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 Functions of Physical Facilitating

Exchange Supply Functions

a) Buying & a) Financing

Assembling a) Transportation
b) Risk Taking
b) Selling b) Storage
c) Market
Information
d) Standardization
 2. PROPER PLYE
The Marketing Process

Concentration Dispersing

i) Selling
i) Buying and Assembling (a) Personal
ii) Transporting selling
iii) Storing (b) Advertising
iv) Grading (c) Mail
v) Financing solicitation
vi) Risk-bearing (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 Major Marketing Functions

Functions

i) Determining marketing i) Marketing Research

ii) Developing marketing ii) Products
plans iii) Distribution
iii) Budgeting sales, iv) Sales Force Management
expenses, margins, profits v) Advertising and Sales
iv) Co-ordinating marketing Promotion
activities
v) Developing marketing
executives
 4. CUNDIFF STILL GOVANI
Marketing Functions

Merchandising Physical Distribution Auxillary Functions

Functions Functions

i) Product Planning and i) Storage i) Marketing

Development ii) Transportation ii) Risk bearing
ii) Standardizing and iii) Market
Grading information
iii) Buying and Assembling
iv) Selling
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) Creating idea of a new and improved product.

ii) Screening of data.
iii) Development and testing of the concept to find
out the best product out of various alternatives.
iv) Evaluating its prospects.
v) Giving physical shape, testing, branding,
packaging and lebelling , etc.
vi) Test marketing to give the product a trail
vii) Pricing the product
viii) 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 Speculative
Buying Buying

Reciprocal Conservative
Buying 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
 • 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.
Storage

• Warehousing is concerned with the

assumption of responsibility for storage of
goods.
Warehousing
 Benefits
• Creation of Time Utility
• Creation of place utility
• Finance Function
• Creation of Form Utility
Need For Storage
• Seasonal production
• Adjustment of demand
and supply
• During Depression

Storage
• Beneficial for the
• Stabilizing Prices
middlemen
• Regular Production
• Useful for certain
• Ability to face Natural commodities like liquor
Calamities
• Reduction of Risk
• Saving in Transportation
cost
 Functions of
Warehousing
• Storage of Goods
Warehousing • 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 Temporary
or Fixed or Variable
Shares Commercial Banks
Debentures Indigenous Banks
Public Deposits Trade Credits
Loans from financial Installment Credits
institutions Advances
 •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,

Financing
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

Risk
in any situation will bring the risk element.
•Eg. Change in demend,
• Prices of raw materials may increase,

Bearing
• Change in Government policies.
• Natural calamities
 Packing and
Branding
Packaging
 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.