Meaning of the Term Market from “Marketing”
Define the term “market” from “marketing”
Marketing are activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure.
The four ‘Ps’ of marketing are product, place, price and promotion.
Market:
An area or place where buyers and sellers meet to transact, that is, to exchange goods and services, like the Kariakoo market in Dar es salaam Tanzania.
is a situation or condition in which buyers and sellers transact or exchange goods and services. For exchange, trade through e-commerce whereby people can exchange goods through the internet.
FUNCTION OF MARKET
- To facilitate transaction
- Source of supply
- Contact between buyers and sellers.
- Increase production
FUNCTIONS OF MARKETING
- Distribution;is
about deciding how you’ll get the goods or services you want to sell to
the people who want to buy them. Having an idea for a product is great,
but if you aren’t able to get that product to the customers you aren’t
going to make money. Distribution can be as easy as setting up shop in
the part of a city where your target customers are — but in an
increasingly interconnected world, distribution more often than not now
means that you’ll need to take your products or services to the
customers. - Financing;It takes money to make
money. As a business owner, an important function of marketing a product
is finding the money through investments, loans, or your personal
capital to finance the creation and advertising of your goods or
services. - Market Research;Market research is
about gathering information concerning your target customers. Who are
the people you want to sell to? Why should they buy from you as opposed
to a rival business? Answering these questions requires that you do some
on-the-ground observation of the market trends and competing products. - Pricing;Setting
the correct price for your product or service can be a challenge. If
you price it too high, you might lose customers — but if you price it
too low you might be robbing yourself of profits. The “right” price
normally comes through trial and error and doing some market research. - Product and Service Management;Once
you’ve determined the target market and set the price of your product
or service, the goal becomes to effectively manage the product or
service. This involves listening to customers, responding to their wants
and needs, and keeping your products and services fresh and up to date. - Promotion;Most
business owners are familiar with the idea of promotion. Advertising
your products and services is essential to attracting new customers and
keeping existing customers coming back. As the marketplace changes,
you’ll want to respond appropriately by tailoring your promotion
messages to new media (such as Facebook or Twitter), by sticking with
more conventional outlets — or by using a mix of the old and new. - Selling;While
we tend to think of selling and marketing as being closely linked,
selling is last on the list of the seven functions of marketing. This is
because selling can happen only after you’ve determined the wants and
needs of your customer base and are able to respond with the right
products at the right price point and time frame.
Importance of marketing can be studied as follows:
- Marketing Helps in Transfer, Exchange and Movement of Goods: Marketing
is very helpful in transfer, exchange and movement of goods. Goods and
services are made available to customers through various intermediaries’
viz., wholesalers and retailers etc. Marketing is helpful to both
producers and consumers.To the former, it tells about the specific needs
and preferences of consumers and to the latter about the products that
manufacturers can offer. According to Prof. Haney Hansen “Marketing
involves the design of the products acceptable to the consumers and the
conduct of those activities which facilitate the transfer of ownership
between seller and buyer.” - Marketing Is Helpful In Raising And Maintaining The Standard Of Living Of The Community:Marketing
is above all the giving of a standard of living to the community. Paul
Mazur states, “Marketing is the delivery of standard of living”.
Professor Malcolm McNair has further added that “Marketing is the
creation and delivery of standard of living to the society”.By making
available the uninterrupted supply of goods and services to consumers at
a reasonable price, marketing has played an important role in raising
and maintaining living standards of the community. Community comprises
of three classes of people i.e., rich, middle and poor. Everything which
is used by these different classes of people is supplied by
marketing.In the modern times, with the emergence of latest marketing
techniques even the poorer sections of society have attained a
reasonable level of living standard. This is basically due to large
scale production and lesser prices of commodities and services.
Marketing has infact, revolutionised and modernised the living standard
of people in modern times. - Marketing Creates Employment: Marketing
is complex mechanism involving many people in one form or the other.
The major marketing functions are buying, selling, financing, transport,
warehousing, risk bearing and standardisation, etc. In each such
function different activities are performed by a large number of
individuals and bodies.Thus, marketing gives employment to many people.
