, which are purchased by the ultimate consumers for satisfying their personal needs and wants are referred to as consumer products. a) Shopping Efforts Involved: On the basis of the time and effort, buyers are willing to spend in the purchase of a product, we can classify the consumer product into three. 2) Shopping Products: Shopping products are those consumer goods, which buyers devote considerable time, to compare the quality, price, style, suitability, etc., at several stores, before making final purchase, e.g. clothes, shoes, jewellery, furniture, etc.<\/p>\n 3) Speciality Products: Speciality products are those consumer goods which have certain special features because of which people make special efforts in their purchase. The buyers are willing to spend a lot of time and efforts on the purchase of such products. The demand for these goods is inelastic.<\/p>\n b) Durability of Products: On the basis of their durability, the consumer products have been classified into three. They are:<\/p>\n 1) Durable Products: Durable goods are used for a long period. Such goods generally require more personal selling efforts, have high profit margin, and require aftersales service. 2) Non-durable Products: The consumer products which are normally consumed in one or few uses are called non-durable products, e.g. toothpaste, detergents, bathing soap and stationery products, etc.<\/p>\n 3) Services: Services are essentially intangible activities which provide want or need satisfaction, e.g. Medical treatment, postal, banking and | insurance services, etc.<\/p>\n Industrial Products<\/strong><\/p>\n Industrial products are those products, which are used as inputs in producing other products. The examples of such products are raw materials, engines, lubricants, machines, tools, etc.<\/p>\n Types of industrial products:<\/p>\n Branding<\/strong><\/p>\n The process of giving a name or a sign or a symbol, etc. to a product is called branding. Terms related with branding<\/p>\n Advantages of Branding<\/strong><\/p>\n Advantages to the Firm:<\/p>\n Advantages to Customers:<\/p>\n Qualities of a Good Brand Name<\/strong><\/p>\n Packaging<\/strong><\/p>\n Packaging refers to the act of designing and producing the container or wrapper of a product. Packaging plays a very important role in the marketing success or failure of products.<\/p>\n Levels of Packaging:<\/p>\n Functions of Packaging:<\/p>\n Labelling<\/strong><\/p>\n Labelling means putting identification marks on the package. It is a simple tag attached to the product.<\/p>\n Functions of Labelling:<\/p>\n Pricing<\/strong><\/p>\n Price may be defined as the amount of money paid by a buyer in consideration of the purchase of a product or a service.<\/p>\n Factors Affecting Price Determination: 2) Demand: The price of a product is affected by the elasticity of demand of the product. If the demand of a product is inelastic, the firm is in a better position to fix higher prices.<\/p>\n 3) Competition: Competitors\u2019 prices and their anticipated reactions must be considered before fixing the price of a product. In case of high competition, it is desirable to keep price low.<\/p>\n 4) Government and Legal Regulations: In order to protect the interest of public against unfair practices, prices of some essential products are regulated by the government under the Essential Commodities Act., e.g. Medicines.<\/p>\n 5) Pricing Objectives: Another important factor affecting the fixation of price of a product is pricing objectives, e.g. maximisation of profit, market share, etc.<\/p>\n Place (Physical Distribution)<\/strong><\/p>\n The third element of marketing mix is physical distribution of products and services. In order to ensure availability of products at the right place, two factors require consideration.<\/p>\n Channels of Distribution<\/strong><\/p>\n A channel of distribution refers to the pathway used by the manufacturer for transfer of the ownership of goods and its physical transfer to the consumers.<\/p>\n Types of Channels:<\/p>\n Physical Distribution<\/strong><\/p>\n Physical distribution covers all the activities required to physically move goods from manufacturers to the customers.<\/p>\n Components of Physical Distribution<\/p>\n Promotion Mix<\/strong><\/p>\n Promotion mix refers to combination of promotional tools such as Advertising, Personal Selling, Sales Promotion, and Publicity used by an organisation to achieve its communication objectives.<\/p>\n Advertising<\/strong><\/p>\n Advertising may be defined as \u201cany paid form of non-personal presentation and promotion of ideas, goods or service of an identified sponsor\u201d.<\/p>\n Merits of Advertising: 2. Advantages to Consumers:<\/p>\n 3. Advantages to the Society:<\/p>\n Disadvantages\/Objections to Advertising<\/strong><\/p>\n Personal Selling<\/strong><\/p>\n Personal selling involves face to face contact between the seller and prospective customer with an intension of selling some products. It is a personal form of communication.<\/p>\n Features of Personal Selling:<\/p>\n Role of Personal Selling:<\/p>\n 1) Importance to Businessmen:<\/p>\n 2) Importance to Customers:<\/p>\n 3) Importance to Society:<\/p>\n Sales Promotion<\/strong><\/p>\n It refers to those marketing activities other than personal selling, advertising and publicity that stimulate short term sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution, etc.<\/p>\n Merits of Sales Promotion:<\/p>\n Limitations of Sales Promotion:<\/p>\n Techniques of Sales Promotion:<\/p>\n Publicity<\/strong><\/p>\n Publicity is a non-paid form of non personal communication. The tools of publicity are press conference, publication and news in the electronic media, etc. It is published or broadcasted without charging any money from the firm.<\/p>\n Features of Publicity:<\/p>\n\n
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\n2) The Product Concept: According to this concept quality of the product is more important than quantity. Product improvement became the key to profit maximisation of a firm, under the concept of product orientation.
