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Approaches and Functions of Marketing

The study of marketing has evolved through various approaches, including commodity, institutional, decision-making, systems, social, functional, and holistic perspectives. Each approach offers unique insights into marketing processes, functions, and the importance of aligning with consumer needs and societal values. Additionally, the document outlines key marketing functions such as product planning, selling, physical distribution, and the significance of understanding the marketing environment, including micro factors like the market, suppliers, and intermediaries.

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13 views

Approaches and Functions of Marketing

The study of marketing has evolved through various approaches, including commodity, institutional, decision-making, systems, social, functional, and holistic perspectives. Each approach offers unique insights into marketing processes, functions, and the importance of aligning with consumer needs and societal values. Additionally, the document outlines key marketing functions such as product planning, selling, physical distribution, and the significance of understanding the marketing environment, including micro factors like the market, suppliers, and intermediaries.

Uploaded by

jhanavi673
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Introduction to study of marketing

The study of marketing has evolved through various stages, with different perspectives. Some
view it as selling in a marketplace, while others focus on product movement, the role of
intermediaries, or the behavior of commodity flow. Over time, these approaches have developed
into the modern understanding of marketing.

Commodity Approach: The commodity approach refers to the detailed study


of the

1.Problems encountered in marketing a particular class of products may be


consumer, industrial or agricultural. A number of problems crop up in the
movement of goods from the point production to the point of consumption.
This approach involves classification and sub-classification of products, their
product and market features peculiarities, problems in marketing and
marketing considerations.

2.The institutional approach focuses on marketing institutions, particularly


middlemen like wholesalers, retailers, and agents. Merchant middlemen take
ownership and risk for profit, while agents connect producers and consumers
for commissions without assuming risk. It also includes institutions like
supermarkets, cooperatives, exchanges, banks, and government bodies that
provide marketing support.

3.The decision-making approach in marketing emphasizes the role of the


marketing manager in making decisions to maximize profits and enhance
consumer satisfaction. Decisions are based on controllable factors within
management’s control and uncontrollable factors outside of it. This approach
also covers marketing functions like planning, organizing, directing,
coordinating, controlling, motivating, and communicating.
4.The systems approach views a marketing organization as an
interconnected and interdependent system with various sub-systems. It
operates in relation to both internal and external factors, transforming inputs
into outputs (products/services) for the external environment.

Disposal of output provides the necessary feed-back or energy to keep the


system kicking and alive taking business unit as a whole.

5.The social approach emphasizes that marketing serves society and must
align with social norms. As it uses societal resources, it has a responsibility to
promote social well-being. Marketing should provide products that enhance
lifestyles while upholding social and cultural values, such as eco-friendly cars
or safer products.

6.The functional approach studies marketing based on the functions involved


in moving goods from producers to consumers. These functions include
exchange (buying and selling), physical supply (warehousing and
transportation), and facilitating functions (standardization, financing, market
intelligence, risk-bearing, and promotion). Each function is analyzed for
optimal performance to benefit both marketers and consumers.

7.The holistic approach in marketing is interdisciplinary, drawing from


various fields like mathematics, psychology, sociology, and more to
understand consumer behavior. Since each consumer is unique, marketers
need broad knowledge to address diverse needs. Marketing professionals are
expected to be lateral thinkers, combining specialized and general
knowledge to maximize consumer satisfaction.
Chapter 2

Functions of marketing

Marketing definition the activity of institutions and processes for creating


communicating delivering and exchanging offers that have values for
customers client partners and society at large defined by American
marketing association

Marketing is related to exchange of goods and services

Through its medium it brings the goods and services to the consumption
place and satisfice the needs of customers . Marketing performs different
functions such as….

Merchandising functions includes all those activities of marketing which


facilities creation of demand of a product and to make it available to the
specific market and having specific some needs

1. Product planning :

It is the starting point of entire marketing program in firm producer has to


produce according to the needs of customers he has to make design
features price size weight packaging of product according to the changing
need and taste of customers therefore it is necessary to plan and
developed products according to the requirements of customers

Also the product has to be tested before producing for sale


2. Buying and assembling and selling:

Buying refers to the process of acquiring goods at the right time at the right
price and right quantity and quality from right source of suppliers

Assembly means collection and concentration of goods already purchase


from different sources generally goods are purchase from different small and
scattered producers they are assemble assembled at a central palace in
order to sell them either for further production or for consumption

3. Standardising and grading

Standardization involves setting up uniform standards for products in terms


of size, shape, color, design, and material, ensuring consistency and quality.
It simplifies buying and selling, reduces advertising costs, and allows for easy
comparison of goods

. Grading classifies products into different categories based on quality and


characteristics, helping in the sale of goods by description and reducing
inspection efforts. This system ensures reliability, facilitates transactions
remotely, and allows graded goods to be used as collateral for loans.

4.Selling comprises all personal and impersonal activities finding, securing


and developing a demand for a given product or service and in
consummating the sale of it.”according to pyle

Selling involves transferring ownership of goods or services to a buyer in


exchange for money. It is essential in marketing, connecting buying and
selling. Successful selling helps businesses earn profits by satisfying and
creating demand. It requires skills like zeal, understanding, and creativity
Physical distribution
Physical distribution functions of marketing are the activities perform
creation of a place and the time utility

1.Storage and warehousing


Storage holds the good between production and final sale
Storage is essential function which creates time utility .there is usually
a time gap between production and consumption warehouse is a place
or go down where goods are stored warehouse gives diversified
arrangement to safeguard the products in original condition

2.Transportation It plays a crucial role in marketing by creating place


and time utility, moving goods from production to consumption.
Transportation enables market expansion, increases labor and capital
mobility, stabilizes prices, and supports industrial growth by facilitating
the procurement of raw materials and distribution of finished goods. It
is essential for national progress, providing employment and driving
commerce and industry.

Auxiliary functions

1..Finance is crucial for business operations, covering costs like assets, raw
materials, and wages. The marketing function involves fulfilling these
financial needs to ensure smooth operations.

It supports the marketing function and is influenced by factors like business


size and production cycles. Finance needs are classified into fixed capital and
working capital requirements.

2. Risk bearing

Risk bearing in business involves handling uncertainties that may lead to


losses due to unexpected events Decisions are based on assumptions, and
while risks can be minimized if predictions are accurate, they are an
inevitable part of the process.
Risks are classified into 3 categories

due to changes in marketing conditions , due to uncontrollable natural cases


and due to human behaviour

3.market information:

Markets have to collect different types of market information in order to


make marketing policies and strategies and for to take important decisions
marketing information includes up to date data regarding trend of market
customers expectations regarding the product government policy degree of
competition prize policy of the business enterprises etc

Marketing environment

A company’s marketing environment consists of the actors and forces


outside of marketing that affect marketing management ability to build and
maintain successful relationships with target customers”. – Philip Kotler

Micro environment it comprises of external factors and forces that are


directly related to the business and these factors are control able factors

1. The Market: The market refers to the place where buyers and sellers
meet and the demand for goods and services. It is central to marketing
decisions, as it involves understanding consumers’ wants, purchasing
power, and buying behavior.
2. Suppliers: Suppliers provide the products or services needed by the
company to meet consumer demand they Are crucial to the firm’s
success because they supply those products which consumers want
from the marketing house. are crucial because they take the
responsibility of understanding consumers needs as viewed by selling
or marketing firm. Marketing firm cannot sever the relations with
suppliers as it cannot do so in case of its customers.

3. Marketing Intermediaries: These are independent entities, such as


wholesalers and retailers, that facilitate the flow of goods and services
between the company and its market. They play a crucial role and
cannot be easily removed from the system.

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