Back to: Marketing SS2
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,How Can We Make ClassNotesNG Better - CLICK to Tell Us💃
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