Top 4 Functions of Marketing Management

Nowadays, marketing is an important area of study throughout the world. Marketing starts when you get the idea of launching any product in a specific market. For that, you test the market for the feasibility of the product. After that, design the product accordingly so that its supply & demand increases. To understand this concept, First of all, we have to understand the marketing function definition. Then we discuss the functions of marketing management.

Marketing Function Definition

Marketing is all about identifying and meeting human and social needs. Marketing is the activity, set of institutions, and process of creating, communicating and delivering, value for customers, clients, partners, and society.

Managers sometimes think of marketing as “the art of selling a product,” but many people are surprised when they hear that selling is not the most important part of marketing.

Marketing is a broad term. It includes all resources & set of business activities necessary to direct and facilitate the flow of goods & services from producer to consumer or user, including product planning & after sales services in the distribution process. Now, we come to know the functions of marketing.

Explain the Functions of Marketing

“Marketing starts before production and ends much after Sales.” It is important for marketing to start before production & continue even after Sales. Marketing before production is useful as it gets the product & brands into the public’s minds. After production, it is important to keep people interested. It is a complex process involving three steps.

• Determine what customers want or need.
• Supply the consumer with the goods & services to satisfy their wants and needs.
• Defining the price that shows a profit to the business.

Good marketing starts before a product is in production or service delivered:

• Determine if there is a market for the product or service. It is one of the most critical questions for any business.
• Analyse the market to understand customers, competitors & the supply network.
• Look for close substitutes for a product or service.

Hence, the scope of marketing is very wide. The functions of marketing management lie in ascertaining consumer needs, converting them into products or services & moving the products & services to the final consumers or users. In the next section, we will explain the functions of marketing.

Most Effective Functions of Marketing

The manager defines the marketing department functions as follows:

1. Research Functions

The modern marketing concept is consumer-oriented. The success of marketing depends upon how much we can understand the needs of our customers and produce accordingly. This fact gives importance to the research functions of marketing, which include the following two functions:

i) Marketing Research

Marketing search has become one of the important functions of marketing management in modern times. Marketing research helps analyse the buyer’s behaviour, the relative popularity of a product, the effectiveness of advertising media, pricing policies, packaging and grading policies, etc.

The desired success of marketing depends on correct and timely decisions, and the major task of a marketing manager is timely and accurate information about the change in nature of consumer demand, changing supply position, etc. Nowadays, marketing research is not only fact-finding and information-gathering activity, but it is a problem-solving and action-recommended function of marketing.

ii) Product Planning & Development

Product planning & product development are two functions of marketing. Product planning is the starting point of every marketing program. Successful marketing depends on the efficient manufacturing of the products, matching the Interest of Consumers, their assumptions & choices, etc. Product planning is a process in which the product type, form, and design are determined based on information obtained with the help of market research.

Product development begins with the conception of ideas to its successful commercialization. The producer must develop the product to meet the consumer’s requirements. Product planning & development involve several decisions, such as what to produce or buy, how to have the packaging, how to fix its price, and how to sell it. The main objective of this function is to provide a satisfying product to the consumers, which increases their welfare and standard of living.

2. Exchange Functions 

In marketing, exchange means the transfer of ownership. It involves two separate functions, i.e., buying & selling. Both buying & selling are complementary to each other and not contradictory. It is also known as merchandising functions. It includes the activities to create demand and make the product available in the market.

i) Buying & Assembling

Buying is the most important function of marketing because all marketers carry it out: the manufacturer, the wholesaler, the retailers, etc. The inefficiency of selling depends on the efficiency of buying. A manufacturer has to buy raw materials for production; a wholesaler has to buy products to sell to retailers; a retailer has to buy products to be sold to the consumers. Assembling is also an important function of marketing along with buying. Assembling means raw materials are purchased & assembled to produce goods & services.

ii) Selling

All marketing activities aim to sell the firm’s product. Selling enables the firm to achieve its objective by satisfying customer needs. Under selling, a marketer has to perform several functions of marketing management, such as

• Determining the potential customers.
• Persuading them to buy the product.
• Creating demand for the products.
• Selection of Channel for Distribution.
• Market research.

