Marketing and Sales

What are the Primary Components of Marketing Mix (with Examples)

Last Modified: 4 January, 2021 Leave a Comment

Marketing executives have to understand the logical sequence of marketing activities or marketing mix to attain the firm’s goals and maximum customer satisfaction. By marketing mix, we mean all kinds of marketing decision which provide an incentive for selling and consumer satisfaction.

components of marketing mix with examples — elements of marketing mix with examples

An executive marketing manager has to think about some fundamental questions, such as:

What to sell? (Product)
What to communicate? (Promotion)
Where to sell? (Place)
At what price? (Price)

The answer to the above questions lies in the concept of the marketing mix, therefore, the above Ps can be termed as a logical sequence of marketing activities.

The concept of the marketing mix is a very useful concept for marketers, marketing mix can be described as a judicious mixture of the desired elements of marketing to attain profitable sales volume and maximum consumer satisfaction.

Marketing managers can formulate practical plans to integrate the external variables and internal variables with the help of a suitable marketing mix.

Primary Components of Marketing Mix with Examples

The marketing mix denotes the combination of four major elements that constitute a firm’s marketing system.

These elements can be referred to as the four Ps in marketing:

1. Product

The first element – product includes aspects of packaging and branding.

Product is a set of tangible and intangible attributes designed to satisfy any specific or general consumer needs.

Marketing activities start from the generation of an idea about the product and end with the positioning of the product in the target markets.

The success of product planning and development lies in the maximum consumer satisfaction and motivation for repeated purchase.

Customers’ needs should be identified by the company, so it could design the product or services accordingly. If the product does not satisfy the customer’s need that it has no relevance from the marketing point of view.

In the process of product planning and development, the marketer should take into account the right design, desired color and size, preferred style, appealing brand name, attractive packaging, well-informed label and effective after-sales services of the products.

The marketer should identify the important specific variable out of the above and it should be given due importance in product planning and development.

2. Place or Physical Distribution

By the second element – the place we mean the system of marketing channels through which products and services are distributed to the ultimate consumers or final buyers.

The basic object of the manufacturer in selecting and developing distribution channels, in conjunction with other elements of the marketing mix is the maximize the degree of attainment of company goals including profit, stability, and long-term growth.

Production has no meaning until and unless the product is delivered to the consumers. In this regard, the marketer should select the right distribution policy.

The marketer should take into account the factors affecting the choice of channel of distribution.

Marketing firms should take the channel of distribution very seriously.

The basic purpose of the establishment of the channel is to provide convenience in buying to the customers so that they can purchase the firm’s products or services without any harassment.

Rather, the channel should provide pleasure and joy in buying to customers.

Sales area should be divided into manageable sales territories. The location of the channel has no importance for the wholesaler, but it has its significant role for the retailers.

Inventory levels should be set up keeping in view the anticipated demand plus margin for the optimum use of capital resources.

Finally, the management of the physical distribution of products should be given top priority.

3. Promotion

The third element of the marketing mix is a promotion which includes personal selling and Advertising.

In view of the growing distance between centers of production and centers of consumption, the role of promotion is very vital.

Promotion is the communication by the marketer to its target customers regarding its product or services.

In advertising, sales promotion and publicity it is unilateral.

In personal selling, it is full bilateral, but in public relations, it is up to some extent and bilateral.

No marketer can depend 100% on any form of promotion like advertising, personal selling, self-promotion, publicity, and Public Relations.

The marketer must make a judicious mixture of three basic elements of sales promotion, advertising, personal selling, and sales promotion keeping in view the type of product, number of customers, geographical area of the market, financial and managerial resources.

Advertising is a non-personal communication of messages regarding a product or service by the media. The role of advertising is important in the case of consumer goods. Personal selling is contacting prospective buyers personally by the Salesman.

In the case of durable consumer items, products having high technical value, and industrial products the use of personal selling is more effective.

All other methods including advertising and personal selling used to boost sales of the product or services are included in sales promotion.

In sales promotion, the role of effective technique is very important.

There are several techniques to motivate consumers and dealers to purchase the company’s product in more quantum.

Public Relations also play an important role in the promotion of a product or service.

4. Pricing

The fourth element of the marketing mix is pricing. In setting the prices, manufacturers must work backward from the final or retail prices to the factory prices with the allowance for customary or required profit margins at each stage of the channel.

