COMMERCE A LEVEL(FORM SIX) NOTES – MARKETING

MARKETING

1. Existence of commodities.
2. Existence of buyers and sellers.
3. Existence of price.
4. Competition.

1. According to type of products exchanged

• Primary market.
• Secondary market.

• Local market.
• International market.

• Consumer market.
• Producer market.

• Spot market.
• Future/forward market.

• Cultural grouping.
• Geographical variations.
• Behavioral pattern.
• Social economical variables.

1. To facilitate transactions.
2. Source of supply.
3. Provision of contact between buyers and sellers.
4. Stabilize prices.
5. Motivate and increase production.
6. Self employment like entrepreneurs.

1. Local market: This occurs when any commodity is produced and sold on local basic eg local brew like “mbege” is sold around the areas = of its production.
2. National market: It occurs when any commodity is bought & sold in the whole country. Eg. a commodity which faces a national market is soap found thought Tanzania.
3. International market: It occurs when a commodity is bought & sold in many countries of the world eg. medicines fetch international market.

1. General market

2. Specific market:

3. Grading market

1. Day to day market:

2. Short period market:

3. Long period market:

• Perfect market
• Imperfect market

1. Large numbers of buyers and sellers.

1. Selling directly to the final consumers through their own retail outlets.
2. Selling to the wholesalers who then sell to small scale retailers who also sell to the final consumers.
3. Selling to the wholesalers who then sell to large scale retailers who have to sell to final consumers
4. Selling to large scale retailers who then sell to final consumers.

1. There must be two or more parties to be involved
2. There should be needs or wants to be satisfied
3. There should be products or services to be exchanged and create satisfaction
4. There should be something in value to exchange

• To the buyers.
• To the producers (suppliers).
• To the nation (country’s economy).

1. It helps them to get product they require at the right quality, quantity, place, time and vender (seller).
2. It enables them to get the right information about the product changes, design, views and features.
3. It enables them to get a wider choice (varieties) for the best products among many products of different producers.
4. Enables them to acquire goods or services at an acceptable price.
5. Enable them to benefit from reliable and permanent flow of goods from producers thus stabilize market and price.

1. It helps them to sell their products at the right consumers who are ready to buy and pay the price accordingly.
2. It helps them to get information as regards to product they produce whether liked or disliked, whether fast or slow moving items.
3. It enables them to raise the level of productivity hence achieving economies of scale.
4. It enables them to obtain economic value of goods hence provide the business with potential income and surplus.

1. It acts as a tool of economic growth of a country.
2. It offers employment opportunities
3. It brings about the integration of various economic sectors like transport, industries.
4. It makes full utilization of resources of existing assets and other products.
5. It contributes to the development of entrepreneur and managerial class of people.

1. According to demand state.
2. According to the nature of products.
3. According to the firm marketing scale.

1. Negative demand.
2. Latent demand.
3. Flattering demand.
4. Irregular demand.
5. Full demand.
6. Overfull demand.
7. Wholesome demand.

1. Primary marketing.
2. Secondary marketing.
3. Service marketing.

1. ACCORDING TO THE FIRM MARKETING

1. Macro marketing.
2. Micro marketing.

1. Exchange functions.

1. Desk research: is the preliminary research where analysis of published information is made from materials obtained from different publications such as government publications independent research and institutions.
2. Internal research: This involves analysis of own records related to the performance of business examples production report, sales report and financial report.
3. Consumer research; this is a field survey checking the buying habit and preferences of consumers at the point of sale.it is conducted to obtain the reasons as to what they buy and how they buy.
4. Motivation research: This involves establishing true reasons for buying a product and such reasons help the manufactures to base their advertisements campaign and improve quality of goods.
5. Product research: It is conducted to determine the acceptability of products in terms of features such as quality, colour, size and tastes.
6. Advertising research: is conducted to determine the popularity and effectiveness of different media. It also provides details about readers, viewers, listeners, and social characteristics.
7. Distribution research:is done to determine (middlemen) are ready (keen) or not ready to distribute manufactured products.

1. To know what product can be marketed i.e. right quality, type, packing, color etc.
2. To know who are the buyers i.e. age, status, purchasing power, economic group etc.
3. To know how much to be marketed i.e. the amount to be supplied accordingly.
4. To know when goods are bought i.e. the right time to supply the products.
5. To know how can the goods be marketed i.e. the selling techniques to be applied e.g. super markets, peddlers etc.
6. To know who are the competitors and how to compete with them.

