Attempt the following.
1) Give classification of the market in detail on the basis of ‘Volume of Transaction’
Ans: Classification of Marker On the Basis of Volume of Transaction is as follows:
a) Wholesale Market :
In the wholesale market, the activity of buying and selling goods is undertaken in large quantities at cheaper prices. Goods are sold to retailers who then sell them to the consumers. It refers to the market for bulk purchase and sale of goods. In such a market seller are known as wholesalers and buyers are known as retailers.
b) Retail Market :
The retail market is the market where the retailer sells goods directly to the consumer in small quantities.
2) Give classification of the market on the basis of ‘Time’
Ans: Classification of Marker On the Basis of Time is as follows:
a) Very Short Period Market:
This type of market has a very short time existence viz., for a few hours or for a day at a particular time and place. In this type of market perishable goods such as vegetables, fruits, milk products, etc. are sold.
b) Short Period Market:
This type of market has existed for a short period viz. weekly markets, festival market, market during fairs, etc. Perishable or semi-durable goods are sold in this market.
c) Long Period Market:
This type of market has existed for long period. In this type of market durable commodities that are generally non-perishable in nature are sold.
3) Explain packaging and labeling
Ans:Package and Label create the first impression on the consumer about the product. Attractive packages and labels can help to make the product successful. Packaging means designing the package for the product. It helps to avoid breakage, damage, and destruction of the product.
Packing material includes bottles, containers, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam, etc.
A label is a slip which is found on the product and provides all the information regarding the product and its producer. The slip-on in which all this information is provided is called a label and its process is called labeling. Packaging and labeling not only provide protection to the product but also act as an effective tool for marketing.
4) Explain standardization and grading.
Ans: Standardization means to determine standards related to process, size, quality, design, weight, color, etc. of the product. It helps in ensuring uniformity in the quality of the product. It helps in achieving customers’ loyalty towards the product.
Grading is the process of classification of products according to similar characteristics and/or quality. Grading is done on the basis of their features like size, shape quality, etc. Generally grading is done in the case of agricultural products like wheat, rice, potatoes, etc.
5) Explain the importance of marketing to the firm.
Ans: The importance of Marketing to the Firm are as follows:
1) Increases Awareness:
Marketing helps in creating awareness about the existing products, new arrivals as well as the company which sells a particular product in the market. This raises awareness among potential consumers. It creates a brand image among consumers.
2) Increases Sales:
Once marketing creates awareness about the products or services among the consumers, it attracts them to purchase the same. A successful marketing campaign helps to increase the sales of the organization. An increase in sales generates profit for the organization. This income and profit are reinvested in the business to earn more profits in the future. In modern business, the survival of the organization depends on the effectiveness of the marketing function.
3) Creates Trust:
People want to buy from a business that has a trustworthy reputation. Creating trust among the customers is a time-consuming process. Creating trust among the consumers helps the business to earn loyal customers. Once your business can establish this trust with your clients, it creates customer loyalty. Happy customers enhance the brand image in the market.
4) The basis for Making Decisions:
From the inception of an idea to delivering the final product to the customer, the businessman has to make several decisions. The businessman has to look after many problems such as what, how, when. How much and for whom to produce? As the scale of operation increases, these decisions become more complex. Marketing helps to make the right decision at right time.
5) Source of New Ideas:
Marketing helps businesses to understand the needs of the consumers. Feedbacks from the consumers help in the improvement of the existing products. There is a rapid change in the tastes and preferences of people. Marketing helps in understanding these changes. It helps to understand the new demand pattern that emerged in the market. The Research and Development department develops products accordingly.
6) Tackling the Competition:
There is increasing competition in almost all sectors of the economy. It is difficult for any business to create a monopoly for its products and services. The role of marketing is important to create a brand image in the minds of potential customers. Marketing not only helps to communicate the products and services to the consumers but also motivates them to buy the same.