Functions Of Marketing

What Are the Functions Of Marketing? Classification On Functions Of Marketing.

The prosperity of any firm depends on the efficiency with which its items are sold.
To move items from a producer to an end consumer, a variety of operations are conducted, which are called functions of marketing. A marketing function is an act, activity, or service by which the original producer and ultimate customer are tied together. If marketing tasks are not properly carried out, the company unit may not be in a position to dispose of its products, and all the efforts made for manufacturing may not bear fruit. The fundamental purpose of marketing is to take the commodities from the manufacturer and execute all tasks necessary to make them available to end customers.
In the process of marketing function, utility is produced when products and services are available at the places where they are required, time utility when they are needed, and possession utility when they are transferred to those individuals who need them.
All the marketing functions may be classified into two sorts: (i) Concentration and (ii) Dispersion. The process of concentration is focused on gathering raw resources and producing goods at a central point, preferably a market. Dispersion means the dissemination of commodities to final customers. Concentration covers a lot of marketing operations like (a) buying, (b) trading, (c) storing, (d) grading, (e) financing, etc.
The process of distribution may entail the following:
(a) Selling; (b) Transportation; (c) Grading; (d) Risk carrying, etc.

Classification On Functions Of Marketing

Functions-Of-Marketing

A. Function Of Exchange

Exchange refers to the transfer of products and services. This procedure may be separated into (a) Buying and assembling and (b) Selling.

A. Buying And Assembling: Buying is the first step in the ladder of marketing functions.
A producer needs to buy raw materials for manufacturing, and a wholesaler has to buy finished goods for the purpose of selling them to retailers. A retailer has to buy items for resale to consumers. Efficient buying is vital for successful selling. Large-sized business concerns retain a distinct department, namely the purchasing department, for the purpose of buying.
Modes Of Buying: Goods may be purchased in any of the ways provided here.
i) By inspection: Under this approach, things are acquired after being viewed by the buyer on the seller’s premises.
ii) By Sample: A purchase by sample is performed after the customer evaluates the sample of goods offered by the supplier.
iii) By Description: Some merchants provide catalogs with descriptions of things offered for sale. The prospective customer submits an order specifying a certain number given in the catalog.
iv) By Grading: This relates to the standard quality of items. Under this system, purchases can be made by telegram, telephone, or mail.
Assembling begins once the products have been acquired. It refers to the collection of goods already acquired from multiple locations in one central spot. Assembling aids transit and storage, which are crucial in the case of seasonal items and agricultural products.
B. Selling: The ultimate purpose of every firm is to produce profits, and in attaining this aim
Selling has a crucial function. Nothing actually happens until somebody sells something.
Selling helps a corporation meet the demands of consumers. It is the procedure by which Ownership of items is transferred from the seller to the buyer. Sales are the source of income for producers, distributors, and retailers.
The importance of selling has expanded dramatically with an increase in the quantity of articles offered for sale by a large number of manufacturers. When the manufacturing was on a modest level, the manufacturers had no issue disposing of their products. But today, with the growth in output, selling has become a difficulty, and the producer has to encourage people to buy his items.

B. Function Of Physical Supply

There are two essential functions under this classification: (a) Transportation and (b) Storage and warehouse housing.

A. Transportation: Transport is the act of transferring products, commodities, and persons from one location to another. It plays a vital part in marketing. It produces utility by moving goods from areas where they are plentiful to places where they are needed. Both the assembly and distribution of items are done by means of conveyance. Transportation facilitates not only the transfer of commodities from the sites of production to the places of consumption, but it also helps customers go to marketing regions where there is a wider range of goods than in the places where they like Translation is also useful. in stabilizing the prices of various goods by shifting them from places where they are in surplus to locations where they are scarce. Various methods of transport are used for delivering things, including (a) Land transport, (b) Water transport, and (c) air transport.

B. Storage And Warehouse Housing: Storage is another function of the marketing process and involves the holding and preservation of commodities from the time they are created to the time they are consumed. Generally, there is a time gap between the production and consumption of commodities. Therefore, there is a need for storage so as to make the goods available to customers as and when they are needed. By bridging the gap between production and consumption, storage offers temporal utility. It also generates usefulness by holding products in distinct areas. The importance of storage may be investigated as follows:

(i) Generally, items are manufactured in anticipation of future demand for the product market. All the things are not sold immediately after manufacture. For the unsold Stocking items and keeping them is crucial.

(ii) Some commodities are manufactured throughout the year, but demand for them is only during a particular season. For example, raincoats, umbrellas, Diwali crakers, etc. These commodities are to be kept until the coming of the season.

(iii) Many commodities are produced during a certain season, although they are used throughout the year. Such commodities have to be preserved so as to make them available. Throughout the year. For example, agricultural products.

(iv) Certain items that might achieve greater values in the future market are held for a longer period of time. For example, tobacco, liquor, rice, chiles, etc. A warehouse is a location for the storage of products. The role of storage may be carried out properly with the aid of warehouses.

Warehouses produce temporal utility by keeping the items throughout the year and releasing them as and when they are needed. Several types of warehouses are utilized for the storage of commodities, which are as follows:

(i) Private Warehouses: Private warehouses are held by significant company units for the storage of their own products. Only huge corporate firms can afford to have such mansions.

(ii) Public Warehouses: These are the commercial enterprises that rent storage space. The government licenses these warehouses. They are beneficial to businessmen who cannot afford to maintain their own warehouses. These warehouses are generally located near railway lines and key roadways.

