Principle of Marketing: People as a marketing mix and their importance

len Alfred Ajibola - Mon, 12th October, 2020 @ 07:32 AM

Topics in Commerce

Types of specialization Specialization and Exchange Historical background of commerce in Nigeria Disadvantages of barter system Contract of Employment: Terms of employment contract Principle of Marketing: People as a marketing mix and their importance Principle of Marketing: Positioning as a marketing mix Principle of Marketing: Packaging as a marketing mix Elements of promotion in marketing mix Principle of Marketing: Promotion as a marketing mix Principle of Marketing: Place as a marketing mix Principle of Marketing: Price as a marketing mix Principles of Marketing: The seven principles of marketing mix Factors necessary for division of labour Disadvantages of division of labour Advantages of division of labour Concept of Outbound Marketing Inbound Marketing explained Types of production in commerce Commerce: Definitions and Scopes of Commerce

Academic Questions in Commerce

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In commerce, the concept of paying in advanced is termed _____.

  • A. Advanced payment

  • B. Up payment

  • C. Forward payment

  • D. Prepayment

  • E. Uphill payment

  • F. Adpayment

In commerce, the concept of 'buy now, pay later' is termed _____.

  • A. Unadventurous payment

  • B. Buy on credit payment

  • C. Deferred payment

  • D. Postponed payment

  • E. Owed payment

  • F. Future payment

In commerce, which of the following is false with regards to a commodity?

  • A. A commodity must always have a market value

  • B. Rendered services are also instances of commodities

  • C. Products applicable to commodities can be bought or sold with money

  • D. A commodity must be standardized

  • E. A commodity must be usable upon delivery

  • F. Commodities can be traded in the futures market

Whatever is being marketed must always provide value to its potential consumers.

  • A. True

  • B. False

Which of the following is not a branch of marketing?

  • A. Merchandising

  • B. Promotions

  • C. Forex

  • D. Search Media Optimization

  • E. Social Media Optimization

  • F. Copywriting

Which of the following is not a characteristics of commerce?

  • A. The only aim of commerce is to make profit

  • B. It is a discontinuous process after profit had been made

  • C. It is accompanied with challenges and uncertainties

  • D. It is 100% business and economic activity

  • E. Transaction processes are always involved in commerce

  • F. It connects the process of production and marketing

Which of the following is not a function of commerce?

  • A. Unnecessary in times of emergencies like earthquakes and wars

  • B. Facilitates mass production of goods

  • C. Influences transportation network within and outside a state

  • D. Attempts to satisfy human needs and wants

  • E. Improves the standard of living

  • F. Acts as an online business link between buyers and sellers

One of the following is a form of division of labour.

  • A. Agonistic division of labour
  • B. Antagonistic division of labour
  • C. Mutualistic division of Labour
  • D. Advanced division of labour
  • E. Solitary division of labour
  • F. Occupational division of labour

People as a marketing mix:

People are vital for the progress of any business and as such, they are highly considered as one of the seven principles of marketing.

Recall that the principles of marketing mix refers to any process or activity carried out in business in order to gain more customers, thus making more sales or service delivery in the process.

Please read on an introduction to the principles of marketing mix here.

Apart from people (as one of the seven principles marketing mix), others include:

It is important to state that without people, the other principles of marketing mix will not yield the goal of marketing; which is the sale of products and delivery of services.

The above statement is asserted on the fact that the process of production, marketing, distribution, sales and eventual delivery of products and services must be done by one or more persons. In addition, customer support on products and services will also require people (and perhaps, not robots).

Please read more on division of labour here.

Have you wondered why organizations tend to hire the best candidate for a position? The answer to this question is simply because they intend to deliver the best services or manufacture the best products. Infact, when qualified personnels (people) aren't hired by an organization, such organization will eventually crumble.

You can read on conflict management in an organization here.

Understand that the people involved in an organization's functioning are regarded as a part of the staff and management team of the organization.

Please read on management and its importance here.

In simple terms, people as a marketing mix refers to anyone or everyone that had directly or indirectly played a part in a product's manufacture (and its eventual sale); or a service provision (and its eventual delivery); alongside the customer service relationships before, during and after the sale or delivery of such product or service.

