1. Commodity Approach
|The commodity approach of marketing establishes marketing system of each product. It studies demand and supply of commodity. It also encompasses the channel of distribution and means of transport. But this is time consuming and lengthy process; there remain possibilities of repeating the efforts of marketing.|
2. Functional Approach
- Exchange functions: Exchange functions of marketing include purchasing and selling. These are the basic functions of marketing.
- Physical distribution functions: Physical distribution function includes transportation and storage. These functions transport goods/products to the right place at right time as desired by the customers.
- Auxiliary functions: The auxiliary functions of marketing include standardization and classification, financing, labeling, packaging, risk bearing, information flow etc. These functions simplify the exchange function.
3. Institutional Approach
4. System Approach
|Marketing according to Simple System|
5. Environmental Approach
- Micro Environment: Micro environment is also called internal environment. Production, financial resource, human resource, research and development (R & D), culture of organization, goal of organization, structure of organization, suppliers, customers, labor organization, pressure group, competitors, market intermediaries etc. are the micro environmental elements. As these elements affect marketing, their scanning is compulsory.
- Macro Environment: Macro environment is also called external environment. External/macro-environmental elements do not remain under control of marketing. So, marketing should be suitable to these elements. Economic, political and legal, social and cultural and technological elements are included in macro environmental elements. Inflation, monitory policy, financial policy, economic condition, income distribution etc. are economic elements, and law, rules and regulations, government policy, government procedure, interest group, political thought, political culture etc. are political-legal elements. Similarly, population, culture, social classes, life style, etc. are socio-cultural elements. Technology transfer, level of technology, research and development (R & D) etc. are technological elements.
6. Managerial Approach
|Managerial approach advocates for the scientific management of marketing. This 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 effortful to achieve the goal. These functions are based on planning, implementation and controlling.|
- Planning: Formation of goal and the process of defining future activities for achievement of the goal, analyzing and selecting them is called marketing plan. It prepares certain yardstick for control.
- Implementation: The task of handing over authority to work and giving direction to carry out marketing plan is called implementation. Marketing manager makes plan and his/her subordinates and other employees implement it. The manager should explain the plan to the related employees and make them understand the importance while implementing it. Good leadership, effective communication, positive motivation, participation, ability etc. are the compulsory elements for successful implementation of marketing plan.
- Controlling: Works are performed according to plan. The task of examining and analyzing whether or not the work has been completed according to plan is controlling. In controlling, actual performance is compared with plan or predetermined standard. If there are found differences, they are identified and necessary suggestions are given to take corrective actions.