The below said are various functions of Marketing with examples & definition of marketing. We have tried to cover each function in detail with suitable examples wherever necessary.
Definition of Marketing Functions:
“The delivery of Goods& Services from producers to their ultimate consumers or users includes many different activities. These different activities are known as marketing functions.”
Functions of Marketing
Main functions of Marketing with examples are given as below –
|Functions of Exchange/Merchandising
|Functions of physical Distribution
|Functions of Promotion
FUNCTIONS OF EXCHANGE
1. PRODUCT PLANNING & DEVELOPMENT
“Product planning is the process of identifying and articulating market requirements that defines a product feature set.”
A producer has to produce goods and services according to the needs and want of consumers, so that the object of consumer satisfaction may be achieved.
Producer has to make the design, size, weight, Price and packing according to the changing needs and tastes of customers.
Important factors / components producer should consider while planning / developing product:
- Components of product –
- Brand, Image, Service, benefits
- Width and Depth of product mix
- Innovations, Quality
- Social Aspects of new product
- Product life cycle
- Product Market Strategies
There are 7 steps in the planning & development of new product
- New Product Ideas
- Idea Screening
- Concept Development & Testing
- Concept Development & Testing
- Product Development Process
- Test Marketing
Market Research / Market information:
Marketing starts with market research where marketers get to know about the needs & wants of consumers to position the product. It ends where customer / consumer buys products & get satisfied.
Analysis of identified information to come at specific decision for successful marketing of firm’s product is an important function of marketing.
Key points: – Analyze needs, wants & demands of consumers & SWOT Analysis.
Obtaining, managing & using information about what customers want to improve business decision making, determining what will sell and performance of marketing activities.
Market information includes the collection of data regarding:
- Trend of Market
- Government policy
- Price policy of competitors
- Tastes of consumers
- Change in fashion
- Scientific development
The following are the ways to collect information at different times:
- Business Enterprises
- Specialized agencies
- Research Scholars
2. STANDARDISATION & GRADATION
With the help of above two functions/aspects, marketing functions become easy, production becomes uniform, Prices become equal and marketing become extensive.
Standardization is convenient & ethical basis of marketing. Both, buyers & sellers always prefer to have standardized goods & services. This relieves buyers from examining the product and wasting time.
Standardization is establishment of certain standards or specifications for products.”
It may involve…Quality (color, taste, appearance, sweetness, purity)
Quantity (Weight, size, length etc.)
Grading means classification of standardized product into certain well defined classes or groups.”
Raw materials (E.g. Fruits & Cereals)
Mining products (E.g. Coal & Iron)
Forest products (E.g. timber)
3. BUYING FUNCTIONS (6.3)
“Buying is the acquisition of goods and services by the seller or industrial user for the purpose of resale.”
Buying functions have to be performed at various levels. It involves following levels ––
|Manufacturer||Required to buy raw materials for production or Manufacturing purpose from supplier|
|A Wholesaler||has to buy goods from manufacturer or marketer for sales purpose (sales to retailer or distributor)|
|A retailer||Similarly retailer buys goods from wholesaler or distributor to sell to consumers.|
|A Consumer / customer||buys goods from retailer or any other channel member or sometimes directly from manufacturers|
Buying involves –
- What to buy
- what quality
- from whom
- what quantity
- at what price
Modes of buying -:
1. By inspection: Goods are bought after examining
2. By sample: Examiners samples of goods
3. By description: Catalogues containing description of goods offered for sale
4. By grading: Refers to standard quality of goods purchase by Telegram, phone or mail.
4. ASSEMBLING FUNCTION 6.4
Definition: “Goods are purchased from various places and or sources and assembled at one or sources and assembled at one place to suit the requirement of the buyer.”
Definition: “Assembling is the collection of different types of goods and services by mediators for the purpose of resale”
Assembling function is different (Separate) from buying. Assembling starts after the goods have already been purchased.
Buying Involves transfer of ownership of the goods.
Assembling Goods are purchased from various sources & assembled at one place – involves creation & maintenance of the stock of goods purchased
5. SELLING FUNCTION 6.3
“Selling is the major objective of any marketing activity in the world because marketing completes with the real sale of goods and services bought or acquired by the seller or when intermediary has been affected.”
Selling function involves transfer of ownership from seller to the buyer. It enables firms to satisfy the needs of consumers. Sales are the source of income for manufacturer, wholesalers & retailers.
Importance of selling function is increasing due to severe competition. Now a days, producing goods is easy buy selling is becoming difficult task.
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