Functions of Marketing

Functions of Marketing

Some of the most important functions of marketing are as follows:

The delivery of goods and services from producers to their ultimate consumers or users includes many different activities. These different activities are known as marketing functions. Different scholars have described different functions of marketing as under:

i. G.B. Giles described seven functions of marketing: a. Marketing research b. Marketing planning, c. Product development d. Advertisement and sales promotion e. Selling and distribution f. After sale services and g. Public relations.

Another classification of marketing functions is given by professors Clark and Clark, which is widely accepted by one and all. Functions of marketing are classified into three types 1. Functions of Exchange 2. Functions of Physical Supply 3. Facilitating Functions.

Functions of Exchange: Exchange refers to transfer of goods and services for money’s worth. This process can be divided into (a) Buying and assembling and (b) selling

Functions of Physical Supply

There are two important functions under this classification: i. Transportation ii. Storage and ware housing.

i. Transportation:

Transport means carrying of goods, materials and men from one place to another. It plays an important role in the marketing. It creates place utility by moving goods from the place where they are available in plenty, to places where they are needed. Various types of transport are used for carrying goods like a. Land transport, b. Water transport and c. Air transport.

Innovation, Representation, Decision-making, and Communication are the subsidiary functions of management.

ii. Storage and Warehousing:

a. Storage

Storage is another function of marketing process and it involves the holding and preservation of goods from the time they are produced to the time they are consumed. Generally, there is a time gap between the production and consumption of goods. Therefore, there is need for storing so as to make the goods available to the consumers and when they are required.

b. Warehousing

Warehouses create time utility by storing the goods throughout the year and releasing them as and when they are needed. Several types of warehouses are used for storage of goods, which are as follows.

i. Private warehouses

ii. Public warehouses

iii. Bonded warehouses

Facilitating Functions

There are the functions which help or facilitate in the transfer of goods and services from the producer to the consumer. They are not directly connected with the transfer of goods. Under this category the following functions are included.

i. Financing:

a. Long-term finance

b. Medium-term finance

c. Short-term finance

ii. Risk Bearing:

a. Time risk

b. Place risk

c. Competition risk

d. Risk of change in demand

e. Risk arising from natural calamities

f. Human risks

g. Political risks

iii. Market Information: According to Clark and Clark market information means “all the facts, estimates, opinions and other information used in marketing of goods”

iv. Standardization: Standardization means establishment of certain standards based on intrinsic qualities of a commodity. The quality may be determined on the basis of various factors like size, colors, taste, appearance etc.

v. Grading: Grading means classification of standardized products in to certain well defined classes.

vi. Branding: Branding means giving a name or symbol to a product in order to differentiate it from competitive products.

vii. Packing: Packing means wrapping and crating of goods before distribution. Goods are packed in packages or containers in order to protect them against breakage, leakage, spoilage and damage of any kind.

viii. Pricing: Pricing is perhaps the most important decision taken by a businessman. It is the decision upon which the success or failure of an enterprise depends to a large extent. Therefore, price must be determined only after taking all the relevant factors into consideration.