It is estimated that about 40% of total population is directly or
indirectly dependent upon marketing. In the modern era of large scale
production and industrialisation, role of marketing has widened.This
enlarged role of marketing has created many employment opportunities for
people. Converse, Huegy and Mitchell have rightly pointed out that “In
order to have continuous production, there must be continuous marketing,
only then employment can be sustained and high level of business
activity can be continued”. - Marketing as a Source of Income and Revenue: The
performance of marketing function is all important, because it is the
only way through which the concern could generate revenue or income and
bring in profits. Buskirk has pointed out that, “Any activity connected
with obtaining income is a marketing action. It is all too easy for the
accountant, engineer, etc., to operate under the broad assumption that
the Company will realise many dollars in total sales volume.However,
someone must actually go into the marketplace and obtain dollars from
society in order to sustain the activities of the company, because
without these funds the organisation will perish.”Marketing does provide
many opportunities to earn profits in the process of buying and selling
the goods, by creating time, place and possession utilities. This
income and profit are reinvested in the concern, thereby earning more
profits in future. Marketing should be given the greatest importance,
since the very survival of the firm depends on the effectiveness of the
marketing function. - Marketing Acts as a Basis for Making Decisions:A
businessman is confronted with many problems in the form of what, how,
when, how much and for whom to produce? In the past problems was less on
account of local markets. There was a direct link between producer and
consumer.In modern times marketing has become a very complex and tedious
task. Marketing has emerged as new specialised activity along with
production.As a result, producers are depending largely on the mechanism
of marketing, to decide what to produce and sell. With the help of
marketing techniques a producer can regulate his production accordingly. - Marketing Acts as a Source of New Ideas:The
concept of marketing is a dynamic concept. It has changed altogether
with the passage of time. Such changes have far reaching effects on
production and distribution. With the rapid change in tastes and
preference of people, marketing has to come up with the same.Marketing
as an instrument of measurement, gives scope for understanding this new
demand pattern and thereby produce and make available the goods
accordingly. - Marketing Is Helpful In Development Of An Economy: Adam
Smith has remarked that “nothing happens in our country until somebody
sells something”. Marketing is the kingpin that sets the economy
revolving. The marketing organisation, more scientifically organised,
makes the economy strong and stable, the lesser the stress on the
marketing function, the weaker will be the economy.
A
market is defined as the sum total of all the buyers and sellers in the
area or region under consideration. The area may be the earth, or
countries, regions, states, or cities. OR An actual or nominal place
where forces of demand and supply operate, and where buyers and sellers
interact (directly or through intermediaries) to trade goods, services,
or contracts or instruments, for money or barter.
market is defined as the sum total of all the buyers and sellers in the
area or region under consideration. The area may be the earth, or
countries, regions, states, or cities. OR An actual or nominal place
where forces of demand and supply operate, and where buyers and sellers
interact (directly or through intermediaries) to trade goods, services,
or contracts or instruments, for money or barter.
The
value, cost and price of items traded are as per forces of supply and
demand in a market. The market may be a physical entity, or may be
virtual. It may be local or global, perfect and imperfect. A market can
be called the ‘available market’ – that of all the people in the area.
Within the available market, there is the ‘market minimum’- or the
market size, which will buy goods without any marketing effort. This is
the lowest sale that a company could get without any action on its part.
In today’s world, this level is sinking ever lower.
value, cost and price of items traded are as per forces of supply and
demand in a market. The market may be a physical entity, or may be
virtual. It may be local or global, perfect and imperfect. A market can
be called the ‘available market’ – that of all the people in the area.
Within the available market, there is the ‘market minimum’- or the
market size, which will buy goods without any marketing effort. This is
the lowest sale that a company could get without any action on its part.
In today’s world, this level is sinking ever lower.
Various Types of Market
Identify the various types of markets
CLASSIFICATION OF MARKETS
a)Market types
- Commodity market:
market involving selling and buying of final goods and services that is
goods that are ready for consumption. For example sells commodities
like shoes, clothes etc - Factor market: market involving buying and selling of labour at a given wage rate.
- Financial market: Involves selling and buying of financial assets such as security, bonds and treasury bills.
b)Market structure
In
market economies, there are a variety of different market systems that
exist, depending on the industry and the companies within that industry.
It is important for small business owners to understand what type of
market system they are operating in when making pricing and production
decisions, or when determining whether to enter or leave a particular
industry.
market economies, there are a variety of different market systems that
exist, depending on the industry and the companies within that industry.
It is important for small business owners to understand what type of
market system they are operating in when making pricing and production
decisions, or when determining whether to enter or leave a particular
industry.
- Perfect Competition;Perfect
competition is a market system characterized by many different buyers
and sellers. In the classic theoretical definition of perfect
competition, there are an infinite number of buyers and sellers. With so
many market players, it is impossible for any one participant to alter
the prevailing price in the market. If they attempt to do so, buyers and
sellers have infinite alternatives to pursue. - Monopoly;A
monopoly is the exact opposite form of market system as perfect
competition. In a pure monopoly, there is only one producer of a
particular good or service, and generally no reasonable substitute. In
such a market system, the monopolist is able to charge whatever price
they wish due to the absence of competition, but their overall revenue
will be limited by the ability or willingness of customers to pay their
price. - Oligopoly;An oligopoly is similar in
many ways to a monopoly. The primary difference is that rather than
having only one producer of a good or service, there are a handful of
producers, or at least a handful of producers that make up a dominant
majority of the production in the market system. While oligopolists do
not have the same pricing power as monopolists, it is possible, without
diligent government regulation, that oligopolists will collude with one
another to set prices in the same way a monopolist would. - Monopolistic Competition; Monopolistic
competition is a type of market system combining elements of a monopoly
and perfect competition. Like a perfectly competitive market system,
there are numerous competitors in the market. The difference is that
each competitor is sufficiently differentiated from the others that some
can charge greater prices than a perfectly competitive firm. An example
of monopolistic competition is the market for music. While there are
many artists, each artist is different and is not perfectly
substitutable with another artist. - Monopsony;Market
systems are not only differentiated according to the number of
suppliers in the market. They may also be differentiated according to
the number of buyers. Whereas a perfectly competitive market
theoretically has an infinite number of buyers and sellers, a monopsony
has only one buyer for a particular good or service, giving that buyer
significant power in determining the price of the products produced.