• From the buyers (consumers)
• Middlemen (intermediaries)
• Trade fairs
• Trade association
• Chamber of commerce
• N.B.S (National Bureau Statistics)
• Other sources

1. Defining the problem and research objective
2. Developing research plan
3. Collecting the information
4. Develop research design
5. Analyze the information
6. Presenting the findings (research report)

1. Interview
2. Questionnaire
3. Observation
4. Experiment
5. Survey
6. Mailing

• Random sample
• Cluster sample
• Stratified sample
• Systematic sample
• Judgmental sample
• Convenience sample

1. Product planning and development
2. Buying and assembling
3. Standardizing and grading
4. Pricing
5. Selling
6. Packing and packaging
7. Sales and promotion

1. Introduction
2. Growth
3. Maturity
4. Declining

1. Buying by inspection
2. Buying by description
3. Buying by sample
4. Buying by grade

1. It facilitates quality control.
2. Better price can be obtained for a well graded product.
3. Price can be quoted for buyers goods.

1. Discounting pricing
2. Loss leader pricing
3. Discriminatory pricing
4. Odd pricing
5. New product penetration pricing

1. Discounting Pricing

• Trade discount
• Cash discount
• Quantity discount
• Seasonal discount
• Loss Leader

1. Discriminatory Pricing

• Quality goods are easily available.
• Protect them from price hike (charged more price).
• Stabilized price.
• Branded products are mass produced and are easily available.

• Help them to distinguish his products with that of competitors
• Help them in widening and distribution of products with that of competitors.
• Easy to control price in the market

• -Less time is required to sell the product
• -It facilitates the introduction of new product that creates demand (dd)
• -Assure market demand and control market share

6. PACKING AND STORING PACKAGING

• To protects goods from damage while in transit
• To prevent the volatile products (dangerous) like gas, spirit, petrol from evaporation
• To protects goods against spoilage and leakage
• To protect goods against pilferage i.e minor theft
• To protect the quality of the goods

1. Proportional: size of the package should be proportion to the nature and characteristics of a product.
2. Protection:Package must be designed in a such a way that products are protected from damage,evaporation, spoillage,leakage.
3. Promotion A good package should facilitate advertising and sales promotion and be able to be used in displaying.
4. Presentation; A package should be presentable in the eye of the customers.
5. Preservation; A package should be maintain quality of product over fairly a longer time.
6. Portable; A package should be made of materials that can facilitate handling transport and storage of a product e.g. light but durable material.

1. It possess product prestige.
2. It stimulates demand of prospective consumers.
3. It creates product differentiation in the market.
4. Protects products on their way to consumers.
5. Packages ensure hygiene.
6. Packed products are convenient to carry.

7. SALES AND PROMOTION

1. Personal selling
2. Free sample
3. Gifts and rewards
4. Trade fair
5. Publicity
6. Advertising

1. To make product get market
2. To increase turnover
3. To create awareness
4. Increase market share

1. Storage
2. Transport

1. Marketing finance
2. Marketing risk

1. Fall in demand of products
2. Change in market condition
3. Human elements

1. Through insurance
2. Through contract or purchase and sales
3. Through hedging
4. Through speculation

1. Trade fairs and exhibitions. Events at which different producers and supplier show and sell their products to the public. Goods are demonstrated and there is immediate feedback from customers.
2. Direct mail. This refer to the use of the letters,postcards,greeting cards, catalogues or any other printed matters to get in touch with customers. It is more effective if the right audiance is targeted.
3. Free Samples. These are representative products of what is actually being sold. They are given to customers to try out or use free of charge. The assumption is that the people who try out such products will actually purchase them in future.
4. Displays. is a systematic and attractive arrangement of products that are sold in a shop. This create ease when selecting what to buy. Most displays use color and designs to attract customers.
5. Credit facilities. Traders normally offer trusted customers credit facilities to encourage them to buy more products. Credit facilities enable the seller to increase sales.
6. Discounts. Sellers reduce the prices of some products to encourage customers to make large purchases.

1. Profit can be negative or low because of low sales and heavy distribution and promotion expenses.
2. High price to cover cost.
3. Few competitors since the market is not ready for product varieties.
4. Usually high income earners are focused.
5. Low output and technological problems.
6. Informative promotion.
7. Pricing strategies used are skimming pricing strategies and or penetration pricing strategy.

1. Low level of sales and profits as competitors take.
2. The market with newly introduced products.
3. Lowered price.
4. Reduced promotion.

1. It helps the marketing manager to know the expected profit at each stage.
2. It facilitates the formulation of marketing strategies at each stage.
3. It facilitate economical allocation of resources to different products in a firm.
4. It assists marketing managers to predict levels of sales.
5. Distinct stages of product life cycle (PLC) help marketing managers to recognize opportunities and challenges in the sales history of the product.