Functions and Importance of Marketing
Table of Content:-
Functions of Marketing
To aid in product designing and development also comes under the marketing functions. The marketing functions have been discussed below briefly:
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1) Market Information: To identify the needs, wants and demands of the consumers and then analyse the identified information to arrive at various decisions for the successful marketing of a firm’s products and services is one of the most significant functions of marketing.
The analysis involves judging the internal weaknesses and strengths of the organization as well as politico-legal, social and demographic data of the target market. In market segmentation, this information is further used.
2) Research: The research function of marketing is that function of marketing that enables marketers to generate adequate information regarding the particular market target.
The marketer must carry out adequate research to identify the size, behaviour, culture, belief, genders, etc., of the target market segment, their needs and wants, and then develop effective products that can meet and satisfy these market needs and wants.
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3) Buying Function: The function of buying is performed to acquire quality materials for production, When a marketer designs a good product concept, the marketer should also ensure that he is buying the essential materials for the product.
This function is carried out by the purchase and supply department, but the specifications of materials go a long way in assisting the purchasing department to acquire the necessary materials needed for production.
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4) Market Planning: This aims at achieving a firm’s marketing objectives. These objectives may involve increasing market presence, dominating the market or increasing market share. The market planning function covers aspects of production promotions, levels, and other action programmes.
5) Exchange Functions: Buying and selling are the exchange functions of marketing. They ensure that a firm’s offerings are available in sufficient quantities to meet customer demands. The exchange functions are supported by advertising, personal selling and sales promotions.
6) Product Designing and Development: Product design helps in making the product attractive to the target market. In today’s competitive market environment not only cost matters but also the product design, suitability, shape, style, etc, matter a lot in making production decisions.
Product development is an essential function of marketing since it was the duty of the marketing department to identify what the market needs or wants and then design an effective product based on the identified want and needs of the market.
Product development passes through some basic stages carried out by marketers to develop a targeted market-specified product. And one can also manage the product by evaluating its performance and changing them to fit the current market trend.
7) Production: This is the function performed by the production department. Though, this is interrelated to the department of marketing, because the product must possess the essential characteristics that can meet the target market’s needs and wants as identified during the market research, such characteristics as in the product test, form, packaging, etc.
8) Promotion: This is one of the core functions of marketing since the finished product must not remain in the place of production, hence, one as a marketer must design effective communication strategies to inform the availability of the product to the target market. One must be able to design effective strategies such as advertisement, personal selling, public relation, etc.
9) Standardisation and Grading: Standardisation involves producing goods at pre-determined specifications. Standardisation ensures that product offerings meet established quality and quantity. It helps in achieving uniformity and consistency in the output product.
Grading is a classification of goods in various groups based upon certain predetermined characteristics. It involves the control standards of size, weight, etc. Grading helps in pricing decisions also. The higher quality of goods and services attracts higher prices.
10) Pricing: Marketers perform the function of pricing on the product offerings by designing effective pricing systems based on product stage and performance in the product lifecycle. Price is the actual value that consumers perceive in the product, so marketers should ensure that the value of the product is not too high or too low for consumers.
11) Distribution: The function of distribution is to ensure that the product is easily and effectively moved from the point of production to the target market, the kind of transportation system to employ, e.g., rail, road, water or air, and ensures that the product can be easily accessed by customers. The marketer should also design the kind of middlemen to engage in the channel of distribution, their incentives and motivations, etc.
12) Packaging, Labelling and Branding: Packaging involves designing packages for the products, labelling means putting information required/specified on a product’s covering. Packaging and labelling serve as promotional tools nowadays. Branding distinguishes the generic commodity name from a brand name.
For example, wheat flour is a generic name for a commodity while “Ashirvad Ama” is a brand name. In the service industry also branding matters a lot.
13) Financing: The financing function of marketing provides credit for channel members or consumers. Financing deals with the part of marketing to provide income for the business. It refers to how marketers can raise capital to start operations and remain in business. It refers to modes of payment for the goods and services transferred to the customers.
14) Risk-Taking: This is one of the important marketing functions. Risk-taking in marketing refers to uncertainty about consumer purchases resulting from the creation and marketing of goods and services that consumers may purchase in future.
