Showing posts with label Advertisement. Show all posts
Showing posts with label Advertisement. Show all posts

Publicity: Meaning, Objectives and Types of Publicity in Marketing

Meaning of Publicity


The other important element/factor of promotion is publicity. This can be known as public relation. In order to achieve any organizational goal/objective, social organizations, persons, group, government bodies, organizations, offices, banks, and other financial organizations can play important role. The task of publicizing/propagating the policy, programs, strategy,
products etc. by any business organization is called publicity. Budget arrangement is not necessary for such publicity. Publicity of goods can be made through press conference, speech, newspapers etc.

Publicity of the goods or services intended to sell also influences social, cultural, political, intellectual sectors besides business sector. So, objective of marketing, selection of the message and its implementation aspect should be seriously considered. Speaking about the product at any public forum or gathering can leave positive effect. So, description of goods or services should be based on logic and true data. Real publicity becomes meaningful only after mentioning important matter.

The meaning of publicity becomes clearer from the definition made by different experts and writers of marketing as follows:
According to Prof. William J. Stanton, "Publicity is nay communication about an organization, its products, or policies through the media that is not paid for by the organization."
According to Prof. Philip Kotler, "Publicity is the activity to promote a company or its products by planning news about it is the media not paid for by the sponsor."
Publicity is made not through organization but through outside sectors. The organization does not have to bear its expenses. News about the organization and its products and prices are disseminated through person, group, customers, consumer association, government bodies/organizations etc. After the information has been communicated, the consumers become confident about the product. So, this method becomes more effective than advertisement. The organization can play great role to encourage publicity. Company/firm can organize inauguration program by inviting celebrated/famous personalities, etc. for publicity. The company may also organize annual program inviting ministers each year. A company can make publicity and propagation about the organization and its products through such different programs and activities.

Objectives of Publicity


Publicity is supposed as the important element of promotion mix. It is made through different media without expenses. The objective of publicity can be mentioned as follows:

1. Announce new product


New product should be publicized much as soon as possible. Publicity can be used to bring the new goods in market. Press media provide special column to announce the new product. For instance, the Kantipur Newspaper has allocated columns for commerce and finance, advertisement, features etc. Such matters are entertained in proper place according to the nature of the advertisement and information. Company or firm company can publish notices, information, messages about features, quality, development of new product, services, price utility etc. of the products. Such publicity draws attention of the customers towards new products.

2. Announce new policy


Changed and new policies also can be announced through media. The organization/firm may adopt a new policy on allowance, or dividend distribution, or revise or improve the old policy. Information about such things should be given to all the concerned parties and people. If such information is communicated through publication/media, it gains popularity, and new policy is announced to make the people know about the new products.

3. Announce technical development


Every business organization may develop new technology and make experimental practices. If such development has been made, they should be publicized. Such publicity makes the people/customers know that the organization is able to develop new technology. Such communication and messages increase popularity and peoples' trust towards the organization.

4. Report the performance


Every business organization needs to give information to its shareholders and concerned parties about its performance. Such information can be communicated in the form of reports different media. For this purpose, proper media can be selected. Generally, this type of publicity is made by organizing annual general meeting at which report about the present condition, future program, plan, financial position, etc. of the organization is presented.

5. Counter the negative publicity


Competitors may involve in every market. They may propagate against the organization and its products. So, such negative propagation should be immediately refuted countered. While refuting or countering such propagation, the organization should publish financial position, transaction, sales plan, etc. For this proper media should be selected. Special articles/features also can be published through effective media and press conference, pamphlets distribution etc. program may be organized for such purpose. Mass communication media also can be used for such purpose. It makes the customers' confusion clear about the organization and its products.

Types of publicity

There are different styles of publicity. Among them news release, feature articles, press conference and publication are mostly practiced. They are mentioned as follows:

1. News release


News can be released through different media. Generally, much practiced media are radio, television, newspapers, magazines etc. Message about goods or services can be publicized. Specially, messages about policies and programs of the organization, features, quality product development, technical aspects etc. of the products can be disseminated through these media. The most suitable as well as popular media is press. Photograph publication adds more attractiveness.

2. Feature/articles


The second important method for publicity is publication of feature/articles. In such feature/articles the objective/mission of the organization, its policy, programs, research reports, used technology, progress report etc. are described. Such feature article is written specially by an experienced person working in the organization. This feature article is published through proper media. As details of the organization, products, features etc. are included in feature article, it becomes longer and descriptive than news publication. It also becomes reliable and dependable.

