Below we’ve elaborated on the 7 marketing functions you should know in an easy to understand manner with examples. Marketing also plays a vital role in customer acquisition and retention, as well as in generating sales. Marketing can also influence the way people think about their health. For example, some health insurance companies use marketing to make people think that they need to buy their product in order to afford the treatment at the time of need. Marketing is one of many functions in a company, but it’s arguably the most important to the company’s success because it’s what brings people in. Many companies have blogs to attract and engage their target audience.
Also, be empathetic and listen to any queries your customers have and respond to them. Already we’ve spoken about the ‘right customers’ for your business, but how do you determine who they are? This is where the marketing information management or deep market research function comes into play. Choosing the right distribution channels is important as it helps you to reach the best clients for you. After all, if you only have a great product but aren’t able to get it across to customers, your efforts are wasted. Your distribution techniques and quality are sure to go a long way in determining your eventual success.
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Businesses that blog get 2x email traffic than businesses without blogs. Yes, the sales team is the one talking to the customer and making the final transaction. However, it’s a marketer’s job to sell the product to the customer long before speaking to a sales rep. Selling involves motivating customers to buy a product or service by telling them how it fulfills customer needs.
Pricing cannot be too low or too high compared to the market average. Then you have to factor in the target audience and how much they will be willing to pay for a product and the value it brings. Market information management is all about gathering consumer data and using it to improve other marketing functions and facilitate critical business decisions.
KEY FUNCTIONS OF MARKETING
Distribution Channels are companies and individuals bringing products or services to customers. To put it simply, Distribution is shown through consumers’ places to purchase products or services. For example, it could be traditional store affiliates or online sales sites. Promotions make current customers and potential customers familiar with your product and company.
So, the onus of taking distribution-related decisions ultimately falls on the marketing team. Marketing information management also deals with competitor research and keeps an eye on the market trends. All of this information is crucial for the business to make key decisions, whether it’s about product design, price point, promotional campaigns, or financing and distribution. When talking about marketing, many people think it’s just about using promotional tactics to sell products. However, those who are in the field can identify at least seven functions of marketing that govern almost all aspects of a business and should factor in all business decisions.
PR & Information Management
The distribution part of marketing is the methods you employ to find the best distribution channels to get your products to the right customers. In simpler terms, distribution is how you plan to distribute your products. When it comes to marketing your product, you probably do a lot of things to make sure that it reaches the right people. You employ methods to create, communicate and deliver your services to customers.
The more information a marketer can gather about the target customer, competitors, and market trends, the more successful the marketing efforts will be. One of the core functions of marketing is to collect valuable data and share it with other departments that might find it useful. The sales team can always use more in-depth marketing insights to help them refine their pitches. Business owners everywhere recognize that if they want to make money, they have to sell their products or services. But what you might not know is that there are actually seven functions of marketing that span everything from distribution to pricing. You’d have to take into consideration the buying power of your target customers as well as the production cost you incur.
Summary – 7 functions of marketing
The distribution of goods comes in two types – physical and digital. Physically, it happens through manual shipping or managing the inventory of stores. Digitally, it happens on marketing or social media platforms where a company shares its information with customers.
Building brand awareness and raising the company profile are major priorities for every marketing department. Promotional strategies sometimes overlap with other awareness-building activities, such as advertising and public relations. So marketers need to plan the promotional campaign in a proper way. Promotional events include everything from content marketing and email marketing to social media and influencer marketing. So promotion is the most essential component of the marketing mix. The seven marketing functions are essential since each of them symbolizes a category of activities that happens in marketing.
Working Capital & Product Life Cycle
Zip codes also give marketers an insight into which locations will be the best for opening a new outlet. With all this information at their disposal, they can zero in on how to make the magic happen. There are a few common beliefs about marketing that are important to understand. Distribution involves decisions regarding when and where the product should be made available and in which condition.
She needs a strong team of support and an effective tool to assist in the planning and management of the various tasks. There are several different types of market research to consider when planning how to best use your resources. Primary research involves communicating directly with your target audience to gauge how your organization is doing from their perspective, and analyzing that data internally.
Macro Marketing: 4 Types, Advantages and Disadvantages
Also, frequently adjust your pricing with the average price as a response to the ever-changing market. Financing comes in the form of business deals with banks, shareholders, and investors. When established, a company’s financing moves from receiving business funding to earning money from customer purchases. In addition, businesses need to generate receipts to keep the transactions recorded and stay true to the customers.
- Regardless of the broad definition, marketing consists of 7 functions of marketing.
- The amount of drive and ambition relayed by the project manager feeds into the success of the project.
- From content marketing to social media and email, any medium used for awareness building essentially falls under promotion.
- Every marketer who wants to make it big in the marketing sector needs to understand these 7 functions of marketing.
- However, those who are in the field can identify at least seven functions of marketing that govern almost all aspects of a business and should factor in all business decisions.
As more and more companies are focusing on innovation, the role of Product Management has become a critical factor in the success of those organizations. In short, successful marketing delivers a regular revenue stream to pay for operating the business. Whichever route you decide to take with distribution, do your research.
Besides, financing also impacts decisions such as whether to give credit to customers or not. Sales operations and methods include identifying customer requirements and satisfying them through planned, personalized communication. In addition, the sales process has a lot to do with the customer’s purchasing decision and prospective business development. Marketing has expanded rapidly over the years to include a multitude of facets including public relations, social media, market research and even advertising. This is where your research will come in handy to tell you whether or not social media is the right place for your service, or a boutique retailer, or other outlet. Along with the distribution of your products comes their promotion.
An example of this is regular marketing research surveys, which are useful in collecting information about changing interests of customers. It is good for you as a business owner/ marketer to understand the seven marketing functions. The reason being that you can then formulate the best marketing strategies and plans to keep in line with the targets.
Marketing is an essential function for any business, as it helps to create awareness and interest in the company’s products or services. It is also the process of communicating with customers to build relationships that benefit both parties. Rolex is a perfect example of a brand that can command higher pricing because 7 marketing function of its brand perception. The pricing also reflects the buying power of its target audience and the promise of luxury. That’s why pricing is a function of marketing and cannot be set otherwise. This is the toughest of the seven marketing functions since it involves an extensive understanding of the market.