Product Planning and Development
Explain product planning and development
Marketing activities.
- Product development is the process of designing, creating and marketing new products or services to benefit customers. Sometimes referred to as new product development, the discipline is focused on developing systematic methods for guiding all the processes involved in getting a new product to market.
Branding
Explain Branding
2.Branding
is a marketing strategy that involves creating a differentiated name
and image — often using a logo and/or tag line — in order to establish
a presence in the consumer’s mind and attract and keep customers.
is a marketing strategy that involves creating a differentiated name
and image — often using a logo and/or tag line — in order to establish
a presence in the consumer’s mind and attract and keep customers.
Grading
Explain Grading
4. Grading
is the process of sorting individual units of a product into well
defined classes or grades of quality. The goods are graded or sorted out
into different lots in accordance with the specified standards. The
established standards lay down the grades of the product. In case of
manufactured goods, goods can be of uniform quality. But agricultural
products like fruits and vegetables, etc., vary in quality. Therefore,
classes or grades of quality are set and different units of the product
are sorted into the established standard grades. Thus, grading involves
the division of products into classes made up of units possessing
similar characteristics of size and quality.
is the process of sorting individual units of a product into well
defined classes or grades of quality. The goods are graded or sorted out
into different lots in accordance with the specified standards. The
established standards lay down the grades of the product. In case of
manufactured goods, goods can be of uniform quality. But agricultural
products like fruits and vegetables, etc., vary in quality. Therefore,
classes or grades of quality are set and different units of the product
are sorted into the established standard grades. Thus, grading involves
the division of products into classes made up of units possessing
similar characteristics of size and quality.
Standardizing
Explain Standardizing
3. Standardization
refers to the process of setting up basic measures or standards to
which the products must conform and taking steps to ensure that the
goods actually produced adhere to these standards. Standards reflect
desirable features of a product in terms of its design, weight, colour,
etc. Standardization means that goods are of a specified and uniform
quality. Grading is the process of sorting individual units of a product
into well defined classes or grades of quality.
refers to the process of setting up basic measures or standards to
which the products must conform and taking steps to ensure that the
goods actually produced adhere to these standards. Standards reflect
desirable features of a product in terms of its design, weight, colour,
etc. Standardization means that goods are of a specified and uniform
quality. Grading is the process of sorting individual units of a product
into well defined classes or grades of quality.
Standardization
and Grading are interdependent activities. Standardization lay down the
standards or grade of quality. Grading involves classifying the
products into specific lots as per the established standards.
and Grading are interdependent activities. Standardization lay down the
standards or grade of quality. Grading involves classifying the
products into specific lots as per the established standards.
Advantages of Standardization and Grading
Standardization and Grading are useful marketing functions as they offer the following advantages:
- Standardization
and Grading facilitate buying and selling of goods by sample or
description. When goods are of standardized quality, customers do not
insist on detailed inspection. - Standardized goods sell better and fetch a better price to the seller because customers have more faith in them.
- Standardization
and Grading enable the producer to direct the goods of different
qualities towards the market best suited to them. The task of middlemen
becomes easy because they can communicate well the characteristics of
standardized products to customers. - Transportation, storage and advertising expenses can be reduced by handling different grades or lots.
- Standardized goods enjoy a wider market.
- Standardization
and Grading facilitate trading of goods on the commodity exchange.
Hedging, future trading and price comparisons become easy. - Standardization
and Grading helps in raising finance because standardized products
enjoy a ready market and they are readily accepted as a collateral
security for granting loans. - Standardized products can be easily
valued and their prices fluctuate less widely. This helps in making
insurance claims in the event of loss or damages to the goods.
Packing and Packaging
Explain packing and packaging
What is Packing
- Packing is the preparation of a product for storage or transportation.
Packing can be simply defined as the process of wrapping or binding the
product in a manner appropriate for transporting, handling or storing.