3. Press conference


Press conference is organized to say some important things to press media. Organization and its products, policy, program, strategy can be advertised through press conference. The media men are invited and clear information is given to them about subject wanted to publicize. Answers should be given to the questionnaire asked by the media men. Besides, the subject intended to publish is also distributed to them. In this way, the information of the company is disseminated at a time through different news reporters. As the newsmen involved in the conference positively present the news about the company and its products, press conference becomes effective medium for publicity.

4. Publication


Newspapers, brochure, news, letter etc. also can be used to propagate and communicate information about the organization and its products. This includes annual reports, bi-annual reports, audio visual materials etc. However, publication media should be used according to the nature of products, capacity and suitability. Media should be without cost. This method can be used in service oriented program.
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Advertising Media and Selection of Advertising Medias

Advertising Medias


The tool used for disseminating information and message about goods or services is called advertising medium/media. Such tools/media carry sales messages to the customers. Effective media works as the bridge between producers and customers. Various medias can be used to make flow of information or messages. Every company may use the following media for disseminating their messages.

1. Newspapers


Newspapers provide information, ideas, attitude of organizations sponsors/advertisers to all the customers. Target customers get different materials such as refutation, criticisms, descriptions, analysis, etc. relating to various subjects through newspapers. Such news papers may be daily, weekly, monthly, bi-monthly or so on. The newspapers can be of local level, regional level, national or international levels. News, information, notices, messages, etc. are published in them. Such medias are called print medias. Most of the customers study such published materials.

2. Magazines


Magazines, bulletins, journals, business diary etc. are also important media for advertisement. Advertisement of goods or services can be disseminated through such media using different forms such as article, notice, poems, essays etc. Generally, they can be published in fortnightly, monthly, bi-monthly, etc. publications. In such papers, business, banking, agriculture, education, finance, insurance, transport, religion, culture, communication, advertisement etc. are mentioned which become very important for advertisement of any products.

3. Radio advertising


The subscribers / sponsors of advertisement may disseminate their advertisement of their products in the form of notice, information, description, etc. through radio. Generally, such radio advertising is made in the form of song, music, verse, short stories, etc. Such form of advertisement may be very popular among target customers or markets. Sports materials, consumer goods, household goods, minor equipment, health related goods etc. may be advertised in the form of notice or message. Such advertisement becomes very effective as the customers / audiences can hear even when they are busy working.

4. Film advertising


Entertaining and knowledge giving information / notices can be provided through film. As all the audiences hear, see and understand such advertisement, it becomes very effective and important. Advertisement with examples can be disseminated through cartoon strips, song, music, colorful slides, documentary films etc. The customers can remember the information or advertisement disseminated in such forms. So, firms are also one of the effective media for advertisement.

5. Television advertising

Nowadays, television advertisement has also become very popular among people. Advertisement of any product in form of colored pictures, scenes, main subject matter etc. can beautifully as well as attractively presented through this modern means of advertisement in television. So, all the customers can get opportunity to hear, see and understand the advertisement. They become clear about the quality, features, utility, price, using methods etc. of the products. Descriptive information and notices about household and consumer goods, construction materials, transport means, agricultural tools etc. are disseminated through such type of advertisement media.

6. Poster advertising


Posters can be pasted giving simple information about products. Posters may be prepared by printing or writing and can be pasted on walls, pillars etc. Such advertisement attracts the attention of many customers. The matters to be mentioned in posters should be short, attractive, complete and sweet. Such posters should be pasted mostly in stadium, cinema hall, super markets, bus stop, airport, education institution, port etc. so that the people / customers can get important information about the product.

7. Travelling display

Travelling and mobile display is also is one of the strong methods of advertisement. In this method, advertising materials are pasted, hung on buses, tempo, train, car, jeep, lorry, truck etc. to disseminate the messages or information. Such type of advertisement is done in the form of exhibition and poster. Different sized cards should be prepared according to the nature of product or services and capacity of company and should be pasted at different places. As such posters/cards are pasted on different means of transport, customers can easily see the information or messages. This travelling display method is very simple and cheap.

8. Bill board and hoarding board

Necessary information about goods or services are written on boards and are hung around supermarkets, crossroads, train and bus stations etc. to propagate them. Such advertisement can impress the customers. If such boards are hung at proper places, maximum number of customers can see and understand the message. Mostly, consumer goods, machineries and tools, means of transport, soaps, radio, televisions, sports' goods, etc. are advertised through these media. As this type of media repeatedly reminds the customers, this method is very important.

