Welcome dear students! Today we are going to learn about Marketing Management from Class 9 Social_Science.
Let us begin with the meaning of Market. The term market is derived from the Latin word Marcatus, which means trade or a place of business. In ordinary language, it refers to a certain place where buyers and sellers personally meet each other to make purchases and sales. Simply put, it is a place where goods are bought and sold.
Now let us look at the types of markets. First, on the basis of area, we have four types. Local market is generally limited to a specific local area. Regional market is restricted to a particular geographical area or state. National market activities are restricted within the boundaries of a particular country. International market activities are carried out among a number of countries.
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Second, on the basis of items, we have three types. Commodity market is where different types of commodities such as raw materials, semifinished goods, capital goods and consumer goods are bought and sold. Money market is a specialized market for availing short term finance to business houses, for example, the share market and banking systems. Capital market is a specialized market for availing long term finance to business houses, generally through financial institutions and stock exchanges, for example, the share market.
Third, on the basis of link, we have three types. Primary market is where producers sell their goods to wholesalers, basically agricultural products. Secondary market is where wholesalers sell their goods to retailers. Terminal market is where retailers sell goods to the ultimate consumers.
Fourth, on the basis of volume of business, we have two types. Wholesale market is where goods are sold in huge quantities to retailers. Retail market is where goods are sold in small quantities to ultimate consumers.
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Fifth, on the basis of nature of transactions, we have two types. Spot market is where goods are sold to buyers on the spot where sellers and buyers agree to transact for consideration. Future market is where goods are transferred at a later date. Sixth, on the basis of nature of goods, we have two types. Consumer market is where goods are purchased for personal consumption. Producers markets are where goods are purchased for use in the further process of production.
Seventh, on the basis of regulation, we have two types. Regulated markets are regulated by statutory regulations. Non regulated or free markets are not controlled by statutory measures and operate freely. Eighth, traditional and non traditional markets. Traditional markets refer to the oldest form of marketing under which goods are exchanged on some predetermined basis. It reflects the traditional place concept and includes markets based on area, potential buyers and sellers, volume and nature of goods. Non traditional markets do not have a fixed place. Purchases and sales are carried out from different places. They include mail order houses, tele shopping, virtual stores, catalogue market, and online marketing.
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Now let us move to the meaning of Marketing. It involves all the activities which result in the flow of goods and services from the producers to the consumers. The American Marketing Association defines marketing as the performance of business activity that directs the flow of goods and services from producers to consumers or users. From this, it is clear that marketing does not confine itself to physical distribution but represents the consumer orientation of all marketing activities.
Let us study the nine major functions of marketing. One, buying and assembling. Buying means purchasing goods by manufacturers for production or from middlemen for resale, not by consumers for consumption. Assembling starts after buying is over. Two, selling, which is disposing or transferring goods from seller to buyer at a profitable price. Three, transportation, an integral part that creates time and place utility and adds value. Four, storage and warehousing, preserving goods between production and sale, facilitated by warehousing.
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Five, market research, discovering potential trends, demand, number of consumers, their location, necessities, purchasing power and priorities. Six, standardization, determining quality and setting standards for manufactured products to ensure uniformity in external appearance and internal content, facilitating trade. Seven, grading, sorting products based on established criteria. It widens the market, helps in price fixation, and assures consumers standard quality at a reasonable price. Eight, branding, fixing a symbol or letter to distinguish a product. It reduces selling costs, widens the market, and creates demand. The brand must be registered under the Trade Marks Act. The letter R within a circle indicates registration, and unauthorized use invites legal action. Examples include Reebok shoes, Rin soap, and Parker pen. Nine, insurance, providing security against insurable risks, overcoming uncertainty, and protecting businessmen against losses.
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Next, the importance of marketing. First, it raises the standard of living through availability and consumption of various products and services. Second, it increases consumer satisfaction by providing opportunities to consume new products, which encourages production. Third, it creates employment opportunities across institutions like manufacturers, wholesalers, retailers, transport agencies, banks, insurance logistic, transcribing and supply chain management agencies. Fourth, it ensures optimum use of resources to satisfy consumer needs. Fifth, international marketing makes products available beyond national boundaries, bringing foreign exchange and strengthening international relationships. Sixth, it drives economic development through planned resource allocation, job creation, higher living standards, and increased income and savings.
