MARKETING FUNCTIONS

Marketing is made up of a number of activities known as marketing functions. Ordinarily, identifying these functions might look simple since it would appear necessary only to itemise the various activities required to move goods and services from producers to consumers. The difficulty of determining exactly where marketing begins and ends however, complicates the task of identifying and classifying marketing functions.

Though one may oversimplify issues by assuming marketing activities are only concerned with the flow of goods and services, yet it is obvious that, to achieve maximum efficiency in marketing, there must also be a flow of information in the other direction i.e. from the market to the producer. This information gathering activity may actual y take place before the product is planned or produced. It is therefore reasonable to think of the marketing process as beginning and ending with the consumer, with information from the consumer to the producer and, goods flowing back to the consumer from the producer.

Marketing is involved in all business functions. And, as already viewed from the systems perspectives, there are no clear-cut lines separating it from production, personnel, and many other business functions. It is also not restricted within a single business enterprise. Rather, it overlaps and is spread among producers, other businesses engaged in marketing known as marketing institutions, and consumers. In the same vein, the marketing of almost every commodity or service is subject to varying application of different marketing, and non-marketing functions and is carried on by diverse groups of institutions.

The activities most easily identified as marketing functions are those concerned with bringing goods into contact with markets. Selling is one of these. However, buying, the complementary side of selling is not so easy to identify as a marketing function. The identification depends on who is buying. For example, a retail store is primarily involved in marketing, as opposed to producing; hence most of its activities are clearly concerned with marketing. Buying merchandise for resale is one of the retailer's most important tasks. He must buy those items the consumer needs and wants, in order to achieve the aim of selling goods to the consumer.

In the case of a manufacturers firm, buying is so clearly seen as a marketing function. In some instances, the manufacturing buying decision is influenced by the effect his purchase has on the marketability of his product. Yet in other instances, it is influenced by the effect on product cost. 

For example, the selection and purchase of containers/packaging materials for beverages and food drinks mainly affects the marketability of the finished product, whereas the selection and purchase of the various ingredients for the formulation of the food drink is majorly a production problem. In most cases however, the purchasing agent is influenced by both marketing and production needs. In this regard, most manufactures view buying as a marketing function whose performance is frequently conditioned by production considerations.

Most commonly, activities not directly concerned with bringing goods into contact with markets are more difficult to identify as marketing function. This is the reason why manufacturers' buying activities are often considered as a productive responsibility.

Marketing is also concerned with product planning and design since a product must suit the needs and wants of the consumer. Therefore, the manufacturer must discover these needs and wants in an early stage of product development work.

Marketing functions are often performed by the consumer himself For example, he shops for the goods and services he needs. He reads and listens to advertisement (look around stores, and talks with sales peoples and do window shopping) to find out what is available in which quantities and at what prices. In addition, he is continual y deciding among stores, products, brands and models. Furthermore, the consumer also performs storage functions by storing goods in his room, store, fridge, freezer etc.

A CLASSIFICATION OF MARKETING FUNCTION

It is of utmost importance to at empty a classification of marketing functions since this would make it easier to analyse specific marketing situations. The identification of separate activities common to a large number of businesses engaged in marketing makes it possible to compare and analyse marketing policies and decisions in different organisations. For instance, a marketing manager might not know where to make corrections if he were merely informed that his firm is inferior to that of a competitor. If he however learns that his transportation costs are higher than the average for the industry, or that his advertising expenditures are excessive in terms of results, he knows where to particularly direct his efforts toward improvement.

For obvious reason, no general classification of marketing functions can be used to analyse the marketing situations of all firms. Such a system must first be modified to fit the specific marketing circumstances of any firm. With this in our mind, we may thus classify marketing activities into three categories containing nine functions in all:

A. Merchandising Function.

1. Product planning and development

2. Standardizing and grading

3 . Buying and assembling

4 . Selling

B. Physical Distribution Functions

5. Storage

6. Transportation

Auxiliary Function

7 . Marketing Financing

8 . Risk Bearing

9 . Marketing Information

As can be seen from this classification, the merchandising category starts with an analysis of market needs and development or procurement of products or services to fill these needs, and ends with the activities necessary to create a demand for these products and services. The physical distribution category is concerned with the activities necessary to make these products and services available at the time and place where the consumer needs them. The last category includes the supporting activities necessary to the effective performance of the merchandising and physical distribution functions.