Marketing functions

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Learn the 7 functions of marketing.

Empresariales Noticias y política

The Seven Functions of Marketing

Distribution ,[object Object]

Financing ,[object Object]

Marketing Information Management ,[object Object]

Pricing ,[object Object]

Product/Service Management ,[object Object]

Promotion Communicating with potential customers to inform, persuade, or remind them about products.

Selling Providing customers with the goods and services they need and educating them on those goods and services so they can make an informed buying decision.

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www.trinityp3.com Earlier this year I was invited to guest lecture at the EMBA course at the Sydney Business Sydney Business School, University of Wollongong. The topic title was marketing today and I was interested to know how this group of business executives and tomorrow’s leaders defined marketing. As Chair of the Australian Marketing Institute, I was surprised at the range of definitions often raised in discussions with members of the institute and the diversity of opinions even on the board. A Google search of definitions of marketing lead me to this collection of definitions by Heidi Cohen, http://heidicohen.com/marketing-definition/ that are quite comprehensive and I picked through these to identify particular themes on marketing definitions that I used as stimulus for the participants in the EMBA course. Please don’t get me wrong, I am not suggesting any of these are wrong, I am more interested in the diversity of views on what is the definition of marketing and one that as a profession we are able to rally around if there is any chance to have marketing recognised as a profession in the same way that we recognise lawyers, architects, doctors, accountants and the like. Perhaps agreement on defining the profession of marketing will be a step in the right direction to answer Mark Ritson’s recent question “Shouldn't an expert in marketing be trained in marketing?” Here are some of the definitions collated by Heidi Cohen for your consideration. But more importantly I would like to hear your definition by leaving a comment at the bottom. Mine is here too. Right at the end.

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The marketing environment represents a mix between the internal and external forces which surround an organization and have an impact upon it, especially their ability to build and maintain successful relationships with target customers. The marketing environment consists of the micro and macro environment. Macro environmental factors include social, economic, political and legal influences, together with demography and technological forces. These are sometimes referred to as the PESTLE factors and are discussed in more detail in PESTLE analysis. The organization cannot control these forces, it can only prepare for changes taking place. Micro environment refers to the forces closely influencing the company and directly affect the organization’s relationships. The factors include the company and its current employees, its suppliers, marketing intermediaries, competitors, customers and the general public. These forces can sometimes be controlled or influenced and are explained in more detail in Porter’s 5 Forces. Porter’s 5 Forces model is an excellent tool to analyze the structure of the competitive environment. Two important forces are the bargaining power of customers and the bargaining power of suppliers. Supplier power is represented by their ability to determine the terms and price of supply and will increase if there are fewer suppliers than buyers, if the organization is not a key customer for the supplier, or if their industry is not attractive for suppliers. Buyer power refers to the pressure that customers exert on companies to obtain high quality products and services at lower prices. Buyer power increases when there are few buyers and many sellers in the field, or when products are not significantly differentiated and can be easily substituted. For the seller, buyers’ demands represent costs. This means that the stronger the buyer is, the less profit available for the seller, which is why many companies try to develop strategies that reduce the power of buyers. The PESTLE Analysis is a framework used to scan the organization’s external macro environment. The letters stand for Political, Economic Socio-cultural, Technological, Legal and Environmental.

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Marketing functions

1. The Seven Functions of Marketing

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7. Promotion Communicating with potential customers to inform, persuade, or remind them about products.

8. Selling Providing customers with the goods and services they need and educating them on those goods and services so they can make an informed buying decision.