7 Functions Of Marketing
We all are aware of marketing, but the question is how much you know in-depth marketing. There are various marketing principles that we don’t apply, and these marketing principles can do wonders for our business.Whether you are a student or an experienced business owner, the article is for you.If you are a business owner, you will understand which areas you are not focusing on, and if you are a student, you will effectively learn marketing functions. To understand marketing, first, we need to understand, what are the 7 functions of marketing?
The 7 functions of marketing :
1.Product and Service Management
This function focus on developing a product or service as per the customer need or want. In this process, you can create a new product, or you improvise the existing product.
Those days are over when you use to push the products to the customers. Customers have become very smart because of the availability of online information. So you don’t have to push the product to customers. You need to pull the customers by creating the product as per their wants and needs.
Let’s take an example of Coca Cola
Coca-cola has drinks in different sizes; you have Coca Cola Can for individual needs and 2-liter jar for the family or party needs.
They have introduced different types of flavors in drinks as per the taste of the customers.
Coca Cola is one of the oldest companies globally, and this is one of the strategies that helped them survive until now. Remember, Coca Cola is the market leader in its segment because of this.
In 7 functions of marketing , without market research, you won’t be able to do a successful business. If you know anyone who has not done any market research but that person is doing a successful business. Please take my word, that is pure luck.
Market research will give you the answers to the following
- How much competition is in the market?
- What does the consumer want?
- Who is your target customer?
- What will be the right price for the product?
- What are the opportunities in the market and so on
You can do market research through customer surveys, interviewing the industry people, and collecting data from the research reports.
When we talk about 7 functions of marketing, pricing is an important function that you can also find in the marketing mix. Pricing of the product depends on a lot of factors such as competitor’s price, cost of manufacturing, and demand of the product. It seems easy, right? No, pricing is one of the challenging aspects of the business. It requires detailed market research.
If you keep the price low, you may get losses, and if you keep the price high, you may not get the customers.
Therefore keeping the right price is very important for the company.
Mi sells phones at a lower price than its competitors without compromising its quality. They saw an opportunity in the low cost smartphone market and created the product as per the need of the customers.
They have become the largest selling smartphone brand in India. Their whole strategy is based on price. This strategy is complicated, you first put the price of the product and then create a plan on how to achieve it without making any losses.
Distribution is the process of deciding through which channel your product will be available to the customers.
For eg, Standard distribution channel which company use are as follow:
Manufacturer >> Whole seller >>Retailer>>Customer
In this case , the manufacturer sells the goods to the whole seller. The wholesaler sells it to retailers, and retailers sell it to the consumer.
In this case, manufacturer will list the products on the e-commerce website, and customers will buy it from the online platform.
Various factors help decide which distribution channel to choose from; these factors can be profit margin, time, transportation, and so on.
Promotion is the process of communication through which you create awareness of the product or brand among the customers. If you see an online or tv ad, it’s a promotion. The objective of promotion is to make sure that your target audience is aware of the product, its benefit, price, and where they can buy it.
Amazon has a sale from 15 to 20 August. Now they will advertise about the sale on Tv, newspaper, hoarding,online ads, etc. They will promote so heavily that each target customer will know that there will be a sale on Amazon from 15 to 20 August.
Suppose Amazon is not promoting this sale, then rarely customers will be able to know about it, and Amazon will not be able to achieve the sale objective on the given dates.
So just don’t create the product but also invest in promotion so that your target customer knows about the availability, features, and price of the product.
Selling happens when a customer buys your goods or services. But the sales volume will depend on how you have implemented the other functions of marketing? If you created the product as per the needs of the customers, they will surely like it and recommend it to their friends and family.
If you have created a highly customer-oriented product and choose a wrong distribution channel, then there is a high probability that you may lose sales. Selling is the last function of marketing, but it will be effective only when you follow the other parts of marketing dedicatedly.
Financing is getting the money that is necessary to run the business operations. In 7 functions of marketing, financing is related to marketing expenditure. The industry term for this is “marketing fund.” In marketing, a lot of money goes into promoting the product online and offline. Without financing, marketing won’t be able to run smoothly; once this happens, the company may not be able to create the right product or be able to reach their target customers. Source of finance can be many; it can be directly from the Business owner, shareholders, company loan, or by selling the products to customers. When it comes to a marketing fund, it is always get calculated on ROI (Return On Investment).
Conclusion on 7 functions of marketing :
Whether you are a student, working professional, or business owner, whenever you do business, always make sure you have to work on all the above 7 functions of marketing. So don’t depend on your luck, to be successful in business follow the seven marketing functions.