Selection of Advertising Media


Advertisement carries information and message to the customers of target markets at right time. For this, a proper medium is needed. If proper media is not selected, it cannot bring expected result. So, proper media for disseminating the company's message and information should be selected correctly. Only the proper media can provide necessary information to all the customers, readers, audience and observes. There are some important bases to be cared while selecting proper media for advertisement. They are as follows:

1. Nature of product


At first nature of product should be specially considered while selecting advertisement media. If the advertisement is not suitable to the nature of product, it becomes meaningless. Posers, newspapers, magazines etc. become suitable to use for advertisement of the products of local and small companies. The big companies should use national level media for advertisement. One type of media becomes suitable for the advertisement of perishable goods and other types of media become suitable for long lasting goods. So, right and suitable media should be selected according to the quality, features, utility, nature etc. of the goods. Only then advertisement can give effective result of advertisement.

2. Nature of market


Market area, size and nature also affect media selection. Message, information and description of goods or services become effective and interesting only through suitable media. In the national level market, print and electronic media become suitable and in local market external exhibition media become suitable. Geographical area, age group, income source, number of customers etc. also affect media selection. So, media should be selected only by considering the nature of market.

3. Advertising objective


Business firms advertise their products to achieve some important objectives. So, advertisement media should be selected considering the objectives of the company. If right media is selected, expected result can be achieved. For instance, if the objective is to sell new product, outdoor media may be used. On the other hand, if it is also to save company's reputation, direct media may be used. Os, main and auxiliary objectives should be considered while selecting advertisement media.

4. Nature of message


Nature of message also affects selection of media for advertisement. Message may be short, detail, important or less important. So message should be disseminated on the basis of the description and priority. Different media can be used according to the nature and subject of the advertisement. The media should be fixed only after deciding which types of customers or which group or community is intended to be given message or information about the product. So, media should be selected according to the nature of message and subject matter for advertisement.

5. Media cost


Suitable or proper media should be selected only after studying what cost is needed to use what types of media for advertisement. Reasonable and cost effective media should be used. As producers have to advertise various products and if proper and reasonable media is not used, advertisement cost becomes high and certain budget is finished in it. So, availability and budget source also should be considered and proper media cost be identified. So, proper media should be selected at reasonable cost.

6. Media Availability


Easy availability of media also should be considered for using them to advertise products or services. If there are many alternatives, the best media can be selected. But in the lack of different media, easy available one should be used. Availability of media also plays an important role. Sometimes, any media available at the time when needed needs to be compulsorily given responsibility for advertisement. However, in such condition there remains possibility to arise problems.

7. Competitors' selection


Sponsor/subscriber of advertisement, sometimes, should keep in mind the competitors' selection. If the media selected by the competitors' are stronger and more effective than selected by the company, advertisement is overshadowed. But sometimes, the same media selected by other competitors need to be accepted. Only then the customers' attention can be drawn. So, media selected by other sponsors/subscribers should be selected. Sometimes imitation also becomes helpful in achievement of company's objective.

8. Sales and distribution policy


Sales and distribution policy of a company also affect media selection. The advertisement and media should be suitable to the policy of the company. If advertisement media is selected which can be helpful to the company's policy and program, its effect becomes positive. So, if the distribution system is suitable and scientific, any media can be selected. So, the structure of distribution system also should be considered while selecting media.
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Advertising: Meaning, Objectives and Importance of Advertising

Meaning of Advertising

Advertising is done in order to provide meaningful information about products. Advertisement is an important factor of promotion mix. Government organizations, business organizations, persons, groups, service oriented organizations etc. use this. As every product or service needs advertisement, this age  
is also called the advertising age. Similarly, the business age of today is also the age of competition. Different substituting goods are found in markets. They keep on competing with one another. So, the main objective of producers is to attract the consumers' attention towards their products.

The task of providing all the necessary information to the consumers about the quality, features, price, utility and importance of goods or services through different means of advertisement such as radio, newspapers, magazines, television etc. is called advertising. Television, video, cinema etc. are audio-visual means of advertisement. Radio, newspapers etc. also can be used to advertise goods. Goods are advertised through suitable media according to their nature, condition, cost, time, availability etc.

