Marketing topic in Form Three Commerce subject

 

  MARKETING

Marketing     Is a identification of consumers needs and provision of those goods and services so as satisfy these needs

Ø    Involves these activities necessary for making goods and services to be available where and when are needed  Marketing can also be defined as the system of interrelated activities designed to plan, price, promote, and distribute(place) satisfying their demand

MARKET  Is a place or situation where buyers and sellers meet to exchange their goods and service  

                             

TYPES OR CLASSIFICATION OF MARKETS

            Markets are classified according to Geographical location, Location of the buyers, group of business, Time of exchange and Nature of Product

1. ACCORDING TO GEOGRAPHICAL LOCATION OF THE BUYES

a)   Local Market  Is the local if the buyers and sellers are within the same country i.e. Tanzania Elimu Suppliers sells its products to schools in Tanzania, This is the local market

b)      Foreign Market  If the customers is outside the seller’s country , The market is considered Foreign or External market i.e. Tanzania Coffee Marketing Board sell most of its product to Europe

2. According to the group of buyers

a)   Consumer Market Is the one who buy goods for final consumption

b) Producer Market{ Industrial Market} 

This is the one which buy goods for sales  or further processing I.e. Includes the markets for spares, Raw industrial fuel, Wholesaler, retailer and etc.

3. ACCORDING TO TIME OF EXCHANGE

a)    Spot Market  Is the one which payment and delivery take place together example of this could be buying shirt from a retailer at Chato

b)      Future or Forward Market This refers to the market where goods are brought for future delivery on the basis of a price fixed now. i.e. Raw materials like Cotton are usually sold through Forward market

4. ACCORDING TO THE NATURE OF PRODUCTS

a) Primary Market         This is the market where the exchange involves raw material e.g. Agriculture products

b) Secondary Market     Refers to the market for semi finished or manufactured goods e.g. Consumers goods

 

MARKETING FUNCTION

From the word market we get another word marketing which means a term used to cover all activities necessary in bringing goods and services into the market in the right tie quantity, quality,  conditions and at the agreed price

The following are the Function of Marketing

i.      Product planning and development

ii.      Branding and grading

iii.      Packing and packaging

iv.      Standardizing and standardization

v.      Market research

vi.      Merchandizing

vii.      Sales promotion

 

1.  PRODUCT PLANNING AND DEVELOPMENT

Refer to the determining the features, function, cost and quantity level of production should have and all tasks involved in developing it until enters the Market

2. BRANDING AND GRADING

Refers to segregating quality and differentiating product by indicating brand names

a)   Branding

Refer to differentiating homogeneous products so as to enable customers to identify them from substitute products e.g. coco cola and Pepsi cola , Colgate and white dent 

→ Branding Is the process of designing a name sign symbol or marker combination  of these with an intention of identifying product seller or group of sellers and to differentiate them from those of competitors

 

                                     

 

TERMS USED IN BRANDING

a)    Brand This is a name, mark, symbol or sign given to a product with aim of identifying the  product and differentiating it from those of competitors products.

Figure.   Fila brand

b)      Brand name This is part of a brand which can be pronounced when order for the product . It consist of letters and numbers  example The word Fila from the given brand

c)      Brand mark This is the part of brand that can be recognized but cannot be pronounced. It takes form of a symbol, sign or Mark

d)      Trade mark This is that part of brand which is given legal protection but it is capable of extensive appropriation example

                                   ®

 

 

e)      Copyright Is a law that gives you ownership over the things you create , it is the exclusive legal right to reproduce publish and sell the product in the form of literally or artistic work  it bears C in a circle and always appears like

         ©

ADVANTAGES OF BRANDING

 

A ). TO MANUFACTURERS

1.  It reduces advertising cost once a brand such as coca cola has been made popular retailers are forced to keep products in their stock because of popularity

2.  It is very easy to control price of branded goods. Retail selling price is fixed by manufactures

3.   Enable manufactures to eliminate the whole sales in the chain of distribution manufactures sells goods direct to retailers and increase profit.

 

B.TO WHOLE SALERS AND RETAILERS

1.  Less effort is required for sales promotion known by the as the products are well known consumers.

2.  Less risk in involved in the case of branded goods as they have a steady demand in the market.

3.  It help in displaying programmers in the retail store.

 

C. TO CONSUMERS

1.  A consumer cannot be charged higher price by the retail as price of branded goods are well advertised and known in the market.

