Back to: Marketing SS1
FUNCTIONS OF MARKETING
In order for the marketing bridge to work correctly providing consumers with opportunities to purchase the products and services they need, the marketing process must accomplish the following important functions:
1. Buying: It involves what to buy, what quality, how much, from whom, when and at what price. People in business buy to increase sales or to decrease costs. Purchasing agents are much
influenced by quality, service and price. The products that the retailers buy for resale are determined by the need and preferences of their customers.
2. Selling: Selling means providing a way to give your customer what he or she wants. You can do this in any number of ways. You can sell your product directly to the customer, or sell it at wholesale prices to retailers. You may sell a product made especially for sale to other businesses.
3. Financing: Financing refers to how your business will obtain the money it needs to start operations and stay operable. This function encompasses investors, financing, budgeting and other financial concerns that your business may have. It also refers to how a customer will pay for the goods or services that you are selling.
4. Storage: It involves the keeping of goods in proper condition from the time they are produced until they are needed by consumers (in case of finished products) or by the production department (in case of raw materials and stores). Storing protects the goods from deterioration and helps in carrying over surplus for future consumption or use in production Goods may be stored in various warehouse situated at different places. Storing assumes greater importance when production is seasonal or consumption may be seasonal. Retail firms are called “stores”.
5. Transportation: This is the physical means whereby goods are moved from the places where they are produced to where they are needed for consumption Transportation is essential for the procurement of raw materials to the delivery of finished products to the customers places Marketing relies mainly on railroads, tracks, waterways, pipelines and air transport. Any type of transportation that is chosen is based on several considerations such as suitability, speed and cost.
6. Processing: Processing involves turning a raw product, like wheat, into something the consumer can use, for example, bread.
7. Promoting: A product or service is useless to your business if no one knows about it. The promotional aspect of marketing refers to the efforts you make to get the word out about what you are selling. This function also encompasses the art of convincing individuals that your product is necessary, better than those other competitors offer and is of good quality.
8. Market information: The only sound foundation on which marketing decisions may be based is correct and timely market information. Right facts and information reduce any form of risks and thereby result in cost reduction. Business firms collect, analyse and interpret facts and information from internal sources such as records, sales people and findings of the market research department. They also seek facts and information from external sources such as business publications, government reports and commercial research firms. Retailers need to know about sources of supply and also about customers’ buying motives and buying habits. Manufacturers need to know about retailers and about advertising media. Firms in both of these groups needs information about competitors and about their markets. Even ultimate consumers need market information about availability of products, their quality standards, thear prices, and also about the after-sales service facility the manufacturer or seller offers. Common sources for the information needed by the consumers are sales people, media advertisements,
Summary of the Functions of Marketing in Nigeria
i. It is involved in the movement of products from manufacturers to consumers.
ii. It provides storage for goods between the time of production and consumption.
iii. It enhances the standardisation and grading of products.
iv. It provides vital information to the society on the type of products, prices and where the products are found.
v. It facilitates the bearing of risk in the distribution of products.
vi. It facilitates the adoption of an acceptable price strategy for a company’s products.
vii. It facilitates product development.
viii. It facilitates import and export of goods.
ix. It encourages a buyer-seller relationship.
x. It enhances the identitification of market opportunities by companies.
twice into the same river for fresh waters are ever flowing in upon you Change is constant Although contact between the Nigerian area and 3 Britain dates back to the 16th century, it was not until the mid-19th century that Britain finally decided formally to colonise Nigeria. Throughout 4 the pre-colonial and colonial periods, trade was the most important determinant of Anglo-Nigerian relations. In promoting her economic interest, Britain used both force and diplomacy in gradually bringing the different parts of Nigeria under its rule between 1861 and 1903.
Marketing in the colonial period can be traced to importation of finished goods from abroad to Nigeria. The major importer of these goods was the foreign merchant houses, for example the United Africa Company (UAC).
Some of these imported goods were consumer goods and the people of Nigeria were ready to accept these goods. It was the beginning of 8 Nigeria preference to imported good.
FEATURES OF THE POST-INDE PENDENCE ERA IN THE HISTORY OF MARKETING IN NIGERIA
1. Advancement in technology that resulted in the introduction of electronic marketing of products otherwise known as Internet marketing.
2. Accreditation of higher institutions to teach Marketing in tertiary institutions.
3. The separation of Marketing from other business disciplines for it to have its au tonomous status.
4. The discovery of crude oil in large quanti ties in Nigeria requiring the oil companies to market their products worldwide.
5. The emergence of automation which re sulted in mass production requiring com panies to sell their products and this de manded the application and practice of marketing.
6. The lifting of embargo on imported goods resulting in mass importation of products which required firms to apply marketing principles in selling these products.
7. The establishment of multinational com panies resulted in intense competiotion for customers’ patronage, hence requiring spe cialists in marketing.
8. The establishment of professional bodies charged with the responsibility of standardising professional marketing practice in Nigeria.
1. What is marketing?
2. Explain the following terms in marketing
3. List and explain different goals of marketing.
4. Mention five functions of marketing.
5. List seven importance of marketing to small-scale business owners.
6. Explain Quality in Marketing (WASSCE June, 2016).
7. (a) List five features of the post independence era in the history of marketing in Nigeria.
(b) Explain five functions of marketing in Nigeria.
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