Different experts and writers have defined advertising. Important ones are given as follows:

Prof. Philip Kotler has defined advertising as, "Advertising is paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor."

 

Mason and Rath have defined it as, "Advertising is a salesmanship without a personal salesman."

 

The above mentioned definitions make it clear that giving information to customers about goods or services through press, audio-visual media is advertising. Non-personal presentation of goods or services by well-known sponsor paying certain fee is called advertisement. It plays an important role in promotion of goods or services. In comparison to other factors of promotion mix, advertisement is very popular and effective factor used in all sectors. Small or big, governmental or non-governmental, sole or non-personal/joint businesses all use advertisement for sales promotion of their goods or services. The features of good advertisement are as follows:

1. Non-personal


Advertisement is of purely non-personal nature. In this interaction, face to face or contact or talks between person to person does not take place.

2. Message


In advertisement, the main content is message. It motivates / inspires the customers to buy goods. The advertisement message may be in any form such as oral, written, or symbolic or codes.

3. Sponsored


Advertisement is sponsored by any person, organization, or group. The sponsor should pay certain amount of money for advertisement.

4. Objective


Advertisement is done to achieve certain objective. Without objective, no advertisement of any product or service can be done. Giving assurance, information, notice, message, or reminding etc. is the main objective of advertisement.

5. Cost


Different expenses are needed for advertisement. It is called advertisement expense. Development cost, production cost, media cost, administrative cost etc. are the main examples of cost.

Objectives of Advertising


Although advertising seems simple, it is very challenging and difficult task. It motivates / inspires target groups to buy goods or services by making flow of information. Advertisement has some important objectives, which are given as follows:

1. To inform about product and organization


Many objectives of advertisement can be determined. One of them is to give information to potential customers about goods or services and organization. Information can be given about brand, feature, utility, price importance etc. of the product. It may also be about the location of organization and warehouse. Some short information can be given through press, audio visual etc. considering the availability, cost, situation, nature of product etc. The main objective of advertisement is to give knowledge to potential customers about products and their reliability.

2. To persuade potential customers


The second main objective of advertisement is to reassure / persuade potential customers. The customers do not become ready to buy only getting information about goods or services. So, the customers should be persuaded and made confident towards goods or services. For this, it needs to give comparative information about price, utility, feature etc. of the product. Confidence brings changes in behavior, feeling, thinking, trend etc. of the potential customers. So, the customers get themselves motivated to buy the advertised goods or services. Hence, the main objective of persuading the potential customers is to investigate them to buy products or services at least for experiment or make them give priority to certain brand.

3. To remind customers


The third main objective of advertisement is to remind customers of goods or services. As different advertisements about different products and services can be seen or heard through various means, the customers feel difficult to remember every brand. Similarly, thousands of competing producers advertise their products to divert customers' attention towards their own products. So, customers should be reminded of goods or services through regular advertisement. While reminding them in this way, place of availability, quality, features, price, utility, benefits etc. should be clearly stated.

4. To increase the value of product


The objective of advertisement is also to increase the value of product. There are some advertisements which can increase the value of products and organization. Special advertisement program should be conducted in order to increase value and respect of the product. This sets indelible impression on them about the quality of the product and reliability of the organization.

5. To reassure customers


The fifth objective of advertisement is to reassure customers. They may express concern over their buying decision or feel uneasy. In such situation, if advertisement makes them clear about quality, feature, utility and reliability and importance of the product, they become confident if they are reassured. Such assurance makes them feel, "I am buying the best quality goods." This makes them more loyal to the product as well as to the organization.

6. To add other promotional tools


Helping to different promotional method is also another objective of advertisement. At first, advertisement helps to bring effectiveness in personal selling. Advertisement provides different information about product to the potential customers. So, it is not difficult to persuade the customers to buy goods or services by giving true information. As the customers can get prior information about goods or products through advertisement, they become ready to buy. Similarly, advertisement helps to bring effectiveness in sales promotion. Different methods need to be applied in sales promotion. Sales promotion can be made effective by advertising goods or products, for example, if coupons have been provided, exhibition has been held, discount has been provided, and the customers can be informed about such facilities / chances.

Importance of Advertising


The modern age is the age of advertisement. This task reflects different activities of marketing. It provides information, instruction and education / knowledge to all the customers of target market. So, importance of advertisement has become greater than before. To prove this, it becomes contextual to discuss on the following points:

1. Facilitates mass production


Effective advertisement makes flow of necessary information to the customers. Accordingly, the goods are distributed and sold. Such distribution and selling increase demand for product in different market segments. As a result, the company gets opportunity of mass production of the goods. Production of goods in mass quantity, per unit production cost becomes less, due to which per unit price does not increase and profit margin becomes more.

