COMMERCIAL STUDIES

MADE BY HARSHITA ARORA X-C

MARKETING

MEANING OF MARKET

The term market appears to have its origin in Latin word Marcatus which means a place where business is conducted. Market may or may not be a place . It is a center about which , or an area in which the forces leading to exchanges of titles to a particular product operate and towards which and from which the actual goods tend to travel . According to clark and clark

MEANING OF MARKETING

Marketing , today , is regarded as the most important of all management functions in any business organization . Goods and Services cannot be sold by merely producting them , but they have to move from place of production to customers for consumption . Marketing is the performance of business activites that direct the flow of goods and services from producer to consumer or user . American marketing association

CONCEPT OF MARKETING
1 TRADITIONAL VIEW 2 MODERN VIEW

TRADITIONAL VIEW

In old days , marketing was defined as the process by which goods and services are exchanged and their values are determined in terms of money prices . The process of marketing will start after the goods have been produced . The needs of the customers are not taken into consideration . The product oriented definition is based on the assumption that whatever is produced is bound to be sold which does not hold goods . That is why the concept of marketing has undergone a change . Now it represents a philosophy of business and is consumer oriented in its approach . It includes all the activites concerned with determining and influencing the present and potential demand of the goods and services which will satisfy the demands of the consumers.

MODERN VIEW

Marketing is a consumer oriented activity. It analyses the need the need of the customers before the products are produced and offered to them. The customer oriented marketing involves selling of satisfaction rather than selling a product. Business must produce what the consumers want , in the quantity and quality they desire , at a price they are willing to pay , at the time they need and through the channels most convinent to them.

OBJECTIVES OF MARKETING On the analysis of definitions given above , the objectives of marketing can be discussed as below : (1) Integrated Organisation : Integrated organisation means that all the different departments of organisation , i.e.,production, finance, purchase, and planning must be tightly integrated with each other, keeping marketing at the centre. This is important because every function of organisation has an impact on customer and the objective should be to see that all the functions lead to a favourable impression on customer.

IMPORTANCE OF MARKETING
Business is marketing. It means no business can survive without marketing. It is a unique function of the business. Marketing is more than any other business function because it is the delivery of customer satisfaction at a profit. Sound marketing is critical to the success of every organisation, whether large or a small, for profit or not for profit, domestic or global.

FUNCTIONS OF MARKETING

(1) Exchange functions (2) Physical supply functions (3) Facilitating functions

(1) Exchange functions

Exchange functions : Functions which transfer goods from the manufacture to wholesaler, from wholesaler to the retailer and ultimately from retailer to customers. These are: 1 BUYING AND ASSEMBLING: Buying is the first step in the process of marketing. Buying means the procurement of raw materials, components and finished products. Assembling invovles collection of goods already purchased from different sources at one common place. It reduces the cost of transportation.

(2)

SELLING :

It is a process, whereby goods and services flow finally to the consumers.

(2) Physical supply functions

(1)

TRANSPORTATION :

Transportation is the physical means of carrying goods from one place to another. It plays a vital role in marketing. (2) STORAGE : Storage refers to the holding and preservation of goods from the time of production until the time of consumption.

Facilitating functions
(1) STANDARDIZING :

Standardizing is the process of making goods perfectly identical to the model product. (2) BRANDING : Branding means assigning specific name, design, size, symbol, specialties to the product, so that it can be distinguished from the product of other firms. (3) PACKING : Packing refers to wrapping, crating, filling or compressing of goods to protect them from spoilage, pilferage, leakage, etc. (4)PACKAGING : Packaging means placing products in suitable packages for safe and easy handling storage and transportation .

SELLING

MEANING OF SELLING
Selling is as basic to any business organisation as blood is to our blood is to our life. It is only selling which generates revenue for the business and enhances the living standards of the society. Selling is not a recent phenomena but it is as old as mankind. SELLING IS THE HEART OF MARKETING

TYPES OF SELLING
(1) COUNTER SELLING :

This is a method which is followed by most of the business organisations. In this method, the salesman of the organisation sells products of the company. (2) DOOR STEP SELLING : In this method of selling, the salesman visits the prospective customer at their door step, residence or office, and demonstrates the products and gets the orders. (3) ACROSS THE TABLE SELLING : In this method of selling, prospective customers are called at some specific place at predetermined time and at that place, the customers are given demonstration of product and negotiate with them. (4) AUCTION SELLING : Under this method, advertisements are

SALES PROMOTION

MEANING OF SALES PROMOTION

SELLING IS THE HEART OF MARKETING But in order to make sales, it is necessary to create demand. Creation of demand through information and persuasion is known as Promotion in marketing. The personal or impersonal process of assisting and/or persuading a prospective customer to buy a commodity or service or to act favourable upon an idea that has commercial significance to the seller

AIMS OF SALES PROMOTION

To inform people of the availability of products so that they need not search out for them. To remind them of the continued existence of new and improved products. To stimulate demand by explaining special features of products. To educate customers in the right use of products.

