Theory question 109
MarketingCommerce 2 (essay)
(a) What is a market?
(b) Explain four ways by which marketing is important to the economy
(c) State five functions of marketing
Show the model answer
(a) A market is any arrangement by which buyers and sellers of a commodity come into contact to exchange it at a price; it need not be a particular place.
(b) Any four, explained: links production with consumption so goods reach consumers; creates employment (sales, advertising, transport); encourages mass production and economic growth; raises standards of living by making goods available; finds out consumers' needs (market research), so resources are not wasted; earns revenue/foreign exchange; encourages competition and quality.
(c) Any five: buying; selling; transportation; storage/warehousing; standardisation and grading; financing; risk bearing; market research/information; advertising and promotion; packaging.
A market is defined by contact between buyers and sellers, not a place.