MARKETING FUNCTIONS Meaning v v v Marketing is

MARKETING FUNCTIONS

Meaning v v v 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 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) 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

3. Harry L. Hensen Marketing Functions General Marketing Functions i) Determining marketing ii) Developing marketing plans iii) Budgeting sales, expenses, margins, profits iv) Co-ordinating marketing activities v) Developing marketing executives Major Marketing Functions i) 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) Storage ii) Transportation Auxillary Functions i) Marketing ii) Risk bearing iii) Market information

Merchandising functions 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

I. Product planning and development 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) iii) iv) v) 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)

II. Standardising and Grading • 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

q 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

q 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

Methods of selling 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 • 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 • Seasonal production • Adjustment of demand supply • During Depression • Beneficial for the middlemen • Useful for certain commodities like liquor

Functions of 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 Permane nt or Fixed Shares Debentures Public Deposits Loans from financial institutions Temporar y or Variable Commercial Banks Indigenous Banks Trade Credits Installment Credits Advances

Financing • Finance is needed to create production facilities through purchase of production of fixed assets such as plant, land building. • It is also needed for the purchase of raw materials, payment of wages, meeting transportation costs etc. Risk Bearing • There 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

Some More Functions Branding Packing and Packaging

BRANDING Branding means giving a name to a particular product so that the consumer is able to distinguish this product from other similar products. Ø A brand may consist of a word, a symbol or a number. Ø 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. Ø

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.