Marketing rural product

a. Agricultural products from small scale farmers

Small scale farmers sell most of food crops through either

1. Directly selling the final consumer
2. Selling to traders who then sell to final consumers. But most of cash crops from small scale are sold either
3. To the buying agents who then either sell to the marketing board which also sell in both local and foreign market or To the cooperatives which then sell in both local and foreign market.

b. Agricultural products from large scale farmers

Most of large scale farmers sell cash crops to the marketing boards or directly to the foreign market. Those crops are then sold to processors who them into finished goods which are then sold to final consumers in both local and foreign through wholesalers and retailers.

Meaning of market

Market means anybody a person who are intimate business relations and carry on extensive trans cross in any commodity.

Market

Is a set of arrangements whereby buyers and sellers come into contact to exchange goods and services.

1. Presence of a commodity In the market there must be commodities which have been bought for sale.
2. Presence of Buyers The people who are able and willing to purchase the commodities being sold at particular price and time.
3. Presence of seller The people who have brought their commodities for sale.
4. Presence of an area (region) Refer to a particular locality where the transactions are taking place
5. Price One price should prevail for the same commodity at same time

Refers to the size of the market. The market may be wide or narrow.

Determinants of the size of the market

1. Character of the commodity In order to have a wide market a commodity must be
   • portable
   • durable
   • suitable for sampling, grading and exact description and
   • such as it supply can be increase such commodities are wheat, gold, government security etc. Bulky articles like brick and perishable articles like fresh fruit and vegetable have a narrow market.
2. Nature of demand A commodity which is universal demand e.g. gold & silver will have a wide market similarly, a commodity of general consumption has a wide market.
3. Means of transport and communication The size of the market depends upon the extent to which means of communication and transport have been developed. A properly developed transport and communication system has enabled commodities be carried long distances and establish wide contacts. The has widened the market.
4. Peace and security Obviously, goods cannot marketed in distant places unless peace and order prevail in war-time, due to insecurity in war zones, markets get restricted. The extent of the market depends on the peace prevailing in the region.
5. Currency and credit system If the currency and credit system of the country are well developed marketing can be conveniently and profitably carried on over extensive areas. The extent of the market depends on the state of the currency and the confidence it inspires.
6. Policy of the state Market may be restricted by the policy of the state. Prohibitive duties and quotas restrict the market. The zoning system eg: wheat zones, which allow free movements of goods only within a certain zone has the same effect. Thus the government policy can also affect the extent of the market.
7. Degree of division of labour We know that division of labour is limited by the extent of the market. The converse of this is also true. That is the extent of the market also in its turn depend upon the degree of division of labor the cheaper the articles and wider the market.

There are several ways of classification of markets. Some of these types are

a. Classification of market according to what is bought and sold

1. Product market Deals with selling and buying of final goods eg: markets of sugar, rice beans, etc
2. Factor market Deals with buying and selling of factors of production e.g labor market, capital market, market for land
3. Financial market Deals with selling and buying (exchange) of currencies. The currencies are being sold and bought. Eg. Market for foreign currency in Bureau de change.

b. Classification of market according to the place where the product is bought and sold

1. Local market This occurs when any commodity is produced and sold on local basic eg local brew like "mbege" is sold around the areas of its production.
2. National market It occurs when any commodity is bought & sold in the whole country. Eg. a commodity which faces a national market is soap found throughout Tanzania.
3. International market It occurs when a commodity is bought & sold in many countries of the world eg. medicines fetch international market.

c. Classification of market according to commodity

1. General market This type of market occurs when various commodities are bought & sold at any specific area. Eg we can say Kariakoo is a general market.
2. Specific market It occurs which only one kind of commodity is being bought & sold at any specific area. Eg. Dar es Salaam stock exchange (DSE) where shares are only bought and sold.
3. Grading market This type of market occurs which any commodity is sold & bought according to its grade.

