5. Concentration
• The first process of marketing is concentration.
• Concentration aims at the collection of products at a central
place.
• Collecting different variety of goods which are being
produced at different places.
6. Dispersion
• Dispersion is that business activity in which the goods flow
from the central locations to the final consumers.
• The wholesalers and retailers play a great role in this
activity.
• Distribution or reaching the goods from the place of
distribution to the place of final utiliser timely according to
the needs of consumers.
8. Equalisation
• Equalisation refers to the adjustment of supply to demand on the basis of
time, price, quality, and quantity.
Demand = Supply
• Equalization aims at regular supply of goods which are produced in
particular season, but consumed throughout the year, e.g., paddy, wheat,
jawar, fruits, vegetables etc.
• Similarly some types of goods have only seasonable demand: but
production takes place continuously. For example, rain coats, umbrellas,
sweaters, woollen socks, mufflers etc.
• This equalization facilitates regular supply.
9. MARKETING FUNCTIONS
• Any single activity performed in carrying a product from
the point of its production to the ultimate consumer may be
terms as marketing function.
• Four dimensions – time, space, form and exchange.
• The marketing functions involved in the movement of goods
from the producer to its ultimate consumer vary from
commodity to commodity, market to market, country to
country and the final form of consumption.
10. MARKETING FUNCTIONS - Classification
• Thomsan Classification
Primary Functions Secondary Functions Tertiary Functions
•Processing
•Dispersion or Distribution
•Packing or Packaging
•Transportation
•Grading, Standardization and
Quality Control
•Storage and Warehousing
•Price Determination or Discovery
•Risk Taking
•Financing
•Buying and Selling
•Demand Creation
•Dissemination of Market
Information
•Banking
•Insurance
•Communications – posts &
Telegraphs
•Supply of Energy – Electricity
11. MARKETING FUNCTIONS - Classification
• Kohls and Uhl Classification
Physical Functions Exchange Functions Facilitative Functions
•Storage and Warehousing
•Grading
•Processing
•Transportation
•Buying and Selling •Standardization of Grades
•Financing
•Risk Taking
•Dissemination of Market
Information
12. MARKETING FUNCTIONS - Classification
• Huegy and Mitchell Classification
Physical Movement
Functions
Ownership Movement
Functions
Market Management Functions
•Storage
•Packing
•Transportation
•Grading
•Distribution
•Determining Need
•Creating Demand
•Finding Buyers and Sellers
•Negotiation of Price
•Rendering Advice
•Transferring the Title to
Goods
•Formulating Policies
•Financing
•Providing organization
•Supervision
•Accounting
•Securing Information
13. Buying and selling
• Buying and selling is the
most important activity in
the marketing process.
• At every stage, buyers and
sellers come together, goods
are transferred from seller
to buyer and the possession
utility is added to the
commodities.
14. Buying
• The buying activity involves
the purchase of the right
goods, at the right time, in
the right quantities and at
the right place.
• It involves the problems of
what to buy, when to buy,
from where to buy, how to
buy and how to settle the
price and the terms of
purchase.
15. Selling
• The selling activity involves personal
or impersonal assistance to or
persuasion of a prospective buyer to
buy a commodity.
• The objective of selling is to dispose
of the goods at a satisfactory price.
Selling involves problems of when to
sell, where to sell, through whom to
sell and whether to sell in one lot or
in parts.
16. METHODS OF BUYING AND SELLING
• Haltha system (under cover of a cloth)
- price of the produce is determined by
pressing/ twisting the fingers.
• Price negotiations - prices are fixed by
mutual agreement. This method is
common in unregulated or village
markets.
17. METHODS OF BUYING AND SELLING
• Quotations on samples taken by
commission agent - Here the
commission agents take the sample to
the buyer. The price is offered by the
buyers. The produce is given to the one
whose bid has been the highest.
• Dara sale methd - the produce in
different lots is mixed and then sold as
on lot. The advantage of this method
is that, within a short time, a large
number of lots are sold off.
18. METHODS OF BUYING AND SELLING
• Moghum sale method - the sale of
produce is effected on the basis of a
verbal understanding between buyers
and sellers without any pre-settlement
of price. This method is common in
villages, for farmers are indebted to
the local moneylenders.
• Open auction method - the prospective
buyers gather at the shop of the
commission agent around the heap of
the produce, examine it and offer bids
loudly. The produce is given to the
highest bidder after taking the consent
of the seller.
Buyers Sellers
19. METHODS OF BUYING AND SELLING
• Closed tender system - This is similar
to open auction, except that bids are
invited in the form of a closed tender
rather than by open announcement.
The produce displayed is allotted lot
numbers. The buyers inspect the lot,
offer a price for the lot in a paper and
deposit the paper in a sealed box.
When auction time is over, the sealed
box is opened and the highest bidder
should take delivery of the produce.