Price is the value of the product or service expressed in monetary terms.

From the buyer’s point of view, it is the cost which he is paying to the marketer for product or service. Price has an important role in marketing.

The price of the product is related to the affordable paying capacity of the consumer, the purpose and motive behind the purchase, etc.

While fixing the price of the product, the marketer should take into consideration the various factors affecting the price in a particular market segment.

The marketer should Explorer and design suitable price strategies to capture maximum market share.

Major price policies and strategies are geographical pricing, uniform pricing, unit pricing, price lining, resale pricing, maintenance leader pricing, follow the leader pricing, a skim the cream pricing, physiological pricing, price competition, non-price competition, and discount and allowances.

The concept of the marketing mix is dynamic in nature because marketing activities are performed in a changing environment.

Why is marketing mix important to a business Success?

The marketing mix refers to the apportionment of effort, the communication, the designing, and the integration of the elements of marketing into a program or mix which on the basis of an appraisal of the market forces will be best achieve the objectives of an enterprise at a given time.

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14 Role and Importance of Marketing in a Developing Economy

Last Modified: 4 January, 2021 2 Comments

In a primitive subsistence society, there is a very wide scope of marketing because in such a society each person grows the food he consumes as well as makes the tools he uses and the clothes she wears.

role and importance of marketing in developing economy — role and importance of marketing in economic development

However, as the production methods become efficient, one man’s output of a particular product far exceeds his requirements for that product. Since he specializes in producing a particular product, he needs the market to sell surplus production.

Thus, on one side, the scale of production goes on increasing, and on the other hand, the need and importance of marketing also go on increasing.

As soon as a country becomes more industrialized and urbanized, the marketing becomes functionally more important for him.

In this connection, it has been rightly remarked that “nothing happens in our economy until somebody sells something.”

Marketing is not only of great significance for producers or middlemen but also of equal importance to society as a whole.

What is the Importance of Marketing in Today’s Economy

Today we talk of national and international Markets and now marketing is considered as an important force of rapid economic development of a country.

Following are the roles of marketing:

1. Provides Employment

Marketing is an important source of providing employment.

According to an estimate, about, 40% of the labor force in developed countries (such as the U.S.A., Germany, Japan, etc) is engaged in different marketing processes, such as distribution channel (wholesale and retail trade), marketing research, storage, warehousing, transport, communication, publicity, etc.

In a developing country like India, about 3 crore people are engaged in marketing, such as distribution channels, etc.

2. Delivery of Standard of Living

Marketing is the delivery of a standard of living to society.

Marketing creates and increases the demand for existing and new products and thereby increases the standard of living of the people.

It provides knowledge about different varieties of goods and services, of means of publicity and sales promotion to society.

3. Helpful in Increasing Profits

All of us know that the main objective of the business is to earn a profit.

Marketing helps in increasing business profits by reducing distribution costs on one side and increasing the demand for the product by means of advertising and sales promotion on the other side.

4. Protection Against Slump

Marketing provides protection to the economy against a slump.

In the case of the slump, marketing helps by discovering new markets, making it customer-oriented, improving the quality of products, suggesting alternative uses of products, etc.

5. Increases National Income

When different variants of goods are made available according to the needs and tastes of consumers, there is an overall increase in demand.

Increased demand stimulates production activity in the country, which in turn, increases the national income of the country, which in turn, an increase in national income brings and all-round prosperity in the country.

6. Facilitates Choice

In order to satisfy the demand for different types of customers, products of different varieties, designs, colors, sizes, etc. are produced.

It facilitates the choice of the consumers as they are free to select the product of their own choice and taste, etc.

7. Increases the Knowledge of Customer

Marketing increases the knowledge of customers by means of salesmanship, advertising, sales promotion, etc.

8. Customer Satisfaction

Modern Marketing concept is customer-oriented, like maximum satisfaction to consumers.

Goods are produced according to the needs and tastes of the consumers.

Besides production, modern marketing also emphasizes the selection of a suitable channel of distribution and also makes the goods available at reasonable prices in the market.

9. Helpful in Business Planning and Decision Making

Marketing is an important factor in modern business planning and decision making.

In the modern economy, production is planned according to the sales forecast and not according to the production capacity of the firm.

A firm will produce what it can sell and in as much quantity as it sells and not what and how much it can produce.

Thus, business planning and decision making in the business planning firm is based on marketing.