(iii) Bonded Warehouses: These are placed near the ports for the storage of imported goods. When the importer cannot pay customs taxes immediately on the products he imports, he might deposit them in bonded houses. Importers can take the products after paying import duty.

C. Facilitating Functions

There are marketing functions that aid or facilitate the transmission of products and services from the producer to the consumer. They are not directly associated with the transport of commodities. Under In this category, the following functions are included:

a. Financing: Finance is the lifeblood of any firm. It is essential for the marketing of goods and services. The products produced or acquired cannot be sold immediately. The end customers, and considerable time is invested in the marketing process. Hence, there is a need for funding for the acquisition of raw materials, paying transportation and storage costs, insurance, etc. Further, normally, commodities are handed on from maker to distributor. And from wholesaler to retailer on a credit basis. Ultimate customers also want to acquire items on credit. Therefore, all agencies engaged in marketing have to make some preparation for funding. Prof. J.F. Pile has properly noted that “finance is the lubricant of marketing machinery”. There are three basic sources of financing. They are as follows:

(i) Long-Term Finance: It is essential for acquiring fixed assets like land, buildings, plants and machinery, furnishings, etc. The major sources of this money are shares,debentures, and financial institutions.

(ii) Medium-Term Finance: It is essential for raising working capital. The main sources are financial institutions and commercial banks.

(iii) Short-Term Finance: It is usually necessary for fulfilling short-term payments, normally for less than one year. It can be raised from commercial banks and trade creditors.

b. Risk Bearing: Risk denotes the possibility of loss due to some unknown circumstances in the future. The marketing process is challenged by hazards of numerous types at every level. Risk may develop because of changes in demand, a decline in price, bad debts, or natural disasters like earthquakes, floods, etc. The marketing risks may be divided under the following headings:

(i) Time Risk: Goods are acquired by the firm with a view to selling them at a profit out of the projected rise in prices in the future. During the time lag, conditions might change, and the price will decline. Thus, time risk is included in marketing.

(ii) Place Risk: Place risk emerges when the prices of the same commodity are different between places. The businesspeople may acquire items in the market where prices are cheap with a view to selling them in other areas where prices are high. But the price in the other market may drop, incurring a loss.

(iii) Competition Risk: Businessmen have to confront the risk coming from the forces of competition. Competitive enterprises may introduce contemporary ways of manufacturing. according to which quality may be increased or the cost of manufacturing may be decreased. Under In such situations, a business may be obliged to sell at a loss, which is termed the risk of competition.”

(iv) Risk of Change in Demand: The producers make things on a huge scale in anticipation of demand in the future. But occasionally, the demand for the goods may not meet expectations, resulting in losses.

(v) Risk Arising from Natural Calamities: Risks from natural sources are beyond human control. These include rain, earthquakes, floods, heat, and cold. These risks produce huge losses.

(vi) Human Risks: These risks are owing to undesirable human behavior, like theft, strikes, lockouts, bad debts, etc.

(vii) Political Risks: Political risks develop owing to changes in political variables such as changes in government, shifts in government policies, etc.

c. Market Information: According to Clark & Clark, market information means “all the facts, estimates, opinions, and other information used in the marketing of goods”. The main The purpose of every business is to develop and maintain demand for the product produced. For this aim, market knowledge is important. On the basis of this information, the vendor can know what sort of items are needed by the consumer and when and where they are needed. and in what quantity.

d. Standardization: Standardization involves the creation of particular standards based on the intrinsic attributes of an item. The quality may be judged on the basis of various characteristics, including size, colors, flavor, appearance, etc. It is advantageous to customers, as they may confidently rely on the quality of the standardized items.

e. Grading: Grading implies the categorization of standardized items into specific, well-defined classes. In the words of Clark & Clark, “It necessitates the division of products into category made up of units possessing similar characteristics of size and quality”. Grading is very essential for agricultural products like Wheat, cotton, etc. Grading is of two types: fixed and variable. Fixed grading refers to the grading of products according to set standards, whereas variable grading refers to the use of varying standards.

f. Branding: Branding implies adding a name or symbol to a product in order to differentiate it from competitor items. It helps consumers recognize their items. Branding may be done by picking symbols and logos such as Charminar cigarettes, Camel inks, and Binny fabrics or by utilizing the names of producers such as Ford vehicles and Godrej Steel. furnniture. A good brand should be brief, straightforward, easy to spell, and easy to remember.

g. Packing: Packing implies wrapping and crating products before distribution. Goods are put in packages or containers in order to safeguard them against breakage, leakage, spoilage, and damage of any type. It comprises arranging the items in boxes, tins, bottles, etc., cans, bags, and barrels of suitable size for the purchasers.

These are the core purposes of marketing, however, there are many additional activities that fall under the banner of marketing functions. The precise tasks that are crucial for a particular firm may differ based on the industry, the product or service being supplied, and the target market.

Effective marketing may allow firms to achieve a number of goals, including:

* Increasing brand awareness

* Generating leads

* Driving sales

* Increasing customer satisfaction

* Building relationships with customers

* Expanding into new areas

Marketing is a crucial aspect of any organization that wants to be successful. By understanding the many functions of marketing and how they can be utilized to achieve business goals, organizations can design successful marketing strategies that will assist them in reaching their target market and achieving their intended results.

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