Functions of marketing management

Bharathidasan Unversity syllabus - Marketing Management - Functions of Marketing Management

1. Marketing Management Unit – I Marketing - Functions Prof. U. Ramesh Babu Asst. Prof. of MBA Annai College of Arts & Science Kovilacheri, Kumbakonam `

2. Marketing functions Marketing Functions Functions of Exchange Functions of Physical supply Facilitating functions Buying Assembling Selling Transportation Storage and Warehousing Financing Risk - Taking Standardization and Grading Market Information

3. Function of Exchange Function of exchange include all those activities which are performed to transfer possession as well as ownership of goods by the seller to the buyer.

4. Buying: Everyone in this world buys goods as a matter a daily routine.

5. Kinds of buying Hand to mouth buying Speculative buying Buying by inspection Buying by samples Buying by description Contract buying scheduled buying Period buying Buying by requirement/need Open market buying Reciprocal buying Concentrated buying Scattered buying

6. assembling Assembling of goods is done only after they have been bought. Assembling refers to the process of keeping the goods, purchased from different places, at a particular place.

7. selling The process of transferring ownership of goods from the seller to the buyer is what is known as selling.

8. Kind of selling Sale by inspection Sale by sample Sale by description Under cover method Auction Tender system Sake at a flat rate Gentlemen’s agreement

9. Functions of physical supply Transportation: The goods produced in a particular place are not consumed there itself. From the place of production the goods need to be taken to the various consumption centers which are scattered throughout the country or even throughout the world.

10. Classification of transport Land transport Road transport Rail transport Sea transport Air transport

11. Storage and warehousing Storage: A manufacturer needs to keep adequate stock of raw materials to ensure smooth production. Maintenance of stocks of raw materials and finished products calls for storage. Warehousing: A warehouse is a place where goods are stored. It is otherwise known as a ‘ godown ’. It is usually found away from the place of business of merchant.

12. Facilitating functions These are the ancillary functions of marketing. But their importance cannot be ignored.

13. Financing Needless to say finance is the life-blood of any business. A business needs finance for various purposes. One such purpose is marketing. Both fixed capital and working capital are required for marketing.

14. Risk taking A marketer has to encounter different types of risks while performing his activities. Marketing risks can be grouped under the following categories: Risks due to natural calamities Physical risks Economic risks Risks due to changes in buyer preference Risks due to technological development Political risks

15. Standardization and grading A ‘standard’, in the context of marketing, provides the basis that enables the consumers to make a comparison between goods. In the case of agricultural goods, there will be variations between products of the same variety. The size, shape, colour and taste of two or more pieces of tomato or beetroot will not be the same. This process is what is known as ‘grading’.

16. Market information The marketer requires lot of information about the market. Such information helps him in taking certain important decisions. Information is generally required in respect of the following: Substitutes available Demand Tastes and preferences of the consumers Positive and negative aspects of the product. Views of the retailers and so on.