d. Classification of markets according to future

1. Day to day market This type of market occurs when the price of any commodity is determined according to demand and supply condition on any particular day.
2. Short period market It occurs when the price of any commodity is determines according to demand conditions of that short period. In the short period the firm can vary the variable inputs like labor, raw materials, etc. In this case, the supply can't be increased beyond the existing capacity of the present firms.
3. Long period market This kind of market occurs when the price of any commodity is determined according to the long run demand & supply conditions. In the long run period it is possible to change the amounts of any factors of production such as establishing new firms, constructing building etc.

e. Classification of market according to situation & structure of market

Market is based on the buyers and seller degrees, types of commodities which differentiated, and if there are some barrier. Based on this classification market types

1. Perfect market
2. Imperfect market

Perfect market

A market is said to be perfect when all the potential seller and buyer are promptly aware of the price to which transactions take place. This market structure is characterized by the following.

1. Large numbers of buyers and sellers Under this there is a large number of seller & buyers of commodity in the market and therefore a buyer or seller cannot influence anything in the market for example the price and the output.
2. Homogeneous Products The commodity produced by all firms is totally identical in all aspects therefore a buyer has no specific preference to buy from a particular seller.
3. Free entry and exit Any new firm is free to join the market and any already existing firm to leave the market.
4. Perfect knowledge All seller and buyer have full knowledge about the market condition for example the price.
5. Perfect mobility of factors of production Factors of production such as labor and capital are perfect mobile both geographically and occupationally. Mobility of factors of production is essential to enable firms and the industry to achieve an equilibrium position.
6. Profit and utility maximization The major goal of a firm is to maximize profit and that of the buyer to maximize utility.
7. No transportation cost Under this market structure is also assumed that there is no transport cost for example in the movement of goods, raw materials and so on. If cost of transport is to be there, the prices must differ to that existing in different sector of the market.

Manufacturers sell goods to the final consumers in any of the following ways

1. Selling directly to the final consumers through their own retail outlets.
2. Selling to the wholesalers who then sell to small scale retailers who also sell to the final consumers.
3. Selling to the wholesalers who then sell to large scale retailers who have to sell to final consumers
4. Selling to large scale retailers who then sell to final consumers.

The concept of marketing vs market Marketing comes from the term market. Therefore marketing is the total system of interacting business activities designed to product planning, promotion and distribution which will satisfy present and potential buyers of goods or services to be produced. A person who does marketing is known as marketer. OR Marketing is the business process by which products are matched with the market and through which transfer of ownership is affected. OR Marketing refers to central activities of commercial enterprises that engaged in providing goods and services to the market.

WHILE

A market is a place where buyers and sellers meet and exchange will take place. OR Market is the relationship between buyers and sellers and no matter how they communicate each other.

Elements of marketing activities

These are the requirements for marketing process to occur. It involves the following

1. There must be two or more parties to be involved
2. There should be needs or wants to be satisfied
3. There should be products or services to be exchanged and create satisfaction
4. There should be something of value to exchange

Why business firm engage in marketing activities? The importance of marketing in a business firm can be divided into three aspects as follows

1. To the buyers.
2. To the producers (suppliers).
3. To the nation (country's economy).

Importance to the buyers

1. It helps them to get product they require at the right quality, quantity, place, time and vendor (seller).
2. It enables them to get the right information about the product changes, design, views and features.
3. It enables them to get a wider choice (varieties) for the best products among many products of different producers.
4. Enables them to acquire goods or services at an acceptable price.
5. Enable them to benefit from reliable and permanent flow of goods from producers thus stabilize market and price.

Importance to the producers (suppliers)

1. It helps them to sell their products at the right consumers who are ready to buy and pay the price accordingly.
2. It helps them to get information as regards to product they produce whether liked or disliked, whether fast or slow moving items.
3. It enables them to raise the level of productivity hence achieving economies of scale.
4. It enables them to obtain economic value of goods hence provide the business with potential income and surplus.

To the nation

1. It acts as a tool of economic growth of a country.
2. It offers employment opportunities
3. It brings about the integration of various economic sectors like transport, industries.
4. It makes full utilization of resources of existing assets and other products.
5. It contributes to the development of entrepreneur and managerial class of people.

