The main objective of marketing is to see that raw materials move from suppliers to manufacturers from where final end products of consumers’ need/choice are moved to end consumers. Show Marketing functions start with understanding buyers needs and ends with fulfilling these needs by seeing that commodities of customers choice move from production facility to the final target market. The functions of marketing include buying, selling, transporting, storing, standardizing and grading, financing, risk taking and market information. Apart from the above activities, marketing in the 21st century includes market research, planning, assisting in product development, and laying out different strategies for target markets. Functions of Marketing can be divided into following categories- 1. Marketing Research Advertisements 1. Marketing Research– it involves analysis of the market in identifying needs, wants and demands and aligning the sae with the organisations policies, weaknesses and strengths. Then the market segmentation is done basis the various environmental factors. The research data is extremely important in laying out strong marketing strategy. Getting answer to the following questions amounts to a sound Market research- • What do the customers want? 2. Marketing Planning– the marketing plan is made by doing analysis of marketing data and the organisations objectives. It involves who will do what, when and how. The market planning function covers aspects of production levels, promotions and clear alignment of tasks for different departments in the organisation. 3. Product Planning and Development– if the final offering is not of consumers’ needs, wants or demands, all the marketing efforts are of no use. Needs are the basic human requirements, Needs become Wants when they are directed to specific offering. In a developing country like India, people rely heavily on motorbikes for commuting to work which constitutes a basic human need. These needs become wants if people need fuel efficient or high horse power bike to cover long distances. These wants become Demands when particular products are desired by a willingness to pay for the same. For example, not everyone can buy a high end bike like Royal Enfield, Harley Davidson, etc. Only a few are willing to pay for the same. Ensuring a right kind of product is made by effective planning and development results in high sales. The characteristics/ features of the offering depend largely on the market needs and the existing offerings in the market by other manufacturers. 4. Buying and Assembling – a manufacturer after finalising on the features of the offering for the target market has to buy the raw materials to produce
that offering. The supply of the raw materials has to be adequate to meet the desired production. Similarly, a wholesaler or a retailer has to buy the offering in adequate quantity at the right time to ensure the product or service reaches the buyer. Buyer can be an end customer, retailer or a wholesaler. If a manufacturer is desirous of making a quality product at a particular price, the selection of the raw materials affects the same. Advertisements Important aspects of
buying- Assembling – assembling constitutes part of buying. The purchases are stored at a convenient place as per the requirements of the buyer. It is required for all kinds of products to ensure easy accessibility and no damage. (a) It aids the process of manufacturing, 5. Standardisation and Grading– standardisation is establishing a model product with specific characteristics which provides a basis for comparison with other identical products. It specifies the minimum standards that an offering must possess. It determines the size, quality, design, weight, raw materials used, etc. which sets it apart from other products. 6. Pricing – price is the value of the offering perceived
by the customer. The pricing function is performed by designing comprehensive pricing system based on the Product performance and stage in the product life cycle. For example, a new launch of a smartphone in the market has a higher price. But after few months or a year the price usually changes depending on the competition, new launches, etc. Advertisements 7. Branding, packaging and labelling – an organisation is confronted with many decisions concerning its product
line. A brand identifies the seller or maker. Branding is an activity of giving a name and identification to an offering. It gives the buyers a choice to opt for an offering among many other available in the market from different manufacturers. Branding includes giving an offering a name and a brand mark. When a brand name is registered and legalised it becomes a Trade Mark. It becomes a legal term and gives complete right to the manufacturer to use the brand name or brand logo. Different kinds of materials are used for packaging depending on the product characteristics – wooden boxes, earthenware, gunny bags, cardboards, glass, Tin, Tetra packs, plastic, etc. Label is a slip found on the container which gives all information about the product and its manufacturer. For example information about the contents, price, batch number, manufacturer, expiry date, nutrition information, etc. The manufacturers are sometimes required to put the specific details on the label as per the law of the land. Labelling helps- 8. Distribution (Transportation and storage)– distribution function involves physical movement of products from production facility to the place of requirement in a most effective and efficient manner. Transportation is performed either by the buyer or the seller as per the contract. The advent of technology not only improved but also created new transportation modes which has helped manufacturers target new markets. There are three modes of transport – Land (road and rail transport), Water transport, and Air transport. The organisation has to choose the best suitable mode depending on the quality, quantity, characteristics of the product and demand in the target market. Storage or warehousing preserves the products at a particular point of consumption till the time it is utilised. It is necessary because of the following – (a) Perishable commodities need storage to meet the demands throughout the year. For example. Fruits, vegetables, etc. 9. Promotion– it is the process of communicating with the target market directly or indirectly with the aim of increasing sales or making the buyers aware of the offering. The organisation has to employ effective promotion strategies to achieve its objectives. Types of promotion activities are- Advertising, publicity, personal selling, direct marketing, sales promotions, sponsorship 10. Risk bearing– Marketing risk refers to uncertainties, damage, loss which an organisation can face while carrying out its marketing activities. There is a high possibility that the product can become obsolete because of changes in the financial status, changes in trends, availability of substitute offerings, etc. Marketing risks can be classified under- (a) Physical risks – damage during transportation, expiry of product, etc. 11. Financing – it refers to raising of capital to ensure continuity of production and other activities like
promotion, research, employee salaries, etc. A business requires finance till the death of the business. Just like business, marketing requires finance for all its activities. Advertisements 12. After sales service– after sales service is a concept of keeping a long term relationship with the customer. The customers today are spoiled by the choices available to them and it is easy for them to switch to a same kind of product from a different maker. It is said that cost of losing an existing customer is equal to gaining four new customers. Organisations in order to survive competition, provide services like free maintenance for a certain period, free visits by the engineers, easily available service parts, toll free numbers to call the service centres, etc. This earns the organisation customer loyalty, brand recognition, etc. When a new product line is launched by the makers, its success lies heavily on existing customer base. Buying, Assembling and selling discussed above constitutes the Exchange function of marketing. Exchange means getting a desired product or service from someone by giving something its worth in return. It can be money or money’s worth. Through exchange a product is sold and it moves to the buyer. |