Transcript Marketing Functions

MARKETING FUNCTIONS
Meaning



Marketing is made up of a number of
activities known as ‘marketing functions.’
Marketing functions are such activities as
marketing perform to achieve the ultimate
objective of fulfilling the needs of the
consumer.
The philosophy of marketing finds its
practical applications in the various steps
taken in the marketing process by which
goods leave the producers, journey through
various intermediary channels and with the
aid of various other agencies, finally reach
the consumers scattered all over the area.
Classification Of
Marketing
Functions
1. Clark and Clark
Marketing Functions
Functions of
Exchange
a) Buying &
Assembling
b) Selling
Functions of Physical
Supply
a) Transportation
b) Storage
Facilitating
Functions
a) Financing
b) Risk Taking
c) Market
Information
d) Standardization
2. PROPER PLYE
The Marketing Process
Dispersing
Concentration
i)
ii)
iii)
iv)
v)
vi)
Buying and Assembling
Transporting
Storing
Grading
Financing
Risk-bearing
i)
Selling
(a) Personal
selling
(b) Advertising
(c) Mail
solicitation
(d) Demonstrating
(e) Installing
(f) Packing
ii) Transporting
iii) Storing
iv) Grading
v) Financing
vi) Risk bearing
vii) Dividing
3. Harry L. Hensen
Marketing Functions
General Marketing
Functions
i)
ii)
Determining marketing
Developing marketing
plans
iii) Budgeting sales,
expenses, margins, profits
iv) Co-ordinating marketing
activities
v) Developing marketing
executives
Major Marketing Functions
i)
ii)
iii)
iv)
v)
Marketing Research
Products
Distribution
Sales Force Management
Advertising and Sales
Promotion
4. CUNDIFF STILL GOVANI
Marketing Functions
Merchandising
Functions
i)
Product Planning and
Development
ii) Standardizing and
Grading
iii) Buying and Assembling
iv) Selling
Physical Distribution
Functions
i)
ii)
Storage
Transportation
Auxillary Functions
i) Marketing
ii) Risk bearing
iii) Market
information
Merchandising 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 and
to create demand for these products
and services
Product planning is the
starting point of entire
marketing programme
in a firm. It implies all
activities which enable
a firm to determine
what should constitute
its line of products.
Planning and development of a product includes
the following activities:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
Creating idea of a new and improved product.
Screening of data.
Development and testing of the concept to find
out the best product out of various alternatives.
Evaluating its prospects.
Giving physical shape, testing, branding,
packaging and lebelling , etc.
Test marketing to give the product a trail
Pricing the product
Product for sale ( commercialisation)
• Standardising 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 product”.
The standards are set with regard to size, shape,
colour, design and material.
Grading facilitates sale of goods by description and
it avoids lot of botheration involved in inspection etc.
Grading creates good impression in the minds of
buyers because they are assured of a particular
standards of goods.
III. Buying and Assembling

Buying refers to the process of
acquiring goods at the right price,
at a right time, in right quantity
and form a right source of
suppliers.

Assembling refers to the activities
of assembling units of industry
where finished articles is brought
out of assembly of various parts.
Eg bi-cycle, laptops
BUYING PRACTICES
Concentrated
Buying
Diversified
Buying
Reciprocal
Buying
Speculative
Buying
Conservative
Buying
 BUYING PRACTICES
Concentrated Buying: Under this system,
purchases are made from a limited number of
sources or from a single source of supply.
 Diversified or Scattered Buying: It is the
practice by which the buyers make purchases
from a large number of suppliers. It affords
competitive prices, better services and a wider
choice in planning of assortments.

Reciprocal Buying: Under this practice, buying is
made on reciprocal basis, that is if you buy from
me. I shall buy it from you. But restricts choice and
may result into higher prices.
 Conservative or Hand to mouth Buying: This is a
practice of buying strictly on the basis of current
needs. Such policy is most suitable when prices
are falling.
 Speculative Buying: Under this practice buying
purchases are made in bulk by placing large
orders with a view to sell the same at higher prices
in the near future.

IV. SELLING
Selling refers to the process of transfer of
ownership of goods or services to a buyer in
exchange of money.
“The heart of marketing task is selling and it is in
connection with the formulation of selling policies
and methods followed in carrying them out that
the real mettle of the manufacturer and the
middlemen is tested”.
--- Philips and Duncan
 ELEMENTS/ SUB FUNCTIONS OF SELLING
Selling functions has five basic
elements:
i) Product planning and
development
ii)Establishing contact with the
buyers
iii) Creation of Demand
iv) Negotiation
v) Entering into contracts
1. Personal Selling
2. Indirect Selling
3. Sale by Inspection
4. Sale by Description
5. Sale by Sample
6. Sale by Approval or Return
7. Mail Order Selling
8.Hire Purchase Selling
Storage and
Warehousing
Transportation
PHYSICAL
DIDTRIBUTION
FUNCTION
Storage
Warehousing
• Store involves making of proper
arrangement for retaining goods in perfect
state without losing properties and
qualities till these are needed by the
ultimate consumer and taken to the
market.
• Warehousing is concerned with the
assumption of responsibility for
storage of goods.
Storage
Benefits
Need For Storage
•
•
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•
•
•
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• Seasonal production
• Adjustment of demand
and supply
• During Depression
• Beneficial for the
middlemen
• Useful for certain
commodities like liquor
Creation of Time Utility
Creation of place utility
Finance Function
Creation of Form Utility
Stabilizing Prices
Regular Production
Ability to face Natural
Calamities
• Reduction of Risk
• Saving in Transportation
cost
Functions of
Warehousing
Warehousing
• Storage of Goods
• Stabilising Prices
• Sharing Risk
• Financing
• Other Functions
TRANSPORTATION
Transport means movement of goods and persons from
one place to another.
It carries ideas and inventions to the people.
Transport increases
1)
the mobility of labour and capital,
2)
widens the market,
3)
leads specialisation and division of labour,
4)
helps in stabilising prices,
5)
contribution to a large portion of our wealth
6)
provides employment
Auxiliary functions
Permanent
or Fixed
Shares
Debentures
Public Deposits
Loans from financial
institutions
Temporary
or Variable
Commercial Banks
Indigenous Banks
Trade Credits
Installment Credits
Advances
Financing
Risk
Bearing
•Finance is needed to create production facilities through
purchase of production of fixed assets such as plant, land
and building.
•It is also needed for the purchase of raw materials,
payment of wages, meeting transportation costs etc.
•There are always risks in business. The marketing process is
also confronted with risks of many kinds at every stage.
•Future circumstances are influenced by so many factors
and a change in any situation will bring the risk element.
•Eg.
Change in demend,
•
Prices of raw materials may increase,
•
Change in Government policies.
•
Natural calamities
Branding
Packing and
Packaging
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Branding means giving a name to a particular product
so that the consumer is able to distinguish this product
from other similar products.
A brand may consist of a word, a symbol or a number.
Branding of a product may be done in three ways :Symbols and marks eg. Lotus Ghee
Special names eg. LUX Soap
Use of names of manufacturers
along with the product eg. Bata
Shoes.
PACKING AND PACKAGING
• Packing means wrapping,
compressing or filling goods for the
purpose of their protections and
convenient handling.
• Packaging is related to putting
articles in the market in convenient
sized lots.
• Packaging facilitates advertising
and branding of goods.