In packing, we can use different processes like wrapping, cushioning,
weatherproofing, sealing, etc. The process of packing depends on the
nature of the product. For example, if the product is very fragile, we
use multiple layers of bubble wraps. The noun packing refers to the
material used to protect or cover the product and prevent it from moving
around. Material such as bubble wrap, cardboard, cellophane, foam
packagings, etc. are some examples of packing materials. The purpose of
packing is to provide protection against damage, leakage, pilferage,
etc. Though we are treating packing and packaging as two processes in
this article, it is important to know that packing is part of the
packaging.
What is Packaging
- Packaging is the technique of enclosing or protecting products for sale or transport.
Packaging includes the process of packing, but it does not stop there.
It contains many more steps including sales promotion and marketing.
Packaging is concerned with the manner in which a product is placed in a
container in a safe, comfortable and attractive. It also deals with the
appearance, design, colours that would attract consumers since it plays
a major role in attracting the consumers. - In the past,
packaging consisted of natural materials such as reed baskets, woven
bags, clay jars, wooden barrels, etc. But in the contemporary society
various synthetic items such as plastic and polythene are used for
packaging.
Market Research
Explain Market research
Market research is the process of analyzing data to help you understand which products and services are in demand, and how to be competitive. Market research
can also provide valuable insight to help you: Reduce business risks.
Spot current and upcoming problems in your industry. Identify sales
opportunities.
can also provide valuable insight to help you: Reduce business risks.
Spot current and upcoming problems in your industry. Identify sales
opportunities.
Merchandising
Explain Merchandising
Merchandising
is the activity of promoting the sale of goods at retail.Merchandising
activities may include display techniques, free samples, on-the-spot
demonstration, pricing, shelf talkers, special offers, and other
point-of-sale methods. According to American Marketing Association,
merchandising encompasses “planning involved in marketing the right
merchandise or service at the right place, at the right time, in the
right quantities, and at the right price.”
is the activity of promoting the sale of goods at retail.Merchandising
activities may include display techniques, free samples, on-the-spot
demonstration, pricing, shelf talkers, special offers, and other
point-of-sale methods. According to American Marketing Association,
merchandising encompasses “planning involved in marketing the right
merchandise or service at the right place, at the right time, in the
right quantities, and at the right price.”
Meaning of the Term “Advertisement”
Explain the term “advertisement”
Advertising
is a means of communication with the users of a product or service.
Advertisements are messages paid for by those who send them and are
intended to inform or influence people who receive them, as defined by
the Advertising Association of the UK. Advertising is
always present, though people may not be aware of it. In today’s world,
advertising uses every possible media to get its message through. It
does this via television, print (newspapers, magazines, journals etc),
radio, press, internet, direct selling, hoardings, mailers, contests,
sponsorships, posters, clothes, events, colours, sounds, visuals and
even people (endorsements).
is a means of communication with the users of a product or service.
Advertisements are messages paid for by those who send them and are
intended to inform or influence people who receive them, as defined by
the Advertising Association of the UK. Advertising is
always present, though people may not be aware of it. In today’s world,
advertising uses every possible media to get its message through. It
does this via television, print (newspapers, magazines, journals etc),
radio, press, internet, direct selling, hoardings, mailers, contests,
sponsorships, posters, clothes, events, colours, sounds, visuals and
even people (endorsements).
The
advertising industry is made of companies that advertise agencies that
create the advertisements, media that carries the ads, and a host of
people like copy editors, visualizes, brand managers, researchers,
creative heads and designers who take it the last mile to the customer
or receiver. A company that needs to advertise itself and/or its
products hires an advertising agency. The company briefs the agency on
the brand, its imagery, the ideals and values behind it, the target
segments and so on. The agencies convert the ideas and concepts to
create the visuals, text, layouts and themes to communicate with the
user. After approval from the client, the ads go on air, as per the
bookings done by the agency’s media buying unit.
advertising industry is made of companies that advertise agencies that
create the advertisements, media that carries the ads, and a host of
people like copy editors, visualizes, brand managers, researchers,
creative heads and designers who take it the last mile to the customer
or receiver. A company that needs to advertise itself and/or its
products hires an advertising agency. The company briefs the agency on
the brand, its imagery, the ideals and values behind it, the target
segments and so on. The agencies convert the ideas and concepts to
create the visuals, text, layouts and themes to communicate with the
user. After approval from the client, the ads go on air, as per the
bookings done by the agency’s media buying unit.
Objectives of Advertising
- To introduce a new product by creating interest for it among the prospective customers.
- To support personal selling programmed. Advertising may be used to open customers’ doors for salesmen.
- To reach people inaccessible to salesmen.
- To enter a new market or attract a new group of customers.
- To fight competition in the market and to increase the sales.
- To enhance the goodwill of the enterprise by promising better quality products and services.
Functions of Advertising:
Advertising
has become an essential marketing activity in the modern era of
large-scale production and severe competition in the market.
has become an essential marketing activity in the modern era of
large-scale production and severe competition in the market.
