Standardization plays an important role in marketing. It makes selling and buying functions easy and more effective. Mostly, buying and selling of products is done on the basis of grade or mark. If quantity, size, quality of goods is already known, only price remains to be negotiated.
The goods which are not standardized, should be bought and sold by inspection. It limits the scope of market. If the goods are standardized and graded, the customers even living far from the seller or distributor can buy goods only by seeing sample, standard name. If the goods are not standardized, there remains possibility for the customers to be cheated on the one hand and seller cannot earn goodwill on the other.
We can examine the role, importance and advantages of standardization in marketing from the viewpoint of seller, customer and society.
The importance and advantages of standardization of consumers' point of view can be mentioned as follows:
The importance and advantages of standardization from seller's point of view can be mentioned as follows:
The goods which are not standardized, should be bought and sold by inspection. It limits the scope of market. If the goods are standardized and graded, the customers even living far from the seller or distributor can buy goods only by seeing sample, standard name. If the goods are not standardized, there remains possibility for the customers to be cheated on the one hand and seller cannot earn goodwill on the other.
We can examine the role, importance and advantages of standardization in marketing from the viewpoint of seller, customer and society.
1. Importance And Advantages Of Standardization From Consumers' Viewpoint
The importance and advantages of standardization of consumers' point of view can be mentioned as follows:
i. Buying Facility
Customers can buy standardized goods easily. The customers need to inspect all the goods which are not standardized or graded. The customers can buy standardized goods without looking, inspecting or by looking sample or from description.
ii. Using Facility
Using method, instruction and composition of standardized goods are given; this makes the consumers feel easy to use. Necessary repair facility also is provided for some goods.
iii. Protection
Customers do not have to suffer cheating from seller with standardized goods. They can remain protected from adulteration and exploitation from seller. As quality of the goods is already known, standardization minimizes quality related risk.
iv. Fair Price
Since quality, measure, size of the product are known, the customers can buy goods with fair price after studying the market price.
v. Market Information
Customers can get short description and information about standardized goods through advertisements, other buyers and different sources. The customers become able to take proper buying decisions as they can get information about prices, relative advantages, durability etc. of standardized goods.
2. Importance And Advantages Of Standardization From Seller's View Point
The importance and advantages of standardization from seller's point of view can be mentioned as follows:
i. Selling Facility
The goods which are standardized become very easy for sellers to sell. No inspection is needed to sell such goods; they can be sold out only by looking sample or description. The sellers do not have to bother about showing sample or giving description if they are graded.
ii. Wider Market
Determining standard of products, and grading them is the foundation of an organized, open and wider market. This develops and expands market of any products. As the products are not needed to be inspected, the customers even of far-off places send purchase order on the basis of standard, grade, size, measurement etc.
iii. Loan Facility
As the standardized goods have ready-market and fluctuation of price may be exceptional, banks easily accept such goods as security to provide loans.
iv. Increase In Goodwill
As standardized goods have certain quality, quantity and price; goodwill of the sellers of such goods increases. They can earn more profit from selling high quality goods.
3. Importance And Advantages Of Standardization From Society's Viewpoint
Society can also get different benefits from standardized goods. The importance and advantages of standardization from the point of view of society can be mentioned as follows:
3. Importance And Advantages Of Standardization From Society's Viewpoint
Society can also get different benefits from standardized goods. The importance and advantages of standardization from the point of view of society can be mentioned as follows:
i. Mass Production
The society can get standard quality goods at lower price from mass production of the same standard and same grade goods.
ii. Market Information
As the producers and trade associations publish information and messages about standardized goods in business bulletins, newspapers etc. conscious society know everything about the quality, standard, measurement, using method of the goods etc.
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iii. Protection
There does not remain any risk for the society to be cheated by the sellers in buying standardized goods. Every buyer knows the quality, standard and price of the goods. The society remains protected from any adulteration in the standardization goods.
iv. Employment Creation
When demand for standardized goods increases, the firm should to intensify the process of production and distribution. For doing so more manpower is needed. The unemployed of the society can get employment in the firm. Hence the society can increase income and make their living standard better from employment.
