It is a process which involves directing the flow of goods and services from producers to consumers, in exchange of money, in such a way that it fulfills the customer’s need and satisfaction. Marketing has the following functions.
Functions of Marketing:
Identify the needs of customers: One of the important functions of marketing is to gather the information from markets and analyse them to identify the needs of customers, in order to take important decisions for marketing of products and services.
Marketing Planning: To achieve marketing objectives of the organization, it is important to develop appropriate marketing plan. If an organization has 15% of the market share in the country and want to enhance it to 30% in next two years, it is required to have a complete marketing plan covering all important aspects.
Product Designing and Development: A customer not only sees the cost and durability of the product but also its design aspects. Design plays an important role in marketing. A good design can give a competitive advantage in the market.
Standardization and Grading: Producing products of predetermined specifications is known as standardization. Standardization ensures that the product purchased meets the predetermined quality standards. The process of classification of products into different groups is called Grading. Grading ensures that product belongs to a particular quality.
Packaging and Labeling: Packaging and labeling are considered as pillars of marketing in modern day. Packaging not only protects the product but also acts as promotional tool.
Branding: Brand name helps product differentiate it from competitor’s product. It also helps in building customer’s loyalty. Brand name plays an important role in the success of a product.
Customer Support Services: It helps in developing brand loyalty for a product. Customer Support Services like after sales services, customer complaints, maintenance services are important function of marketing to win customer’s trust.
Pricing of Product: Price is the amount of money customers have to pay to obtain a product. The marketers need to properly analyse the various factors to determine the price of a product. The demand of a product depends upon its price. Generally, lower the price of a product, higher will be its demand and vice-versa.
Promotion: It involves informing the customers about the product and encouraging them to purchase it.
Physical Distribution: It includes the channels of distribution and physical movement of product from the place it is produced to the customers for their consumption.
Transportation: It is the movement of product from one place to another. The transportation decision is taken considering the nature of the product, location of market and mode of transport to be chosen.
Storage and Warehousing: Due to irregular demand of product there is a time gap between its production and sale or use. To obtain smooth supply of products in the market, there is need of proper storage of the products. Storage at different levels is done by manufacturers, wholesalers and retailers.