It performs the following functions:
- Promotion of Sales:
Advertising promotes the sale of goods and services by informing and
persuading the people to buy them. A good advertising campaign helps in
winning customers and generating revenues. - Introduction of New Products:
Advertising helps in the introduction of new products in the market. A
business enterprise can introduce itself and its products to the public
through advertising. Advertising enables quick publicity in the market. - Support to Production System:
Advertising facilitates large-scale production. The business firm knows
that it will be able to sell on a large-scale with the help of
advertising. Mass production will reduce the cost of production per unit
by making possible the economical use of various factors of production. - Increasing Standard of Living:
Advertising educates the people about the products and their uses. It
is advertising which has helped people in adopting new ways of life and
giving up old habits. It has contributed a lot towards the betterment of
the standard of living of the society. - Public Image:
Advertising builds up the reputation of the advertiser. Advertising
enables a business firm to communicate its achievements and its efforts
to satisfy the customers’ needs to the public. This increases the
goodwill and reputation of the firm. - Support to Media:
Advertising sustains press. Advertising provides an important source of
revenue to the publishers of newspapers and magazines and the producers
of T.V. programmes.
The Various Types of Advertisements
Point out the various types of advertisements
Types of advertising can be classified as follows:
According to the number of audience to be reached by the media
- Indirect
advertising: This is advertising to the public as a whole e.g by means
of posters as it doesn’t appeal to any specific group of customers. - Direct
advertising: This is advertising in which a product or service appeals
only to a limited number of people e.g. advertising through the press
aim at selling to those who read.
According to the type of goods, audience and customers behavior toward the product.
Informative Advertising
Informative
advertising is often used when launching a new product, or for an
updated or relaunched product. The objective is to develop initial
demand for a good, service, organization, or cause. It is used when a
new product is put on the market on when an old product has been
re-launched or updated.
advertising is often used when launching a new product, or for an
updated or relaunched product. The objective is to develop initial
demand for a good, service, organization, or cause. It is used when a
new product is put on the market on when an old product has been
re-launched or updated.
Informative
advertising will tell the consumer and marketplace about the product,
explain how it works, provide pricing and product information, and
should build awareness for the product as well as the company. The image
of the product and the company should be compatible and complementary.
There should be enough information to motivate the consumer to take some
sort of action.
advertising will tell the consumer and marketplace about the product,
explain how it works, provide pricing and product information, and
should build awareness for the product as well as the company. The image
of the product and the company should be compatible and complementary.
There should be enough information to motivate the consumer to take some
sort of action.
Persuasive Advertising
Marketers
use persuasive advertising to increase the demand for an existing good,
service, or organization. The idea is persuade a target audience to
change brands, buy their product, and develop customer loyalty. After
the purchase, the quality of the product will dictate whether or not the
customer will remain loyal or return to the previous brand.
use persuasive advertising to increase the demand for an existing good,
service, or organization. The idea is persuade a target audience to
change brands, buy their product, and develop customer loyalty. After
the purchase, the quality of the product will dictate whether or not the
customer will remain loyal or return to the previous brand.
Persuasive
advertising is highly competitive when there are similar products in
the marketplace, and products are competing for their share of the
market. In this situation, the winning product will differentiate itself
form the competition and possess benefits that are superior to, or
compete strongly with, the competition. Comparative approaches are
common place, either directly or indirectly.
advertising is highly competitive when there are similar products in
the marketplace, and products are competing for their share of the
market. In this situation, the winning product will differentiate itself
form the competition and possess benefits that are superior to, or
compete strongly with, the competition. Comparative approaches are
common place, either directly or indirectly.
Reminder Advertising
- Reminder
advertising reinforces previous promotional information. The name of
the product, testimonials of past customers, public response, and sales
techniques are repeated in the hopes of reminding past customers and
garnering new ones. It is used to keep the public interested in, and
aware of, a well-established product that is most likely at the end of
the product life cycle.
- https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/advertising-and-public-relations-13/the-advertising-campaign-88/informative-persuasive-and-reminder-advertising-438-219/images/coca-cola-mural/
Coca-Cola is an established brand which uses reminder advertising.
- https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/advertising-and-public-relations-13/the-advertising-campaign-88/informative-persuasive-and-reminder-advertising-438-219/images/coca-cola-mural/
Generic Advertising
is advertising designed to promote name recognition for a firm and
securities as investments, but does not recommend specific securities.
Generic advertising tends to use mass media as a way to promote the
firm. TV, radio, billboard, magazine, newspaper and website ads are
common forms of mass media. The ads highlight the name of the firm, and
perhaps the firm’s contact information as well, and are designed to
generate public awareness of the firm. They will not, however, mention
specific recommendations that the firm is currently making or has made
in the past.
is advertising designed to promote name recognition for a firm and
securities as investments, but does not recommend specific securities.