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Now we will learn about the Marketing Mix. Formulation and implementing the methods of marketing is referred to as Marketing Mix. The concept was first introduced by Professor N H Borden of Harvard Business School of America. According to him, it refers to two lists: a list of important elements that make up the marketing programme, and a list of forces having the marketing operations. The elements consist of four forces: Product mix, Price mix, Promotion mix, and Place mix.
Product mix is vital, focusing on quality, variety, design, packaging, colour, and other features. Price mix is the value a consumer spends in exchange for a product. It involves fixing the price considering cost, discounts, allowances, credit period, and payment terms. Place mix represents acts undertaken to make products available in the market, emphasizing distribution channels and transfer of ownership to actual consumers. Promotion mix, also called communication mix, refers to activities undertaken by sellers to promote products among prospective buyers. It includes advertising, salesmanship, sales promotion, and publicity. In simple words, all activities done to persuade customers to buy the product fall under this mix.
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The marketing mix is important for three key reasons. First, it helps the firm to increase its sales and profit. Second, it serves as a link between the firm and its customers. Third, it helps to meet the needs of the customers.
Let us examine the role of producers, middlemen, and consumers in the exchange of goods. Distribution channels play an important role in place mix. They are classified into direct distribution channel or direct selling, and indirect distribution channel or indirect selling. Under direct selling, producers sell directly to consumers, for example, Bata shoes and Raymond outlets. Under indirect selling, we have several channels. Channel one: Producer to Retailer to Consumer. Used for high value durable articles like ready made garments and automobile accessories. Channel two: Producer to Wholesaler to Retailer to Consumer. Two middlemen are involved. Goods are sold in huge quantities to wholesalers, then to retailers, and finally to consumers. Examples include groceries, drugs, hardware, and stationery. Wholesalers provide strong promotional support.
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Channel three: Producer to Agent to Retailer to Consumer. Producers appoint agents who sell to limited retailers, who then sell to consumers. Used for industrial or agricultural products. Channel four: Producer to Agent to Wholesaler to Retailer to Consumer. This is the longest and most complete channel. Goods go to agents, then wholesalers, then retailers, and finally consumers, with each adding profit. The role of middlemen is crucial as they either purchase and sell goods or negotiate purchases and sales. Note that transporting agents, banks, and insurance companies are not included in the distribution channel because they do not purchase or sell goods or negotiate sales, though they perform marketing functions.
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Now let us discuss consumer rights and consumer forums. A consumer is a person who buys goods or hires or avails services for a consideration called price or wages. Consumer protection refers to protection against exploitation by producers and traders. To safeguard consumer interests, consumer rights are assured. Many regulatory acts have been passed, including the Indian Contracts Act 1872, the Sale of Goods Act 1930, the Indian Standards Institutions Act 1952, the Essential Commodities Act 1955, the Consumer Protection Act 1986, and the Consumer Protection Act 2019. To comply with United Nations guidelines, the Government of India passed the Consumer Protection Act in 1986, effective from 1987. Currently, the Consumer Protection Act 2019 is in force. It extends to the whole of India except Jammu and Kashmir, and applies to all goods and services.
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The Act promotes consumer rights as follows. The right to protect against marketing of goods hazardous to life and property. The right to information about quality, quantity, purity, standard, and other details to protect against unfair trade practices. Right to choice, ensuring access to variety of goods at competitive prices wherever possible. Right to be heard, ensuring consumer interests are heard with due consideration. Right to seek redressal against unfair trade practices or unscrupulous exploitation. Right to consumer education about their rights. Right to stop exploitation. Right to healthy environment, meaning a good physical environment will enhance quality of life.
The Act establishes the Central Protection Council at the national level, State Consumer Protection Council at the state level, and District Consumer Protection Council at the district level. The minister in charge of consumer affairs in the Central Government chairs the National council. The minister in charge of consumer affairs chairs the state council. The District Collector chairs the district council.
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Consumer grievances disputes redressal agencies are established under the Act. First, the District Consumer Disputes Redressal Commission. There is a forum at each district, with a qualified district judge nominated by the state government as president. It entertains complaints where the value of goods or services is less than One Crore. It has two members, one of whom shall be a woman. Second, the State Consumer Disputes Redressal Commission. Its president is a person who is or has been a High Court Judge. It has two other eminent members, one of whom shall be a woman with adequate knowledge of consumer affairs. It entertains complaints of more than One crore and less than Ten crores. Third, the National Consumer Disputes Redressal Commission. It is headed by a Supreme Court Judge appointed by the Central Government as President. It has four other members of eminence, integrity, and standing, one of whom shall be a woman. The National Commission disposes of complaints where the claim exceeds Ten crores.
