The Most Important 7 Functions of Marketing You Should Be Aware of

Looking to understand the roles and functions of Marketing? AAMcourses is here with 7 functions of marketing that will help you with your journey.

Marketing is a very vast field with a lot of scope. There are several different types of functions that are carried out by the marketing department. It includes promotion, research, pricing, and many more.

Knowing these 7 functions of marketing will help you understand and enhance your business more. These functions are carried out by every successful business and are bound to work for everyone.

Generally, people are only aware of the most frontally active marketing functions, such as promotion. But there is more to marketing than promotion. It includes market research, product development, market analysis, and more.

Now, without any delay, let’s take a look at the 7 functions of marketing.

Marketing Information System 

The first of the 7 functions of marketing is the MIS.

Let’s start with the first process in marketing, i.e., The MIS – Marketing Information System. The marketing information is collected, stored, analyzed, and distributed to managers according to their needs.

The MIS is built around the concept of informational needs of marketing. It supplies information whenever, wherever and however the manager requires it. The data is derived from the marketing environment. The data is then converted into information which is further used for decision making.

An MIS system comprises four elements.

• Internal continuous data
• Internal ad-hoc data
• Environmental scanning
• Marketing research

Product and Service Management 

The second of the 7 functions of marketing is product and service management. Products and services are the most important part of the marketing mix. Products and services are end products that satisfy the customers’ needs. The main reason for customer engagement with the business is the product and services.

Product and service management is one of the main functions of marketing. It includes designing, developing, and modifying products to meet the customer’s demands. The information produced using the MIS is communicated here to modify the product or service.

The products are available in different sizes and quantities depending on the market segment and the requirement of segments. For rural areas, the quantity may be less and at a lower price. For urban areas, the quantity may be more, and the price would be more.

ALSO READ : Why is Brand Awareness important in Business? 5 Main reasons

Financing 

The next of the 7 functions of marketing is financing.

Let’s discuss the lesser-known function of marketing – financing. You may be surprised to see financing in the list of the 7 functions of marketing, as marketing and finance are two opposite fields. But, here we are.

Financing is the process of capital procurement and achieving maximum return on investment.

Every marketing function requires a hefty amount to operate. Collecting market data, setting up promotional campaigns, running tv advertisements, etc., all require heavy capital investment. The marketing department alone is capable of procuring funds on its own. They can run promotional campaigns to raise capital for their operation and the business.

The marketing department can demonstrate their contribution to the business by showcasing their results. The marketing department can show maximum return on investment by increasing sales, researching new markets and their needs, increasing customer retention, and effective distribution system performance.

Pricing 

The fourth of the 7 functions of marketing is pricing.

Pricing is assigning numbers, so it must be easy, right? Well, it’s not. Several factors have to be considered before assigning the price to a product. The price should be considered after adding the production cost.

The price should be low enough that it attracts customers. But at the same time, it should also profit from each sale. If the prices are too high, customers will mostly switch to the competitor’s product with lower prices.

While considering prices, the business must remember what values they try to reflect on society. If a premium brand reduces its prices, its image will be erased. In the same way, if affordable brands raise their prices, customers will opt for alternatives.

There are several methods to figure out the price of the product or service. The main methods are mentioned below.

• Cost oriented pricing
• Competitor oriented pricing
• Marketing oriented pricing
• Value oriented pricing

Advertisement 

Let’s study the 5th of the 7 functions of marketing, which is the advertisement.

Advertisement is a medium through which the business promotes its products and services. It is a medium of information and persuasion. One of the best KPIs for advertisements is increased sales.

Advertising is aimed at increasing sales and creating brand awareness. Some ads may produce an immediate effect, while others may take some time. Every ad should be framed to showcase the uniqueness and specialty of the brand and its products.

Advertisements are mainly used to position the product in people’s minds. Positioning defines the purpose of the product, i.e., what it does and who it is meant for.

One of the best benefits of advertising is brand awareness. Creating awareness helps to legitimize the company, its product, and its services. Ads improve the acceptance of products and salespeople.

There are several ways to promote your brands through advertisements. They are mentioned below.

• TV advertisement
• Social media promotion
• Content marketing
• Events
• Google Ads
• Influencer markekting

Sales 

The next of the 7 functions of marketing is Sales.

Another one of the most known functions of marketing – Sales. Sales is the process of communicating the product’s value to the customer. The product should be presented so that the customer believes it can satisfy their needs and provide necessary and extra benefits.

An effective sales technique involves presenting facts that distinguish your brand from others. Salesperson communicates the unique specialty of their product to increase the chances of making sales.

Another one of the aspect of effective selling techniques is to offer what the customer wants. The salesperson identifies the customer’s needs and presents their product or service. This helps the salesperson to attack the need directly. They know what the customer wants and can use it to make the sale.

Distribution 

The last from the list of the 7 functions of marketing is distribution management. Products have to be availed at the right locations in adequate quantity. Channel intermediaries help with the distribution of products to customers. Based on the business, the management decides which distribution method to use.

Generally, the supply chain is handled by the operations. But the study of the target market and customers is done by the marketing team. And where to deliver the product also depends on your customers. So, marketing guides to put the right product at the right location.

The business chooses its way of distribution based on the product and the target audience. There are many distribution channels available. The most effective ones are mentioned below.

• Wholesalers
• Retailers
• Online Stores
• Websites
• Applications

ALSO READ : What are Marketing Channels? You should know about these 10 Important Marketing Channels

FAQs

Closing Statement 

Now that we have discussed the 7 functions of marketing, I hope you understand the marketing process. The functions mentioned above are the core of marketing. Together, they make up a successful marketing team. Each aspect discussed has its own identity and separate objective to achieve. Each function is codependent and provides the base of the next one. The MIS system provides market data that is used for product development, promotional activities, and pricing strategy. The product or service provides a base for MIS, sales, promotion, and so on. Each activity is interdependent. And the effective operation of all functions together makes up for a successful marketing operation.

I hope this article about the 7 functions of marketing is informative. If you have any doubts or queries, try to sell it in the comment box.