\n3) The Selling Concept: This concept focuses on the sale of products through aggressive selling and promotional techniques to persuade the buyers to buy the products,
\n4) The Marketing Concept: Marketing concept implies that focus on satisfaction of customer\u2019s needs is the key to the success of any organisation in the market. Customer\u2019s satisfaction becomes the focal point of all decision making in the organisation.
\n5) The Societal Marketing Concept: This concept stresses not only the customer satisfaction but also gives importance to the welfare of the society.<\/p>\n
\n2) Marketing Planning: Another function of marketing is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
\n3) Product Designing and Development: The products are designed and developed according to the needs and wants of the consumers. It requires decision making on various aspects such as the product to be manufactured, its packing, selling price, quality of the product, etc.
\n4) Standardisation and Grading: Standardisation refers to producing goods of predetermined specifications. Grading is the process of classification of products info different groups, on the basis of quality, size, etc.
\n5) Packaging and Labelling: Packaging refers to designing and developing the package forthe products. Packaging gives protection to goods. Also it attracts the consumers to buy the product. Labelling refers to designing and developing the label to be put on the package.
\n6) Branding: A brand is a name, term, sign, symbol, design or some combination of them, used to identify the products of one seller and to differentiate them from those of the competitors.
\n7) Customer Support Services: An important function of the marketing management is to develop customer support services such as after sales services, handling customer complaints, etc. which provides maximum satisfaction to the customers.
\n8) Pricing: Price of a product refers to the amount of money which customers have to pay to obtain a product. Price is an important factor affecting the success or failure of a product in the market. Price is fixed after taking into account the cost of production, desired profit, competitor\u2019s price, govt, policy, etc.
\n9) Promotion: Promotion of products and services involves informing the customers about the firm\u2019s product, its features, etc. and persuading them to purchase these products. It includes Advertising, Personal Selling, Publicity and Sales Promotion.
\n10) Physical Distribution: It includes decision regarding channels of distribution and physical movement of the product from the production centre to the consumption centre.
\n11) Transportation: Transportation involves physical movement of goods from one place to another. It removes the hindrance of place and creates time utility.
\n12) Storage or Warehousing: In order to maintain smooth flow of products in the market, there is a need for proper storage of the products. It stabilizes the prices of products and keep the product without damage until they are sold.<\/p>\n![\"Plus](\"https:\/\/www.aplustopper.com\/wp-content\/uploads\/2019\/06\/Plus-Two-Business-Studies-Notes-Chapter-11-Marketing-Management-1.png\")
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\nConsumer products are classified as
\na) Shopping efforts involved
\nb) Durability of products<\/p>\n
\n1) Convenience Products: Those consumer products, which are purchased frequently, immediately and with least time and efforts are referred to as convenience goods, e.g. ice creams, medicines, newspaper, stationery items, toothpaste, etc.<\/p>\n
\ne g. refrigerator, car, washing machine, etc.<\/p>\n\n
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\n1) Product Cost: One of the most important factors affecting price of a product or service is its cost of production and distribution. Fixed Costs, Variable Costs and Semi- Variable Costs are to be considered for determining the price.<\/p>\n\n
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\n1. Advantages to Manufacturers and Traders<\/p>\n\n
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