2. Educates the customers


Good advertisement provides true information to the customers about product or services. Along with this, which product is used for what and for what purpose is also clearly stated. Some products need care while handling / using. Such information is also provided by advertisement. Doing so, the customers get information and can decide which product is suitable for them and which unsuitable.

3. Introduction of new product


An effective advertisement makes the new products familiar to the customers. Short information about quality, features, price etc. of the product contains in it. After the flow of such information, the customers may take buying decision. Besides this, advertisement makes the customers feel necessity of the new product and draws their attention to it. So, the task of advertisement is equally important to give introduction of new product.

4. Information to the customers


Advertisement gives information to the customers about new products and its introduction in market. So, the customers make plan which product should be bought to maintain life standard. All the composition of the product manufacturing, involved elements, handling / using method, manufactured and expiry dates, information about the usability of the product etc. are also given. Quality of the product, price, utility, place of availability, etc. are also included in advertisement. As a result, the customers get clear information about the product. So, providing true information is other important function of advertisement.

5. Maintains the image of organization


Advertisement pays special attention to the brand of quality goods. After such goods have been advertised, the customers get them. When they have once used quality goods, they do not easily change the brand or do not buy goods of other brands. In this way, advertisement makes the customers loyal to the brand and maintains it. Customers demand for the goods of certain company only. It raises the dignity, respect and good image of the company. So, advertisement becomes important for maintaining image, reputation, dignity and respect of the organization.
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Meaning and Features of Marketing, Core Concepts of Marketing

What is marketing? Producers say the activity of production of goods or services is marketing. Sellers say the activity of selling of goods or services is marketing. Similarly, buyers say the activity of purchasing goods or services is marketing. Advertisers say the activity of promoting sale of goods or services by making effective advertisement is marketing.
Most of the general public says the promoting sale and advertisement is marketing. According to them, promoting sale of goods or services through effective advertisement is called marketing. But any one of these definitions cannot give satisfactory meaning of marketing.

Sale and advertisement are the two activities among many activities of marketing. Nowadays, marketing is understood not from the old concept ‘Telling and selling’ but it is understood from the concept of ‘Satisfying customers’ needs’. This means the modern concept does not accept the marketing is to collect as much profit as can be by selling goods or services through effective advertisement and influencing customers. The modern concept of marketing gives first priority to customers’ satisfaction. It accepts profit as the gift of customers’ satisfaction.

The age of today is the age of marketing. All types of organizations need marketing to exist and develop. It helps to produce goods or services by identifying wants and needs of customers. So, marketers should at first identify wants of customers and produce goods or services accordingly. Many writers and experts have defined marketing, but some of the important ones are given as follows:

According to William J. Stanton, Michael J. Etzel and Bruce J. Walker, “ Marketing is total system of business activities designed to plan price, promote and distribute want-satisfying products to target market to achieve organizational objectives.”

 

According to Prof. Philip Kotler and Gray Armstrong, “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”

 

According to American Marketing Association, “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfies individuals and organizational objectives.”

 

According to Prof. Pyle, “Marketing comprises both buying and selling.”

 

In conclusion, the whole activity of providing goods or services to satisfy targeted market in order to achieve organizational goal is called marketing. This includes planning, pricing, promoting, selling and distributing. Various activities are included in marketing. All these activities are related to product, price, place and promotion. The activities of marketing satisfy the wants of customers. Besides, the activities help to achieve organizational goal. The above mentioned definitions of marketing have given emphasis to market research and customers’ satisfaction. Marketing conducts its activities by focusing on customers. Different activities such as selection of goods or services, planning, production, development of goods, packaging, labeling, advertisement etc. are performed to satisfy the customers.

Features of Marketing           


According to the above mentioned definitions, the features of marketing are as follows:
  1. Satisfying customers’ needs: Marketing begins from human wants, needs and demands. Marketing satisfies customers’ wants, needs etc. by producing goods and supplying them to the customers’ according to their needs, wants and demands.
  2. Helps to achieve organizational goal: Organizations are established and conducted with certain objectives. Marketing helps to achieve such objectives.
  3. Marketing consists of various activities: Marketing consists of various activities. They are related to product, place, price and promotion.
  4. Facilitates exchanges: Giving and taking between buyer and seller is called exchange. Marketing facilitates such exchange. As a result, exchange becomes effective.