10. Key Factor in Distribution

Marketing is helpful to the firm in selecting the proper distribution channel that can deliver the goods to the consumers at the minimum distribution cost and at reasonable prices.

role of marketing in economic development

In this competitive age, only that producer can survival who can deliver the goods to the consumers at a minimum distribution cost.

11. Reduces Distribution Cost

An efficient marketing process is responsible for reducing the cost of distribution to a great extent.

The advantage of reduction and distribution cost goes to the consumers by marketing the goods available at lower prices.

If in spite of the reduction in distribution cost, prices do not fall, it will increase the profits of the manufacturers which will filter down to the shareholders and debenture holders in the form of dividend and interest.

12. Helpful in Communication Between Firm and Society

Today, marketing is an important source of communication between the firm and society.

Marketing provides information regarding consumer’s behavior and changes therein to the firm.

Today, the Producers and Consumers are situated at s distance of thousands of kilometers from each other and it is the marketing that is the source of establishing effective communication between them.

13. Importance in Sellers Market

A seller’s market is one in which there is a shortage of goods and thus the demand for goods exceeds the supply.

Along with waiting, the line exists in the market.

You may argue that there is no need for marketing in the seller’s market because everybody is already standing in a queue and eagerly waiting for his return.

For instance, in India whenever there is a shortage of goods, you may see a long waiting queue before distribution centers.

However, one should not believe that a seller’s market lasts forever. Initial shortages will be overcome in due course of time.

For instance, there was a time when a seller’s market was in existence in food grains, sugar, etc.

Now both these items are available in sufficient quantities at reasonable prices.

Thus, today we have a seller’s market, tomorrow there will be a buyers market. These are changing phases of business.

The need for marketing will exist and does exist even now.

A buyer’s market is one in which the supply of goods exceeds the demand. Every firm is eager to sell the goods but those firms succeed which adopt the modern ways of marketing goods in accordance with the demand and taste of consumers.

Thus, the importance of marketing exists whether it is the seller’s market or buyers’ market.

Remember that the market is the boss and those companies that are successful are those which are able to study the markets.

14. Necessary for Developing Country

Marketing is of great importance in developing countries.

Production of goods and services is undoubtedly a major National issue in almost all the developing countries of the world.

It is so because it is a very potential instrument of rapid economic growth.

In this connection on the increase in production is not enough.

There must also be equitable distribution amongst people so that no one starved to death.

In a vast country, the very thought of equitable distribution cannot be metalized unless there is an efficient distribution channel.

In order to have an efficient distribution of goods, there is the need and importance of marketing.

What are the importance of marketing to the economy?

Marketing is an important factor in modern business planning and decision making. In the modern economy, production is planned according to the sales forecast and not according to the production capacity of the firm.

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13 Primary Functions of Marketing (With Examples)

Last Modified: 3 January, 2021 Leave a Comment

Marketing is the process of discovering, and translating consumer needs and wants into product and service specifications, creating demand for those products and services and then, in turn, expanding this demand. It works with many functions of Marketing.

What is the primary function of marketing?

So, marketing is the response of businessmen to the need to adjust production capabilities to the requirements of consumer demands.

Different activities related to marketing are included in the functions of marketing.

What are the Important Functions of Marketing

In Brief, the functions of marketing can be explained as under:

1. Product Planning and Development

It is the time when every activity of a producer clusters around the needs and wants of consumers.

Today a producer produces only those goods and services which are required by his customers.

A producer has to produce the goods and services according to the needs of his customers so that the object of customer satisfaction may be achieved.

He has to make the design, size, weight, price, and packing of his product according to the changing needs and tastes of his customers.

Therefore, the very first function of marketing is to plan a product and to develop it so that it may satisfy the Expectations of customers.

At the early stage of trade and Commerce, the function of product planning and development was performed by the production department with the help of Engineering and Technical Research Development.

Now, this work has also been delegated to the marketing department with a view to meet the consumer needs more effectively and easily.

Therefore, nowadays, all the important decisions related to product planning, product modification, product development, grading, standardization, diversification, brand, and packing, etc. are taken by the marketing department.

2. Create Demand

When a marketing company introduces an innovative product in the market, demand creation is required.

Since the product or services is totally new for the market there is no demand for the product.

It requires the formulation of effective appeals to convince the target customers how the product satisfies specific needs.

