FUNCTIONS OF MARKETING, REASONS FOR INTERNATIONAL MARKERTING—BY INSTRUCTOR MRS. ASAKPA, P.E.
FUNCTIONS OF MARKETING:
The function of marketing otherwise refer to as marketing variables revolve around the following:
BUYING: It involves what to buy, what quality, how much, from whom, when and what price. People in business buy to increase sales or to decrease costs. Purchasing agents are much influenced by quality, service and price.
SELLING: This is providing a way to give your customer what he wants. You can do this in any number of ways. You can sell your product directly to the customer, or sell it at wholesale prices to retailer.
FINANCING: This refers to how your business will obtain the money it needs to start operations and stay operable. This function encompasses investors, financing, budgeting and other financial concerns that your business may have.
STORAGE: It involves the keeping of goods in proper condition from the time they are produced until they needed by consumers. storing protects the goods from deteriorating and helps in carrying over surplus for future use in production.
TRANSPORTATION: This is when goods are moved from the places where they are produced to where they are needed for consumption. Transportation is essential for the procurement of raw materials to the delivery of finished products to the customers places.
PROCESSING: Processing involves turning a raw products like wheat into something the consumers can use for example bread.
PROMOTING: A product or service is useless to your business if no one knows about it. The promotional aspect of marketing refers to the efforts you make to get the world know about what you are selling. This function also encompasses the art of convincing individuals that your product is necessary, better than those other competitors offer and is of good quality.
MARKETING INFORMATION: The only sound foundation in which marketing decisions may be based is correct and timely market information. Right facts and information reduce any form of risks and thereby result in cost reduction. Business firm collect, analayse, interprets facts and information from internal sources such as records, sales people and findings of the market research department. They also seek facts and information from external sources, such as business publications, government reports and commercial research firms.
PRICING: This involves placing a price value on the product to ease and facilitate transactions and exchange between the seller and the buyer.
MARKETING RESEARCH: This is investigation or process of collecting, analyzing and interpreting relevant and reliable data that relate to the production of products, services that consumers need and want.
RISK TAKING: It relates to taking personal , family and financial risks with a view of meeting people’s need. It involves creating opportunity for losses.
ADVERTISING: These are activities geared towards promoting and making awareness for a product. It is a paid for and non-personal presentation of ideas, products or services through a mass medium such as television, radio, newspapers, magazines etc.
PYHSICAL DISTRIBUTION: This connotes the handling of goods by a firm which may include storage ,transportation and inventory management. The essence is to ensure that products are adequately handled to avoidable damage or defect.
PTODUCT PLANNING AND DEVELOPMENT: This involves making available information to decision/policy makers with regards to the market needs which will lead to formation and production of essential products, good and services to meet the immediate and remote needs of the people.
REASONS FOR INTERNATIONAL MARKETING:
There are many reasons for us to proceed internationally. However the objective of every company for going international is to expand her business, searching new market and expand her customers base. The following are some of the reasons:
GROWTH AND PROFITABILITY: A lot of companies turn to global markets for growth. Introducing new product internationally can broaden their customers base, sales and revenue.
ECONOMIC OF SCALE: Expanding size and scope of markets help to achieve economic of scale. International approaches give economic scale while sharing of costs and risks between markets. Economic of scale occur when the unit cost of a product declines as production volume increases.
UNIQUENESS OF PRODUCT OR SERVICE: The product with distinctive attributes is not likely to meet competition in the overseas markets and enjoy massive options throughout worldwide market places.
RISK DIVERSIFICATION: Several companies move worldwide so that they can diversify, selling products in numerous countries reduces the companies exposure to economic as well as political instability within the country.
SPREADING R AND D COSTS: Through spreading the market place, a firm rapidly recovers the cost incurred in R and D. It is especially true with regard to producers including higher cost associated with R and D.
RESOURCES AND IDEAS: Due to unavailability of resources in domestic country or at better competitive rate companies turn into global market. Also companies proceed internationally to collect the different ideas in different lifestyle of various countries as well as to broaden their workforce.
EMPLOYEES: All organizations want skilled and well trained employees, as company goes to worldwide market place to find alternative source of labour at lower cost.