MARKETING FUNCTIONS

Marketing functions explained in easy language so that it will be easy for a student to understand marketing functions.

1. MERCHANDISING FUNTIONS It 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. PRODUCT PLANNING AND DEVELOPMENT : It is the starting point of marketing programme in the firm. Product planning and development includes following activities: Creating idea of a new and improved product. Screening of idea. Development and testing of the concept to find out the best product out of various alternatives .

2. Evaluating the concept. Giving physical shape, testing, branding, packaging and labeling, etc. Test marketing to give the product a trial. Pricing the product. Producing final products for sale.

3. 2. STANDARDISING AND GRADING: Standardization 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 products. It gives the idea of uniformity of quality. Grading facilitates sale of goods by description and it avoids botheration involved in inspection. Products of different qualities should be separated into groups or lots and similar quality products are put into a grade.

4. 3. BUYING AND ASSEMBLING: Buying is regarded as the first step in marketing. Manufacturing firms have to purchase large quantities of raw material and others requisites. Buying involves a suitable source of supply, selecting the desired quantity, quality, grade, style and size. Assembling is related to collecting goods from small producing centres and bringing them to a central place for further disposal. Assembling refers to joining of various parts to form a finished good. For Example: Mobile phones, Bi-Cycles, etc.

5. 4. SELLING : It refers to the transfer of ownership of goods or services to the buyer in exchange of money. Selling is an art. Methods of selling: Personal Selling: it is face to face or person to person selling. Employees make direct contact with consumers, negotiate them to purchase a product. Indirect Selling: This is non personal method of selling and includes publicity and advertisement. Sale by inspection: This method allows people to see and inspect the goods before making the actual purchase. For ex. Buying fruits and vegetables. Sale by sample: Sale by sample is a sale in which the buyer purchases goods under an agreed condition that goods sold are as good as one shown to the buyer as a sample. Sample is a part of transaction constituting express guarantee that whole goods conform to the sample. Online selling: It includes sale of various products online via many sales agencies like Amazon, Flipkart , etc .

6. PHYSICAL DISTRIBUTION FUNCTIONS It consists of activities necessary to move goods from one place to another. 1. STORAGE AND WAREHOUSING: It involves holding goods between the time of their production and their final sale. It creates time and place utilities. Functions of storage: Creation of time and place utility Finance function Stabilizing prices Regular production Ability to face natural calamities Reduction of risk Saving transportation cost Warehouse is an establishment for the storage and accumulation of goods. Warehousing is the act of storing goods that will be sold or distributed later .

7. 2. TRANSPORTATION : Transportation means movement of goods from one place to another. In other words, it is concerned with carrying the goods from the places of production to the places of their consumption. Transportation creates place utility and regularises supply from one place to another. Transportation greatly facilitates the performance of marketing functions like buying, assembling, selling, storage and warehousing etc. The entire economy and its development is dependent on a well- knit system of transportation.

8. AUXILIARY FUNCTIONS Auxiliary functions mean providing supplementary or additional help and support. These activities facilitate the performance of other main functions. 1. FINANCING : Every organization needs finance or money to carry on its functions. The success of a business firm depends upon the proper estimation and utilization of finance. Finance works as the blood for an organization, without it a firm cannot survive.

9. 2. RISK BEARING: The marketing process is also confronted with risks of many kinds at every stage. There may be losses due to unforeseen circumstances. A businessman has to take risks but an effort is to be made to avoid such risks.   3. MARKET INFORMATION: To identify the needs, wants and demands of the consumers and then analyzing the identified information to arrive at various decisions for the successful marketing of a firm’s products and services is one of the most important functions of marketing. The analysis involves judging the internal weaknesses and strengths of the organization as well politico-legal, social and demographic data of the target market. This information is further use in market segmentations.