||ADVANTAGES OF DEPARTMENTAL STORES
departmental store provides all facilities under one roof to enable
the customer to by all his requirements.
The central location attracts a good number of customers which
increases the sales turnover.
variety of goods is stored. This has a special appeal to the
financial strength of departmental store enables it to have experts
in all sections.
buying helps them to get merchandise at lower cost together with
advantages in transporting, storing etc.
||CHANNELS OF DISTRIBUTION
third element in marketing mix is to find out appropriate ways
through which goods are to be made available to the markets. It is a
management function and a decision in the matter is required to be
taken before the commercial production is undertaken. The entire
function of getting goods into the hands of the consumer is often
referred to as distribution. In its broadest sense this function
includes transportation as well as the middlemen who handle the goods
and help to transfer title to the goods. The term channel of
distribution is used to denote the middlemen engaged in moving goods
form place of production to the used to denote the be middlemen
engaged in moving goods form place of production to the place of
consumption. This is inaccurate and unwise. This is in fact is a
'channel' through which goods are made to move as smoothly as
possible to the desired places. In other words, the route through
which goods move form the place of production to the place of
consumption is termed as 'channel of distribution'.
of distribution are the means employed by manufacturers and sellers
to get their products to market and into the hands of users.
Channels are management tools used to move goods form production to
consumption, they are means by which title to goods is transferred
form sellers to buyers. The process of transferring title is not so
simple especially in present day markets that are characterized by
heterogeneity on both the demand and the supply sides. This means
that there is a wide variety of goods produced for sale, while on the
other side, there are highly varied and complex desires of
Marketing, as seen earlier, creates various
utilities to the products. Most of these utilities are, in fact,
created by performing the function of physical distribution promptly
and efficiently. Channels of distribution help to move goods form
one place to another, hence they add place utility. They bring goods
to the consumer when the consumer wasts them, hence they add time
utility also. They bring the goods to the consumer in convenient
shape, unit, size, style and package; hence they add convenience
value. They make it possible for the consumer to obtain goods at a
price he is willing to pay, and under conditions which bring him
satisfaction and pride of ownership, hence they add possession value.
consumer market is the sum-total of all the goods and services
purchased in a given period by all the inhabitants of given country
or section for the satisfaction of their consumption needs. The
consumer market actually consists of four components:
for a specific product
to fill the with a given product.
The factor 'people'
requires some explanation. It is true that very often markets are
quoted,”markets are people”. All the people do not constitute
market and the people without ability to bye should be exclude from
the 'people'. For example, in India, we have a vast population but
the whole population does not constitute 'market' simply because a
vast majority does not have the ability to buy. It is also stated
that the whole people in India or China do not purchase in one year
what the people of new York alone purchase.
second component is purchasing power, that is, the money needed to
buy. Ti should be understood that even people with money to spend do
not, by themselves, constitute a potential consumer market of a
particular product. People musts have need or want for a specific
product. This forms the third component of consumer marketing.
Even when there are people with money to spend and with a
desire to buy the type of things that are produced, still one cannot
say that there exists a market. In a competitive economy,
exclusively based on consumer choice, a consumer can satisfy his need
with a variety of items. And, most of these products are quite
similar and need not necessarily be the one currently (or newly)
For example, take the case of soaps or powders.
There are innumerable varieties produced by various manufacturers
and there are also various brands produced by a single manufacturer.
Same is the case with most of the consumer products. It is here that
the fourth component of the consumer marketing appears on the
scene-the willingness of he consumer to satisfy his need or want with
a particular brand or item.
from the point of view of a manufacturer, the consumer market is only
that segment of the people who can afford to buy his product, who
have need for it, and who are willing to buy the product in
preference to all similar products sold by other manufacturers.
||ELEMENTS OF SELLING
the literature on marketing there is no other functions which
attracts more attention than selling. The credit for this definitely
goes to industrialization and mechanization. Mechanization increases
production which, in turn, necessitates wider and equitable
distribution of the products. This is more convincing when one sees
the uninterrupted flow of newer products into the market. The
selling functions is a perpetual one helping the business to operate
continuously. Moreover, it is not disputed that the sole aim of
production is selling. The function of selling is very often
described as a creative function. It is through this function that
desires are created. This is the function, again, that persuades
prospective customers to buy.
||FINANCING RISK BEARING AND STANDARDIZATION
object of marketing and its functions is to promote harmony and bring
about an equilibrium between production and consumption. This
equilibrating function is essential on account of: (i) the various
disparities that exist in the quality and quantity of the products,
and (ii) the various lags that are present in the marketing process
such as those of time and place. The functions necessary to remove
these disparities are the inevitable concomitants for the economic
progress of a country. The efficiency of an economy, in fact,
ultimately rests on the growth of its marketing system.
functions have to be performed in order to resolve these lags, which
have recently been growing in complexity. Chief of these are
transport, warehousing, finance, risk-taking and standardization.
These functions, on the basis of their importance and close
relationship with the process of marketing, are classified into
three: Functions of Exchange, Functions of Physical Supply,
Facilitating Functions. The relative importance of these functions
varies greatly according to the social and economic conditions and
the existing marketing facilities on the one hand and the nature of
the product on the other. The third group of functions, through
essential, is treated as an 'auxiliary' or 'ancillary' function only.