Generic advertising tends to use mass media as a way to promote the
firm. TV, radio, billboard, magazine, newspaper and website ads are
common forms of mass media. The ads highlight the name of the firm, and
perhaps the firm’s contact information as well, and are designed to
generate public awareness of the firm. They will not, however, mention
specific recommendations that the firm is currently making or has made
in the past.
Advantages and Disadvantages of Advertisements
Mention the advantages and disadvantages of advertisements
Significance of Advertising:
Advertising
helps in spreading information about the advertising firm, its
products, qualities and place of availability of its products and so on.
It helps to create a non-personal link between the advertiser and the
receivers of the message.
helps in spreading information about the advertising firm, its
products, qualities and place of availability of its products and so on.
It helps to create a non-personal link between the advertiser and the
receivers of the message.
The
significance of advertising has increased in the modern era of large
scale production and tough competition in the market. Advertising is
needed not only to the manufacturers and traders but also to the
customers and the society. The benefits of advertising to different
parties are discussed in the following paragraphs.
significance of advertising has increased in the modern era of large
scale production and tough competition in the market. Advertising is
needed not only to the manufacturers and traders but also to the
customers and the society. The benefits of advertising to different
parties are discussed in the following paragraphs.
Benefits to Manufacturers and Traders:
It
pays to advertise. Advertising has become indispensable for the
manufacturers and distributors because of the following advantages:
pays to advertise. Advertising has become indispensable for the
manufacturers and distributors because of the following advantages:
- Advertising
helps in introducing new products. A business enterprise can introduce
itself and its products to the public through advertising. - Advertising develops new taste among the public and stimulates them to purchase the new product through effective communication.
- Advertising assists to increase the sale of existing products by entering into new markets and attracting new customers.
- Advertising
helps in creating steady demand of the products. For instance, a drink
may be advertised during summer as a product necessary to fight
tiredness caused by heat and during winter as an essential thing to
resist cold. - Advertising helps in meeting the forces of
competition in the market. If a product is not advertised continuously,
the competitors may snatch its market through increased advertisements.
Therefore, in certain cases, advertising is necessary to remain in the
market. - Advertising is used to increase the goodwill of the firm by promising improved quality to the customers.
- Advertising
increases the morale of the employees of the firm. The salesmen feel
happier because their task becomes easier if the product is advertised
and known to the public. - Advertising facilitates mass production
of goods which enables the manufacturer to achieve lower cost per unit
of product. Distribution costs are also lowered when the manufacturer
sells the product directly to the customers. Advertising also
facilitates distribution of the product through the retailers who are
encouraged to deal in the advertised products.
Benefits to Customers:
Advertising offers the following advantages to customers:
- Advertising
helps the customers to know about the existence of various products and
their prices. They can choose from the various products to satisfy
their wants. Thus, they cannot be exploited by the sellers. - Advertising educates the people about new products and their diverse uses.
- Advertising
increases the utility of existing products for many people adding to
the amount of satisfaction which they are already enjoying. - Advertising
induces the manufacturers to improve the quality of their products
through research and development. This ensures supply of better quality
products to the customers.
Benefits to Society:
The whole society is benefited because of advertisement in the following ways:
- Advertising
provides employment to persons engaged in writing, designing and
issuing advertisements, and also those who act as models. Increased
employment brings additional income with the people which stimulate more
demand. Employment is further generated to meet the increased demand. - Advertising
promotes the standard of living of the people by increasing the variety
and quality in consumption as a result of sustained research and
development activities by the manufacturers. - Advertising
educates the people about the various uses of different products and
this increases their knowledge. Advertising also helps in finding
customers in the international market which is essential for earning
foreign exchange. - Advertising sustains the press, and other
media. It provides an important source of income to the press, radio and
television network. The customers are also benefitted because they get
newspapers and magazines at cheaper rates. The publishers of newspapers
and magazines are benefitted because of increased circulation of their
publications. Lastly, advertising also encourages commercial art.
The Factors to be Considered when Choosing Advertising Media
Explain the factors to be considered when choosing advertising Media
ADVERTISING MEDIA
Is
the means through which the advertisement is purveyed to the public.The
term media refers in this context to the channels of communication used
by the advertising industries e.g newspapers, television,radio etc.
the means through which the advertisement is purveyed to the public.The
term media refers in this context to the channels of communication used
by the advertising industries e.g newspapers, television,radio etc.
Newspaper
- Newspaper
advertising can promote your business to a wide range of customers.
Display advertisements are placed throughout the paper, while classified
listings are under subject headings in a specific section. - You
may find that a combination of advertising in your state/metropolitan
newspaper and your local paper gives you the best results.
Magazine
- Advertising
in a specialist magazine can reach your target market quickly and
easily. Readers (your potential customers) tend to read magazines at
their leisure and keep them for longer, giving your advertisement
multiple chances to attract attention. Magazines generally serve
consumers (by interest group e.g. women) and trade (industry/business
type e.g. hospitality). - If your products need to be displayed in
colour then glossy advertisements in a magazine can be ideal – although
they are generally more expensive than newspaper advertisements. - Magazines
do not usually serve a small area such as a specific town. If your
target market is only a small percentage of the circulation, then
advertising may not be cost-effective.
