Transcript MODERN MARKETING CONCEPT - Notes

St. Joseph’s Evening College
MARKETING FUNCTION
338 - 343
Group - 5
Under the Guidelines of:
Subject:
Dr. H. Nagraj
Principle of Marketing
CONTENTS
 Definition
 Clark & Clark Marketing Function
 Classification of Marketing
Function – New Trend
 Conclusion
Definition
“an act or operation or service by
which original product and the
final consumers are linked
together”
Clark & Clark Marketing
Function
Classification of Marketing
Function – New Trend
1. Contactual – Searching of buyers and
2.
3.
4.
5.
6.
Sellers.
Merchandising – the fittings of goods to
market requirements.
Pricing – the selection of price to induce
customers to accept the goods
Propaganda – the creation of customers
Physical Distribution – the transporting
and storing of goods
Termination – the end of the marketing
process
The Contactual Function
The contactual function is the process of
searching out the market, i.e. buyers. It consists
of finding out the potential buyers, where there
are located and how they could be reached.
Further activities included are: selecting a proper
distribution channel, choosing appropriate media
to reach the customers, and discovering
consumer needs. From the point of view of the
buyer this function consists in finding the most
suitable source for the goods.
The Merchandising Function
This is a function that involves the
coordination of selling with production. It
includes the process of selecting the
product to be produced and stocked with
necessary emphasis on the size,
appearance, form, quantities to be
brought, time of purchase or production,
etc. This function helps “to make an
adjustment of merchandise produced or
offered for sale to customer demand”.
The Pricing Function
Pricing function is mainly based on economic
values of a product to be brought or sold. Pricing
is very important and should be given a greater
role.
A product is finally approved by the customers
only if the price is acceptable to them. This
makes it necessary on the part of sellers to
evaluate the possible prices of the products
even before the products are brought to
markets.
The Propaganda Function
This function comprises all methods used
by the sellers to influence and induce the
buyers to buy products. Normally, it would
include all advertising and personal selling
activities. These activities aim at
increasing sales.
The Physical Distribution
This function relates to transportation
and storage activities which have
been discussed earlier.
The Termination Function >>>
This function is the final link in the process of
marketing, where the seller and the buyer arrive
at an agreement. These essentials are settled at
this stage: the Quality, the Quality and the Price
of the product to be exchanged. Since these
elements are subject to negotiation, the process
is also termed as the “Negotiation Function”. It is
remarked that “the termination function is the
consummative act for which all other functions
have been preparatory.
The Termination Function
This function includes a series of jobs a seller
has to contemplate to complete the whole of
marketing process. They include determination
of terms of sale, delivery dates, credit
arrangements, the guarantees and service
policies. However, it should be remembered that
marketing does not end with the payment for
and the acceptance of goods. There often
remains a moral and legal obligation on the part
of the seller that he has also to ensure
satisfaction of consumers
Facilitating Functions>>>
 Financing and risk-bearing
- market information
- demand and supply creation
- market research.
Facilitating Functions>>>
Financing and risk-bearing are two important
facilitating functions. The owner of goods at any
marketing stage must sacrifice the opportunity to use
the working capital needed to buy those goods
elsewhere. Or the owner must borrow that capital. In
either case, capital must be provided by the trader or
by some lending source. Regardless, cost is involved.
Further, there is an implicit cost in the risk of losing all
or part of that capital through theft, spoilage, mortality
or changing market conditions. Without the willingness
to provide the capital and to bear these costs, no
stage of the market chain could function. Other
facilitating functions enable producers to respond to
consumer needs and thus provide goods in the
locations, quantity and form desired.
CONCLUSION
 Marketing Function is a Life and Blood to
products and creating a market for them.
 It understands the situation of Prevailing
Market
 It also understands the Consumer
Behaviour like taste & preferences
 Marketing Functions helps lot to the
Producer to reach for Customers