2.  Branded goods are easily available. Thus consumer can get such goods easily at the point of their choice.

3.  Quality of branded goods is protected. Branded product goods are usually solid instead packages. Thus branded are protected from dust and water hence are more secure.

4. Manufactures and producers do not easily after the price of branded goods as opposed to the prices of non branded goods.

 

DISADVANTAGES OF BRANDING

   i.            Branded goods tend to be highly priced due to working and advertising costs

  ii.            Some branded goods tend to be misleading as people may go in for the name rather than the quality.

iii.            It creates monopoly of the product since manufactures who cannot brand their goods leave the market

iv.            It creates a venue of production for fake goods especially for the products whose brand is popular

 

b)   Grading  This refer to the sorting goods into classes or grade on the basis of quality, color , length, and etc.

 

Types of Grading

                           i.        Fixed Grading

                         ii.        Variable Grading

 

 

 

Advantages of grading

i.               Selling can take place by use of sample. There is no need of checking the whole consignment

ii.               Time is saved in buying . The purchases need not inspect a thousand

iii.               It is easier to advertise

iv.               Different price can be charged on different grades

 

3. PACKING AND PACKAGING

→ Packaging  Is an activity which involves designing a producer container or wrapper in which goods are packed. It can be box, bottle, cone or paper.

→Packing  is the whole process of putting or arranging goods manufactured by a firm in  a package

Reason for Packing and Packaging

              i.            To protect goods from damage

            ii.            To prevent loss by evaporation in case of products like gas and petrol

          iii.            To make the handling of the product convenient

         iv.            To facilitate branding and labeling

 

Advantages of Packaging and Packing

              i.            It protect goods from damage when being transported from manufacturer premises to the consumer

            ii.            Packed goods are convenient to handle

          iii.            A package can be used for other purpose when the product in it has been consumed i.e. Plastic bottles for instance are used to storage of water and milk

         iv.            It ensure hygiene for food product stored with other goods

 

 

Disadvantages of Packaging and Packing

              i.            It increase the cost of production to the manufactures

            ii.            Consumers cure denied the right of inspecting the quality and quantity of packed goods

          iii.            In the process of opening to unwrapping consumers may not open the packages properly whereby they damage a product thus loss to consumer

         iv.            Packed goods are more expensive than unpacked goods as the cots of packaging and packing is usually passed on to consumer is terms of increased price

 

 

2.  STANDARDIZING OR STANDARDIZATION

            →Is the method of adopting universal standard measurement for products even if their manufactured by different manufactures.

→ Means establishing standard based on physical property or qualities of any product

→ It is the whole process of setting specific action or standards to which all products made must conform to size ,color, appearance and chemical contents. Example of standard products include razor blade, batteries, and cassettes.

ADVANTAGES OF STANDARDISED

1.       A costumer may order goods through post

2.       Time of selecting / sorting is saved more ever since price are fixed consumer spent little time in negotiating prices

3.    One product can be used with several customers others from various manufactures e.g. National radio battery can be used on almost types of Radio can be used on almost  all most all types of Radio

 

 

 

5.  MARKET RESEARCH

→ Market research  Is an investigative activity which is carried out to establish the consumers demand for a product

→Market research refers to the collection of statistical data relating to the market for a specific product to generate information useful marketing decision making

 

AIM OF MARKET RESEARCH

                                 i.   To find out if there is the market for the goods to be produced.

                               ii.   To establish the best method and channel of distribution for the products.

                              iii.   To determine the most alternative form of presenting the product to the consumer packaging.

                             iv.   To establish the degree of competition from similar goods and study the selling techniques of your competition.

                               v.   To assist one in knowing the most suitable effective, cheap and convenient method of promoting the product.

                             vi.   It done production, it will determine the best price of the product to the advantage of consumer.

 

HOW MARKET RESEARCH CAN BE CARRIED ON

a.      Field investigation It may involve person to person interview( orquestionnaire is the list of questions to be answered by a group of people for the purpose of getting information.

b.      Statistical data The information from statistical data camped by government analysts, research, trade organization and the chamber of consumer.

c.       Testing the product Is the market technique in which small amount of product is produced and supplied to limited geographical area to test the response of costumers . If the response of customers .If the response is good, the product is produced and served to an eider area.

d.      Feedback from the distributors Distributors receive the feedback from the user of certain product in form of complaining or recommendation. This help the producer to take the appropriate measure or action.

 

ADVANTAGES OF MARKET RESEARCH

                                                   i.         It detects the most effective way of advertising.

                                                  ii.            It detects consumer altitude.

                                                iii.            It detects the demand of certain commodity.