We may classify market into 3 groups

1. According to demand state.
2. According to the nature of products.
3. According to the firm marketing scale.

This classification is based on the nature and level of consumer demand for a product or service

1. Negative Demand Consumers dislike the product and may even pay to avoid it (e.g., dental surgery or vaccinations). Marketing must focus on changing attitudes.
2. Latent Demand There is a strong need or desire, but no existing product meets that need (e.g., a cure for cancer). Marketing must focus on product development.
3. Fluctuating Demand Demand changes due to seasons, time, or trends (e.g., umbrellas during rainy seasons). Marketing must balance and stabilize demand.
4. Irregular Demand Demand varies at different times (e.g., restaurant services or electricity usage). Marketing efforts focus on demand management.
5. Full Demand Demand for a product matches the supply — marketing maintains the status and ensures customer satisfaction.
6. Overfull Demand Demand is higher than the company can handle. Marketing focuses on reducing demand or increasing supply.
7. Wholesome Demand Demand is high and also socially desirable or beneficial (e.g., education, health care). Marketing encourages and supports such demand.

This is based on what kind of product or service is being marketed

1. Primary Marketing Deals with raw materials and agricultural products like coffee, tea, cotton, or minerals — often exported or sold in bulk.
2. Secondary Marketing Involves manufactured or processed goods such as clothes, electronics, or furniture — sold to wholesalers or retailers.
3. Service Marketing Focuses on intangible products, such as banking, insurance, education, or tourism — services are sold instead of physical goods.

1. Local Marketing Selling products within a specific town or small region.
2. National Marketing Marketing and selling products throughout an entire country.
3. International Marketing Marketing that involves foreign countries — includes import and export trade

Marketing functions

Marketing involves a variety of functions, starting from product design to after-sales services. These functions are generally grouped into three main categories

These involve the actual buying and selling of goods

1. Buying and Assembling This refers to purchasing raw materials or finished goods and gathering them from different sources for resale or production.
2. Selling Involves finding customers and persuading them to purchase the goods or services offered. It includes pricing, negotiation, and finalizing transactions.

These are related to handling and movement of goods

1. Storage Goods are stored in warehouses to maintain a steady supply and meet demand at the right time.
2. Transport Goods are moved from the place of production to the market or final consumer. This can involve road, rail, air, or sea transport.
3. Product Planning and Development This includes designing new products or improving existing ones to meet customer needs and compete in the market.

These support the exchange and physical functions

1. Financing Providing the funds needed for marketing activities such as production, promotion, and distribution.
2. Risk-Bearing Involves taking responsibility for losses due to theft, damage, price changes, or perishability of goods.
3. Standardization Ensuring goods meet certain quality or size standards, which helps in pricing and customer satisfaction.
4. Marketing Research Collecting and analyzing data about market trends, customer preferences, and competitors to make informed decisions.
5. Promotion Activities aimed at increasing product awareness and sales, such as advertising, personal selling, sales promotion, and public relations.
6. After-Sales Services Support given to customers after they purchase a product, including installation, repair, maintenance, or feedback handling.

This is the function on which translates the customers demand by making sure production follows market requirement e.g. production of high quality products. Planning is the setting out goals which are to be accomplished in future. It can be forecasting the size of the market, sales volume etc. Development is the conversion of ideas into a physical or recognizable product or improvement over the existing products.

1. BUYING Buying may be done either directly or through middlemen. Through buying the buyer gets the title to the products.
2. ASSEMBLING A collection of goods from different sources at a place for further movements. When goods are bought from different producers scattered over a wide area they are assembled together at a central place.
3. SELLING The primary objectives of marketing is to sell the products at a profit.
4. TRANSPORTATION When there is a distance between the production place and consumption place movements of goods is very essential. Goods are sent to the market through land, sea and air.
5. STORAGE Products are preserved from the time of production to the time of consumption. Production may be during a particular season but demand is regular.
6. FINANCING Funds are required to hold the stocks and to meet the cost of marketing. There are various kinds of finance needed-short term, medium term, long term and sources are commercial banks, cooperative credit societies and other agencies.
7. RISK-BEARING In marketing there arise numerous risk e.g. damage to goods, physical loss, changes in values of goods.
8. STANDARDISATION Division of commodities into distinct groups. Standards are set for providing certain basic qualities to the goods for their use.
9. PROMOTION Is a wide term including advertising, personal selling, sales promotion, publicity and public relations.
10. MARKETING RESEARCH Is objective and systematic collection, recording, analyzing, interpreting, and reporting about existing or potential markets, marketing strategies and tactics to be applied in different markets.