The success of the ‘Tea Industry’ in India is the best example of demand creation.

3. Standardizing and Grading

Standardizing and grading are two very important aspects of marketing today, because, with the help of these two aspects, marketing functions become easy, production becomes uniform, prices become equal and marketing becomes extensive.

Therefore, nowadays, the goods are produced on the basis of definite standards as to the quality of the product, size of the product, the color of the product, the weight of the product, price of the product, etc.

Standardizing and grading make it easy for both the consumers and sellers to achieve their individual objects.

This is the reason why the sale and purchase of most of the goods become very easy on the basis of standardization and grading.

4. Counter Marketing

The are several products which have good sales and high profits, but they have an adverse impact on the larger welfare of society and mankind.

For example, baby milk powder, hard drugs, cigarettes, and alcohol, etc. have good marketing prospects, but they use it not in the interests of consumers.

Therefore, when unwholesome demand exists, a suitable strategy is needed to destroy the demand.

5. Buying and Assembling

For the purpose of functions of marketing, buying means the acquisition of goods and services by the seller or industrial user for the purpose of resale.

Though ultimate consumers also purchase the goods and services for the satisfaction of their needs, such purchases are not included within the purview of the functions of marketing.

Assembling for the purpose of functions of marketing means the collection of different types of goods and services by mediators for the purpose of resale.

For example, the purchase of crops of small farmers scattered throughout the country by wholesale grain merchants is the assembling, because they sell it to the retailers who sell them to the ultimate consumers for real consumption.

6. Selling

Selling is the object around which all the activities of marketing cluster because no activity in the world of marketing is completed unless and until the real sale of goods and services bought or acquired by the seller on intermediary has been affected.

Broadly, speaking, marketing does not mean to sell goods and services only.

It includes the discovery of tastes and wants of the customers, production of goods and services according to their tastes, creation of demand, real sale, and after-sales services for the achievement of this purpose.

It becomes essential for the marketing personnel to establish effective coordination among the activities of advertisements, personal selling, sales promotion, and after-sales services.

7. Storage

Storage is considered to be the main activity of marketing these days.

Whenever and wherever the production is seasonal and consumption is perennial or whenever and wherever the consumption seasonal but the production is perineal, the goods are to be stored in good condition from the time of production to the time of consumption.

Storage aims at meeting different objects such as – the gap between the time of production and the time of consumption, to get the expected appreciation in prices, to capture the market, etc.

8. Transportation

Transportation refers to the real distribution of goods from the place of production to the place of consumption.

Business and transportation are the two aspects of one coin.

One is its head and the other is its tail.

Thus, business and transportation are not competitors but complementary to each other.

Effective Marketing System must be associated with an economical and effective transportation system because an effective system of transportation creates place utility.

It also helps in expanding the market and maintaining a regular supply and improved service to the consumer.

Production at a large scale and specialization has been possible only because of the means of transportation.

9. Marketing Finance

Marketing finance means the arrangements of adequate finance for the distribution of goods and services to real consumers.

Marketing finance is a very important function of marketing because it is only imaginary to carry on marketing activities successfully without adequate finance.

The Businessman has to arrange for short term finance, medium-term finance, and long term finance according to the needs of the business.

What are the Factors Affecting Business Finance (Complete List).

10. Risk Bearing

Marketing involves many large risks. Some are the risks that can be insured, such as flood, fire, theft, robbery, dacoity, loot, etc.

On the other hand, some of the risks which cannot be insured, such as – fall in the prices, changes in the demand, changes in fashion, changes in the tastes of consumers, etc.

These can never be eliminated, however, these can be minimized through an effective system of sales forecasting, market research, advertisement, sales promotion, and product diversification, etc.

11. Market Information

Market information plays a very wide role in the success of an enterprise.

A businessman has to collect different types of market information so that he can chalk out his market program and policy according to this information.

The market information includes the collection of data regarding Trends of the market, government policy, price policy of different business Enterprises, tastes of consumers, changes in fashion, scientific development, channels of distribution, media of advertisement, etc.

No business effort can be successful in the absence of this information.

This information is collected by different business Enterprises, specialized Agencies, Government, and Research Scholars at different times.

These are published in different papers and magazines.

A businessman must collect all this information to get through these problems so that he may make necessary changes in his marketing policy and program.

If any information is not available, Emphasis must be laid upon marketing research.