                                                iv.            It detects the correct price of the product etc.

 

6. MERCHANDIZING

This refer to all effort made at the point of sale to stimulate profitable sales

                                  OR

Is the activity of promoting the sale of goods at retail level

Merchandizing activities includes

v  Attractive layout of goods/ display techniques

v  Sparing.

v  Lighting.

v  Painting.

v  Ventilation.

v  Music / video show.

v  Mirror for windows display and works.

v  Free samples.

 7.  SALES PROMOTION

Is the process of creating demand of product to increase sales by giving gifts, discount or participating in trade fair e.g. Saba Saba trade, fairs as well as demonstrating the use of function of them.

8. ADVERTISING

  Refer to the effort mode through various paid to inform customer of availability of goods and convincing them to buy e.g. pika kwa kimbo, suit heart ni lotion yako.

                Other function are

9. PRACING.

                     Refers to fixing a selling price and adjusting it time to time.

                         

 

                 10. SELLING.

 

             This refer to the actual delivery of them as after sales services after sale services include carriage out well as after sale services include carriage out ward and free rapier of the item for the specified time.           

 

 

                                           THE MARKETS MIX{4Ps} IMPORTANT ELEMENTS OF MARKETING MIX 

There fore the four components of marketing some times are called 4Ps of marketing i.e. Product , Promotion, Price and Place

1.  Promotion ; Product planning and development

Is the process  of utilizing personal and won personal means to remind inform and persuade  buyer to buy the organization product being afraid for sale in a given market

         →This involve promotion mix such as

      i.            Advertising

    ii.            Sales promotion

   iii.            Personal selling

  iv.            Publicity

 

2.   Product

Finished / Manufactured /   Completed goods or commodity

-          Product planning and development, Packaging

3.  Price

Fixing and adjusting the Price

4.  Place{distribution}

Refer to the movement of goods and services from supplies to the consumer with the aim of satisfying consumer needs

MARKETING INSTITUTION IN TANZANIA.

A.   Chamber of commerce.

Is the voluntary association of business men in a country for the purpose  of  furthering their common  interest, It form the following activities.

FUNCTIONS OF CHAMBER OF COMMERCE.

1.    Collecting and dissemination of starfistical data and information by receiving and distributing market enquires

2.    Improving the business environment for member of convincing the government institute favorable laws for business.

3.    Setting business disputes between or among member through arbitration.

4.    Issue of certificate of origin to exporters.

5.    Performing the role of spokesman of the business community.

B.    Tanzania cotton marketing board.

C.    Tanzania cashew nuts marketing board.

D.   Tanzania coffee marketing board.

E.    Tanzania sisal marketing board.

F.    Tanzania pyrethrum board.

NB Each deal with marketing and export of its relevant crop.

 

FUNTION /ROLES OF MARKETING BOARDS.

1.    Buying and selling of produce at fair price.

                                Board guarantee the purchases and selling of all products brought to them at the agreed price provided to meet specification land down by them.

2.    Control of product.

Marketing board promise to buy all producer rom the famer.

3.    Collection of producer and transportation.

Producer is collected from numerous places such as Shambas, store of agents and cooperation by the personal of marketing board.

4.      Store of producer.

The board store producer safety they are produced seasonal and releases them gradually as demand.

5.                Assistance of famers.

It assist famer in the following ways.

A.       They pay famers on the sport.

B.       Provide fertilizer, pesticides farming tools.

C.      Provide loans to farmers.

 

G.   Board of external trade {B.E.T}

Is a board formed by ACT of parliament. It is the government body charge with the responsibilities of promoting and developing external trade in Tanzania.

FUNCTION OF BOARD OF EXTRNAL TRADE {B.E.T}

1. To conduct market research on foreign trade.

2. Publish and disseminate in formulation, regarding external trade.

3. To coordinate Tanzania export trade and assist exporters to maximize export earning

4. To provide Consultancy service of foreign trade

5. To represent a country Abroad on matters related to external Trade fairs 

6. To advise the government on the policy and planning of external trade.

 

H.    Board of Internal Trade{B.I.T}

1973 ACT OF PARLIAMENT.  This is the government board which governs and give technical advise as to the smooth of running of the  institutions

There are seven important companies under board of internal trade {B.I.T}   which help to satisfy the demand of the Tanzania by distributing manufactured goods and so that they reach customers at the right place, Time, Condition and reasonable price. Those companies as AISCO,BHESCO,NASCO,HOSCO,BCS and TEXCO.