This is a set of techniques for obtaining, analysing and collecting information about the market with a view of planning sales in that market OR Is an action of finding out ideas of the consumers about what they say on product or services produced and consumed by them

Types of marketing research

1. Desk research Is the preliminary research where analysis of published information is made from materials obtained from different publications such as government publications independent research and institutions.
2. Internal research This involves analysis of own records related to the performance of business examples production report, sales report and financial report.
3. Consumer research This is a field survey checking the buying habit and preferences of consumers at the point of sale. It is conducted to obtain the reasons as to what they buy and how they buy.
4. Motivation research This involves establishing true reasons for buying a product and such reasons help the manufactures to base their advertisements campaign and improve quality of goods.
5. Product research It is conducted to determine the acceptability of products in terms of features such as quality, colour, size and tastes.
6. Advertising research Is conducted to determine the popularity and effectiveness of different media. It also provides details about readers, viewers, listeners, and social characteristics.
7. Distribution research Is done to determine (middlemen) are ready (keen) or not ready to distribute manufactured products.

Marketing research helps businesses make informed decisions by collecting and analyzing market-related information. Its main objectives include

1. To Know What Product Can Be Marketed This involves identifying the right product features such as quality, type, packaging, colour, and design based on customer preferences.
2. To Know Who Are the Buyers It helps to understand the target market, including age, income level, social status, occupation, and buying behaviour.
3. To Know How Much to Be Marketed Research determines the demand level, helping businesses plan the right quantity of goods to produce and supply.
4. To Know When Goods Are Bought This reveals buying patterns and seasons, helping in timing production and distribution to match demand.
5. To Know How Goods Can Be Marketed Identifies the most effective selling methods, such as through supermarkets, street vendors, door-to-door selling, online platforms, etc.
6. To Know Who Are the Competitors and How to Compete with Them Research identifies market competitors, their strengths, and weaknesses, allowing the business to develop competitive strategies.

These are the main sources from which businesses collect information to conduct effective marketing research

The following are the sources of information for carrying out marketing research

1. From the Buyers (Consumers) Direct feedback from consumers through surveys, interviews, or observation helps in understanding their needs, preferences, and buying behaviour.
2. Middlemen (Intermediaries) Wholesalers, retailers, and agents provide useful insights about market trends, customer preferences, and product performance since they deal directly with both producers and consumers.
3. Trade Fairs These events bring together many businesses and consumers, offering a chance to observe competitors, showcase products, and gather customer opinions.
4. Trade Associations These are industry-based groups that collect and share data on market conditions, competition, pricing, and innovations relevant to their sector.
5. Chamber of Commerce They provide valuable economic and trade information, including market statistics, business directories, and support for local and international trade.
6. N.B.S (National Bureau of Statistics) This government body publishes official data on population, income levels, production, imports, exports, and other economic indicators useful for market analysis.

What are the steps? In doing market research, the following process or steps/stages should be followed sequentially

1. Defining the Problem and Research Objective This is the first and most important step. It involves identifying what the business wants to find out — for example, why sales are declining or what new product features customers prefer.
2. Developing the Research Plan After defining the problem, the business decides how to collect the data — what sources to use, what tools (e.g. surveys, interviews), and the budget and timeline for the research.
3. Collecting the Information At this stage, the researcher gathers data using the chosen methods — either primary data (from direct sources like customers) or secondary data (from existing reports or publications).
4. Develop Research Design This involves organizing the research approach — deciding whether to use qualitative or quantitative methods, sampling techniques, and how to ensure accuracy and reliability in the research.
5. Analyze the Information The collected data is examined and interpreted using statistical tools or software to find patterns, trends, or insights that can answer the research question.
6. Presenting the Findings (Research Report) Finally, the insights and conclusions are compiled into a research report that helps decision-makers understand the results and take informed action.

