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Lec 6

The document discusses the marketing process and its key components of concentration, dispersion, and equalization. It describes concentration as collecting products in a central location for reasons like small producer outputs, enabling other marketing services, and value addition. Dispersion distributes goods from the central location to manufacturers, processors, and final consumers through distribution channels. Equalization reconciles supply and demand through storage and transportation to ensure regular supply of goods in the needed quantities, qualities, locations and times.

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272 views27 pages

Lec 6

The document discusses the marketing process and its key components of concentration, dispersion, and equalization. It describes concentration as collecting products in a central location for reasons like small producer outputs, enabling other marketing services, and value addition. Dispersion distributes goods from the central location to manufacturers, processors, and final consumers through distribution channels. Equalization reconciles supply and demand through storage and transportation to ensure regular supply of goods in the needed quantities, qualities, locations and times.

Uploaded by

Lav Vicky
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Marketing process –

Concentration, Dispersion
And Equalization
Marketing Process
• Marketing process is the sequence of events and actions that coordinate the
flow of goods and value adding activities in the marketing system
• The marketing process brings together producers and consumers for the
exchange of the product
• The exchange takes place when market offering is acceptable to the
consumer
• In the process of exchange, both parties i.e. producer-sellers and consumers
derive some gains
• Producer-profit
• Consumer-Utility/satisfaction
Marketing process

• Concentration
• Dispersion
• Equalization
Concentration
It aims at the collection of products at a central place.

Reason for concentration:


Small Lot of Output -Goods marketed in natural form have producers
scattered –assemble them at a central place for consumers-
eg.milk,fruits,vegetables
To make other marketing services-grading ,standardization-rice, wheat,
cotton etc.
OUT OF STOCK
To make value addition –incase of cut flowers
To ensure regular supply for consumers-Wholesalers,agents etc.
Dispersion

• The goods or products, assembled at a central place, have to be


distributed to the consumers.
• Some of the products are dispersed to manufacturers or processors
and the remaining goods are dispersed to the final consumers
through a chain of wholesalers, retailers, agents, middlemen etc
• Dispersion is essential, because the buyers are scattered or located
not near the firm or in a concentrated place
• The purpose of production and its concentration aims at finding
consumers at profitable and accepted price.
Equalization
• It implies the reconciliation between demand and supply
through storage and transportation, in needed quantity
and quality at the required time and place.
Adjustments of supply to demand are effected
• Equalization aims at regular supply of goods
• Goods produced in particular season, but consumed
throughout the year, e.g., paddy, wheat, jawar, fruits,
vegetables etc.
• Seasonable demand: but production takes place
continuously.
• For example, rain coats, umbrellas, sweaters, woollen
socks, mufflers etc.
• Transport ------equalization of supply, place-wise
• warehousing ------equalization of supplies, time-wise.
Concentration, dispersion and equalization constitute the soul of
marketing.

All the functions are performed by middlemen.

Each process –equally important and interdependant


LEC 7: Exchange Functions
– Buying And Selling
Marketing Functions

• Any single activity performed in carrying a product from the point of


its production to the ultimate consumer may be termed as a
marketing function.
Thomsen Classification
Primary Functions
• Assembling or procurement
Tertiary Functions
• Processing
• Banking
• Dispersion or Distribution
• Insurance
Secondary Functions
• Communications – posts & Telegraphs
• Packing or Packaging
Supply of Energy – Electricity
• 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
Kohls and Uhl-
Physical Functions
• Storage and Warehousing
• Grading Processing Transportation
Exchange Functions
• Buying
• Selling
Facilitative Functions
• Standardization of grades
• Financing Risk Taking
• Dissemination of Market Information
Buying and selling
• At every stage, buyers and sellers come together, goods are
transferred from seller to buyer, and the possession utility is added to
the commodities.
• The number of times the selling and buying activity is performed
depends on the length of the marketing channel.
• Buyers-what to buy, when to buy, from where to buy, how to buy and
how to settle the prices and the terms of purchase.
• Sellers-when to sell, where to sell, through whom to sell, and
whether to sell in one lot or in parts.
Methods
• Under Cover of a Cloth (Hatha System)
• Private Negotiations
• Quotations on Samples taken by Commission Agent
• Dara Sale Method (Different quality lots mixed and sold)
• Moghum Sale Method (Farmers-Get advance from traders-liable to sell it
to same traders)
• Open Auction Method
• Close Tender System

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