FORM THREE COMMERCE – MARKETING

   When goods are produced and are ready for use, the producers must get the people who need the goods. There is need to transport the goods to a common place where the final consumers can easily get the goods. Such a place where traders or sellers meet buyers or consumers is called a market.

Definition of marketing

Marketing can be defined in various ways.

(i) Marketing is the process of identifying and anticipating consumer demand for a product and satisfying their demand more efficiently and profitably. This means that before producers engage in production of a certain commodity, they should first find out what the consumers need so that they can produce according to the consumer’s needs.

(ii) Marketing can also be defined as a system of interrelated activities designed to plan, price, promote and distribute goods and services to groups of customers for the aim of satisfying their demand.

Conditions for marketing

1. A way for these parties to communicate, that is, the buyer will not buy unless he knows the existence of a product and seller will not sell unless he knows the market.
2. Desire and ability to satisfy these wants and needs.
3. Something of value to contribute in the exchange.

 

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Objectives of Marketing

Some of the objectives of marketing include;

1. To increase sales volume through aggressive selling techniques.
2. To achieve profit.
3. To face competition.
4. To give quality assurance to customers

 

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TYPES OF MARKETING

There are mainly three types of marketing determined by the type of products concerned. They include;

1. Primary marketing
2. Secondary marketing
3. Service marketing
4. PRIMARY MARKETING

 

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This is the types of marketing that deals with identification and anticipation of consumer demand for primary products (raw materials) and finding a way to satisfy this demand. All agricultural marketing boards are concerned with this type of marketing since they are concerned with this type of marketing since they are concerned with the nglish-swahili/distribution” target=”_blank”>distribution of primary products.

     2.  SECONDARY MARKETING

The secondary marketing is concerned with knowing the requirements of the market. It aims at satisfying the demand for manufactured goods.

     3.  SERVICE MARKETING

This type of marketing deals with identifying and satisfying consumer demands for services. Services include banking, Insurance, transport, warehousing, teaching and medication.

IMPORTANCE OF MARKETING TO THE CONSUMERS

1. Marketing enables the consumers to know the sources of supply for what they demand.
2. Marketing improves the standard of living of the people by availing the goods needed by the consumers in the market.
3. Through marketing, consumers are able to determine the price of goods, hence there may be no exploitation.
4. Marketing enhances the variety of choice due to wide range of goods supplied in the market. The consumer is provided with a wide range of goods  where they can choose from

 

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IMPORTANCE OF MARKETING TO THE PRODUCERS

1. Marketing enables producers to know the demand of their consumers. The quality and quantity of the goods consumers need will also be considered.
2. It enables producers to know their competitors as result, producers are in position to improve their goods to fit the competition market.
3. Marketing enables the producers to fix the price at which they will sell their products.
4. Marketing increases the sales volume.
5. Marketing enables the producers to know the best means of communication with their consumers in order to complete a transaction.

 

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IMPORTANCE OF MARKETING TO THE NATION
1. Through marketing a country can get surplus.

The surplus can be stored as a buffer stock to be used when calamities strike.
2.  Marketing leads to the improvement in production.

Through marketing a country can devolve ways on how to improve the quality of goods.This in turn leads to improvement in export thus earning foreign exchange for the country.
3.  Marketing is a source of employment

People get employed in various marketing activities and departments. This reduces unemployment rates and other risks such as crime related to unemployment.

MARKET

There are various definitions of a market these are:-

1. It is an area or place where buyers and sellers meet to transact. This means buyers and sellers meet to exchange goods and services. A market is always designated place authorized by the government through local authorities.
2. It is a situation in which buyers and sellers transact or exchange goods and services for example people buy goods through internet, one can purchase a car from Japan, pay by cheque and the selling company ships the car where the buyer will get it at the port.

 

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The word marketing therefore comes from the word market. A market can means demand for the commodity for instance an increase or decrease in the demand of a commodity leads to an increase and decrease in the market of the commodity.

CONDITIONS FOR THE EXISTENCE OF A MARKET
1.Existence of goods and services

For a market to exist, there must be willing of goods such as food stuffs and stationary and services such as hair dressing to be exchanged.

2. Existence of buyers and sellers

For a market to exist there must be willing buyers and willing sellers. Sellers must be willing to supply their goods and services to the market for buyers to purchase them.

3. An area where a market is located

There must be a specific area designated for people to come with their goods and meet with the willing buyers. At times there are set days specifically when goods and services are sold in a given market.

4. Contact between sellers and buyers

The willing seller and willing buyer must be in contact in order for the exchange to take place. Communication may be physical or may be through telephone.

5.Price of commodities

In a given market, there is always a prevailing market price as a result of interaction of the forces of demand and supply for example during the season when mangoes are in high supply their cost is always low, may be at Tshs. 50. However, when they are out of season, you can buy a mango at Tshs. 300 each.

FUNCTION OF A MARKET

The main functions of a market are:-
1. Source of supply

A market is a source of supply of goods and raw materials to both consumers and manufacturers. This is made possible due to the fact that it is a designated place where people supply goods anticipating for potential buyers to purchase them.
2.  Facilitation of transaction

A market facilitates the process of buying and selling of goods and services. This is done by availing a situation where buyers and sellers can meet or contact to exchange goods and services.
3.  Contact between buyers and sellers

A market provides a ground for buyers and sellers to have contact with one another during the process of exchanging goods and services.
4.   Price stability

Price of goods and services are determined in the market by forces of demand and supply. These forces help in stabilizing the price of goods and services.

5.  Increase in production

Due to existence of a market, the demand of a commodity in a market makes the suppliers supply more goods. This in turn increases the production of the given commodities.

CLASSIFICATION OF MARKETS

Markets are classified according to the type of goods and services offered in that given market. These are two main ways of classifying markets

(i) Market types

(ii) Market structure

MARKET TYPES

In this classifications, market classification is done with reference to the type of goods and services bought and sold in the market.

Examples include:-

1. Commodity market
2. Factor market (input)
3. Financial market

 

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 1. COMMODITY MARKET

In this type of market there is buying and selling of final goods and services. Goods that are ready for consumption, for example clothes and food stuffs are sold here.

  2.  INPUT MARKET

This type of market involves selling goods which are used in the production of other goods like machines and raw materials. Example of input market are

(a)    Labour market

This is a type of market which involves buying and selling of labour at a given wage rate.

(b)   Capital market

This type of market involves the buying and selling of capital goods like machines.

(c)    Land market

This type of market involves buying and selling of land at a given price or a given level of rent.

     3.   FINANCIAL MARKET

This is a market that involves buying and selling of financial assets such as securities, bonds and treasury bills. These market can be further subdivided into two;

(a)    Security market

This involves selling and buying of government securities and shares of different companies Dar es Salaam stock exchange (D.S.E) is an example of security market.

(b)   Foreign exchange market

This market involves buying and selling of foreign currencies. Example includes Bureau de Change which buys and sell foreign currencies.

MARKET STRUCTURE

In this type of classification, we consider conditions and characteristics or behaviour of the market. The degree of competition within the market is also considered.

Market structure is further subdivided into the following;

1. Perfect competition
2. Monopoly
3. Monopolistic competition
4. Oligopoly
5. Duopoly