Components Of Marketing Notes Class 11

           Unit 4          

Components Of Marketing

Concept Of Marketing (Place concept, area concept and demand concept)

Traditionally, a market is a convenient place where sellers and buyers meet and exchange products or services for their mutual satisfaction. The word "Market" is derived from the Latin Word "Mercatus" which means a trading place. Market refers to Any place or process that brings together buyer and seller intending to agree upon a price. The market is one of the most important components of the economy as it acts as a basis on which the economy operates through production and exchange relationship.

with the advancement in the field of communication and transportation, the concept of the market has gone through a major transformation.

In today's time, market need not be in one particular place. physical extence is no longer an essential criterion for market. Today, market exists as long as what happens involves the exchange relationship. It could be over

• a telephone line,
• through emails,
• online chat,etc.

As the concept of modern marketing states,"the marketing of minds is more important than a face to face meeting to create a market".

Some important concepts of market are explained in details as:

Place Concept

Place concept of market defines market as a place that facilitates activities related to buying and selling. As per the concept, a convenient place where successful exchange related to buying and selling. As per the concept, a convinient place where successful exchange relationship is established between buyers and sellers in market.

"A market can be defined as a place where buyers and sellers meet, and products and services are offered for sale and trasnformation of  ownership of little occur.''

-W.J.Stanton

Since the concept emphasizes only on the place of exchange, it is considered as a traditional concept.

Asan,Fewa Lake Market,etc. are the example that symbolize market as per the place concept.

Area Concept

Area concept is also known as region concept. According to this concept,a market is a group of potential buyers and sellers that are spread over an area and connceted by the means of transportation and communications.The close relation between buyers and seller is established through transportation and communication. Moreover, the exchange mechanism is carried out meeting or direct contact.

There is no need of face to face meeting between buyers and sellers. Buyers and sellers make their buying and selling through the modern means of communication and transportation.

"Market is an area of potential exchange that is a group of buyers and sellers interested in negotiating the terms of purchase and sale of products and services."

Demand Concept

As per demand concept, market represents the total demand of the consumer. In this reference, market is a group of people that have the need to satisfy money and will to spend it to satisfy their want.

"Market may be defined as an aggregate demand by potential buyers of a product or services"                                     -W.J Stantan

Features of Nepalese Market

Every country is unique. It has a distinct geographical structure, population, economy, infrastrucure, socio-cultural aspect, etc. Nepal is no exception, it is landlocked country siluated between two powerhouse, China and India, with distinct features. As one of the less developed countries, The Nepalese market has its set of discent Features which are Listed  below:

1. Credit transactions
2. Rural/urban nature
3. Vast potential
4. Low Literacy
5. Long distribution channel
6. Lact of organized market
7. Lack of standard
8. Low Consumer awarness
9. Technological backwardness
10. Problems in physical distribution
11. Lack of control
12. Emphasis on Product

Concept Of Customers/Buyers

Commenly defined as buyer,client,purchaser,etc. a person or an institution that purchases products or services and can choose between variety of products and suppliers is known as customers

Note of Components of marketing