Marketing Functions. Meaning. Marketing is made up of a number of activities known as ‘marketing functions.’ Marketing functions are such activities as marketing perform to achieve the ultimate objective of fulfilling the needs of the consumer.
Meaning Marketing is made up of a number of activities known as ‘marketing functions.’ Marketing functions are such activities as marketing perform to achieve the ultimate objective of fulfilling the needs of the consumer. The philosophy of marketing finds its practical applications in the various steps taken in the marketing process by which goods leave the producers, journey through various intermediary channels and with the aid of various other agencies, finally reach the consumers scattered all over the area.
Classification Of Marketing Functions
1. Clark and Clark Marketing Functions Functions of Exchange Functions of Physical Supply Facilitating Functions Buying & Assembling Selling Transportation Storage Financing Risk Taking Market Information Standardization
2. Proper Plye The Marketing Process Dispersing Concentration Selling (a) Personal selling (b) Advertising (c) Mail solicitation (d) Demonstrating (e) Installing (f) Packing ii) Transporting iii) Storing iv) Grading v) Financing vi) Risk bearing vii) Dividing Buying and Assembling Transporting Storing Grading Financing Risk-bearing
3. Harry L. Hensen Marketing Functions General Marketing Functions Major Marketing Functions Determining marketing Developing marketing plans Budgeting sales, expenses, margins, profits Co-ordinating marketing activities Developing marketing executives Marketing Research Products Distribution Sales Force Management Advertising and Sales Promotion
4. Cundiff Still Govani Marketing Functions Merchandising Functions Auxillary Functions Physical Distribution Functions Storage Transportation Product Planning and Development Standardizing and Grading Buying and Assembling Selling Marketing Risk bearing Market information
Merchandising functions Merchandising consists of those activities which are necessary to make available to the market the product and services that fit the needs of that particular market and to create demand for these products and services
I. Product planning and development Product planning is the starting point of entire marketing programme in a firm. It implies all activities which enable a firm to determine what should constitute its line of products.
Planning and development of a product includes the following activities: Creating idea of a new and improved product. Screening of data. Development and testing of the concept to find out the best product out of various alternatives. Evaluating its prospects. Giving physical shape, testing, branding, packaging and lebelling , etc. Test marketing to give the product a trail Pricing the product Product for sale ( commercialisation)
II. Standardising and Grading Standardising is the process of setting up standards to produce goods in conformity with those standards. “A standard is a constant physical characteristic that gives uniformity to a group of product”. The standards are set with regard to size, shape, colour, design and material. Grading facilitates sale of goods by description and it avoids lot of botheration involved in inspection etc. Grading creates good impression in the minds of buyers because they are assured of a particular standards of goods.
III. Buying and Assembling Buying refers to the process of acquiring goods at the right price, at a right time, in right quantity and form a right source of suppliers. Assembling refers to the activities of assembling units of industry where finished articles is brought out of assembly of various parts. Eg bi-cycle, laptops
Concentrated Buying: Under this system, purchases are made from a limited number of sources or from a single source of supply. Diversified or Scattered Buying: It is the practice by which the buyers make purchases from a large number of suppliers. It affords competitive prices, better services and a wider choice in planning of assortments. Buying practices
Reciprocal Buying: Under this practice, buying is made on reciprocal basis, that is if you buy from me. I shall buy it from you. But restricts choice and may result into higher prices. Conservative or Hand to mouth Buying: This is a practice of buying strictly on the basis of current needs. Such policy is most suitable when prices are falling. Speculative Buying: Under this practice buying purchases are made in bulk by placing large orders with a view to sell the same at higher prices in the near future.
Selling refers to the process of transfer of ownership of goods or services to a buyer in exchange of money. “The heart of marketing task is selling and it is in connection with the formulation of selling policies and methods followed in carrying them out that the real mettle of the manufacturer and the middlemen is tested”. --- Philips and Duncan iv. selling
Selling functions has five basic elements: i) Product planning and development ii)Establishing contact with the buyers iii) Creation of Demand iv) Negotiation v) Entering into contracts elements/ sub functions of selling
Methods of selling
PHYSICAL DIDTRIBUTION FUNCTION
TRANSPORTATION Transport means movement of goods and persons from one place to another. It carries ideas and inventions to the people. Transport increases the mobility of labour and capital, widens the market, leads specialisation and division of labour, helps in stabilising prices, contribution to a large portion of our wealth provides employment
Some More Functions
BRANDING Branding means giving a name to a particular product so that the consumer is able to distinguish this product from other similar products. A brand may consist of a word, a symbol or a number. Branding of a product may be done in three ways :- Symbols and marks eg. Lotus Ghee Special names eg. LUX Soap Use of names of manufacturers along with the product eg. Bata Shoes.
Packing and Packaging Packing means wrapping, compressing or filling goods for the purpose of their protections and convenient handling. Packaging is related to putting articles in the market in convenient sized lots. Packaging facilitates advertising and branding of goods.