The following can be used to get information from different sources. It includes

1. Interview
2. Questionnaire
3. Observation
4. Experiment
5. Survey
6. Mailing

What is research sample? A sample is a unit that is used to provide data (information) required for the problem researched for. Among the samples to be used include

1. Random Sample Every individual in the population has an equal chance of being selected. This method avoids bias and ensures fairness.
2. Cluster Sample The population is divided into groups or clusters (e.g., regions, schools), and then some clusters are randomly selected for study. Useful when populations are large and spread out.
3. Stratified Sample The population is divided into sub-groups (strata) based on specific characteristics (e.g., age, gender), and samples are taken from each stratum to ensure representation of all groups.
4. Systematic Sample Researchers select every nth person from a list. For example, choosing every 5th person in a customer list.
5. Judgmental Sample Also called purposive sampling — the researcher selects the sample based on their knowledge and judgment about who will be most useful or relevant.
6. Convenience Sample The researcher selects people who are easy to reach or available. It is quick and inexpensive but may not represent the whole population well.

This refers to all activities necessary to make available to the market goods or services that will satisfy/ fit the needs of consumers and create demand to them. It includes the following activities

1. Product Planning and Development Deciding what product to sell, its design, features, quality, and how to improve or develop it to meet market demand.
2. Buying and Assembling Selecting and purchasing the right products or raw materials and gathering them from various suppliers for resale or production.
3. Standardizing and Grading Ensuring products meet set quality or size standards (standardizing) and categorizing them based on features like quality, size, or colour (grading).
4. Pricing Setting the right price for the product to balance profitability and customer affordability, while staying competitive in the market.
5. Selling Engaging in activities to transfer ownership of goods from seller to buyer, including personal selling, online sales, or through retail stores.
6. Packing and Packaging Using materials to wrap, protect, and present goods attractively and safely during transport and storage. Packaging also helps in branding and information display.
7. Sales and Promotion Creating awareness and encouraging customers to buy through advertising, discounts, product displays, and other promotional strategies.

a. Product planning and development

Is the strategy used in marketing to identify and design the product according to the buyers needs. Also it involves the process of developing the product into 4 stages of

1. Introduction This is the launch phase where the product is introduced to the market. Sales are generally low because of limited customer awareness, and costs are high due to marketing and distribution efforts. The focus is on creating awareness and educating consumers about the product.
2. Growth In this stage, the product starts to gain acceptance and sales begin to grow rapidly. Competitors may enter the market, but the focus is on building brand loyalty and enhancing product features to maintain a competitive edge.
3. Maturity The product has reached its peak in terms of sales, and the market is saturated. Competition is intense, and companies may introduce variations of the product to differentiate. Profits stabilize or decline, and the strategy focuses on maintaining market share.
4. Declining In the final stage, sales begin to decline due to factors like new technologies, changing consumer preferences, or market saturation. Companies may reduce costs, discontinue the product, or phase it out entirely, depending on profitability.

b. Buying and assembling

What is buying? This is the procurement of goods for final resale to consumers or industrial users. It is a first step in marketing whereby either finished products or assembled items are being done before use What are the methods of buying?

1. Buying by Inspection This method involves physically examining the product before purchasing it. The buyer inspects the quality, condition, and features of the product to ensure it meets their standards or requirements. It's often used for durable goods like machinery or large equipment.
2. Buying by Description In this method, the buyer purchases products based on a detailed description, often found in catalogues, brochures, or advertisements. The buyer relies on the accuracy of the product description, such as size, features, and specifications, rather than physical inspection.
3. Buying by Sample Here, the buyer purchases a representative sample of the product to judge the quality. This method is commonly used for bulk orders of goods like textiles, furniture, or food products, where the buyer examines a sample before committing to larger quantities.
4. Buying by Grade In this method, the product is bought based on a standardized grade or quality classification. The buyer accepts goods of a certain grade, knowing that all items of that grade will meet specific criteria. This method is commonly used for commodities like grains, oil, or livestock.

c. Standardizing and grading

• Standardizing is the way by which products or services can be measured in terms of weight, length and performance in the market.
• Grading is the way of measuring the product in terms of quality and use.

