GOOD MorningERYONE!!!!!

CHAPTER 7

Lecturer: AGPLambert

MARKETING CONCEPTS
a. MARKET - is a place or setting or event where buyers
and sellers meet to exchange goods or services.
b. MARKETING -is that area of economic activity, which
is concern with the flow of goods and services from
producers to consumers.
c. MARKETING involves not only selling but offers
opportunities in management, advertising, market and
product research and buying.
d. POINT OF PRODUCTION is taken as the point of
first sale by the farmers.
e. POINT OF CONSUMPTION is the point where
marketing ends or the point of last purchase.

CHARACTERISTICS OF
MARKETING
Marketing is highly

dynamic.
Its distributive system
is competitive.
Marketing activities are
highly personalized.

Approaches to the Study of Marketing

1. Commodity Approach
a. Product oriented rather than marketing
function oriented.
b. Studies of this are usually used as background
material for other studies. The study may cover
the characteristics of the product demand and
supply, behaviour of consumers and prices.
2. Functional Approach concerns with the
classification and study of specialized activities or
functions involved in transferring goods to
consumers. This attempts to answer the question
of What in the question of Who does what.

Marketing functions are classified as follows:

a. Exchange functions- activities in the transfer of title of goods.
Examples: buying and selling functions.
b. Physical functions- the when, where and what which
involved handling, movement and physical change of the
commodity. Examples: storage, transportation, and processing
functions.
c. Facilitating functions- those which make the smooth
performance of the exchange and physical functions . These
functions not directly involved in the exchange of title or physical
handling. Example: standardization, financing, risk bearing,
market intelligence (market information), market research
(evaluation), demand creation (advertising and promotion).
3. Institutional approach- analysis of the various agencies and
business structures involved in the marketing process. Examples:
merchant middlemen, agent middlemen, processors and
manufactures, facilitative organizations, and market associations.

Basic Types of Economic Goods in

the Market

a.Industrial Goods
b.Commercial Goods
c.Consumers Goods

a. Industrial goods- those destined for

use by industry in the production of
commercial goods, consumers goods, or
other industrial goods. Examples:
machinery, tools, row materials.
b. Commercial goods- those destined
for use in business in the form in which
they are purchased. Example: cash
register, office machines and
equipment.
c. Consumer goods- those destined for
use by the individual ultimate consumer
in such form that he could use them
without further commercial processing.

Classification of consumers
Industrial Consumers
Commercial Consumers
Ultimate Consumers

Market structures
1.Perfect or Pure Competition a market generally
characterized by the following features:
a. Smallness of buyers and sellers relative to the
market.
b. Homogenous product.
c. Absence of artificial restraints or control.
d. Perfect mobility of goods and resources.
2.Imperfect Competition a market situation where
individual firms have a measure of control over the
price of the commodity in an industry; may or may not
have product differentiation and complete to attract
consumers through price and price non-price methods.
Examples are these market are:
a. monopoly (single seller)
b. monopolistic competition (many sellers)

Marketing functions
A marketing function is a major specialized activity
performed in accomplishing the marketing process.
From a macro point of view, no matter how simple or
how complex the marketing process is all the functions
of marketing must be performed by someone. If a
manager were trying to improve the efficiency of a
system, he would attempt to provide these functions
with maximum efficiency. In some cases, this might
require combining various middlemen into a larger
system. In such a system a farmer, for example, would
permit a wholesaler to pick up his products at the farm,
have them into town, grade them according to
recognized standards, carry the financial burden until
they are sold, and throughout this period, take the risk
that they can be sold.

 Buying and selling- Involves what is

called the exchange process. The buying

function is directed to the search for, and
evaluation of, products and services. For
middlemen, this means a search for
products that will appeal to their
customers. The selling function involves
promoting the product and would include
the use of personal selling, and
advertising and other mass selling
methods.
Transporting and storing- Involves
the handling and movement of goods.
These are the major activities of many

Grading, financing, risk-taking and

market information- Assists other

functions. Grading is dividing the product
into the just attractive and useful
quantities, thus aiding the storing and
selling functions. Financing facilitates the
exchange of money for goods and services
and provides the credit necessary for
storing. Risk-taking is inherent in any
business activitybecause the future is
uncertain.

Middlemen
A marketing middleman is an individual or

business concern operating between producer

and the ultimate consumer or industrial user.
Types of Middlemen:
a. Merchant middlemen- those who take title to

the goods in which they deal.

b. Agent middlemen- those who do not take title
to the goods in which they deal, but merely
assist in affecting transfer of ownership.

 Channels of distribution refer to the routes taken by a

product as it moves from the producer to the ultimate

consumers.

------------------ retailer ------------------------

P

------------ wholesaler -------retailer-------C

--- wholesaler --salesmen ---retailer--

-----------
D

salesmen ------ retailer ----------S

------------- shipper ------wholesaler-------U

------ processor ---------- retailer-----------

--
R

manufacturer --wholesaler-- jobber-

R

Figure A. Example of marketing channels of distribution

Kindly Get sheet of paper

Odd:
1. The Cooperative is to be registered in what agency?
2. The Corporation is to be registered in what agency?
3.What do you called to the people who organized the corporation?
4. What do you call to the individual who engaged in Partnership type

of organization?
5. What type of corporation which means have an outlet to other
countries aside to the main business in his one own country?
6.What do you called to the written documents in a corporation that
serve to be one of its major requirements where regulations and rules
are stated.
7. What do you called to the place/ setting/ events where producer and
seller exchange goods and services either in the form of money or
barter.
This refers to the points where marketing ends.
8. Type of middlemen who take title to the goods in which they deal.

9. Refers to the individual or business concern

operating between producer and the ultimate

consumer or industrial user.
10. Type of goods that are destined for use in
business in the form in which they are purchased

Enumeration
11-13- Classification goods.
14-16- characteristics of Marketing
17-19- Functions of marketing ( functional Approach)
20- -21 : Types of Middleman ( based on ownership goods)
22-26: Types or forms of business Organization.
27: TRUE or FALSE. The corporation disadvantage is limited

liability.
28. TRUE or FALSE. The parnership type of organization is
composed only of two persons.
29. TRUE or FALSE. The corporation is to be renewed after 5
years of its registration.
30. TRU or FALSE. The cooperative shares to its members
incentives through dividends and patronage refund.

TTH class (even)

1.What do you called to the written

documents in a corporation that serve to be

one of its major requirements where
regulations and rules are stated.
2. What do you called to the place/ setting/
events where producer and seller exchange
goods and services either in the form of
money or barter.

3. Type of middlemen who take title to the goods in

which they deal.

4The Cooperative is to be registered in what agency?
5. The Corporation is to be registered in what agency?
6.What do you called to the people who organized the
corporation?
7. What do you call to the individual who engaged in
Partnership type of organization?
8. What type of corporation which means have an outlet
to other countries aside to the main business in his one
own country?

9. Refers to the individual or business concern

operating between producer and the ultimate

consumer or industrial user.
10. Type of goods that are destined for use for
ultimate consumers for household consumption.

Enumeration
11. TRU or FALSE. The cooperative shares to its members incentives

through dividends and patronage refund.

12. TRUE or FALSE. The corporation advantage is limited liability.
13. TRUE or FALSE. The parnership type of organization is

composed of of two or more persons.

14. TRUE or FALSE. The corporation is to be renewed after 5 years
of its registration.
14.
15-17 Classification s of Consumers
18-20- characteristics of Marketing
21-23- Functions of marketing ( functional Approach)
24- -25 : Types of market structures
26-30: Types or forms of business Organization.