Radio
- Advertising
on the radio is a great way to reach your target audience. If your
target market listens to a particular station, then regular advertising
can attract new customers. - However, sound has its limitations.
Listeners can find it difficult to remember what they have heard and
sometimes the impact of radio advertising is lost. The best way to
overcome this is to repeat your message regularly – which increases your
costs significantly. If you cannot afford to play your advertisement
regularly, you may find that radio advertising does not generate strong
results.
Television
- Television
has an extensive reach and advertising this way is ideal if you cater
to a large market in a large area. Television advertisements have the
advantage of sight, sound, movement and colour to persuade a customer to
buy from you. They are particularly useful if you need to demonstrate
how your product or service works. - Producing a
television advertisement and then buying an advertising slot is
generally expensive. Advertising is sold in units (e.g. 20, 30, 60
seconds) and costs vary according to:
- The time slot
- The television programme
- Whether it is metro or regional
- If you want to buy spots on multiple networks.
Directories
- Directories
list businesses by name or category (e.g. Yellow Pages phone
directories). Customers who refer to directories have often already made
up their mind to buy – they just need to decide who to buy from. - The
major advantage of online directories over print directories is that if
you change your business name, address or telephone number, you can
easily keep it up to date in the directory. You can also add new
services or information about your business. - If your target
market uses print and online directories, it may be useful to advertise
in both, although print directories are being used less.
Outdoor and transit
- There
are many ways to advertise outside and on-the-go. Outdoor billboards
can be signs by the road or hoardings at sport stadiums. Transit
advertising can be posters on buses, taxis and bicycles. Large
billboards can get your message across with a big impact. If the same
customers pass your billboard every day as they travel to work, you are
likely to be the first business they think of when they want to buy a
product. - Even the largest of billboards usually contain a
limited amount of information; otherwise, they can be difficult to read.
Including your website address makes it easy for customers to follow up
and find out more about your business. Outdoor advertising can be very
expensive especially for prime locations and supersite billboards.
Direct mail, catalogues and leaflets
- Direct
mail means writing to customers directly. The more precise your mailing
list or distribution area, the more of your target market you will
reach. A direct mail approach is more personal, as you can select your
audience and plan the timing to suit your business. A cost effective
form of direct mail is to send your newsletters or flyers electronically
to an email database. Find out more about direct mail. - Catalogs,
brochures and leaflets can also be distributed to your target area.
Including a brochure with your direct mail is a great way to give an
interested customer more information about your products and services.
Learn more about leaflet marketing using letterbox drops andhandouts.
Online
- Being
on the internet can be a cost-effective way to attract new customers.
You can reach a global audience at a low cost. Many customers research
businesses online before deciding whom to buy from. - A
well-designed website can entice customers to buy from you. There are a
number of ways you can promote your business online via paid advertising
or to improve your search engine rankings. Learn more about doing
business online. - Other ways to advertise your business online
include promoting your products or services on social media sites, blogs
and search engines and other websites that your target audience visits.
Find out more about social media.
OUTDOOR ADVERTISING
Outdoor
advertising means exhibitions of advertisements at street corners,
railways stations, bus stands, on moving vehicles etc intended to
attract the ready attention of the passers by. reach your customers
where they spend so much of their time behind the wheel.
advertising means exhibitions of advertisements at street corners,
railways stations, bus stands, on moving vehicles etc intended to
attract the ready attention of the passers by. reach your customers
where they spend so much of their time behind the wheel.
Benefits of outdoor advertising
- Immediate Awareness
- Your customers will be immediately aware of your message
- Tourists and Travelers Depend on Outdoor Advertising
- Full Color Eye Catching Design as big as the Great Outdoors
- http://www.parkoutdoor.com/advantages.aspx – America On the Road
- Make Outdoor a Major Part of Your Media Mix
- Increased Sales with Just One Glance
Advertising mail, also known as direct mail (by its senders), junk mail (by its recipients), or ad mail,
is the delivery of advertising material to recipients of postal mail.
The delivery of advertising mail forms a large and growing service for
many postal services, and direct-mail marketing forms a significant
portion of the direct marketing industry. Some organizations attempt to
help people opt out of receiving advertising mail, in many cases
motivated by a concern over its negative environmental impact.
is the delivery of advertising material to recipients of postal mail.
The delivery of advertising mail forms a large and growing service for
many postal services, and direct-mail marketing forms a significant
portion of the direct marketing industry. Some organizations attempt to
help people opt out of receiving advertising mail, in many cases
motivated by a concern over its negative environmental impact.