What are the advantages and disadvantages of standardizing and grading?

1. It facilitates quality control.
2. Better price can be obtained for a well graded product.
3. Price can be quoted for buyers goods.

d. Pricing

This is the process of setting/fixing amount of money(value) on product or services in terms of standard or grade. The following mechanisms can be used in setting prices of products or services

1. Discounting pricing
2. Loss leader pricing
3. Discriminatory pricing
4. Odd pricing
5. New product penetration pricing

Discounting Pricing

Setting a price below the cost in looking about bulk purchase, quick payment, quality and seasonal. Therefore; discount pricing can be

1. Trade discount
2. Cash discount
3. Quantity discount
4. Seasonal discount
5. Loss Leader

Setting a price either at or below cost with the intention of inviting people into the shop where they can buy other goods too.

Discriminatory Pricing

Is where the price differ from buyer depending on the frequency for the shop and quantity opt.

Odd pricing

Setting a price at queer number (odd number) for example 9'099 or 9'999'999.

New product planning

Where the product sold at the highest price when is new in order to gain profit for the newness (skimming the cream).

Market Penetration Pricing

Where the product sold at the lowest price when it is new in order to gain famousness.

Selling Concept

This is a personal or impersonal process of assisting or persuading consumers to buy a product or services. Normally selling will involve two important things known as

1. Branding Is a process of designing names, marks, symbols, colour which are given to products.
2. Trade mark Is a brand which is given legal protection, it gives exclusive right to the owner to use the brand after it has been registered.

Brand

Is a name, symbol, term or design mark, colour or combination of them which is used to identify and differentiate goods or services of one seller to the other competitors. What are the advantages of branding to consumers, manufacturers, wholesalers and retailers?

To Consumers

1. Quality goods are easily available.
2. Protect them from price hike (charged more price).
3. Stabilized price.
4. Branded products are mass produced and are easily available.

To Manufacturers

1. Help them to distinguish his products with that of competitors
2. Help them in widening and distribution of products with that of competitors.
3. Easy to control price in the market

To Retailers and wholesalers

1. Less time is required to sell the product
2. It facilitates the introduction of new product that creates demand
3. Assure market demand and control market share

NOTE: Trademark is a brand name that given legal protection therefore, all trademarks are brands but all brands are not trademark

What is packing?

This is the wrapping and crating of goods before they are transported or stored in papers, boxes or bags so as to preserve against wastage, spoilage or damage before delivery to buyers While Packaging is the placing of goods in small packages like containers, boxes, bottles etc before sell to ultimate consumers

Why do we need packaging and packing? (reasons)

1. To protects goods from damage while in transit
2. To prevent the volatile products (dangerous) like gas, spirit, petrol from evaporation
3. To protects goods against spoilage and leakage
4. To protect goods against pilferage i.e minor theft
5. To protect the quality of the goods

What are the qualities of good Package (6Ps)?

1. Proportional size of the package should be proportion to the nature and characteristics of a product.
2. Protection Package must be designed in a such a way that products are protected from damage, evaporation, spoillage, leakage.
3. Promotion A good package should facilitate advertising and sales promotion and be able to be used in displaying.
4. Presentation A package should be presentable in the eye of the customers.
5. Preservation A package should be maintain quality of product over fairly a longer time.
6. Portable A package should be made of materials that can facilitate handling transport and storage of a product e.g. light but durable material.

What are the advantages of packing and packaging of goods?

1. It possess product prestige.
2. It stimulates demand of prospective consumers.
3. It creates product differentiation in the market.
4. Protects products on their way to consumers.
5. Packages ensure hygiene.
6. Packed products are convenient to carry.

