Universal marketing functions

A common error is to assume that marketing activities consist only of sales and advertising. In fact, marketing involves eight basic func­tions: buying, selling, transporting, storing, standardization and grading, financing, risk taking, and securing marketing informa­tion. A single organization need not perform all of these functions; most often, some are handled by manufacturers and others by resellers. For example, a supermarket performs the function of buying a variety of goods to make them available in one place. A wholesaler handles the function of transporting these products to the supermarket.

The eight marketing functions serve several purposes. Buying and selling are exchange functions. These functions ensure that the right products are available to meet customers’ needs and that customers are aware the products are available.

Physical distribution functions are the activities required to get products to the customers who want them, including transporting and warehousing goods. Other related activity include controlling inventory levels.

The facilitating functions help marketers know what to provide and help customers make purchase decisions and purchases. Within this category of functions, standardization and grading ensure that products meet quality-control standards. Financing involves providing credit to customers, so that they can meet their needs as they arise. Risk taking includes developing and offering for sale products that customers have not yet committed to buying. Information gathering involves collecting information about customers, competitors, and other relevant subjects.

These functions must be performed in all macromarketing systems. How these functions are performed — and by whom — may differ among nations and economic systems. But they are needed in any macromarketing system.

The most effective way to carry out the marketing functions is for marketers to start by planning what they want to accomplish and how they will do it. Broadly speaking, they prepare a marketing plan, which consists of marketing objectives, identification of one or more target markets, and a marketing mix to serve each of the target markets.

Marketing strategy planning means finding attractive opportunities and developing profitable marketing strategies. But what is a “ marketing strategy “ ? A marketing strategy specifies a target market and a related marketing mix. It is a “big picture” of what a firm will do in some market. Two interrelated parts are needed: a target market — a fairly homogeneous (similar) group of customers to whom a company wishes to appeal, and a marketing mix — the controllable variables the company puts together to satisfy this target group. The customer is surrounded by the controllable variables.