Exchange Functions: All companies such as manufacturers, wholesalers, and retailers buy and sell to market their merchandise.
1. Buying includes such functions as obtaining raw materials to make products, knowing how much merchandise to keep on hand, and selecting suppliers.
2. Selling creates possession utility by transferring the title of a product from seller to customer.
Physical Distribution Functions: These functions involve the flow of goods from producers to Customers. Transportation and storage provide time utility and place utility, and require careful management of inventory.
3. Transporting involves selecting a mode of transport that provides an acceptable delivery schedule at an acceptable price.
4. Storing goods is often necessary to sell them at the best selling time. Facilitating Functions: These functions help the other functions take place.
5. Financing helps at all stages of marketing. To buy raw materials, manufacturers often borrow from banks or receive credit from suppliers. Wholesalers may be financed by manufacturers, and retailers may receive financing from the wholesaler or manufacturer. Finally, retailers often provide financing to customers.
6. Standardizing sets uniform specifications for products or services. Grading classifies products by size and quality, usually through a sorting process. Together, standardization and grading facilitate production, transportation, storage, and selling.
7. Risk taking—even though competent management and insurance can minimize risks—is a constant reality of marketing because of such losses as bad debt expense, obsolescence of products, theft by employees, and product-liabilitylawsuits.
8. Gathering market information is necessary for making all marketing decisions.
1. Buying includes such functions as obtaining raw materials to make products, knowing how much merchandise to keep on hand, and selecting suppliers.
2. Selling creates possession utility by transferring the title of a product from seller to customer.
Physical Distribution Functions: These functions involve the flow of goods from producers to Customers. Transportation and storage provide time utility and place utility, and require careful management of inventory.
3. Transporting involves selecting a mode of transport that provides an acceptable delivery schedule at an acceptable price.
4. Storing goods is often necessary to sell them at the best selling time. Facilitating Functions: These functions help the other functions take place.
5. Financing helps at all stages of marketing. To buy raw materials, manufacturers often borrow from banks or receive credit from suppliers. Wholesalers may be financed by manufacturers, and retailers may receive financing from the wholesaler or manufacturer. Finally, retailers often provide financing to customers.
6. Standardizing sets uniform specifications for products or services. Grading classifies products by size and quality, usually through a sorting process. Together, standardization and grading facilitate production, transportation, storage, and selling.
7. Risk taking—even though competent management and insurance can minimize risks—is a constant reality of marketing because of such losses as bad debt expense, obsolescence of products, theft by employees, and product-liabilitylawsuits.
8. Gathering market information is necessary for making all marketing decisions.