Core Concepts of Marketing          


The following figure makes the core concept of marketing clear:

Core Marketing Concept


1. Needs, Wants and Demands


Needs


The necessity of something is need. Food is needed when one is hungry; water is needed when one is thirsty. Human needs are of complex nature. When one want is fulfilled, another want is felt. There are different types of human wants, which the human tries to fulfill one after another. They are physical needs (food, shelter, and clothes), security needs (free from fear, security of job etc.), social needs (giving importance by society, involvement in social activities etc.), need ego (respected post, honor, praise etc.) and self actualization needs (creativeness, expectation of challenging task, expectation to take part in decision making etc.) Such needs were not found out by marketers. They are basic aspects of human life.

Wants


Expectation of the things for meeting the need is called want. There are various types of wants of human being. Such wants are directly influenced by level of income, family, education, friends, school, personality, life style etc. Wants are also affected by religious, cultural and social elements. For example, a hungry Nepalese wants to eat bitten rice, curry, momo, water etc., but a hungry American wants Hamburger, Coke, and French fries etc. Here needs are same but wants are different.

Demands


The want with willingness and ability to pay price of things is called demand. If a poor man wants to buy a car, it is not a demand, because he cannot have ability to pay the price of car even if he was willingness. Similarly, if a rich but miser man wants to buy a car, he does not become ready to pay the bill of the car. So, it is compulsory to the both willingness and ability to pay the price to be a demand.

2. Product


The thing which satisfies human wants and needs is called products. Product may or may not have physical existence. Machines, tools, foods, clothes, etc. have physical existence but service, experience, ideas, personality, etc. have no physical existence. The broad meaning of product includes characters, form, quality, diversity, branding, packaging, color, price, dignity of seller, etc.

3. Value, Satisfaction and Quality


Value


The capacity of the goods to satisfy the want of customers’ as expected is called value. Cost of the goods is taken as the basis to estimate its value. Although wise customers can measure the value and cost of the goods but cannot measure it with accuracy. They select goods on the basis of their perceived value. Value may be in the form of status, image, benefit, beauty, attractiveness, confidence etc.

Satisfaction


The customer feels satisfied from the value of the goods what he/she expects to get from. Satisfied customer becomes brand loyal. He or she tells his friends and neighbors about the value of the goods that full satisfaction can be got from the goods. As a result, advertisement of the goods is done automatically. So, the goods should be produced according to the expectation of the customers to satisfy their wants.

Quality


Customers’ satisfaction depends on the quality of the goods. In the recent years, most of the companies are found to have followed the total quality management – TQM. They are trying to improve the quality of goods, services and the process of marketing. Quality should be looked through customers’ satisfaction not through absence of defects. The quality of goods or services starts from wants of customers and ends in their satisfaction.

4. Exchange, Transaction and Relationship


Exchange


Giving something and taking any other needed thing from others is called exchange. In simple words, the task of giving and taking things to fulfill mutual interest is called exchange. Giving things for things is called barter system and giving money for things is called exchange money. In the ancient marketing (before the invention of money), the whole part of exchange was taken by barter system. But not it has been taken by money-exchange of money. Exchange is the main concept of marketing. The following conditions should be fulfilled to be called exchange:-
  • At least there should be two sides (parties),
  • Each side should have some value/ utility, which each other side should like,
  • Each side should agree to exchange,
  • Each side should be free to accept or reject the proposal of one another side, 
  • Each side should be able to communicate and handover.

Transaction


Trade between two or more sides is called transaction. In other words, the result of exchange is transaction. Transaction can be made in barter system or in money exchange. For example, taking rice by giving any thing is called barter transaction. Taking (buying) a television by giving money is monetary transaction.

Relationship


The transaction taken place between two or more parties/sides establishes relationship among them. A marketer should establish good and long lasting relationship with customers, distributors, dealers and suppliers. There is also a saying – Build good relationship and profitable transactions will follow. So, good relationship should be established with the concerned sides. Confidence should also be given to strengthen such relationship.

5. Markets


The process of buying and selling of goods or services is called markets. Some concepts have been developed about markets. They are: place concept, product concept, area concept, demand concept and exchange concept. Market has been defined on the basis of all these concepts. Goods, buyer, seller, price and area are necessary to be a market.

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