12. Pricing

Pricing is perhaps the most important decision taken by a businessman.

It is the decision upon which the success or failure of an enterprise depends to a large extent.

Therefore, the price must be determined only after taking all the relevant factors into consideration.

While determining pricing policy, the factors to be considered are – the cost of production severity of competition, prices of competitors, marketing policy, government policy, and the buying capacity of the consumer, etc.

An analytical study of all the functions of marketing discussed above makes it clear that marketing is a very wide term including all the activities from the discovery of needs and wants of consumers to their satisfaction.

13. Maintenance

In the situation where the demand for the product is equal to the expected level, the main task of the marketing manager is to maintain the demand.

It is not easy to maintain the sales level and market alike in the full demand situation.

Keeping in view the competition, changing consumer needs and so many external factors, it is not easy to maintain the present quantum of sales.

The function of maintenance requires strategic marketing planning, in which efforts are made to identify the rapid changes taking place in the market and to take suitable remedial measures to deal with the changes situation.

What is the primary function of marketing?

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What are the Nature and Scope of Marketing (With Examples)

Last Modified: 31 March, 2021 Leave a Comment

There was a time when marketing activity was concerned only with the flow of goods and services from the producer to the consumer. Hence, those business activities which were involved in the movement of goods and services from the producer to the consumer were included in marketing.

The marketing is developmental and dynamic in nature. The marketer should adjust its entire marketing operations according to the changed consumer behavior.

In other words, marketing was concerned with the distribution of goods and services only.

However, this concept of marketing has now been changed. Actually, marketing begins even before the start of production and ends after the satisfaction of the consumer.

What is Nature and Future Scope of Marketing Management

The nature and scope of marketing can be done under the following points.

1. Distribution Of Goods and Services Approach

According to this approach, marketing includes all those activities which are involved in the flow of goods and services from producer to consumer in the process of distribution.

Businessmen prefer the marketing process to the distribution process.

2. Event Approach

It is a new field in marketing in which marketers provide help in launching a new product or conducting the company’s anniversaries function.

Here marketer promotes time-based events and works out the details of an event and makes sure it comes off perfectly.

3. Commodity Approach

This approach studies marketing on a commodity wise basis, such as sugar, tea, wheat, automobiles, fabrics, etc.

The marketing situation of each product is studied as regards the sources and conditions of supply, nature, and extent of demand, the distribution channel used, and the functions, such as buying, selling, advertising, financing, storage, etc., performed by the various agencies.

Under this approach, the commodity serves as a focus around which other aspects of marketing are studied.

By repeating such studies in the case of different commodities one gets the complete picture of the entire field of marketing.

4. Organizations Approach

Usually, organizations are actively engaged in building a strong, favorable image in the minds of their target public, and spend a lot of money on corporate identity advertisements.

For example, reliance industries Ltd. in INDIA has used marketing to boost its public images and to compete for audiences and funds.

5. Functional Approach

In the functional approach, the focus of the marketing study is on different kinds of functions that are recognized for their repetitive occurrences and are necessarily performed to consummate market transactions.

nature and features of marketing — How marketing works

Though there is no unanimity about the number and nature of functions that constitute marketing, nevertheless, some functions recognized are buying, selling, storage, transportation, financing, standardization, grading, risk-taking, marketing research, etc.

6. Managerial Approach

In the managerial approach, the focus of marketing is on the decision-making process involved in the performance of marketing functions.

The Basis of this approach is that marketing is purely a management function.

The managerial approach entails the study of marketing at the micro level-level of business firm of the managerial functions, such as planning, organization, execution, coordination, control, etc. It is a wider approach.

7. Societal Approach

In the societal approach, the entire marketing process is regarded not as a means by which business meets the needs of consumers but as a means by which society meets its own consumption needs.

In it, the focus of the study is the interaction between the various ecological factors, such as cultural, political, sociological, legal, and marketing decisions, and their impact on the well-being of the society.

It is a wider approach as compared to previous approaches as is the recent origin approach.

8. Systems Approach

Among the recent approaches to the study of marketing, the one that has been engaging considerable attention lately is the systems approach.

This approach recognizes the interrelations and interconnections among the components of a marketing system in which products, services, money, equipment, information, etc., flow from marketers to consumers.

Their flows largely determine the survival and growth capacities of a firm.

Thus, the focus of the systems approach is the analysis of the marketing flow and communications from marketers to consumers.

