Week 5 Marketing functions; standardization, grading, Packing coding,

Functions of Marketing: Functions of Exchange, Functions of Physical Supply and Facilitating Functions

Functions of Marketing – Buying, Assembling, Standardizing, Grading, Branding, Packing, Packaging, Warehousing, Insurance and Financing of Trade

Function # 1. Buying:

The Buying activities of marketing are complementary to selling efforts. Buying includes the determination of one’s needs, the seeking out of sources of supply the negotiating of prices and other terms, and the transfer of title from the seller to the buyer. Buying is an important function, and occupies much of the time of both business concerns and ultimate consumers. The ultimate purpose of buying is to bring commodities together where they are wanted for immediate use in production or in personal consumption.

Function # 2. Assembling:

Assembling is not buying; it is merely putting together of goods to secure larger lots for shipment, for sale, or for manufacture. Assembling plays an important part in the marketing of agricultural goods which are normally grown in small quantities by large number of producers in territories spread over vast areas. Concentration of raw materials is necessary, because they are used in large quantities by manufacturers, and who require a regular supply of standardized materials. Assembling assures this.

Function # 3. Standardizing and Grading:

To grade is to assort goods into lots which are approximately alike in variety, size and quality. To standardize is to give permanence to grades by means of inspection of commodities. When goods, as produced, are not standardised, and when the standard to which they conform is unknown, grading or classification is necessary. The object of these efforts is to prepare goods so that a common standardised nomenclature or grade can be utilised in bringing about an understand­ing between buyer and seller.

 

Grading may be based on size, colour, appearance, chemical contents, strength, shape, specific gravity, amount of foreign matter, amount of moisture, ripeness, sweetness or length of fibre, etc. A grade carries the idea of uniformity. Therefore, a standard or grade often means that the goods are of certain quality regardless of the producer.

Function # 4. Branding:

Besides general gradations, individual producers establish their own standards, commonly known as Brands. Branding is the process of identifying the name of the producer with the product. This is usually done by affixing to the product or its container the trade name or brand represented by words or designs. Branding is very common with consumption goods and with equipment. A brand conveys an idea of permanence, subject to the possibility of change for improvement in quality.

As a rule, in selecting a brand name or design consideration should be given to the following points:

 

a. The name or word should be simple and easy to pronounce so that it can be remembered.

b. The name or design should possess its own distinctive feature to avoid its being confused with some other name or design.

c. It should not lend itself to easy imitation.

d. It should be suggestive of good quality.

e. It should not be frequently changed.

Function # 5. Packing and Packaging:

Packing refers to the wrapping and crating necessary for the transport or storage of goods. Many goods must be packed in order to be preserved or delivered to the buyers. Liquids must be placed in barrels, bottles or cans. Bulky fabrics are compressed into bales. Heavy goods are often crated for handling or protection during transportation.

Goods must be placed in boxes for delivery to dealers, while the retailers often wrap goods or place them in bags for delivery to ultimate consumers. Fragile goods must often be packed in special containers.

Packaging means placing the product in small packages – boxes, cartoons, bottles or cans – for sale to the ultimate consumers. It is axiomatic that the job of packaging is to sell; and the major purpose of any package is to influence or control the location of product storage within the marketing channel right to the ultimate consumer.