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Now, let us move to the exercises to ensure you are fully prepared for your exams. I will read each question and provide the complete answer.
Exercise One: Fill in the blanks with appropriate words. Question one: The place where sellers and buyers meet to sell and buy the goods is generally called market. Question two: The market that is generally restricted to a geographical region is called regional market. Question three: The markets that are regulated by statutory regulations is called regulated Markets. Question four: Storing of goods between the time of production and the time of sale is facilitated by ware housing. Question five: The activities that pursue customers to buy the products come under the scope of Promotion mix. Question six: The best example for the goods sold by the producers directly to the consumer is Bata shoes or Raymond outlets. Question seven: For all the brand registered products, on packages the letter R within a circle is indicated. Question eight: The assurance of the standard quality of product to consumers is assured by grading of goods.
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Exercise Two: Answer each of the following questions in a sentence or two. Question nine: Mention the four types of markets classified under the basis of area. Answer: The four types are local market, regional market, national market, and international market. Question ten: What are money markets? How are they different from capital markets? Answer: Money markets are specialized markets for availing short term finance to business houses, such as share markets and banking systems. They differ from capital markets, which are specialized for availing long term finance through financial institutions and stock exchanges. Question eleven: What are producers markets and consumers markets? Answer: In consumer markets, goods are purchased for personal consumption. In producers markets, goods are purchased for use in the further process of production. Question twelve: What is a spot market and how is it different from future market? Answer: A spot market is where goods are sold to buyers on the spot for immediate consideration. It differs from a future market where goods are transferred at a later date. Question thirteen: Mention any four types of non traditional markets. Answer: The four types are mail order houses, tele shopping, virtual stores, and catalogue market, along with online marketing. Question fourteen: What do you mean by Marketing mix? Answer: Formulation and implementing the methods of marketing is referred to as Marketing Mix, which includes product, price, promotion, and place elements. Question fifteen: Why is consumer protection required? Answer: Consumer protection is required to safeguard consumers against exploitation by producers and traders, ensuring their rights and interests are protected. Question sixteen: What is branding of goods? Answer: Branding is the act of fixing a symbol or letter to a product to distinguish it from others, which brings down selling costs and creates demand.
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Exercise Three: Answer each of the following questions in about eight to ten sentences. Question seventeen: What are the functions of marketing? Explain any one function briefly? Answer: The major functions of marketing are buying and assembling, selling, transportation, storage and warehousing, market research, standardization, grading, branding, and insurance. Let me explain transportation briefly. Transportation is an integral part of marketing. It creates time and place utility and adds value to the goods. By moving products from production centers to consumption centers, it ensures that goods reach consumers when and where they are needed. Without transportation, goods would remain at factories, losing their market value. It bridges the geographical gap between producers and consumers, making marketing possible across regions and countries. Question eighteen: What are the main elements of marketing mix? Explain any one of them? Answer: The main elements are product mix, price mix, promotion mix, and place mix. Let me explain price mix. Price is the value a consumer spends in exchange for a product. The price mix involves the process of fixing the price of a product while keeping in mind the cost of production, any discounts to be offered, allowances, credit periods, and terms of payment. It requires careful calculation to ensure profitability for the seller while remaining affordable and competitive for the buyer. Question nineteen: What is the importance of marketing? How does marketing help in improvement of standard of living? Answer: Marketing is important because it raises the standard of living, ensures consumer satisfaction, creates employment opportunities, ensures optimum resource use, promotes international trade, and drives economic development. It improves the standard of living by making a wide variety of products and services available to people. When consumers have access to better goods, their daily lives become more comfortable and efficient. This availability encourages higher consumption, which in turn stimulates production, creates jobs, and increases overall income levels in society.
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Exercise Four: Activities. Activity one instructs you to collect labels of any ten items and list out particulars under columns for serial number, name of product, date of manufacturing, date of expiry, and maximum retail price. You should practice this by gathering real product labels from home. Activity two instructs you to collect information from newspapers about consumer exploitation and write how consumer forums have remedied them. You should look for recent news articles where consumers filed complaints, note the issue, and describe the compensation or action ordered by the District, State, or National Commission.
Thank you for listening! Keep revising and practicing. Goodbye! [CHAPTER_COMPLETE]