Theory question 108
MarketingCommerce 2 (answer five questions)
(a) What is marketing?
(b) Distinguish between marketing and selling
(c) Explain five functions of marketing
Show the model answer
(a) Marketing is the whole process of finding out consumers' needs and getting the right goods and services to them, at the right price, place and time, at a profit.
(b) Marketing begins before production (research, product design) and continues after the sale (after-sales service); selling is only the exchange of goods for money. Marketing focuses on the needs of the buyer; selling on the needs of the seller to turn goods into cash. Marketing creates time, place, form and possession utility; selling creates mainly possession utility. Selling is only one part of marketing.
(c) Any five explained: market research; product planning and development; pricing; promotion (advertising, sales promotion, personal selling); distribution – transport, warehousing, channels; buying and assembling; standardisation and grading; packaging and branding; financing (credit to buyers); risk bearing; after-sales service.
In (b) give several points of contrast.