Some of the major approaches to study of

marketing of individual product are as follows:

The study of marketing has been approached in more than

one way. To some it has meant to sell something at a shop
or market place; to some it has meant the study of
individual product and its movement in the market; to some
it has meant the study of persons-wholesalers, retailers,
agents etc., who move the products and to some it has
meant the study of behaviour of commodity movement and
the way the persons involved to move them. The approach
to the study of marketing has passed through several stages
before reaching the present stage. There is a process of
evolution in the development of these approaches.

To facilitate the study, these different approaches

may be broadly classified as follows:
1. Product or Commodity Approach:
Under the commodity approach the focus is placed on the
product or it is an approach on the marketing on
commodity wise basis. In other words, the study relates to
the flow of a certain commodity and its movement from the
original producer right up to the ultimate customer. The
subject-matter, under this study, is commodity.
When one studies the marketing on this basis—commodity
approach, one must begin to study and analyses the
problems relating to a commodity i.e., sources and
conditions of supply, nature and extent of demand, mode of
transporting, storage, standardization, packing etc. Again,
take an example of a commodity, say rice.

One has to study the sources of rice, location, people

involved in buying and selling, means of transport,
problems of selling the product, financing, storage, packing
etc. Thus, we get a full picture of the marketing from the
original producer to the ultimate consumer. The method of
study is repeated for each item.

The system claims that it is simple and gives good result

over the marketing of each product; description study is
possible. But at the same time this approach is time-
consuming and repetitive process which is a drawback.
2. Institutional Approach:
In the institutional approach, the focus is on the study of
institutions- middlemen, wholesalers, retailers, importers,
exporters, agencies, warehousing etc., engaged in the
marketing during the movement of goods. The approach is
also known as middlemen approach. Here, emphasis is
given to understand and analyses the functions of
institutions, who are discharging their marketing functions.
The activities of each institution form a part of marketing
and collectively complete the marketing functions. In the
process of moving the goods from the producer to the final
consumers, a large number of persons are engaged. This
system pays attention to the problems and functions of
marketing institutions-transporting, banks and other
financial institutions, warehousing, advertising, insurance
etc. This method does not give adequate knowledge of the
entire marketing functions and also’ fails to explain the
interrelations of different institutions.
3. Functional Approach:
The functional approach gives importance on the various
functions of marketing. In other words, one concentrates
attention on the specialized services or functions performed
by marketers. In this approach, marketing splits into many
functions-buying, selling, pricing, standardization, storage,
transportation, advertising, packing etc. This may be
studied one after another. Here each function is studied in
detail in order to understand it and analyses the nature,
need and importance of each function.

In this approach, marketing is regarded as “business of

buying and selling and as including those business activities
involved in the flow of goods and services between
producers and customers.” This system gives too much
importance to various marketing functions and fails to
explain how such functions are applied to the specific
business operations.
4. Management Approach:
This approach is the latest and scientific. It concentrates
upon the activities or marketing functions and focuses on
the role of decision-making at the level of firm. This
approach is mainly concerned with how managers handle
specific problems and situations. It aims through evaluation
of current market practices to achieve specific marketing
objectives.

Generally there are two factors-controllable and

uncontrollable, which are more concerned with the
decision-making. Controllable include price adjustment,
advertisement etc. Uncontrollable-economical, sociological,
psychological, political etc. are the basic causes for market
changes. And these changes cannot be controlled by any
firm.

But controllable can be controlled by the firm. The

uncontrollable limit the marketing opportunities. As such,
managerial approach is concerned with the study of
uncontrollable and then taking decisions for controllable
within the scope set by uncontrollable. Managerial or
decision-making approach emphasizes on the practical
aspects of marketing, but ignores the theoretical aspects of
marketing. At the same time, this approach, provides an
overall information of the entire business.
5. System Approach:
The system approach can be defined as “a set of objects
together with the relationships among them and their
attributes.” Systems focus on interrelations and
interconnections among the functions of marketing. The
system examines marketing connections (linkage) inside as
well as outside the firm. Inside the firm there is a co-
ordination of business activities-engineering, production,
marketing, price etc.