15) Customer Support: This is a very important function of marketing. It involves pre-sales counselling, after-sales service, handling customer complaints and adjustments, and maintenance services. credit services, technical services and consumer information.
For example, a water purifier comes with an onsite service warranty of seven years helps in marketing and is an important marketing function as well.
Importance of Marketing
Marketing is the source of many new essential ideas in management thought and practice such as flexible manufacturing systems, flat organisational structures, and an increased emphasis on service all of which are designed to make businesses more responsive to customer preferences and needs.
The importance of marketing is as follows:
1) Importance to the Marketers
i) Financial Success: Nothing succeeds like success and financial success often depends on marketing ability. Finance, accounting, operations, and other business functions will not matter if there is not sufficient demand for products and services. There must be a top line for there to be a lowermost line. Marketing is a total profit centre, other functions are cost centres.
ii) Marketing is often the Route to the Top: Most companies have now created a position of chief marketing officer, similar to a chief financial officer or chief strategy officer. Most of the top posts in the organisation are being fulfilled by people from marketing. There is no management discussion in the annual reports without describing their latest marketing achievements, strategies and tactics adopted.
iii) Helps Boost Product Sales: Marketing is a core business discipline. Apart from spreading awareness about the products, marketing helps boost sales and revenue growth. Marketing creates a desire among the general public to buy the product through effective strategic marketing plans including integrated marketing communication. The more people hear and see the products, the more they would be interested to buy.
iv) Builds Company Reputation: Marketers aim at creating brand equity through brand name, images, logo, or caption (‘lodex maliye kam par chaliye’) that the customers listen to and watch in the advertisements. McDonald’s is immediately recognised for its arch design.
With an established name, it is easier for marketers to develop and grow. Companies also build a reputation through the innovation of products, which is possible because of the financial resources generated from sales.
v) Marketing is the Biggest Component of Product Offering: Normally 40-60% of the price charged from a customer comprises marketing-related costs, like advertising, market research, development, etc. The greatest challenge before the marketer is how to bring it down without sacrificing marketing purposes.
vi) To Cope Up with the Changing Marketing Environment: Globalisation, the internet, and information transparency have led to an increasingly mobile workforce, ever more fussy customers, and rapidly changing technologies and business models. Thus, companies are less able to predict – let alone control the short-term shape of their markets.
Consequently, more and more organisations are choosing to adopt a marketing-led philosophy to enable them to win market share, and capture and retain the hearts and minds of present and prospective customers.
Marketing is becoming more important as organisations around the world strive to develop products and services that appeal to their customers and aim to differentiate their offerings in the increasingly-crowded global marketplace. Marketing is no longer the sole prerogative of a single ‘function’.
2) Importance to the Consumers
i) They can Buy Goods Globally: Marketers through computer and information technology can satisfy more customers across the globe than ever before. Marketers do recognise the role of websites and blogs, online communities, e-mail, SMS, etc, which facilitate marketing exchanges. Today, if someone has to buy a fridge, he can visit the sites for new or old fridges, compare them and can find the best value.
ii) Promotes Product Awareness: Getting the product recognised by the market is the primary objective of marketing, by which customers take advantage of them. Customers never thought of personal computers, mobile phones, or laptops. Awareness of these products was spread by marketers only. Thus, marketing helps to sweeten the quality of life
iii) Creating Utilities: Marketing creates form utility (from timber into the desired furniture), place utility (moving product closure to customer), time utility (product being made available when it is needed), information utility (informing of availability of a particular product at a particular place and a particular price), and possession utility (through the transfer of ownership).
3) Importance to the Society
i) Protection against Evil Effects of Depression: It is through marketing that the spending is continued and the depression is kept at bay.
ii) Employment: Marketing offers many exciting, interesting, and challenging careers, like personal selling, advertising, transportation, packaging, marketing research, product development and design, cash and carry stores, retailing, lobbying, event management, etc. Apart from such commercial activities, many non-governmental organisations engaged in cause marketing, social marketing, and advocacy marketing. etc., also provide great opportunities.
iii) Availability of Various Products: Society would have no choice in the absence of marketing Today, there are hundreds of new products and tens of variants of every product are available only because of marketing.