Q2-Explain in details the functions of marketing.
FUNCTIONS OF MARKETING
1. FUNCTIONS OF EXCAHNGE
By the process of marketing, buyers are able to purchase what they need. Buying involves determination of needs, selection of quality and variety, deciding on brand and size, bargaining on prices, determination of quantity, selection of source of supply, and possibility of credit facility.
- 2. Selling:
Selling refers to exchange of goods for money. Selling cannot take place without buying for both are compulsory to each other. By selling transfer of title to goods and services is effected. Selling involves deciding on what to sell, when and where to sell, and at what price.
FUNCTION OF PHYSICAL DISTRIBUTION
Once the goods have been produced, they must be storied until they are delivered or demanded. Storage is holding the goods when they are manufactured . The means of storage includes shops, stores, and warehouses. By the process of storing we hold the goods when they are produced and dispose them of when they are demanded. It creates time utility.
If storage creates time utility, transportation creates place utility for goods and services. By transportation we take goods and service from the place of supply to the place of demand. It solves the problems of surplus or scarcity.
C- FACILITATING FUNCTIONS:
Finance is the life-blood of a business. Without money no business activity, no matter how small, can be performed. Business needs funds which are available in usually three forms, voiz, Capital, Loans, And retained earning. Finance is needed to purchase fixed and current assets, pay off liabilities, and meet expenses of the business.
2. Grading And Standardization:
Grading is the specification of a quality, rank or class according to value. Standardization is the process of making goods of uniform size and shape. Grading and standardization have made the selling work very easy. Goods produced in one country can be easily sold in another just by quoting grade and standard.
Successful marketing requires up-to-date and maximum information about markets, technology, demand, supply, public taste and preference. Information may be obtained from primary or secondary source, which must be reliable.
Risk must be considered and studied carefully. Risks is an essential factor of every business. Before starting a new business the investor must calculate how much risk he can assume.