Marketing is a creation and delivery of standard of living. It is finding out what customers want, planning and developing the product or services that will satisfy those wants and then determining the best way to price, promote and distribute those products or services.
In modern marketing, marketing activities starts much prior to actual production in the form of marketing research and product planning and continue even after the actual sales in the form of after sales services and market research. The above definitions highlight the scope of marketing and the scope can also be understood as marketing functions.
The prime objective of marketing is to make access of goods and services to the consumers. The performance of business activity depends upon good marketing which mainly focuses on directly flow of goods from producer to consumers. The activities through which it is done is known as marketing functions.
Brief functions is described as under:-
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Research Functions:-
Modern Marketing Concept is consumer oriented; the success of marketing depends upon the fact that how much a marketer is able of understanding the needs of customers and how much he reacts towards fulfilling those needs. It gives importance to research function of marketing which are described as under: -
a. Marketing Research:- In modern era marketing research are vital for analyzing consumer behavior, product popularity, pricing, advertisement and competition. It also aids in making timely data-driven decision on market trends, demand and sell promotion activities. It is systematically process of gathering and analyzing marketing related facts because in modern world it not only serves as a information tool but also as problem solving and decision making function.
b. Product panning & Development:- Product Planning and development are the two important functions of marketing.
Product Planning:- It is the starting point of marketing and it involves decision regarding the type, form and design of a product. It also ensures that the product aligns with consumer interest, preference and market demand through marketing research. It is also known as pre-production activities which aimed at filling market gaps and generating revenues.
Product Development:- It starts with an idea (product planning) and continues until the product is successfully commercialized. It focuses on designing and refining the product to meet consumer needs effectively. The key consideration include color, shape, style, size, quality and other features to ensure consumer satisfaction and profitability.
B. Exchange Function:- In marketing exchange means transfer of ownership and it involves two separate functions i.e. buying and selling. Both are complementary to each other and not contradictory. It is also known as merchandising function.
a. Buying and Assembling:- Buying is crucial marketing function performed at all level i.e. by the manufacturers, wholesalers and retailers. It directly impacts selling efficiency and involves determining requirements, managing suppliers, placing orders and receiving products.
Assembling is also an important function of marketing along with buying. It means creation and maintenance of stock of products from various sources at a common point. Additionally, it includes procuring raw materials and components to produce finished goods.
b. Selling: - Selling is a vital marketing function aimed at certifying customer needs and to achieve business goals. It helps in creating effective strategy to compete in a market with various substitutes.
key activities of selling function includes identifying potential customers and persuading them to buy through various sales techniques. It also includes creating demand for the product and selection of proper distribution channel to make them available at market.
C. Physical Distribution Functions:- These functions are related with creation of place and time utilities. Physical transfer of goods from the manufacturer to consumer take place by means of transportation and storage. without those functions product and service lose their demand and value in market.
a. Transportation:- Transportation is the physical means of carrying products from one place to another. It plays an important role in marketing. Business and transport are like twin brothers, with the help of one another also develops. Transport helps in assembling and dispersing the products. It links together the manufacturers and the consumers who are located at different place and by carrying the products to such places where they are needed, it creates place utility.
b. Storage and Warehousing:- Storage is another important function of marketing and it involves the holding of products in proper condition from the time they are produced until they are demanded by the consumers. When production is seasonal but consumption is perennial or when production is continuous but consumption is seasonal, storage becomes necessary. Moreover , modern production is carried on in anticipation of demand and hence the goods produced in advance have to be stored by the manufacturers till their demand rises.
Warehousing is also an important function of marketing. Warehouse is a place to keep goods safely and is a necessary business activity to carry on production and distribution on a large scale. There ae 3 types of warehouse (i) private warehouse (ii) public warehouse (iii) bonded warehouse
Storage and warehousing also help in price stabilization, elasticity of supply, grading, packaging, risk minimizing and financing.
c. Standardization and grading: - standardization means setting standard of quality. It assures quality, promotes uniformity of products and it also widens the market. It has now been accepted as an ethical basis of marketing. There are four pillars to determine standards: - (i) Quality (ii)Quantity (iii)Measurement (iv)Size
Various Standards forms are used by the marketers for their products such as:
(i)ISO (ii) ISI (iii) AG Mark (iv) Quality Mark
Grading means separating the products according to established standards. Each grade has uniformity in all products. Grading means the division of products into classes made up of units possessing similar characteristics of size and quantity. So, the products are grouped in accordance with predetermined standards, therefore grading follows standardization. In other words, standardization if not followed by grading becomes useless.
