Marketing functions explained in easy language so that it will be easy for a student to understand marketing functions.

1. MARKETING
FUNCTIONS
MERCHANDISING
FUNCTIONS
PRODUCT PLANNING
AND DEVELOPMENT
STANDARDISING AND
GRADING
BUYING AND
ASSEMBLING
SELLING
DISTRIBUTION
FUNCTIONS
STORAGE
TRANSPORTATION
AUXILIARY
FUNCTIONS
FINANCING
RISK-BEARING
MARKET
INFORMATION

2. MERCHANDISING FUNTIONS
It consists of those activities which are necessary to make
available to the market the product and services that
fit the needs of that particular market.
1. PRODUCT PLANNING AND DEVELOPMENT: It is the
starting point of marketing programme in the firm.
Product planning and development includes following
activities:
• Creating idea of a new and improved product.
• Screening of idea.
• Development and testing of the concept to find out the
best product out of various alternatives.

3. • Evaluating the concept.
• Giving physical shape, testing, branding,
packaging and labeling, etc.
• Test marketing to give the product a trial.
• Pricing the product.
• Producing final products for sale.

4. 2. STANDARDISING AND GRADING:
Standardization is the process of setting up
standards to produce goods in conformity with
those standards. A standard is a constant
physical characteristic that gives uniformity to a
group of products. It gives the idea of uniformity
of quality. Grading facilitates sale of goods by
description and it avoids botheration involved in
inspection. Products of different qualities should
be separated into groups or lots and similar
quality products are put into a grade.

5. 3. BUYING AND ASSEMBLING: Buying is regarded
as the first step in marketing. Manufacturing
firms have to purchase large quantities of raw
material and others requisites. Buying involves a
suitable source of supply, selecting the desired
quantity, quality, grade, style and size.
Assembling is related to collecting goods from
small producing centres and bringing them to a
central place for further disposal. Assembling
refers to joining of various parts to form a
finished good. For Example: Mobile phones, Bi-
Cycles, etc.

6. 4. SELLING: It refers to the transfer of ownership of goods
or services to the buyer in exchange of money. Selling is an
art. Methods of selling:
• Personal Selling: it is face to face or person to person selling.
Employees make direct contact with consumers, negotiate
them to purchase a product.
• Indirect Selling: This is non personal method of selling and
includes publicity and advertisement.
• Sale by inspection: This method allows people to see and
inspect the goods before making the actual purchase. For
ex. Buying fruits and vegetables.
• Sale by sample: Sale by sample is a sale in which the buyer
purchases goods under an agreed condition that goods sold
are as good as one shown to the buyer as
a sample. Sample is a part of transaction constituting
express guarantee that whole goods conform to the sample.
• Online selling: It includes sale of various products online via
many sales agencies like Amazon, Flipkart, etc.

7. PHYSICAL DISTRIBUTION FUNCTIONS
It consists of activities necessary to move goods from one place to
another.
1. STORAGE AND WAREHOUSING: It involves holding goods
between the time of their production and their final sale. It creates
time and place utilities. Functions of storage:
• Creation of time and place utility
• Finance function
• Stabilizing prices
• Regular production
• Ability to face natural calamities
• Reduction of risk
• Saving transportation cost
• Warehouse is an establishment for the storage and accumulation of
goods. Warehousing is the act of storing goods that will be sold or
distributed later.

8. 2. TRANSPORTATION: Transportation means
movement of goods from one place to
another. In other words, it is concerned with
carrying the goods from the places of
production to the places of their
consumption. Transportation creates place
utility and regularises supply from one place
to another. Transportation greatly facilitates
the performance of marketing functions like
buying, assembling, selling, storage and
warehousing etc. The entire economy and its
development is dependent on a well- knit
system of transportation.

10. AUXILIARY FUNCTIONS
Auxiliary functions mean providing supplementary
or additional help and support. These activities
facilitate the performance of other main
functions.
1. FINANCING: Every organization needs
finance or money to carry on its functions. The
success of a business firm depends upon the
proper estimation and utilization of finance.
Finance works as the blood for an organization,
without it a firm cannot survive.

11. 2. RISK BEARING: The marketing process is also
confronted with risks of many kinds at every stage.
There may be losses due to unforeseen circumstances.
A businessman has to take risks but an effort is to be
made to avoid such risks.
3. MARKET INFORMATION: To identify the needs,
wants and demands of the consumers and then
analyzing the identified information to arrive at various
decisions for the successful marketing of a firm’s
products and services is one of the most important
functions of marketing. The analysis involves judging
the internal weaknesses and strengths of the
organization as well politico-legal, social and
demographic data of the target market. This
information is further use in market segmentations.