Advertising
mail includes advertising circulars, coupon envelopes (Money Mailer,
Valpak), catalogues, CDs, “pre-approved” credit card applications, and
other commercial merchandising materials delivered to homes and
businesses. It may be addressed to pre-selected individuals, or
unaddressed and delivered on a neighbourhood-by-neighbourhood basis.
https://en.wikipedia.org/wiki/Advertising_mail – cite_note-3
mail includes advertising circulars, coupon envelopes (Money Mailer,
Valpak), catalogues, CDs, “pre-approved” credit card applications, and
other commercial merchandising materials delivered to homes and
businesses. It may be addressed to pre-selected individuals, or
unaddressed and delivered on a neighbourhood-by-neighbourhood basis.
https://en.wikipedia.org/wiki/Advertising_mail – cite_note-3
Factors Governing of Advertising MediaSelection
Selection
of a suitable medium for advertising is really a complex problem to the
advertiser. There area number of kinds and classes of media in the
modern advertising. Hence, the advertising media selection
means not only the choice of the right classes of media out also the
individualmedium within the class or classes. Besides there is no single
medium that is bestsuited for all advertisers. In reality, a medium
which is best suited for one may be almostuseless for another. The
medium once employed for advertising a particular productitself may be
found unsuited subsequently. Therefore, the right choice of a medium
callsfor a careful analysis. If the medium is unsuited the whole amount
of money spent onthe advertising campaign shall turn to be a waste.
of a suitable medium for advertising is really a complex problem to the
advertiser. There area number of kinds and classes of media in the
modern advertising. Hence, the advertising media selection
means not only the choice of the right classes of media out also the
individualmedium within the class or classes. Besides there is no single
medium that is bestsuited for all advertisers. In reality, a medium
which is best suited for one may be almostuseless for another. The
medium once employed for advertising a particular productitself may be
found unsuited subsequently. Therefore, the right choice of a medium
callsfor a careful analysis. If the medium is unsuited the whole amount
of money spent onthe advertising campaign shall turn to be a waste.
The advertiser, therefore, while selecting the media, should consider the followingfactors:
- Class of the audience:
Firstly, the advertiser must note the class of theaudience to be
influenced by the medium. The audience can be classified into
differentgroups by their social status, age, income, educational
standard, religion, culturalinterests. They may also be divided into men
and women. - Extent of coverage: Secondly, the
advertiser must consider the number ofaudience to be covered by the
medium. Every media has a general as well as aneffective circulation.
The general circulation is made up of the total number of peoplewho read
or subscribe to the media. The effective circulation is the number
prospectivecustomers who read it and the number of those who influences
sales, though they maynot buy for themselves. Effective circulation must
be considered while estimating thenumber of people to be covered. The
extent to which the medium reaches the sameaudience as that covered by
some other media i.e., the percentage of over-lapping mustalso be taken
into account. - Nature of the product: Nature of
the product itself is a principal factorgoverning the selection of the
medium. Products can be classified into various kinds –consumer’s
products and manufacturer’s products etc. - Nature of the competition:
The nature of the competition exerts greaterinfluence of the selection
of the media. If the competition is stiff utmost care is needed inthe
selection of medium and a larger advertising budget is also required. In
many caseswhere the advertising copy is similar or the choice of the
media solely determines theeffectiveness of the campaign as compared
with that of the other competitors. - Reputation of the medium:
Newspapers and magazines can offer a beautifulillustration for the
reputation of the media. There are a few newspapers and magazineswhich
have international reputation with a high readership. Advertisements in
suchmagazines and newspapers are generallyrecognizedand believed as
true. Suchadvertisements also add prestige to the product. - Cost of the media:
Cost of the medium in most cases, is an important factor inthe
selection of the medium. Advertisements in certain media are expensive.
Forinstance, TV and Radio advertisements. Magazines and newspaper
advertisements aregenerally considered as less expensive. Yet, certain
magazines and newspapers,having larger circulation and high reputation
charge higher rates. The rates also differdepending upon the space
occupied and the preferential positions. The first page of anewspaper is
rarely missed by the reader. Hence they have more attention value,
thanthe advertisements presented anywhere inside the newspaper. - Time and location of buying decisions:
The location of the audience and thetime by which it should reach them
must also be looked into. This consideration alsoenables the advertiser
to keep his retail outlets in the proximity of the customers.
The Different Types of Marketing Institutions in Tanzania e.g. BET, Chamber of Commerce
Explain the different types of marketing institutions in Tanzania e.g. BET, chamber of commerce
Some of Marketing institutions in Tanzania :
BET (BOARD OF EXTERNAL TRADE)-It is a board Established to promote external trade.
Roles of the board of external trade
- conducting marketing research
- providing trade information to exporters
- training of personnel in foreign trade
- Consultancy service in product adaptation, packaging,costing ang pricing.
Exercise 1
QUIZ
- Discuss the advantages of advertising to a firm.
- Explain the functions of marketing in business.
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