D. Facilitating Functions: - Facilitating Functions makes the marketing process easier and more systematic. Facilitating Functions are the supporting activities to the marketing process. These are categorized into seven parts and described as under: -
a. Branding: - Nowadays branding has become an important marketing function because a good brand name ensures success in the market. Branding helps in distribution of products in the wider market. A brand is a name, term, symbol, design or a combination used to identify a seller’s goods or services and distinguish them from competitors. It ensures product quality and maintains a standard. It also creates a distinct market image for the product.
ex:- Tata, Bata, Godrej, Samsung, Unacademy etc..
b. Packaging:- Packaging is concerned with formulating container or wrapper for the product. It provides handling convenience, ensures freshness and quality, and prevents adulteration. Its also distinguishes the company’s product from competitors. Advances in packaging materials and technology have made packaging a vital part of marketing. Attractive and useful packaging significantly influences consumer buying decisions.
Multipurpose functions of packaging
· Protects the market
· Acts as a silent salesman
· Facilitates increased sales
· Ensures product quality
· Aids in advertising
· Enhances in standard of living
· Helps in price stabilization
· Provides handling convenience.
c. Pricing:- Price of the product or service is used as a competitive weapon by marketers. In a close substitute product market, fixation of proper price is must. Any wrong decision in pricing the product may cause heavy loss of demand for the product. So a sound pricing policy is an important factor for selling the products to the customers and an organization must set such price which attracts all types of customers. it is affected by many factors:-
· Cost of product
· Service offered
· Competitors prices
· Government Policy
· Demand of product etc..
d. Financing:_ Finance is the life blood of all economic activities and thus of modern marketing. Finance is essential for smooth marketing operations, especially for larger organizations that require substantial funds for activities like advertising, market research, and promotions. Without adequate and affordable finance, executing marketing strategies becomes difficult. Access to sufficient funds ensures that marketing campaigns can be planned, implemented, and scaled efficiently. Additionally, it allows businesses to optimize costs and maximize return on investment (ROI). In modern marketing, finance is not just a support function but a driving force that enables organizations to remain competitive, innovate, and adapt to changing market dynamics. Without it, marketing efforts would lack the necessary resources to succeed.
e. Advertising:- Modern age is the age of marketing. There is hardly any product or service which goes to the consumer without advertising. That’s why advertising is considered as main function of marketing. In the modern age, advertising is essential for marketing success. It helps build brand awareness, reach a wider audience, and drive sales by informing consumers and creating demand. Effective advertising differentiates brands, fosters emotional connections, and influences purchasing decisions. It also establishes brand identity and promotes customer loyalty. With digital strategies like social media and influencer marketing, businesses can precisely target audiences, maximizing ROI. Overall, advertising is key to growth, customer engagement, and long-term success.
f. Risk Bearing: - In marketing, risk bearing is closely linked to decision-making, as businesses often invest in strategies or campaigns that involve uncertainty. For example, launching a new product, entering a new market, or adopting innovative marketing tactics carries the risk of failure, but also the potential for high returns if successful. Marketers must evaluate these risks—such as changes in consumer behavior, competition, or economic conditions—before making decisions.
Risk bearing in marketing can be managed through strategies like market research, targeted campaigns, or diversifying marketing efforts. By understanding the risks, businesses can make informed decisions that balance potential rewards with the risks they are willing to bear. Successful risk-taking in marketing allows companies to stay competitive, attract new customers, and achieve long-term growth, despite the possibility of short-term challenges or setbacks.
g. After sales Service:- After-sales service refers to the support and assistance a company provides to customers after they have purchased a product or service. It includes a variety of activities, such as installation, maintenance, repairs, troubleshooting, warranty handling, and customer support. This service is vital in building customer satisfaction, trust, and loyalty. Offering strong after-sales service can differentiate a brand from its competitors, encouraging repeat purchases and positive word-of-mouth recommendations. It also helps resolve issues quickly, improving the overall customer experience. Businesses that invest in after-sales service often see increased customer retention, higher satisfaction levels, and a strong reputation in the market. Additionally, it can provide valuable feedback to improve future products or services.
Nature of marketing as its functional characterstics:-
a. Specialised business function:- Marketing is a specialised business function. A firm has to develop a particular organisation with a view to absorbing new product ideas, new approaches and new market demands.
b. Socially desirable function:- Marketing is a social function. It requires constant interaction with different sections of the society and also influencing the consumer attitudes and consumption patterns.
c. Managerial Function:- Marketing is also a managerisal function. The focus of marketing is on decision making process involved in the performance of marketing functions at the management level of a firm.
d. Integration with other functions: - Marketing is an integrative function. It integrates and combines the other business functions such as production, finance, personnel, buying and selling, sales promotion and advertising, transportation and warehousing with a view to achieve business Objectives.
e. Reflects business function:- Marketing reflects the business mission of a firm before public and the society as a whole.
f. Consumer orientation: - Marketing is now Consumer oriented. only such products are brought forward in the market which may satisfy tastes, preferences and expectations of the consumers.
g. Universally applicable to all organisation: - Marketing has universal application. It means that it can be applied to both profit motive and non profit motive organisations.