EORUPA ACADEMY

Q. No. 22: Define marketing? What are the functions of marketing?

M A R K E T I N G
INTRODUCTION As businessmen have come to know that marketing is vital to the success of a firm, an entirely. New way of conduction business has been developed which is known as the marketing concept. The marketing concept states that the customer should be satisfied for the firms existence. DEFINITION: According to Breach Marketing is the process of determining consumer demand for a product or service, motivating its sale and distributing it into ultimate consumers at a profit. According to William Stanton Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want-satisfying products and services to present and potential customers. FEATURES OF DEFINITION The following are the features of definitions. Interaction of business activities Sale of goods &service FUNCTION OF MARKETING Marketing function are those economic activities which are found throughout the marketing system includes the following basic marketing function which are groups as following: 1: MERCHANDIZING FUNCTION Buying: Buying in the first step in the process of marketing. It is the process of acquiring goods at the right price at a right time, in right quantity and quality and from a right source of supplier. There are four ways of purchasing the goods: Purchase by inspection Purchase by sample Purchase by description Purchase by grade. Assembling: Assembling is the collecting of goods from carious sources and transporting it to a located place called markets. Assembling plays an important role in the marketing of agricultural products it also helps the manufacturer for the purchase of goods in large quantities and at the right price and a right time. Standardizing And Grading: Standardization is the setting up of basic categories or grades, or uniform specification for the products to be exchanged in the market. if the goods are graded

Prepared By: H.ABDUL REHMAN

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EORUPA ACADEMY
according to the their grades. the consumers benefit form the graded goods. They are accrued of uniform & standard quality. Storing: Storing is another important function of marketing process. It involves the keeping of goods in proper condition from the time these are produced till these are taken to the market for use by the consumers or to be resold in the market. Storing has helped in regulating the prices of the products by creating time and places utility. Transportation: Transportation it the movement of goods from the source of supply to the places where they are needed. The main modes of transport are (1) land transport (2)water transport and (3) air transport. Transport has helped a lot in widening of the markets, increasing the movement of capital and labor, facilitating specialization and large scale production, stabilizing prices of the products and providing employment to the people. Market Research: Efficient sale depends upon the market research, market research for goods helps the supplier in finding out the quality and quantity of gods wanted by the customers, the when the customers want it, the attitude of the customers towards price, discovering potential markets for products etc. 2: GENERAL BUSINESS FUNCTION: Financing: The financing function is very important in the marketing process. It involves the use of capital for maintaining inventory and providing of marketing services. a marketing concern finances its activities from owned capital and through bank credit. Most of the manufacturers obtain bank credit and sell the goods to the wholesalers on credit the wholesalers in return grant credit to the retailers. The retailers sell the goods to the consumers on credit financing thus enables the manufactures wholesalers, and retailers to operate with less capital, Risk Taking: risk taking in marking refers to the financial risk inherent in the ownership of goods held for an anticipated demand including the possible losses due to a fall in price and losses from spoilage, depreciation, fire, floods or any other loss that may occur with the passage of time. 3. SALES FUNCTION: Pricing: Pricing function Is an important marketing activity for a business. the pricing decisions should be based on a numbers of consideration price of goods should be set at a point, which covers all direct and indirect and inelasticity of demand for goods. The reaction of the competitors, the same class, sale made on cash or credit basis, the policy of the state etc. are to be carefully examined by a seller and proper. Selling: With the manifold increase in the volume production of goods, selling of goods at profitable price is now a problem with the producer. The main elements involved in selling are (a) product planning and development, (b) establishing contact with the buyers, (c) creation of demand, (d) negotiations with the prospective buyers to settle terms & (e) entering into a contact for the transfer of goods from the seller to the buyers.

Prepared By: H.ABDUL REHMAN

0321-6485593

EORUPA ACADEMY
4. OTHERS FUNCTIONS: Some other important functions are as following Marketing Information Factions The market information function involves the collection, analysis, distribution of all the information needed to plan, control marketing activities. and

Advertising: Any paid form non-personal presentation of ideas, goods or services by an identified sponsor, the activities involved in pressing a paid, sponsor identified non-personal massage about an organization and or its product services, or its ideas. Processing: It is another important marketing function. It takes the form of reduction of the bulk of commodities in order to make them more readily transportable the working up of by products.

Prepared By: H.ABDUL REHMAN

0321-6485593