This is because, their presence in the process of marketing remains
as an undertone. Furthermore, their involvement in the marking
functions is inert and indirect. Yet their necessity cannot be
ignored as they are helpful in resolving the various lags between
production and consumption created by time, quantity and quality
elements. The facilitating functions are: financing, Risk-bearing
marketing is concerned with marketing of goods and services to
business or institutional organization for use in the further
production of goods and services. The industrial goods may be
component parts of other goods, for example, electric motors or ball
bearings. Again, the industrial goods may be meant for rendering
facilitating functions, for example, a lathe or cleaning materials.
The selling of goods to final (end) household consumers is
not industrial marketing. At the same time, all selling of goods to
business need not always be industrial marketing. For example, when
a shoe-manufacturer sells shoes to a whole seller or a retailer for
resale to consumers it is not industrial marketing. On the other
hand, selling a pair of safety shoes to a whole seller or a retailer
for resale to consumers it is not industrial marketing. On the other
hand, selling a pair of safety shoes to a firm which sells them to a
factory would take shape of an industrial marketing activity. In
other words the type of product, type of customer, and the final user
must all be considered in distinguishing industrial marketing form
consumer goods marketing. In general it may started that all goods
bought for industrial or business use are industrial goods and the
marketing of them represents industrial marketing.
Modern marketing is a dynamic field of
business activity that is becoming more an more complex. That is the
reason why marketing today guides the business and satisfies the
needs and wants of customers at the place and time they desire. The
business would be more one in the business. The reason is simple to
satisfy their theoretical needs alone. What a business should
produce and whether a business would prosper are today not the
decision of business men but that of customers.
the management point of view, marketing involves four functions:
-Analysis of forecasts i.e. Marketing Research
Development and Planning
-Creation of Demand
The above are the independent functions by themselves and
coordinating them effectively is often described as Marketing Mix.
The idea of 'mix' of marketing function was conceived by
prof. Nail Borden of the Harvard Business School as- “a schematic
plan to guide analysis of marketing problems through utilization
a) a list
of the important forces emanating from the marketing which bear upon
the marketing operations of an enterprise.
list of the elements (procedures and policies) or marketing
Thus marketing mix denotes the combination of
various elements, which in total constitute a company's marketing
system. They are often described as four P's: Products Policy Price,
Distribution and Promotion (Sales Promotion, Advertising and
the marketing of certain manufactured goods and industrial raw
materials of agricultural origin, certain specialized institutions
have come up with functionaries and technique of their own. Their
functions are different from those of the marketing institutions we
have already seen. These institutions have come to be known as
organized markets. These organized markets are of two types viz.
Organized commodity markets and organized stock markets. These are
popularly known as Commodity Exchanges and Stock exchanges.
||STANDARDIZATION AND GRADING
important part of the marketing process is the determination of the
shape or form in which a product is to be put in the market. Some of
the most vital marketing problems centre around this activity, viz.,
establishing and maintaining standards, and providing conformity to
them. It is not only a most desirable element in marketing but also
manufacturing operations where the standards play an important part
in securing efficiency and economy. Furthermore, the buyers attach
certain values to standard products in terms of its quality, value
and its uses. Thus standard provides an ethical basis for marketing
Standards are ideal or model products which
provide a basis for comparison with identical products. In other
words, standards convey the idea of uniformity and identity in
respect of quality or quantity or some other matters. Thus standard
is “a measure that is generally accepted as having a fixed value”.
The measure ,may be in units of intrinsic qualities or
characteristics of a product or a service. A standard is determined
as a result of scientific study of the essential qualities or
characteristics that must be present in a product.
are classified into:
Positive Standards: The
standards which express positively the qualities present in the
Negative Standards: The
standards which express positively the qualities absent in the
Standards are also classified as General Standards
and Private Standards. General Standards relate to all similar
commodities, no matter who produces them. Standards are private, when
an individual manufacturer limits or prescribes certain standards for
example, Terene (for clothes) is a general standard and Liberty
Shirts a private standard.
Standardization is the process by
which already decided standard is attained. Broadly stated,
standardization involves the determination of basic measures to which
articles must conform (i.e., fixing a standard) and includes the
process of conforming to such standards. Standardization is
considered to be a facilitating or ancillary function of marketing
because it helps in the efficient performance of the various
marketing functions, particularly in buying and selling.
stock exchange is an organised market for securities. It is an
essential concomitant of the capitalistic system of economy. Its
evolution and growth have given new dimensions to the promotion and
growth of joint-stock enterprises all over the words. It also forms
an important part of financial mechanism of the modern
quasi-government institutions and local authorities. It has been
described in so many ways as (i) a barometer of a nation's prosperity
and adversity, (ii) the nerve-centre of politics and finances of a
nation, (iii) the fortress of capital and the pivot of money market,
(iv) a mirror reflecting all events and issued affecting the
profitable working of business enterprises and the future of a
nation, (v) a mart of the world, (vi) an open sesame for treasure,
(vii) a place where one gets rich in an easy and effortless way,
(vii) a veritable hell, (ix) a bottomless pit, (x) a thief's kitchen,
and (xi) as the market where business of businesses is carried on.
These descriptions go to emphasis only the important functions
performed by stock exchanges and some of the pitfalls that are likely
to be encountered by some. Some of ht above uncomplimentary remarks
are born either out of ignorance about the institution or the
knowledge of misutilisation by vested interests.
It is this
misutilisation of stock exchanges which are not regulated properly
that makes people to say that a stock exchange is nothing but a
complete system of knavery, founded in fraud, born of deceit and
nourished by trick, cheat, wheedle coining false news, whispering
imaginary terrors, and praying upon those who have elevated or
|Services of a Stock Exchange
|A well organised and regulated stock exchange renders valuable services to the company, investors and the community at large. Read Full Article Services of a Stock Exchange
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