Classwork Series and Exercises {Commerce – SS2}: Concept of Marketing

SS 2 Commerce First Term Week 3

Topic: Concept of Marketing

Contents

• Meaning of marketing
• Meaning of market
• Types of market
• Functions of marketing
• Importance of marketing in an economy
• Marketing Concept.

Marketing

Marketing is the process of performing business activities  that enhances the flow of goods and services  from the producers to the consumers  or users so as to satisfy the consumer and to achieve the organizational objectives or goals.Marketing arranges for production and making goods available in the right place,at the right time and in the right form.

Market therefore is a place or point where goods and services are exchanged.Also a market is any means of communication whereby the transfer of goods  or ownership of goods and services are been exchanged.

Types of Market

1. Consumer market:This is limited to household purchasers who do not have the intention of making profit from the product purchased but for their own
2. Industrial market:This is the market for individuals,groups or organization that purchase product with the purpose of using the purchased product to produce other goods or for day to day running of their own operation.
3. Producer market:This is the market for individuals or organization that purchases goods for the purpose of making profit with the goods purchased.

Functions of Marketing

The following points below are the functions of marketing

1. Pricing: Marketing helps in the process of assisting in fixing prices on goods at a level reasonable enough to yield profit to the company or organization.
2. Grading and standardizing: Marketing helps to ensure that goods required are of good and quality standard in respect to shape, colour, taste depending on the kind of goods and services involve.
3. Transportation: This entails the movement of goods from the place of production to the place where they are needed.
4. Information research: Marketing involves collection of information from many sources and disseminates to those who need it.
5. Storage / warehousing: This helps to ensure availability of goods at all times.i.e goods are produced ahead of time before they are demanded.
6. Buying, selling and exchange: Marketing involves the purchase of raw materials and goods from different sources and transfer the ownership of such goods to those in need of them.
7. Financing: This covers the provision of funds through credit facilities and loan through the period of production to the point of selling.

Importance of marketing in an economy

1. Marketing ensures consumer satisfaction
2. It helps in the transfer of goods from one producer to consumers
3. Marketing creates market for goods and services
4. It creates employment opportunities
5. It bridges the gap between the producers and the consumers.
6. It sends information to consumers about the availability of goods and services
7. It brings about development in the economy
8. It helps to reduce wastage through research therefore increasing production
9. Marketing helps in the movement of industrial goods to rural consumers through promotion and consumer education.
10. Marketing helps in creating finance to customers through credit sales and provision of loans.

Marketing concept

The idea behind marketing concept is that the interest and the need of the consumer or the customers must be taken into consideration before producing any product  or bringing about any business activities.

Marketing concept is the idea or belief that consumers or customers needed to be treated as kings.which means the planning and operation of the organization must be consumer oriented i.e the organization must have the consumer at the centre of their mind when planning.

Consumer orientation:this concept of marketing aim at consumer satisfaction rather than the organizational satisfaction

Consumer sovereignty: this is the concept that states that customers are always right.it is the supremacy that the consumers have in determining the company’s production.

Marketing concept propositions are:

1. Product development
2. Planning and organization
3. Post sales services
4. Consumer need.

Test and Exercise

1. The market that consist the purchaser in the household who intend to consume without any aim of making profit is———-(a)industrial market (b)producer market (c)consumer market (d)middlemen market. ans(c)
2. A place or point where there is transfer of title or ownership of goods is called (a)home (b)market (c)hospital (d)libery.ans(b)
3. The concept that states that customers are always right is called (a)consumer sovereignty (b)consumer orientation (c)consumer right (d)consumer belief.ans(a)
4. One of the functions of marketing is (a)deceiving (b)financing (c)maltreating (d)embezzling.ans(b)
5. —————–is the idea or belief that the interest of consumer should be taken into consideration before production.(a)consumer orientation (b)consumer sovereignty (c)consumer right (d)marketing concept.ans(d)