3. Physical Distribution Functions 

These are the functions that are related to the creation of place & time Utilities. Physical transfer of goods from the manufacturer to the consumer takes place through transportation & storage. The following are the physical functions of marketing.

i) Transportation

Transportation is the physical means of carrying products from one place to another. Transport helps in assembling & dispersing the products. It links together the manufacturers and consumers who locate in different places. Carrying the products to search places where they are needed creates time utility. Transport also helps in widening the market area.

ii) Storage & Warehousing

Storage is one of the important functions of marketing. It involves holding products in proper condition from production until the consumers demand them. Then production is seasonal, but consumption is perennial, or production is continuous, but the consumption is seasonal, storage becomes necessary. It is involved in the recent techniques in HRM.

Moreover, modern production anticipates demand; hence, the goods produced in advance must be stored by the manufacturers until their demand rises. Nowadays, storage functions have been performed at different levels by manufacturers, wholesalers, retailers, and professional warehouse keepers. Hence, storage and warehousing create both time and place utilities.

iii) Standardization & Grading

Standardization means setting a standard of quality. It assures quality & promotes uniformity of product. It assures the consumers that goods are pure and uniform. Generally, there are four bases for setting standards of uniform In quality: (i) Quality, (ii) Quantity, (ii) Measurement & (iv) Size. It facilitates the purchase & sale of products because of standard Products purchased by their brand name.

Grading means separating the products according to established standards. Each grade has uniformity in all attributes. Standardization, if not followed by it, becomes useless.

4. Facilitating Functions

Facilitating functions of marketing management are attaining importance day by day. These functions make the marketing process more early & systematic. Some important facilitating functions are as follows.

i) Branding

Branding has become an indispensable part of modern marketing. Agricultural products and mining products need grading, whereas manufactured products need branding. The main aim of branding is to distinctly identify the company’s product from the competitors’ similar products. It enables the consumer to differentiate the product of similar types and to make their choice of product among various brands. The brand ensures the quality and standard of the product—the company in creating an image for its product in the market.

ii) Packaging

Packaging is concerned with formulating a container or wrapper for the product. Its main objective is to handle, ensure freshness and quality, and prevent adulteration. It also helps distinguish the company’s product from that of competitors. Packaging plays an important role in buying decisions by the consumer. Packaging acts as a multi-purpose arrangement such as:

• It gives protection to the product.
• Acts as a silent salesperson.
• It facilitates more sales.
• They ensure quality.
• Handling convenience etc.

iii) Pricing

Determining the price of a product is an important function of a marketing manager. A sound pricing policy is important for selling the product to the customers. The price policy of a firm should be such that it attracts all types of customers. The price policy of the company directly affects the profit element and successful functioning of the company. Product prices are in use as a competitive weapon by marketers. Any wrong decision in pricing the product may cause a heavy loss of demand for the product.

iv) Financing

Financing is the lifeblood of all economic activities and thus of modern marketing. Large business units need huge funds to hold the stock and meet marketing costs. It is very difficult to carry on marketing activities smoothly without the availability of adequate and cheap finance. It also requires short-term finance to provide credit facilities to its regular buyers as many sales are on a credit basis. A marketing department arranges finance in two ways.

• By accepting deposits instead of granting agencies / authorized dealerships/franchises which sell the company’s product.
• Accepting advances from the wholesalers for the supply of goods is only possible when there is a seller’s market.

v) Advertising

Modern is the age of advertising. There is hardly a product or service which goes to consumers without advertising. Generally, customers do not know about the new product launched in the market—the information reaches the consumers with the help of an advertisement. Advertisement is in need for both consumer products as well as industrial products. In modern times, without advertising, marketing is not possible. Hence, advertising has also become an important function of marketing.

vi) Risk Bearing

The business world is full of risks. Unforeseen conditions & uncertainties give rise to the risk. A marketer has to face risk due to: change in demand, change in fashion, fall in price, change in habits, change in technology, etc. That is why marketing is a risk-bearing activity. It is very difficult to eliminate all the risks. The marketer can avoid some risks by taking preventive measures—for example, risk of fire, theft, etc. The marketing department of the company is responsible for managing the risks.

vii) After-Sale-Services

Nowadays, the functions of marketing do not end with sale. Rather, they continue after the sale as the marketer provides several after-sales services. These services improve the standard of marketing functions.

Conclusion

Marketing always starts before production to get into the minds of consumers and then produce according to the needs of consumers. Although, it ends up after sales because after-sale services help the standard of marketing functions. However, we study the functions of marketing class 12.