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| APPROACHES OF MARKETING |
- Commodity approach / Product approach
- Functional approach
- Institutional approach
- Managerial or Decision - making approach
- Systems approach
- Legal approach
- Societal approach
- Economic approach
Commodity Approach
Under the commodity approach, we study the flow of a certain commodity and its journey from the original producer right up to the final customer. In such a study, we can locate the center of production, people engaged in buying and selling of the product, mode of transportation, problems of selling and advertising the product, problems of financing it, problem arising out of its storage and so on. Through such an approach, we can find out the differences in marketing producers, services and problems. Thus, we can have a fuller picture of the field of marketing. Marketing of agricultural products such as cotton, wheat, jute represent the commodity approach.
Functional Approach
Under the functional approach, we concentrate our attention on the specialized services or functions, or activities performed by marketers. The study of marketing functions (like, buying, selling, storage, risk bearing, transport financing and providing information) represents the functional approach to the marketing system
Institutional approach
Under the institutional approach, our main interests' centers round the marketing institutions or agencies such as wholesalers, retailers, transport undertakings, banks, insurance companies, etc., who participate in discharging their marketing responsibilities during the movement of distribution of goods. We try to find out how these various business institutions and agencies work together to form a total marketing system.
Managerial or Decision – Making approach
This approach which is of recent origin combines certain features of the commodity, institutional and functional approaches. In this approach, the focus of marketing study is on the decision-making process. The study encompasses discussion of the different underlying concepts, decision influencing factors, alternative strategies and techniques and methods of problem solving.
The systems approach
A system is a set of interacting or interdependent groups coordinated to form unified whole and organized to accomplish a set of objectives. In the model of systems approach we have:
1) Objective 2) Inputs 3) Processor 4) Outputs, and 5) Feedback.
The objectives direct the process. Control monitors the process. Information feedback gives information from internal and external sources, and it is the basis for future change in the system.
An open system has its own environment giving the inputs and accepting the outputs. Inputs are processed, producing outputs to meet the objective, the twin objectives of marketing system are customer satisfaction and profitability. It places emphasis on the inputs to the system and the outputs produced. It helps in the determination of marketing and corporate goals, and the development of marketing program and the total marketing mix.
Adoption of a systems approach provides a good basis for the logical and orderly analysis of marketing activities. It stresses marketing linkages inside and outside the firm. It emphasizes changing environment. It provides a framework for control. It depends on using the right information. Markets can be understood only through study of information.
Legal approach
Legal approach focuses its attention on the legal transfer of ownership of goods to the buyer. It highlights the various legislations that are in force to support marketing system. Acts like Sale of Goods Act, Carrier Act, Construct Act, etc., at national level and Act like Regulated Market Act at state level provide legal aspects of marketing.
Societal approach
Societal approach states that society identifies its own consumption needs and satisfy it accordingly. Modern aspect of marketing – consumer to consumer – is the theme of societal approach. Consumers in the society project their desires, producers produce the products accordingly and sell them to consumers. This is a recent thinking on marketing concept. Societal concept projects the idea that, “society meets its own consumption needs”.
Economic approach
Economic approach considers market forces like demand, supply, price, etc. The market behavior, the types of markets, etc., are considered in this approach.
