In the modern business world, the 7 functions of marketing stand as an important building block for success in a competitive marketplace.
In this article, we will dive into the 7 important marketing functions, unlocking the details to achieving success in today’s dynamic and fast-paced marketing world. So, let’s get started:
What are Marketing Functions?
Marketing functions refer to the specific roles or activities that are performed within the scope of marketing to effectively promote and sell products or services. These functions are the basic functions that constitute the marketing practice in any organization.
What is the Role of Marketing in Business?
Marketing plays an important role in businesses of all sizes, helping them achieve their goals and objectives. It involves creating, communicating, delivering and exchanging offerings that add value to customers, clients, partners and business.
Importance of Marketing Functions
Marketing functions are important because they help businesses to:
- Understand Their Customers: Marketing functions help businesses to develop products and services that meet the needs of the target market.
- Develop and Market Competitive Products: Marketing functions help businesses to develop products that are priced competitively and distributed to the right retailers.
- Build Brand Awareness and Loyalty: Marketing functions help businesses to attract new customers and retain existing customers.
- Generate Leads and Sales: Marketing functions help to identify customers, generate interest in the company’s products or services and encourage customers to buy.
By implementing these functions, businesses can reach their target markets, generate leads and sales and build brand awareness and loyalty.
7 Functions of Marketing
Here are the 7 Marketing Functions with details:
1. Product and Service Management
Product and Service Management involves the followings:
- Market Research: Market research helps businesses learn what their customers want and what their competitors are doing. This helps them create products and services that are more likely to perform well in the market.
- Product Development: When a business sees an opportunity to create something new for the market, it can start building it. This means they have to plan and design it, make some early versions to try, and ask users what they think about it.
- Product Branding: A strong brand makes it easier for a business to stand out from the crowd. This means giving your product or service a unique name, logo and catchphrase. Also, you need to keep this brand consistent in all your advertising and promotions.
- Product Lifecycle Management: There are four parts to the life of every product or service: creating it, launching it, growing it and when it is really popular. Businesses have to take care of their products in every part to keep them performing well and making money.
2. Pricing
Pricing involves the followings:
- Cost-Based Pricing: This method of pricing means deciding how much to charge for something by looking at how much it costs to make it. Businesses also add some more costs to cover their other expenses and make some more profit.
- Competition-Based Pricing: This method of pricing means deciding how much to charge for an item by looking at what other companies are charging for similar items. They can lower their prices to get more customers or they can raise them to show that they are a fancy brand.
- Value-Based Pricing: This method of pricing means deciding how much to charge for something based on how much customers perceive it to be worth. They do this when they feel their product or service is better than what other companies are offering.
3. Promotion
Promotion involves the followings:
- Advertising: Advertising is when companies create advertisements and place them on TV, radio, newspapers and the Internet. They do this to tell people about their products and why they are good.
- Public Relations: Public relations means making friends with the media and important people. Businesses do this to get good stories about themselves and get more people to know about their brand.
- Sales Promotion: Sales promotion is when businesses give people special reasons to buy their products such as coupons, discounts or contests. They do this to make people want to buy more.
- Direct Marketing: Direct marketing is when businesses talk to you directly such as sending you emails and telling you about their products. They do this to get you to buy their products or services.
4. Selling
Selling involves the followings:
- Prospecting: Prospecting is like finding potential customers for a business. They do this by making friends, going to events and using social media.
- Qualifying: Qualifying is figuring out if a potential customer is suitable for a product or service. They do this by asking them questions about their needs, budget and decision-making process.
- Need Assessment: If there is to be a good customer, they find out what that person needs, what they want to get and how their product or service can help them reach their goals.
- Presentation: Once a business knows what a customer wants, it can begin to show them its product or service. They tailor the presentation of their product or service to the customer’s need.
- Handling Objections: Sometimes, customers have reasons why they don’t want to buy something. Businesses listen to these reasons and try to solve problems or concerns.
5. Marketing Information Management
Marketing Information Management involves the followings:
- Market Research: Market research is the process of gathering information about the market. This information includes things potential customers, what’s popular and what other companies are doing. Businesses do this to make smart choices about how to advertise and run their business.
- Customer Relationship Management (CRM): CRM is the process of keeping track of information about your customers. This includes things like who they are, what they like and what they have bought from you before. With this information, they can send personalized emails, messages and keep customers remember them.
- Marketing Intelligence: It is the process of keeping track of what your competitors are doing and what’s happening in the market. This helps them see what other companies are doing, spot new trends and plan to stay ahead of their competition.
6. Financing
Financing involves the followings:
- Raising Capital: Businesses pay for their marketing materials. They raise this capital by selling part of their company to investors or by borrowing.
- Borrowing: Businesses ask banks and other lending institutions for marketing. It is important to note that borrowing can be expensive.
- Budgeting: This involves when a business has money and knows how to use it for marketing. They make a strategy of how much they will spend on marketing.
- Tracking Expenses: Businesses watch how much they spend on marketing to make sure they don’t overspend. They find places where they can spend less or spend money more wisely.
7. Distribution
Distribution involves the followings:
- Selecting Channels: Businesses choose the best ways to sell their products to the people they want to buy. They can sell it in stores, on the Internet or directly to people.
- Managing Inventory: When a business decides where to sell its merchandise, it needs to keep track of how much it has and make sure it is there when people want to buy it.
- Transporting Products: Businesses move their products from where they make them to where they sell them or to the people who buy them. They can do this by using trucks, ships etc.
How Businesses Use the 7 Functions of Marketing?
Major corporations in the consumer electronics industry have a marketing strategy that includes 7 marketing functions. In such organizations, different teams handle different parts of marketing.
To begin, these corporations have dedicated groups of market researchers who carefully collect and analyze data on the competitive market landscape and identify consumer preferences. And there is a team for product development which creates innovative products and services.
The marketing department then plays an important role in pricing strategies, conducting promotional activities to reach potential customers and monitoring the sales process.
These large corporations use deep marketing research that fits on these distinct functions to effectively navigate the consumer electronics market.
The 7 marketing functions are important for any business that wants to succeed. When a company uses these functions, it can develop, deliver, deliver and trade products or services that are of value to customers, clients, partners and business as a whole.
Marketing Functions Example
Apple’s iPhone launch is a great example of how 7 marketing functions can be used to create a successful product launch:
- Product: Apple does market research to identify the features and design that customers want in a new iPhone.
- Price: Apple sets a price for its iPhones which reflects the high quality and innovation of the products.
- Place: Apple’s iPhones are sold through different channels such as its own retail stores, select carrier stores and online retailers.
- Promotion: Apple uses promotional tactics to generate excitement and buzz around the launch of a new iPhone.
- People: Apple’s sales team is trained to provide excellent customer service and to answer customer questions about the new iPhone.
- Process: Customers buy iPhones online or in-store and use Apple’s setup process to get their iPhones up and running quickly.
- Physical Evidence: Apple’s stores and packaging are designed to show the brand image and quality of its products.
By considering all seven marketing functions, Apple creates successful iPhone launches that generate excitement in consumers and increase sales.
7 Marketing Functions: Conclusion
Mastering these 7 marketing functions is not a one-time effort but an ongoing process that requires adaptability and a deep understanding of the market. Successful businesses use these functions to create strategies, drive growth and build brand value.
In the coming times, as the marketing landscape continues to evolve, those who adapt these functions will be better equipped to develop in the marketplace.
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