On the basis of feedback information proper control is

exercised to modify or alter in the producing process, so
that the desired output can be produced. Here, the aim is to
secure profit through customer-satisfaction. Markets can be
understood only through the study of marketing
information. For instance, business is composed of many
functions, which are composed of sub functions. Each
function or sub-function is independent, but interrelated
and enables the other to achieve marketing objectives.
6. Societal Approach:
This approach has been originated recently. The marketing
process is regarded as a means by which society meets its
own consumption needs. This system gives no importance
as to how the business meets the consumer’s needs.
Therefore, attention is paid to ecological factors
(sociological, cultural, legal etc.) and marketing decisions
and their impact on the society’s well-being.
7. Legal Approach:
This approach emphasizes only one aspect i.e., transfer of
ownership to buyer: It explains the regulatory aspect of
marketing. In India, the marketing activities are largely
controlled by Sales of Goods Act, Carrier Act etc. The study
is concentrated only on legal aspects, leaving other
important aspects. This does not give an idea of marketing.
8. Economic Approach:
This approach deals with only the problems of supply,
demand and price. These are important from the economic
point of view, but fail to give a clear idea of marketing.

There are four different approaches to the study of

marketing. These approaches explain clearly the
mechanism and concept of marketing. These approaches
are Commodity Approach, Institutional Approach,
Functional Approach and Decision Making Approach.
(1) Commodity Approach or Product Approach:
This approach refers to the study of a product in detail. The
marketing situation of each product chosen for study is
examined from such viewpoints as sources and conditions
of supply, producer marketing organisations, policies,
different middlemen (wholesaler’s 6f retailers etc.) who take
part in distributing the product.

ADVERTISEMENTS:

Problems with regard to a particular product are studied in

detail under this approach. Products of any nature e.g.
agricultural products wheat, rice, maize, etc., industrial
products like machine tools, lathe-machines, generators, oil
engines, etc., and any other products can be covered under
this study. In practice, this approach tends to be repetitive
and time consuming.
(2) Institutional Approach:
This approach relates to various marketing institutions viz.,
wholesalers, retailers etc., engaged in marketing. In
applying this approach, a thorough study with regard to a
particular middleman is undertaken. For example, in
retailing, nature and significance of retailing in terms of
functions and services performed and rendered by retail
institutions like departmental stores, multiple shops, mail
order houses etc.
ADVERTISEMENTS:

Besides wholesalers and retailers, other marketing

institutions can be stock exchanges, produce exchanges,
banks, regulated markets, etc. In short, it can be said that
this approach is applicable on various types of marketing
intermediaries.
(3) Functional Approach:
As the very name suggests this approach comprises of the
study of various activities or functions performed in the
process of marketing of goods and services. It analyses each
function in relation to the importance of its performance.

Various marketing functions are buying, selling, financing,

transportation, banking, risk bearing, market information
etc. By analysing and studying every function in detail and
problems confronted in the performance of each function, it
is possible to understand marketing properly.
(4) The Decision Making Approach:
This approach is of vital importance from the viewpoint of
marketing management. Various decisions are taken at
every level of management. In successful marketing,
decision making occupies an important place. The
marketing manager should be very expert and competent in
his job so that he takes proper decisions for marketing the
goods and services.
The decision is based on two variables which can be
classified as ‘uncontrollable’ and ‘controllable’.
Uncontrollable’ variables relate to economic, sociological,
psychological and political forces which are the basic causes
of market changes. On the other hand, ‘controllable’
variables are within the control of the organisation.

These refer to individual firm’s adjustments in prices,

products, advertisement and selling policies etc. Both these
variables have marked influence on decision making. These
variables should be properly interpreted by the marketing
manager before taking a decision.