Introduction To Marketing II – Functions of Marketing SS1 Marketing Lesson Note

FUNCTIONS OF MARKETING

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 needs 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 operational. 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 the case of finished products) or by the production department (in the 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 warehouses 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 by 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 customer’s 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.

Summary of the Functions of Marketing in Nigeria

1. It is involved in the movement of products from manufacturers to consumers.
2. It provides storage for goods between the time of production and consumption.
3. It enhances the standardization and grading of products.
4. It provides vital information to society on the type of products, prices and where the products are found.
5. It facilitates the bearing of risk in the distribution of products.
6. It facilitates the adoption of an acceptable price strategy for a company’s products.
7.  It facilitates product development.
8. It facilitates the import and export of goods.
9. It encourages a buyer-seller relationship.
10. It enhances the identification of market opportunities by companies.