Functions of Marketing
The functions of marketing can be
classified into three: namely merchandising function, physical distribution and
auxiliary function.
(A) Merchandising
Function
1.
Product Planning and Development: Product planning
starts with idea generation, idea screening and development of a prototype
product. It also takes into consideration the purchasing power of the
consumers, taste and market segmentation. Research and development is
established for the analyses of ideas generated.
2.
Standardisation and Grading: This is concerned with
setting certain standards/levels to accomplish the produced goods. This is
carried out by the production department and regulated by some government
agencies, such as Standards Organisation of Nigeria (SON). For example, Sprite
is 30 cl, Coke is 35 cl, etc. Standardization determines the
condition of a manufactured product such as size, quality, performance,
etc.
Goods that cannot be produced of a single size, weight or
color such as fruits, grains, eggs or cotton are graded into classes on the
basis of quality.
3.
Buying and Assembling: Here, we are concerned with the
marketing institutions that purchase goods or services at cheaper prices in
order to resell at minimum prices to the end-users. These marketing
institutions include the wholesalers, retailers and agents.
4. Selling: This is concerned with selling of the finished goods to the
end-users either through the manufacturers or the marketing channels. In order
to get the attention of their target consumers, they embark on various
promotional strategies, such as discounts, promo tools, bundle sales, bonuses,
etc.
(B) Physical
Distribution
1.
Storage: Storing of goods to meet future demands and for
time and other utilities.
2. Transportation: The movement of goods from the manufacturer down to
the target consumers. This includes material handling, warehousing, etc.
(C)
Auxiliary Function
1.
Marketing Finance: That is, allowing credits to customers
and as well as obtaining credit from customers, such as Banks, individuals,
etc.
2.
Risk-Bearing: Risk means ‘uncertainty’. Entering
into a business entails risks, such as loss of items, road attack, weather
risk, etc.
3.
Market Information: Gathering necessary information about
the markets, the target consumers in terms of their purchasing power, taste,
colour, choices, competition, and their products.
other topic
Marketing environment
Comments
Post a Comment