9. Person Approach

Today celebrity marketing has become a major business in which a business firm engages a famous film star or personality for publicity or becoming a brand ambassador for its products.

10. Consumer Satisfaction Approach

In the consumer satisfaction approach, the focus of marketing is on the satisfaction of the consumer.

Marketing is related to the needs of consumers.

Only such products are brought forward which can satisfy the demand of the consumers.

Marketing activities are directly concerned with demand simulating and demand fulfilling efforts of the businessmen.

From the above study, it is evident that the scope of marketing is very wide.

All those activities relating the conception of the idea of production to the satisfaction of the consumers are included in the marketing.

11. Informational Approach

Information can be produced and marketed as a product.

It tells someone something which he did not know previously.

Most of the famous colleges, universities, and schools provide (produce and market) information in their prospectus, on the basis of this information students decide in which school or college they should take admission.

What is the nature and scope of marketing?

The marketing is developmental and dynamic in nature. The marketer should adjust its entire marketing operations according to the changed consumer behavior.

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21 Main Features of Marketing (With Examples)

Last Modified: 3 January, 2021 Leave a Comment

Marketing is a comprehensive term and it includes all resources and a set of activities necessary to direct and facilitate the flow of goods, services, and ideas from producer to consumer in the process of distribution.

It may be said that marketing covers all availability activities necessary for ascertaining market demand, planning product availability, affecting the transfer of ownership of products, providing for their physical distribution, and facilitating the entire marketing process.

It is an ongoing process of discovering and translating consumer needs and desires into products and services.

Marketing starts with consumers and ends at consumers by satisfying their needs.

It is a system of integrated business activities designed to develop marketing plans and programs leading to the satisfaction of consumer wants, along with the creation and delivery of standards and quality of life.

What are the Key Features of Marketing?

Some of the important features of marketing are as follows:

1. Business Activity

Marketing is a business activity.

The basic object of every marketing firm is to earn profit by selling products or services to consumers.

The purpose of any marketing activity is to earn profits except for non-profit organizations.

2. Dynamic Process

Marketing is an ongoing or dynamic process involving several interacting and interrelated activities.

Every marketing firm redesigns its marketing mix, policies, and strategies, keeping in view the changed scenario, Therefore, Marketing is not static, it is a dynamic process.

3. Universal in Nature

Marketing is universal in nature.

By and large, marketing operations are applicable to every organization whether it is a commercial, non-profits organization, political, social, cultural, or educational organization.

4. Complete System

Marketing is the complete system.

The marketing system has its own environment.

The marketing environment in which firms operate may be further divided into two parts: External and Internal, which are interrelated and interdependent in nature.

5. Managerial Activity

Marketing is a managerial activity.

It involves planning, organizing, coordination, motivation, and control.

6. Four Ps-Planning

Marketing activities cover the four Ps-planning of new products, pricing, promotion, and physical distribution of the products or services.

7. Consumer Satisfaction

The consumer wants satisfaction is the sole objective of marketing operations.

8. Separate Function

Marketing is so basic that it cannot be considered a separate function.

It is really the whole business seen from the point of view of the final result, i.e. from the point of view of the consumer.

9. Target Marketing Operations

The goals of Marketing operations are not confined to the present customers, but it keeps in mind the prospective customers also.

10. An Art

Marketing is basically an art.

In a highly competitive environment, it is really an art to sell the company’s products and services effectively.

The methods and operations are supported by the cause and effect relationship.

Therefore, Marketing is science also.

11. Creation of Utilities

Marketing is the creation of utilities. The manufacturers create form utility by converting raw materials into finished goods.

Channels of distribution create time utility by the warehousing function.

Retailers create title utility by selling the products to ultimate consumers or users.

12. Matching Process

Marketing is a matching process.

It is both consumer-oriented and company oriented.

13. Activities of Exchange

Marketing encompasses all activities of exchange conducted by producers and middlemen in commerce for the purpose of satisfying consumer demand.

14. Management Function

Marketing is the most important function of management.

15. Process of Planning

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create an exchange that satisfies individual and organization goals.

Marketing must deliver goods and services in exchange for money.

16. Integrated Process

Marketing is an integrated process that is based on strategies and models.

17. Continuous Process

Marketing is the continuous process of defining, anticipating, and creating customer needs and wants of organizing all the resources of the enterprise to satisfy customer demand at the desirable profits to the firm and also to the customer.