As an instance, in the process of reading this article on Len Academy, you may admire the structure of the website and the manner at which the articles are written. To this end, you may encourage students and teachers to visit the website by sharing this article with them.

Through the above action of yours, you have acted as part of the people who promotes education through the sharing of this website and its academic articles (via various social media platforms). This is true because the ultimate goal of Len Academy is to promote education and that is exactly what you have done through such action.

Please read more on marketing and its branches here.

You can attempt Len Academy questions on various subjects here.


Importance of people in marketing

  1. Without people, goods cannot be produced and services cannot be rendered.

  2. Without people, the other elements of marketing will not exist. This is so because these elements of marketing mix must be carried out by people.
    Please read on packaging as a marketing mix here.

  3. A good product does not guarantee sales when the appropriate marketing, sales and delivery personnels are absent.

  4. People can help promote a product or service even without the knowledge of the producer or organization.

  5. People serve as a reference point for consumer interaction and feedback.

  6. Businesses are built on the qualifications and quality of people working with an organization.
    Please read on the concept and characteristics of business here.


At this point, it is safe to say that the overall experience of a customer or consumer is largely influenced by one or more person (people) in the product's production (or service delivery); alongside the customer service personnels.

In summary, it is the action of people that keeps existing customer, while also yielding a turnover of new customers; hence bringing into completion the cycle of marketing.

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Amazing facts in Commerce

According to research, the problem isn't the amount of food produced; the actual problem is the distribution of these foods. In this regard, we actually produce enough food to feed everyone on earth, but their distribution remains an underlying problem


With Amazon Smile, you can donate 0.5 percent of your purchases to a charity of your choosing

Check it out here

The brewery, Sankt Gallen in Japan, produces a beer called Un Kono Kuro from elephant's dung

North Korea and Cuba are the only countries in the world where you can't buy Coca-Cola

Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.

Amazon's first profit was in 2003. Its founder 'Jeff Bezos' is the richest man in the world as at 2018/2019

Notable points in Commerce

The theory of international trade is guided by the principle of comparative cost. This principle was propounded by David Richards.

The principle of comparative cost states that a country should specialize in the production of goods and services in which they have a greater comparative advantage or the least comparative disadvantage.

Below is an instance on the principle of comparative cost.

Now, let us assume we have two countries producing and exporting rice and beans respectively.

  • On a daily basis, If country A produces 100 grams of rice and 300 grams of beans daily and country B produces 50 grams of rice and 150 grams of beans, then according to this principle, country A has an advantage over country B with regards rice and beans production; but better still, country A has a greater comparative advantage in the production of beans.


From the above instance, it can also be said that country B is at a disadvantage with regards to the production of rice and beans. Infact, it has a bigger comparative disadvantage with regards to beans production.

The point to note here is this: A country utilizing the principle of comparative cost will always produce quality goods and services at a cheaper cost.

No single country manufactures all the goods and services in our world. This implies that every country of the world relies on certain goods and services imported (or brought in) from other countries.

Foreign trade is defined as the exchange of goods, services and capital between two or more countries.

Foreign trade is also termed as international trade.

Please read more on foreign trade here

Division of labour can be defined as the act of splitting job process into a number of different processes such that each process is done by a different person or group of persons.

Through the process of division of labour, one worker may constantly perform a specific aspect of the job and as a result, may become specialized in that area.

The result of specialization in the different department of a job will imply the production of goods with better quality.

Please read on division of labour here

Forms of division of labour relates the various ways through which division of labour may be carried out.

Take for instance, within a country, one state may choose to specialize in the production of a cars while another specializes in a different area, let's say agriculture.

Below are the forms of division of labour

  • Complex division of labour

  • Occupational division of labour

  • Geographical division of labour


Please read more on the forms of division of labour here.

Balance of Trade can be defined as the total value of goods imported and exported by a country during a specific period; usually yearly or annually.

Balance of trade can be either positive, negative or zero

  • A positive balance of trade implies that a country exports more goods than its imports. China as a country is likely to have a positive balance of trade since it exports a variety of goods to other countries.

  • A negative balance of trade is often considered as an unfavorable balance of trade since the country's importation exceeds its exportation. Nigeria (as at 2018) is likely to have a negative balance of trade.

  • A zero balance of trade is reached when imports equal exports.

Please read on balance of trade and balance of payments here.