International Journal of Excellence Innovation and Development ||Volume 1, Issue 1, Nov. 2018||Page No. 035-037||
An Economic Study of Marketing Cost of Coir Incurred by Manufactures in Tirunelveli District K. Karuppasamy, P. Chinnathambi Assistant Professor in Economics, Tirunelveli Dakshina Mara Nadar Sangam College, Manonmanium Sundaranar University, T.Kallikulam, Tirunelveli, Tamil Nadu, India
Abstract––Marketing are activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure. Among the various marketing costs, transport cost of small units has showed an increased share of 56.48 per cent in channel III from 48.83 per cent in channel II. The rejection loss in channel II was 13.63 per cent, while it was 20.54 per cent in channel III. The share of loading and unloading cost has slightly increased from 12.32 per cent in channel II to 13 per cent in channel III. The incidental charges was 3.35 per cent in channel II and it was doubled in channel III and reached a percentage 7.13 per cent. The remaining charges like pacing cost were 1.76 per cent in channel II and 1.86 per cent in channel III and weighing charges were 0.94 per cent in channel II and 0.99 per cent in channel III. From the analysis it is known that the channel III was the most economic channel with the least marketing costs among all the channels, it is followed by channel II. Keywords––Marketing, company, channel
INTRODUCTION The purpose of all production is to sell the goods produced and make profit thereof. Thus, the next step for the manufacturer is to decide the ways and means to place the products in the hands of the consumer at a proper place, time and price. Therefore, every manufacturer would seek specialized middlemen in performing such marketing functions so as to achieve the objectives of the firm. This set of marketing intermediaries is called marketing channel. (Philip Kotler, 2003). In this section, an attempt is made to identify the cost of marketing that exist for coir fibre in the study area. Importance of Marketing 1. Marketing helps to achieve, maintain and raise the standards of living 2. Marketing Increases employment opportunities 3. Marketing increases national income - More purchasing power 4. Helps to maintain economic stability & development 5. Link between producer & consumer 6. Removes imbalance of supply & demand by transferring surpluses www.ijeid.com
Marketing Cost The marketing cost refers to the total cost associated with delivering goods to customers. The marketing cost may include expenses associated with storing goods in warehouses pending delivery, loading and unloading, bundling, weighing, transporting, broker aging, establishment and other incidental charges. The items of the cost vary with the place of marketing. The direct calculation of marketing cost is not a easy task as it involves many calculations of many elements of such cost. Hence, the total marketing costs are often estimated indirectly, via price spread or marketing margin. (Tripathi, R.S, 1998).
MATERIALS AND METHODS Collection of Data This study is an empirical research based on the survey method. The researcher adopted interview schedules for collecting primary data. Primary Data The primary data were collected from two sources. The data on organization, investments, sales, cost and return of coir units were collected from the manufacturers of coir units. Information relating to price paid, received and costs incurred in marketing of coir were also collected from market intermediaries. Separate interview schedules were prepared and used to elicit this required data from manufacturers and market intermediaries. As an initial step, the drafted interview schedules were pretested by taking into account 5 manufacturers of coir units, and 10 intermediaries. Their opinions and suggestions were sought on its construction. In the light of the experience gained in the pre-test, the originally prepared interview schedules were modified and the final draft prepared. Marketing Cost Incurred by Manufactures The marketing costs incurred by the manufactures per 100 kg of coir fibre were calculated for both micro and small coir units, and the outcomes are presented in Table 1.
RESULT AND DISCUSSION The manufacturers prefer three types of channels for marketing of coir fibre. They have to incur marketing cost when they skip the native traders in the channels of distribution. From the above table it is understood that the total marketing cost of the micro level units who follow channel II was found to be Rs.120.89 per 100 kg of coir fibre.
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