Approaches to Marketing

The study of marketing has been approached from multiple perspectives, reflecting its complex nature. For some, marketing means selling products in a shop or marketplace, while for others, it encompasses analyzing individual products and their movements in the market. Some view it as the study of the individuals—wholesalers, retailers, agents, etc.—who facilitate the movement of these products. Others focus on the behavior of commodities and the processes involved in their movement. The approaches to marketing have evolved through several stages, highlighting a process of development and adaptation.

• Product or Commodity Approach

The commodity approach centers on the product itself, analyzing its flow from the original producer to the ultimate consumer. This study examines various aspects related to a specific commodity, including sources and conditions of supply, the nature and extent of demand, transportation, storage, standardization, and packaging. For example, if we consider rice, one must investigate its sources, the individuals involved in its buying and selling, transportation methods, selling challenges, financing, storage, and packaging. This method provides a comprehensive view of the marketing process for each product. While it is straightforward and yields valuable insights, it can also be time-consuming and repetitive.

• Institutional Approach

The institutional approach focuses on the study of marketing institutions, such as middlemen, wholesalers, retailers, importers, exporters, and warehouses, that facilitate the movement of goods. Often referred to as the middlemen approach, this method emphasizes understanding the functions of these institutions in executing marketing activities. The activities of each institution contribute to the overall marketing process. However, this approach may not adequately capture the complete marketing functions or the interrelationships among different institutions.

• Functional Approach

The functional approach prioritizes the various functions performed in marketing. This method breaks marketing down into specific functions, such as buying, selling, pricing, standardization, storage, transportation, advertising, and packaging. Each function is examined in detail to understand its nature, necessity, and importance. In this approach, marketing is seen as the “business of buying and selling” and includes all business activities involved in the flow of goods and services between producers and customers. However, this focus on individual functions may overlook their application in specific business operations.

• Management Approach

The management approach is the most recent and scientific perspective, concentrating on marketing activities and the role of decision-making within a firm. It emphasizes how managers address specific problems and situations in the market. This approach evaluates current marketing practices to achieve specific objectives. Two key factors are considered: controllable factors (e.g., price adjustments, advertising) and uncontrollable factors (e.g., economic, sociological, psychological, and political influences). While the controllable factors can be managed by the firm, the uncontrollable factors limit marketing opportunities. Therefore, the managerial approach involves studying uncontrollable factors and making decisions regarding controllable ones, focusing on practical marketing aspects while somewhat neglecting theoretical foundations. Overall, it provides a comprehensive view of the business.

• System Approach

The system approach views marketing as a network of interconnected objects and relationships. It emphasizes the interrelations and connections among various marketing functions, examining both internal and external marketing linkages. Internally, this approach fosters coordination among business activities—such as engineering, production, marketing, and pricing. Through feedback mechanisms, businesses can modify their processes to achieve desired outputs and customer satisfaction. The system approach underscores the importance of marketing information in understanding markets and achieving marketing objectives.

• Societal Approach

Emerging recently, the societal approach considers the marketing process as a means for society to fulfill its consumption needs. This perspective prioritizes ecological factors—such as sociological, cultural, and legal elements—over how businesses meet consumer demands. It emphasizes the impact of marketing decisions on societal well-being, aiming to align marketing practices with broader societal goals.

• Legal Approach

The legal approach concentrates solely on the regulatory aspects of marketing, particularly the transfer of ownership from seller to buyer. In India, for example, marketing activities are governed by laws such as the Sales of Goods Act and the Carriers Act. However, this narrow focus on legal frameworks may neglect other crucial aspects of marketing.

• Economic Approach

The economic approach examines supply, demand, and pricing issues. While these factors are vital from an economic standpoint, this approach may not provide a comprehensive understanding of marketing as a whole.