This is the way of motivating sales by applying different tools so as to attain higher turnover of product and getting better profit. It includes the following tools

1. Personal Selling Direct communication between a salesperson and a customer to persuade the customer to buy a product. It involves building relationships and answering customer questions.
2. Free Sample Giving out small amounts of a product at no cost to allow potential customers to try before they buy, especially for new or unfamiliar products.
3. Gifts and Rewards Offering bonus items or incentives to customers who purchase certain products, often used to encourage repeat purchases or bulk buying.
4. Trade Fair Organized exhibitions where businesses display and demonstrate their products to potential buyers, often used for networking, marketing, and brand exposure.
5. Publicity Free media coverage or public mention of a product, service, or brand to create awareness or trust, often through news stories, events, or press releases.
6. Advertising Paid promotion of goods or services through mass media (e.g., TV, radio, newspapers, internet) to inform, persuade, or remind customers about the product.

What are the advantages of sales promotion?

1. To Make Product Get Market Sales promotions help introduce new products into the market by attracting customer attention and encouraging them to try the product.
2. To Increase Turnover By boosting short-term sales, promotions lead to faster movement of goods, helping companies generate more revenue.
3. To Create Awareness Promotions inform and remind customers about a product's availability, features, or benefits, increasing public awareness.
4. To Increase Market Share Effective promotions can attract customers from competitors, helping a business grow its customer base and dominate the market.

Is the element that makes the product flow smoothly from where it is produced to where it is consumed in the market. Physical distribution will involve 2 important things

1. Storage
2. Transport

These are activities that help marketing process to be effective. It includes the following

1. Marketing finance
2. Marketing risk

Marketing Finance

Marketing activities will involve the use of capital to meet financial requirements. The main source of finance in marketing will be bank credit and trade credit. Marketing risk Are the elements of uncertainty that may bring loss in marketing. It includes some unpredictable events in future that may create disturbance in marketing. These can be

1. Fall in demand of products
2. Change in market condition
3. Human elements

How to protect marketing from risk?

There are two measures on which can be applied to preserve or minimize risk in marketing in a form of shifting or dividing the risk. It includes the following measures

1. Through insurance
2. Through contract or purchase and sales
3. Through hedging
4. Through speculation

These are tools necessary to make and implement plans to decide what offer to the market, how much to offer and how to do so. Also Marketing mix refers to description of combination of the four inputs which constitute the core of company's marketing system, thus it is combination of the product, the distribution system (place), the price structure and the promotion activities. A brief description of the four elements of marketing mix (4Ps) is

1. Product Anything that can be offered to a market for attention acquisition, use or consumption and that which might satisfy a wants or need. It includes physical goods and services.
2. Price Is the value of commodity in terms of money. It is the amount of money which is needed to acquire or exchange of a product and its accompanying services.
3. Place (distribution system) It is the movement of right quantity of goods to a right place at a right time. This is physical distribution of products from where it is produced to where it is consumed.
4. Promotion Is the communicating information between sellers and potential buyers with the aim of influencing altitude and behaviour. It is a task of informing customers that a particular product is available at a particular place at a particular price and stimulating them to buy.

a. Advertising

A paid form of non-personal presentation of ideas, goods or services by an identified sponsor.

Main features of advertising

1. Paid form of communication
2. Non-personal presentation i.e. No face contact between advertiser and customers.
3. It must be issued by an identified sponsor
4. Purpose is to sell something being a product, service or idea.

b. Publicity

These is free advertising through the mass media used by a company to attract public attention. A firm use unpaid for features in the media to publicize their products.

Advantages of publicity

1. The company incurs no cost for the publicity.
2. It builds the seller's image and goodwill.
3. It has wide coverage due to the use of mass media
4. It is credible as it is reported independently.

Disadvantages of Publicity

1. The media may relate negative information about the business to the public.
2. It is short lived and thus it may be missed by the target group.
3. Only a portion of the information given by the seller may appear in the media or information may be twisted to suit the media's objective.

c. Sales promotion

This refers to strategies or methods used to encourage customers to buy a product. They are direct aimed at increasing the sales of a product.

