Module 1. Overview of marketing

Lesson 2

FUNCTIONS OF MARKETING

2.1  Introduction

Marketing activities lead to sale of goods from producer to consumer. In order to make the goods available to consumer, several marketing functions are carried out by marketing organizations. All this functions are categorized into several categories and are broadly divided into direct and indirect functions.

2.2  Direct Functions of Marketing

There are some basic direct functions to be carried out by marketing so as to facilitate the transfer of goods and services from producer to consumer. These direct basic marketing functions are divided into following three types.

a) Transactional functions: This function includes following marketing activities.

1. Buying: To purchase a particular good or service after evaluating alternatives and making choice amongst them.

2. Advertising: Impersonal presentation and promotion of goods and services through the mass media.

3. Personal selling: Person to person communication and presentation of goods and services for sale.

4. Sales promotion: Incentive tools, generally short term so as to stimulate quicker or greater purchase of particular good or service by individual or business consumers.

b)  Logistic functions: This covers

1. Selecting a distribution channel.

2. Transportation storage and physical handling of goods.

c) Facilitating functions: This covers

1. Product financing by providing capital.

2. Risk taking by holding or taking ownership of title of goods.

3. Generating and providing market information.

4. Post sale activities: After sales service.

2.3  Indirect Functions of Marketing

The connectives, integrative and societal are indirect functions of marketing. Marketing has a connective function in society. It connects supply and demand or production and consumption of goods and services. At micro level, marketing develops and maintains the relationship between producer and consumer. The database of micro level helps for macro level planning at national level.

At organizational level marketing has an integrative function. It integrates all functions and parts of an organization to serve the markets. In organizations, activities of production, distribution, hiring of professionals, financial aspects etc. are carried out by respective departments. If all the departments act in their own pursuit without any relation with other department then in the long run it will prove detrimental for the whole organization. The main aim of any organization will be to sell their goods and services and earn profit. Thus, this aspect helps to integrate all the departments of the organization. Production department has to produce the goods and services as per customer demands and keep in mind the financial and other constraints.

In today’s globalized world production and consumption are apart from each other. They are connected by marketing only. From the society view point marketing shows ways of developing and using effective production systems and leads to prosperity. 

Traditionally, marketing is viewed as a link between production and consumption. Marketing evolved so as to consider demand factor in production planning. The function of marketing is to channelize information of consumer needs to the other departments of the organization. Marketing integrates the whole organization to effectively serve the demand.