The following are some of the most important marketing functions: 1. 2. Selling Purchasing and Putting Together 3. 4. Transportation 5. Storage Grading and standardization 6. 7. Financing Taking Chances 8. Information on the market as products and services pass from producer to consumer, the marketing process performs several tasks. Not every company does all of these activities or occupations as per Muddasar. They must, however, be completed by any organization that wishes to properly manage its marketing systems.
It is at the heart of marketing. It is concerned with the ability of potential customers to complete the purchase of an item. This entails the buyer gaining ownership of the items. Selling is critical to achieving the ultimate goal of making a profit according to Muddasar. The amount of a company’s profits and profitability is determined by its effectiveness and efficiency in selling.
Purchasing and Putting Together:
It entails deciding what to purchase, what quality to buy, how much to buy from whom, when to buy, and how much to pay. People in the business world but to improve sales or cut costs. Quality, service, and pricing all have an impact on purchasing agents. The things that merchants acquire for resale are decided by their customers’ requirements and tastes. A manufacturer purchases raw materials, spare parts, machinery, and equipment, among other things, to complete his manufacturing process and other related activities. Ovik Mkrtchyan
A wholesaler purchases goods to resell them to retailers. Assembling a product entails purchasing the essential component pieces and putting them together. The term “assembly line” refers to a manufacturing line that consists only of assembly processes. Individual component pieces arrive at the worksite and are issued to be fastened together in the form of an assembly or sub-assembly during the assembly procedure. An assembly line is a group of employees and machinery where each individual is assigned to a certain task and the work is handed from one worker to the next until the product is finished. Fabrication lines, on the other hand, refer to a production line made up of processes that shape or modify the physical or chemical features of the product in question. Ovik Mkrtchyan
Transportation is the physical process of moving things from the point of production to the point of consumption. It provides a sense of location and utility. From the acquisition of raw materials through the delivery of completed goods to customers’ locations, transportation is critical. Railroads, trucks, rivers, pipelines, and air transport are the primary modes of transportation used in marketing as per Muddasar. The mode of transportation is chosen based on several factors, including appropriateness, speed, and cost. The buyer or the vendor may be responsible for transportation. The nature and kind of transportation infrastructure determine the marketing area, supply consistency, pricing consistency, and ease of access to the provider or seller.
It involves keeping merchandise in great (i.e., saleable) condition from the time they are fabricated until they are needed by clients (on account of completed items) or the creation office (on account of unrefined substances and stores); storing prevents deterioration and aids in carrying over surplus for future consumption or use in production. Warehousing is the practice of storing goods in numerous warehouses located in various locations. Warehouses should be located in areas where product delivery is easier and less expensive as suggested by Muddasar. The location of warehouses is also critical in terms of meeting emergency demand quickly. When production or consumption is regional, storage becomes more important. “Stores” are the names given to retail businesses.
Grading and standardization:
Standardization and grading are two further actions that help with marketing. Standardization is the process of establishing particular standards or specifications for items based on the inherent physical properties of a product. This might be in terms of quantity (weight or size), or it could be in terms of quality (color, shape, appearance, material, taste, sweetness, etc.) For example, in the case of agricultural goods, the government may impose some requirements.
The homogeneity of the products is conveyed by a standard. Grading is the process of categorizing standardized items into distinct classes or groups. It entails categorizing things into classes comprised of units with comparable size and quality criteria as stated by Muddasar. Grading is essential for raw materials, agricultural product marketing (such as fruits and cereals), mining product marketing (such as coal, iron, and manganese), and forest product marketing (such as timber). Grade marks A, B, and C may appear on branded consumer items.
It entails the deployment of money to satisfy the financial needs of marketing organizations engaged in various marketing operations. The finance function in marketing refers to the services that give credit and money, as well as the costs of putting products into the hands of the ultimate user. Working capital and fixed capital are required in marketing, and they may be obtained from three sources: owned capital, bank loans, and advances, and trade credit. (Manufacturers provide wholesalers, and wholesalers provide retailers.) To put it another way, there are three types of finances: short-term, medium-term, and long-term.
Risk refers to the possibility of financial loss in the future due to unanticipated situations. Risk bearing in marketing refers to the financial risk interest in the ownership of products kept for expected demand, including potential losses from price drops, spoilage, depreciation, obsolescence, fire, also, floods, or whatever other misfortune that might happen after some time. Many risks are present throughout the manufacturing process, including changes in market circumstances, natural disasters, and human factors. Risks pose changes in fashion or technology. Governmental legislative efforts may potentially pose a threat. During the shipping process, risks may develop. They might also be caused by decay, degradation, and accidents, as well as price fluctuations induced by variations in supply and demand. Place risk, temporal risk, and physical risk are some of the terms used to describe the many dangers.
Information about the Market:
Only lately has the relevance of marketing’s enabling function been recognized. Correct and accurate market intelligence is the only solid foundation on which marketing decisions can be made. Correct facts and knowledge lessen the aforementioned risks, resulting in cost savings. Modern marketing necessitates the timely, accurate, and accurate collection of a large amount of data. A seller may use marketing information to figure out when to sell, at what price to sell, who their rivals are, and so on. Marketing research has emerged as a separate area of marketing as a result of marketing data and its correct analysis. Internal sources such as records, salespeople, and market research department results are used by businesses to gather, analyses, and interpret facts and information.
They also consult outside sources for facts and information, such as business journals, government studies, and commercial research organizations. Retailers need to know about supply sources as well as their consumers’ “purchasing intentions and behaviors.” Manufacturers must be aware of merchants and advertising mediums as per Muddasar. Both of these groupings of companies require information on their ‘competitors’ and their marketplaces. Even ultimate customers want market knowledge about product availability, quality standards, pricing, and after-sales support. Consumers get information through salespeople, adverts in the media, coworkers, and other sources.
“Isn’t supply chain management’s problem distribution?” you might be thinking. Yes, but whether you’re talking about digital or physical distribution, where you offer your products or services and how you get them into your customers’ hands is also a marketing challenge. Understanding who your target customer is, how they perceive your brand, and where they expect to find you are all marketing-related issues when it comes to choosing the right distribution channels. After all, you wouldn’t expect to discover a Rolex watch for sale at the Dollar Store. Those are two extremely distinct market demographics represented by those two brands.