METHODS OF SALES PROMOTION

INSTORE PROMOTION IN HOME OR IN BUSINESS PROMOTION AGGRESSIVE SELLING

(1) INSTORE PROMOTION

As Kotler opines, Sales promotion comprises a wide variety of tactical promotion tool of a short term incentive nature, designed to stimulate earlier and / or strong target response. An attempt is now made to explain in brief some of the most important tools of sales promotion : Promotion Temporary Price reduction Indoor Display Promotions Instore Demonstrations

IN HOME OR IN BUSINESS PROMOTION

These represent the activities or devices which are aimed at reaching the consumer at his house or in his house or in his business establishment. They include the following : Coupouns Samples

Contests

DEMONSTRATIONS, FAIRS AND EXHIBITIONS

These are organised for extending the sales horizon for business : Public relations : It is essential for maintaining a cordial relationship between the enterprise and the public through influencing or informing customers and other groups of the community and for enlisting good attitude and favourable opinion of the general public towards the enterprise in questions.

AGGRESSIVE SELLING
Aggressive selling is concerned with the sales efforts made with the objective of selling more by expanding the market for the product of selling firm. Cash Allowance Extra Products Gifts Consumer Promotion Sampling

PERSONAL SELLING

DEFINATION OF PERSONAL SELLING

Salesmanship is the art of persuading people to purchase goods which will give off lasting satisfaction. PAUL W . INEY Personal selling is the most popular method of selling goods and services. It involves face to face communication between the seller and potential buyer.

NATURE OF PERSONAL SELLING

Personal selling or salesmanship is an age old art of selling goods. The need for salesmanship was felt when the manufactures and producers started production on a large scale to meet the requirements of a large number of customers. Salesmanship has gained great importance in the modern in the modern era of fast pace of technological development and highly competitive markets.

FEATURES OF PERSONAL SELLING

(1)

Involves persuasion of customers : A salesman must have the ability to convince the people to buy his product. The customer is not to be pressurised, but influenced favourable by the salesman. Involves winning buyers confidence : Modern salesmanship aims at educating the customer and providing a solution to his problems.

(2)

(3)

Creative : It creates wants by showing to prospectiv e buyers how the new product or service will benefit them.

(4)

An interpersonal process :
Personal selling involves direct and personal contact between buyer and seller or his representative.

ADVERTISING

MEANING OF ADVERTISING
The word advertising has been derived from the Latin term advertere which means turn to or turning the attention towards thee product . Advertising is any paid form of non personal presentation or promotion of ideas , goods or services of an identified sponsor . - AMERICAN MARKETING ASSOCIATION

FEATURES OF ADVERTISING

Paid form of presentation Paid form of communication Presence of sponsor Presence of medium

NATURE OF ADVERTISING

Advertising is an essential part of commerce . A good business , today , to a large extent , depends on good advertising. A producers products may be good in quality ; but unless the purchasers know about them , the trading value of his products remains untested .

ADVERTISING IS A SOCIAL WASTE

1 INCREASE IN COST OF PRODUCTION 2 HIGHER PRICES OF PRODUCTS 3 DECEPTIVE 4 WASTAGE OF MONEY 5 MONOPOLY

PUBLICITY

MEANING OF PUBLICITY
Publicity is the deliberate attempt to manage the publics perception of a subject. The subjects of publicity include people , goods and services , organizations of all kinds , and works of art or entertainment. From a marketing perspective, publicity is one component of promotion which is one component of marketing. Examples of promotional tactics include : 1 ART EXHIBITION 2 EVENT SPONSORSHIP 3 ARRANGE A SPEECH OR TALK 4 MAKE AN ANALYSIS 5 CONDUCT A POLL OR SURVEY 6 ISSUE A REPORT The advantages of publicity are low cost , and credibility. New technologies such as weblogs , web cameras , web affiliates , and convergence are changing the cost structure.