In this approach the functions of marketing become the target of study. Each of the functions of marketing, namely, buying, assembling, selling, transport, standardization, grading, storage and warehousing, financing, risk-taking and market information will be analyzed in detail.
3. Institutional Approach in studying marketing
The institutions engaged in the field of marketing become the focal point of such an approach. There are a number of institutions that are involved in marketing activity. These include manufacturers, wholesalers, retailers, transport organizations, warehouses and so on.
4. Decision-making Approach in studying marketing
Decisions help to find solutions to problems. Problems faced by marketers are caused by both controllable and uncontrollable factors.
The controllable factors include quality, price, cost, profit, production, sales, promotional tool and so on.
The uncontrollable factors include among others Government policies, competitors’ actions and suppliers’ decisions.
Under the decision-making approach the manner in which these various factors will be handled, to get rid of marketing problems, is studied.
5. Legal Approach in studying marketing
This approach considers only the legal aspects of marketing. A number of laws have been enacted in India to safeguard the interests of both the buyers and sellers.
The Sale of Goods Act, The Consumer Protection Act, The Essential Commodities Act, Prevention of Food Adulteration Act, The Monopolies and Restrictive Trade Practices Act (MRTP) are some of the laws concerned with marketing.
6. Economic Approach in studying marketing
The economic aspects affecting marketing get priority in such an approach. There are a number of economic concepts like cost, revenue, competition, demand and supply that affect marketing. There can be a study, for example, on the impact of competition on price.
7. Systems approach in studying marketing
A system is an organized body of identifiable independent parts. These parts are called the sub-systems. For example, the human body as a whole is a system and the various parts of the body, i.e., heart, brain, eyes, ears and nose are the sub-systems. If business as a whole is a system, production, finance and marketing are the sub-systems.
Each of these sub-systems can further be split into smaller parts called sub sub-systems.
Product planning, pricing, promotion and distribution are the sub systems of marketing. Each of these is independent but each affects the system. The uniqueness of the sub-systems and their effect on the system get focus in the systems approach.