St Josephs Evening College MARKETING FUNCTION 338 343

St. Joseph’s Evening College MARKETING FUNCTION 338 - 343 Group - 5 Under the Guidelines of: Subject: Dr. H. Nagraj Principle of Marketing

CONTENTS § Definition § Clark & Clark Marketing Function § Classification of Marketing Function – New Trend § Conclusion

Definition “an act or operation or service by which original product and the final consumers are linked together”

Clark & Clark Marketing Function

Classification of Marketing Function – New Trend 1. Contactual – Searching of buyers and 2. 3. 4. 5. 6. Sellers. Merchandising – the fittings of goods to market requirements. Pricing – the selection of price to induce customers to accept the goods Propaganda – the creation of customers Physical Distribution – the transporting and storing of goods Termination – the end of the marketing process

The Contactual Function The contactual function is the process of searching out the market, i. e. buyers. It consists of finding out the potential buyers, where there are located and how they could be reached. Further activities included are: selecting a proper distribution channel, choosing appropriate media to reach the customers, and discovering consumer needs. From the point of view of the buyer this function consists in finding the most suitable source for the goods.

The Merchandising Function This is a function that involves the coordination of selling with production. It includes the process of selecting the product to be produced and stocked with necessary emphasis on the size, appearance, form, quantities to be brought, time of purchase or production, etc. This function helps “to make an adjustment of merchandise produced or offered for sale to customer demand”.

The Pricing Function Pricing function is mainly based on economic values of a product to be brought or sold. Pricing is very important and should be given a greater role. A product is finally approved by the customers only if the price is acceptable to them. This makes it necessary on the part of sellers to evaluate the possible prices of the products even before the products are brought to markets.

The Propaganda Function This function comprises all methods used by the sellers to influence and induce the buyers to buy products. Normally, it would include all advertising and personal selling activities. These activities aim at increasing sales.

The Physical Distribution This function relates to transportation and storage activities which have been discussed earlier.

The Termination Function >>> This function is the final link in the process of marketing, where the seller and the buyer arrive at an agreement. These essentials are settled at this stage: the Quality, the Quality and the Price of the product to be exchanged. Since these elements are subject to negotiation, the process is also termed as the “Negotiation Function”. It is remarked that “the termination function is the consummative act for which all other functions have been preparatory.

The Termination Function This function includes a series of jobs a seller has to contemplate to complete the whole of marketing process. They include determination of terms of sale, delivery dates, credit arrangements, the guarantees and service policies. However, it should be remembered that marketing does not end with the payment for and the acceptance of goods. There often remains a moral and legal obligation on the part of the seller that he has also to ensure satisfaction of consumers

Facilitating Functions>>> § Financing and risk-bearing - market information - demand supply creation - market research.

Facilitating Functions>>> Financing and risk-bearing are two important facilitating functions. The owner of goods at any marketing stage must sacrifice the opportunity to use the working capital needed to buy those goods elsewhere. Or the owner must borrow that capital. In either case, capital must be provided by the trader or by some lending source. Regardless, cost is involved. Further, there is an implicit cost in the risk of losing all or part of that capital through theft, spoilage, mortality or changing market conditions. Without the willingness to provide the capital and to bear these costs, no stage of the market chain could function. Other facilitating functions enable producers to respond to consumer needs and thus provide goods in the locations, quantity and form desired.

CONCLUSION § Marketing Function is a Life and Blood to products and creating a market for them. § It understands the situation of Prevailing Market § It also understands the Consumer Behaviour like taste & preferences § Marketing Functions helps lot to the Producer to reach for Customers