Marketing is a very broad term and cannot be explained in a few words. Marketing is an essential business function that helps in making the customers aware of the products or services that are offered by a business.
The definition of marketing as defined by the American Marketing Association is as follows.
“Marketing is the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”
Functions of marketing are those aspects that define the practice of marketing and are being discussed in detail in this article.
The following are the functions of marketing:
1. Identify needs of the consumer: The first steps in marketing function is to identify the needs and wants of the consumer that are present in the market. Companies or businesses must therefore gather information on the customer and perform analysis on the collected information.
By doing this they can present the product or service that matches closely with the customer needs and wants.
2. Planning: The next step in marketing function is planning. It is considered very important for a business to have a plan. The management should be very clear about the company objectives and what it wishes to achieve from the created plan.
The company should then chalk out a timeline that is essential for achieving the objectives.
3. Product Development: After the details are received from the consumer research, the product is developed for use by the consumers. There are many factors that are essential for a product to be accepted by the customer, a few factors among the many are product design, durability and cost.
4. Standardisation and Grading: Standardisation refers to the process of ensuring uniformity in the product which means that a product developed by a business shall be standard for every consumer with the same quality and design and this is one of the key aspects that needs to be maintained by the business.
Grading is referred to as the process of classifying products that are similar in quality and characteristics. Grading helps in making the customer know about the quality of the product offered. It helps in making customers understand that the products conform to highest quality standards.
5. Packing and Labelling: The first impressions of a product are its packaging and the label attached to it. Therefore, packaging and labelling should be looked after very well. It is a well known fact that a great packaging and labelling goes a long way in ensuring product success.
6. Branding: Branding is referred to as the process of identifying the name of the producer with the product. Certain brands are there in the market which have a lot of goodwill and any product coming from the same brand will be accepted more warmly by the consumers. Although, having a separate identity for the product can be helpful.
7. Customer Service: A company has to set-up various kinds of customer service based on their product. It can be pre-sales, technical support, customer support, maintenance services, etc.
8. Pricing: It can be regarded as one of the most important parts of marketing function. It is the price of a product that determines whether it will be successful or a failure. Some other factors are market demand, competition, price of competitors.
The company or business should understand clearly that bringing about frequent changes in the price of a product can lead to confusion in the minds of consumers.
9. Promotion: Promotion is the process of making the customers aware of the product by presenting it to customers across various channels of promotion and entice them to buy the product.
The major channels of promotion are: advertising, media, personal selling and promotion (publicity). An ideal promotion mix will be a combination of all or some methods.
10. Distribution: Distribution refers to the movement of consumer goods to the point of consumption. A company must ensure that the correct channel of distribution is selected for the product.
The mode of distribution is dependent on the factors such as shelf life, market concentration and capital requirements. Proper management of inventory is also essential.
11. Transportation: Transportation is defined as the physical movement of goods from one place to another. In other words, it is the movement of goods from the place of production to the place of consumption.
Also, the correct mode of transportation can be selected based on the geographical boundaries of the market.
12. Warehousing: Warehousing of products creates time utility. It is often seen that there is a gap between the time a product is produced and the time when it is consumed. Companies like to maintain the smooth flow of goods even when the products are of seasonal nature. Warehousing and storing provides the opportunity to provide goods during off season also.
This concludes the article on the topic of Functions of Marketing, which is an important topic for Commerce students. For more such interesting articles, stay tuned to BYJU’S.
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