Functions of Marketing

Functions of Marketing 

Fig 1: Functions of Marketing

The marketing process performs certain activities as the goods or services move from producer to consumer. Every firm does not perform all these activities or jobs. However, any company that wants to operate its marketing system successfully must carry them out. The following marketing tasks have been recognized for a long time.

 

1. Buying & Assembling

Buying:

Buying is first step in the process of marketing. It involves what to buy, what quality, how much, from whom, when and at, what price. People in business buy to increase sales or to decrease costs. Purchasing agents are much influenced by quality, service and price. The products that the retailers buy for resale are determined by the need and preferences of their customers.

Assembling:

After buying all the materials purchased it should be collected at a central place, it is called assembling. Assembling is required for all kinds of products whether they are agriculture product, consumer product of Industrial product.

2. Selling

It is second part of the exchange transaction. It is concerned with the persuasion of prospective buyers to actually complete the purchase of an article. Selling is important part in final aim of earning profit. Selling is enhanced by means of personal selling, advertising, publicity and sales promotion.

3. Transportation:

Transport is the physical means, whereby goods are moved from the place of production to the place of consumption. It creates place utility. Transportation is essential from the procurement of raw materials & for the delivery of finished products to the customers’ places. Marketing relies mainly on road transport, rail transport, waterways, pipelines and air transport. The type of transportation is chosen on several considerations such as suitability, speed and cost.

 

4. Storage

It involves the holding of goods in proper condition after they are produced until they are needed & demanded by consumers (in case of finished products) or by the production department (in case of raw materials and stores). Storing protects the goods from deterioration and helps in carrying over surplus for future consumption or use in production. Goods may be stored in various warehouses situated at different places. Storing assumes greater importance when production is seasonal or consumption may be seasonal. Retail firms are called “stores”. Stores creates time utility.

5. Standardization and Grading

The other activities that facilitate marketing are standardization and grading. Standardization means establishment of certain standards or specifications for products based on intrinsic physical qualities of any commodity. This may be involved quantity (weight or size) or it may involve quality (colour, shape, appearance, material, taste, sweetness etc). Government may also set some standards e.g., Agmark - in case of agricultural & food products, ISI – for products other than agriculture products, Hallmark is the standard for Gold & jewelry. A standard conveys a uniformity of the products.

“Grading means classification of standardized products into certain well defined classes or groups.” It involves the division of products into clauses made up of unit processing similar characteristics of size and quality. Grading is very important for “raw material” (such as fruits and cereals), mining products” (such as coal, iron-ore and manganese) and “forest products” (such as timber).

Branded consumer products may bear grade levels, – A B C.

 

6 Branding, Packaging & Labeling

“A brand is a name, symbol, term, design of any combination of these which is used for popularizing the product & to identify the product of particular seller “Packaging is the group of activities which involves, designing or producing the container or wrapper for a product.”

“Labeling is affixing a small slip on the product, which gives information regarding Name & address of the manufacturer, contents, price, batch number, manufacturing and expiry date etc.”

7. Insurance:

Insurance is the process where one party (insurer) agrees for a sum of money (premium) which is paid by second party (insured) pay the insured a specified sum if he should suffer a particular loss.

A business is full of uncertainties & risk, so insurance is necessary for mitigation of unforeseen losses.

8. Financing

It involves the use of capital to meet financial requirements of the agencies dealing with various activities of marketing. The services of providing the credit and money needed to meet the cost of getting goods into the hands of the final consumer is commonly referred to as finance, function in marketing. In marketing, finances are needed for working capital and fixed capital, which may be secured from three sources – owner capital, bank loans and advances, and trade credit (provided by the manufactures to wholesaler and by the wholesaler to the retailers).

 

9. Risk Taking

Risk means lose due to some unforeseen circumstances in future. Risk-bearing in marketing refers to the financial risk inherent in the ownership of goods held for an anticipated demand, including the possible losses due to a fall in price and the losses from spoilage, depreciation, obsolescence, fire and floods or any other loss that may occur with the passage of time. From production of goods to its selling stage, many risks are involved due to changes in market conditions, natural causes and human factors. Changes in fashions or interventions also cause risks. Legislative measures of the government may also cause risks.

10. Securing Market Information

The only sound foundation, on which marketing decisions may be based, is correct and timely market information. Right facts and information reduce the aforesaid risks and thereby result in cost reduction. Business firms collects, analyze and interpret facts and information from internal sources, such as records, sales people and findings of the market research department. They also seek facts and information from external sources, such as business publications, government reports and commercial research firms. Retailers need to know about sources of supply and also about customers buying motives and buying habits. Manufacturers need to know about retailers and about advertising media. Firms in both these groups need information about competitors’ activities and about their markets. Even ultimate consumers need market information about availability of products, their quality standards, their prices, and also about the after-sale service facility Common sources for consumers are sales people, media advertisements, colleagues etc.

 

11. Advertising:

American Marketing Association has defined, “Advertising is any form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.”

Explanation of Definition:

1. Any form: The advertising is any form of communication. It may be a symbol, sign or message in newspaper, magazines, on television, radio advertisement, outdoor advertising or direct mail; or new media such as websites and text messages.

2. Paid Form: It means advertising is a paid transaction.

3. Non-Personal Presentation: Advertising is not a personal selling & person to person presentation but it is a non personal presentation i.e. advertising is addressed to a mass audience.

4. Identified Sponsor: Sponsor is agency through which advertising is made.

Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.

12. Market Research:

According to American Marketing Association, “Marketing Research is the function that links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.”

Market research is the collection and analysis of information about consumers, competitors and the effectiveness of marketing programs.

In other words, market research allows businesses to make decisions that make them more responsive to customers' needs and increase profits.

While market research is crucial for business start up, it's also essential for established businesses. It's accurate information about customers and competitors that allows the development of a successful marketing plan.

13. Marketing Management:

Marketing management is “the art and science of choosing target markets and building profitable relationships with them.” Creating, delivering and communicating superior customer value is key. Marketing management is the conscious effort to achieve desired exchange outcomes with target markets.

The marketer’s basic skill lies in influencing the level, timing, and composition of demand for a product, service, organization, place, person, idea, or some form of information. Marketing Management is defined as the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.

14. Customer Support Service:

Customer is the king of market. Therefore, it is one of the chief functions of marketer to offer every possible help to the customers. A marketer offers primarily the following services to the customers:

(i) After-sales-services

(ii) Handling customers’ complaints

(iii) Technical services

(iv) Credit facilities

(v) Maintenance services

Helping the customer in this way offers him satisfaction and in today’s competitive age customer’s satisfaction happens to be the top-most priority. This encourages a customer’s attachment to a particular product and he starts buying that product time and again.