MC - Marketing Functions [LESSON]

Marketing Functions

The marketing functions define all the aspects of the practice of marketing. If you were to get a job in marketing, you would be doing one or a variety of the following tasks.

• Distribution o Also known as channel management, distribution gets products into customer’s hands. Decisions like where to sell goods (online or retail), to whom to sell goods (to businesses or consumers), where to store inventory (warehouse or storage unit), and how to get them from one place to another (by air, truck, or train) all while keeping costs down. • Financing o Determining the need for and availability of financial resources to aid in marketing activities. This function requires in-depth knowledge of all marketing activities and their effects on profits, how they reach different customers, and should be based on data. • Marketing Information Management o To make good business decisions, a company must have good information about the products/services, customers, trends, and competitors. Marketing information management is all about gathering, recording, analyzing, and disseminating information to aid in marketing decisions. • Pricing o The pricing of goods and services has to equal equilibrium, a buyer must be willing to pay the price and a seller must be willing to sell at that price. How much to charge for a product or service is a pricing decision. Pricing is determined by how much it costs to produce the product and for how much competitors are selling it. • Product/Service Management o Creating, developing, maintaining, and improving a product or a product mix. Product/service management is influenced by what the customers want, what the trends are and advances in technology. Product/service management decisions are what to produce, when to produce it, how many to make, and how to update or change a product/service. • Promotion o Promotion is used to inform, persuade, and remind customers about products, services, or ideas to influence the purchase behavior of customers or clients. Examples of promotion are commercials, coupons, advertisements, social media posts, public relations, and special events. • Selling o Responding to consumers’ needs and wants through planned, personalized communications intended to influence purchase decisions. Helping customers to get the goods and services they want. Selling can happen in a retail setting, online setting, business to business, or directly to customers.

Why is Marketing so Important?

Marketing is the area that interacts frequently with the public. What the public knows about an organization is determined by their interactions with marketers. Customers may believe a company is eco friendly based on a commercial or billboard. Marketing is responsible for attracting customers and bringing in revenue; it is unlikely that a business could survive without a strong marketing department.

Benefits of Marketing

  • Raises the standard of living
  • Adds utility to goods and services
  • Makes buying convenient
  • Maintains reasonable prices
  • Improves the quality of life
  • Provides a variety of goods and services
  • Increases production
  • Creates a competitive environment, helping to lower costs for consumers
  • Access to products in many geographic areas
  • Builds demand, expanding work force - More jobs!
  • Creates societal behavior changes through advertising (anti-text and driving message)

Functions of Marketing Activity

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