18. Different from Selling

Though Marketing is the art of selling products ( goods, services, ideas, etc.), it’s the most important part is not selling.

Selling is only the tip of the marketing iceberg.

19. Viewpoint

Marketing is a viewpoint, which looks at the entire business process as highly integrated efforts to discover, create, arouse, and satisfy consumer needs.

20. Subject Matter

The subject matter of marketing includes products and services and ideas.

21. Economic Process

Marketing is the economic process by means of which goods and services are exchanged and their values determined in terms of a money price.

What are the features of modern marketing?

Marketing is universal in nature. By and large, marketing operations are applicable to every organization whether it is a commercial, non-profits organization, political, social, cultural, or educational organization.

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15 Factors Affecting Market Segmentation (With Examples)

Last Modified: 13 February, 2020 Leave a Comment

Some of the markets are large in size and their extensions in wide while other markets are very limited or narrow in size and extent. Consumer behaviour may also be a base for segmenting a market.

Factors Affecting Market Segmentation

Following are the factors affecting market segmentation:

1. Nature of demand

A commodity having wide demand the extent and size of the market will be large and contrary to it the size and extent of the market will be Limited.

For example, Silver, Gold, sugar, and food-grains have a wide market while the demand for bangles, Gandhian cap, and Nehru jacket are limited to India only.

2. Durability

Perishable goods like vegetables, eggs, milk, bread, and butter have a limited market while durable goods namely T.V., radio, vehicles, gold, silver have a wide market.

3. Banking and Financial System

In a country where there is well developed organized money credit, banking and financial system are in existence the market is widened because payments are quickly finalized.

On the other hand, if the banking and financial system is not well developed and organized the markets Limited.

4. Portability

The goods having heavyweight and prices are low the market is limited while those goods which are easily portable and prices are high have the large size and extent of the market.

Thus, Bricks, cement other building materials have a small size and extend market while silver and gold have a large size and extend the market.

5. Piece of and Security of Life and Property

If there is peace in the country and life and property are protected by the government the business activities will increase in the market is widened.

If there is no internal peace and security in the market is limited.

6. Cognizability

A commodity is easily known on the basis of its quality by the consumers it will be demanded more and the size of the market is widened while in the absence of recognizability of a product buyers will not demand more and market will be Limited.

factors influencing market segmentation

Engine mark mustard oil, postman, etc.

Are well-known and the market will be large.

7. Sampling and Grading of Goods

Those goods which are bought and sold on the basis of the samples and grading the market will be wide while the goods not sold on the basis of samples and grading have a limited market.

Woollen clothes, food-grains, raw cotton etc. have a Wide market.

8. Adequate Supply

The goods and services having a flexible supply market will be widened and the goods having inadequate supply will have a limited market.

9. Efficient and Honest Businessman and Traders

The presence of efficient and honest Business and trading community encourage the business and trade to flourish and the market is widened.

Thus, While inefficient and dishonest Businessman and traders will adversely affect the business activities and the market is limited.

10. Substitutes

A commodity having substitutes in the market will have a limited market while no substitute commodity will be widely used and the size and extent of the market are widened.

11. Government Policy

Domestic and foreign trade is affected by government policy relating to exports and imports, license, protection, taxes, etc.

If these policies are restricting the trade then the market will be Limited and when there are liberal policies the market is widened.

12. Availability of Means of Communication and Transport

In a country where there are cheap, quick, and adequate means of communication and transport available the goods are transferred from one part of the country to another and the market is widened.

Contrary to it the market is limited because goods cannot be transferred from one place to another.

13. Division of Labour and Specialisation

The size and extent of the market are affected by the division of labour and specialization.

When the division of labour and specialization have used the production of goods is carried on the low cost of production and the cheapest will have large size market.

Thus, Contrary to it the market for dearer goods will be small.

14. Multi Uses

A commodity is used for various purposes the market of such commodity will be large and the commodity used for single use only will have a limited market.

15. Market Dynamics

Does market lend itself to a highly concentrated market or a more fragmented market?

How does this affect the expected market share a company could be expected to win in the short and long run.

Thus, All these factors play an important role in the market size and are factors to be aware of when thinking about sizing a market, As they can help guide you on the best approach to take for a given market.

Thus, now you know the factors affecting market segmentation.