The main approaches to study marketing are as follows:
1. Commodity Approach
Under this approach, the flow of goods from the producers to the consumers is studied. In this study, emphasis is given to production center, involvement of men in selling and purchasing of the products, means of transportation, problems in sale and advertisement of goods, problems in financing, storing and other related matters. The commodity approach of marketing is related to demand and supply of commodity.
This approach is also related to channel of distribution and transportation . So, this approach establishes marketing system for products. It finds out necessary principle, strategy and technology for marketing goods and services. The commodity approach of marketing is practiced mostly in agricultural products, in cotton, jute, wheat, etc.
Functional approach of marketing indicates the study of the functions of marketing. Whatever function the marketing performs is called marketing as a whole. Marketing performs exchange function, physical distribution function and other auxiliary functions. The study of these functions is marketing.
Exchange Functions:
Physical Distribution Function:
Institutional approach of marketing emphasis to the study of marketing institutions and agencies. Wholesalers, importers, transporters, exporters, business agents, transport organization, banks, insurance companies, finance companies etc. play their roles in marketing by supplying or distributing commodities from producers to the consumers. So, the institutional approach centers its study to them. The study, 'how these different institutions and agencies function together for marketing system' is the institutional approach of marketing.
2. Functional Approach
Functional approach of marketing indicates the study of the functions of marketing. Whatever function the marketing performs is called marketing as a whole. Marketing performs exchange function, physical distribution function and other auxiliary functions. The study of these functions is marketing.
Exchange Functions:
Exchange function of marketing include purchasing and selling. These are the basic functions of marketing.
Physical Distribution Function:
Physical distribution function includes transportation and storage. These functions transport goods/products to right place at right time as desired by the customers.
Auxiliary Function:
The auxiliary functions of marketing include, standardization and classification, financing, labeling, packaging, risk bearing, information flow etc. These functions simplify the exchange function.
The functional approach of marketing is related to the study of flow of commodities and concerned organizations. It gives more emphasis to the functions that should be done by marketing. But it does not care the consumers' need and wants and gives less importance to the use of the functions of marketing.
3. Institutional Approach
Institutional approach of marketing emphasis to the study of marketing institutions and agencies. Wholesalers, importers, transporters, exporters, business agents, transport organization, banks, insurance companies, finance companies etc. play their roles in marketing by supplying or distributing commodities from producers to the consumers. So, the institutional approach centers its study to them. The study, 'how these different institutions and agencies function together for marketing system' is the institutional approach of marketing.
The institutional approach gives emphasis to the institutions involved in marketing. These institutions achieve different expertise in marketing activities. The cost of marketing can be reduced by selecting proper institutions. Even then this approach cannot give complete meaning of marketing and does not care the need and wants of costumers.
System approach of marketing supposes marketing as a system which includes input, processing, output and feedback. Goods, price, place and promotion are included in input of this system. Environmental effect and buyers' decision are included in processing. Similarly, profits, costumer's satisfaction and social welfare are included in output and the task of sending message asking for redesigning input and processing fall under feedback
According to environmental approach, environment affects marketing. So, marketing should be made suitable to the environment by studying and scanning the environment. Environment always becomes dynamic. It changes continuously . So, it also appears both as an opportunity and as a challenge. The environment of marketing can be classified into two types as micro-environment and macro-environment.
Macro-environment Of Marketing
Managerial approach of marketing advocates the scientific management of marketing. This approach gives more importance to the activities of managers and managerial decisions on marketing. This approach gives high priority to goal achievement and emphasizes that the marketing managers should always remain active to achieve the goal. These functions are based on planning, implementation and controlling.
The economic approach of marketing gives emphasis on increase of profit maximization. Buyers and sellers are the important components of marketing. Price of commodities or service is fixed through their interactions and action of selling and buying completes. Marketing helps how to utilize limited resources to fulfill the unlimited needs and wants. It researches markets, studies and analyzes demand and supply. It gives emphasis on salesmanship. Similarly it believes in sales promotion through advertisement and other promotional activities. It uses different economic tools in market research and analyzing demand and supply. So, this approach is popular among economists.
Legal approach advocates that marketing should be regularized by laws. All the marketing activities should agree with and remain under control of legal provisions. Acts, rules and regulations, policy, procedure, working process etc. are included in Law. Law restricts to do some works and prior permission should be taken to do some other works.
Legal approach of marketing strongly emphasis that all the marketing activities should remain within legal purview. It gives high priority to bearing social responsibility. But this approach has not made clear how to adopt dynamic environment. Although it tries to protect consumers through legal provisions, rules and regulations, it does not care of consumers' needs, wants and satisfaction.
4. System Approach
System approach of marketing supposes marketing as a system which includes input, processing, output and feedback. Goods, price, place and promotion are included in input of this system. Environmental effect and buyers' decision are included in processing. Similarly, profits, costumer's satisfaction and social welfare are included in output and the task of sending message asking for redesigning input and processing fall under feedback
System approach gives an integrated picture of marketing and the objectives of marketing can be achieved effectively from it. Similarly, it makes marketing adjustable to the environment by scanning dynamic environment. But it does not care for the need and wants of customers. It becomes difficult to implement.
5. Environmental Approach
According to environmental approach, environment affects marketing. So, marketing should be made suitable to the environment by studying and scanning the environment. Environment always becomes dynamic. It changes continuously . So, it also appears both as an opportunity and as a challenge. The environment of marketing can be classified into two types as micro-environment and macro-environment.
Micro-environment Of Marketing
Micro-environment is also called internal environment. Production. financial resource, human resource, research and development, culture of organization, suppliers, customers, labor organization, pressure group, competitors, market intermediaries etc. are the micro-environmental components . As these components affect marketing, their scanning is compulsory.
Macro-environment Of Marketing
Macro-environment is also called external environment. Macro-environmental components do not remain under control of marketing. So, marketing should be suitable to these components. Economic, political and legal, social and cultural and technological components are included in macro-environment.
Environmental approach is important to make marketing suitable to the environment by environmental scanning, But this approach is expensive and gives less emphasis to the achievement of objective.
6. Managerial Approach
Managerial approach of marketing advocates the scientific management of marketing. This approach gives more importance to the activities of managers and managerial decisions on marketing. This approach gives high priority to goal achievement and emphasizes that the marketing managers should always remain active to achieve the goal. These functions are based on planning, implementation and controlling.
7. Economic Approach
The economic approach of marketing gives emphasis on increase of profit maximization. Buyers and sellers are the important components of marketing. Price of commodities or service is fixed through their interactions and action of selling and buying completes. Marketing helps how to utilize limited resources to fulfill the unlimited needs and wants. It researches markets, studies and analyzes demand and supply. It gives emphasis on salesmanship. Similarly it believes in sales promotion through advertisement and other promotional activities. It uses different economic tools in market research and analyzing demand and supply. So, this approach is popular among economists.
Economic approach of marketing is more developed and it analyzes demands and supplies including production cost. But this approach does not agree with the modern marketing and is based on several assumptions.
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8. Legal Approach
Legal approach advocates that marketing should be regularized by laws. All the marketing activities should agree with and remain under control of legal provisions. Acts, rules and regulations, policy, procedure, working process etc. are included in Law. Law restricts to do some works and prior permission should be taken to do some other works.
Legal approach of marketing strongly emphasis that all the marketing activities should remain within legal purview. It gives high priority to bearing social responsibility. But this approach has not made clear how to adopt dynamic environment. Although it tries to protect consumers through legal provisions, rules and regulations, it does not care of consumers' needs, wants and satisfaction.