The methods used includes/Forms of sales promotion

1. Trade fairs and exhibitions Events at which different producers and supplier show and sell their products to the public. Goods are demonstrated and there is immediate feedback from customers.
2. Direct mail This refer to the use of the letters, postcards, greeting cards, catalogues or any other printed matters to get in touch with customers. It is more effective if the right audience is targeted.
3. Free Samples These are representative products of what is actually being sold. They are given to customers to try out or use free of charge. The assumption is that the people who try out such products will actually purchase them in future.
4. Displays Is a systematic and attractive arrangement of products that are sold in a shop. This create ease when selecting what to buy. Most displays use colour and designs to attract customers.
5. Credit facilities Traders normally offer trusted customers credit facilities to encourage them to buy more products. Credit facilities enable the seller to increase sales.
6. Discounts Sellers reduce the prices of some products to encourage customers to make large purchases.

Advantages of sales promotion

1. The strategies used directly target customers.
2. It provides customers with an opportunity to see test the products before deciding to buy.
3. It results in increased sales.
4. It convinces more people to become users of product thus expanding the market.

Disadvantages of sale promotion

1. It can be expensive e.g. use of free sample and gifts.
2. Credit facilities may result in bad debts.
3. Some strategies such as trade fairs displays require a lot of time and some cases the services of specialist such as interior designers and technicians.

Personal selling (salesmanship)

Personal selling (salesmanship) Is the process of assisting and persuading people to buy products in a face to face contact. It involves a direct and personal contact between the buyer and the seller or his representatives. Is an act of presenting a product or services so that the customers appreciate the need for it. This method promotes products using sales persons who approach potential customers and educate them about price, quality and use of a product.

Is a graphic depiction of a product sales history from its marketing inception to its withdrawal from the market. It recognizes different stages in the sales history of the product. Product life cycle is a product life in a particular market. It may be short for some products and long for some other products. Product life cycle is associated with opportunities and problems with respect to marketing strategies and profit potentials. Product life cycle is very useful in formulating better marketing plans.

a. Introduction stage

This stage starts when the new products is first made available for purchase. Characteristics of introduction stage

1. Profit can be negative or low because of low sales and heavy distribution and promotion expenses.
2. High price to cover cost.
3. Few competitors since the market is not ready for product varieties.
4. Usually high income earners are focused.
5. Low output and technological problems.
6. Informative promotion.
7. Pricing strategies used are skimming pricing strategies and or penetration pricing strategy.

b. Growth stage

This is the stage when sales and profits increases rapidly due to new users and repeat buyers (people who have tried the product and being satisfied buy it again)

Characteristics of growth stage

1. More competitors are attracted by large profit.
2. Promotion emphasize on comparing the benefits of its product with competitors
3. Wide distribution as possible.
4. New product features are introduced by competitors.
5. Market expands.
6. Sales increase.
7. Increased numbers of distribution channels due to increased customers.
8. Prices may fall due to increased competition.
9. Promotional expenditures are maintained or increased.
10. Profit increases.

c. Maturity stage

This is a period of slow down and levelling in sales and profits. This stage often lasts longer than the previous ones and it presents plenty of challenges to marketing managers.

Characteristic of maturity stage

1. More competitors (very high competition).
2. Low sales and profits.
3. Price can be reduced.
4. Increasing advertising.
5. Products modification.

d. Declining stage

This is the last stage where sales of most products and brands eventually decline. It involves dropping a product from the product line i.e. a weak product identified and dropped

Characteristics of declining stage

1. Low level of sales and profits as competitors take the market with newly introduced products.
2. Lowered price.
3. Reduced promotion.

Advantages of product life cycle

1. It helps the marketing manager to know the expected profit at each stage.
2. It facilitates the formulation of marketing strategies at each stage.
3. It facilitate economical allocation of resources to different products in a firm.
4. It assists marketing managers to predict levels of sales.
5. Distinct stages of product life cycle (PLC) help marketing managers to recognize opportunities and challenges in the sales history of the product.