The scope of marketing is very wide. The most widely accepted classification of
marketing functions is given by Clark and Clark. The marketing functions are categorized
into 3 major groups. They are;
1. Functions of Exchange
2. Functions of Physical Supply
3. Facilitating Functions
Functions of Exchange:
The process of passing goods into consumer hands is known as function of exchange.
This function is divided into:
a) Buying and Assembling
b) Selling
Buying and Assembling:
Buying involves transfer of ownership of goods. Buying is one of the important steps
of marketing. It is the first step in the process of marketing. A manufacturer is required to buy
raw materials for production purposes. Similarly a wholesaler has to buy goods to sell them
to retailer, and retailer buy goods to sell it to consumer. Assembling starts after the goods
have already been purchased. Assembly involves creating and maintaining of the stock of
goods purchased from different sources. Both these processes are not simple and they require
specialized knowledge on the part of the buyers.
Selling involves transfer of title of goods to the buyers. This is another important
function of marketing. It is important from the point of the view of seller, the consumer and
the general public. Efficiency in selling is the most important factor that affects the existence
of a firm. Mass production has necessitated mass selling of goods. Demand creation is one of
the formidable jobs that a seller has to face.
Functions of Physical supply:
Functions of physical supply tend to ease buying and selling business. Under this
category two functions are included. They are:

Storage and warehousing

It is the function of transportation to carry commodities from where their utility is
relatively low to places where it is higher. The principal economic basis for transportation is
in enhancing the value of goods by the creation of place utility. The development of various

or they may arise during the course of transportation. Improvement in transport services has inevitably resulted in a regular supply. middlemen and consumers. deterioration and accidents or due to fluctuation in the prices caused by changes in their supply or demand. This will relieve buyers from examining the product and wasting time. Standardization: Buyers and sellers always prefer to have certain predetermined standards for products. it creates time and place utilities. lower prices and improved services to the customers. It facilitates in the volume of sale. Warehouses also help in having a central place for keeping goods from where the distribution could be made easily and according to needs. Risk – taking: There are numerous risks which a marketing enterprise has to bear in the process of marketing goods. Moreover. Ultimately it tends to adjust the supply to demand so as to equalise them in the interest of the manufacturers. They may also due to decay. Storage can be regarded as a function of equalization. bad debts. The storage function is made effective through the establishment of warehouses. Storage becomes necessary in two conditions: a) When production is seasonal but consumption is perennial b) When production is continuous but consumption is seasonal.kinds of transportation has been responsible for the opening up of new markets. Facilitating functions: These functions have a direct relationship with the marketing process. burglary. Storage facilitates a steady flow of commodities to markets throughout the year. Risks may be due to social hazards such as theft. The modern business is constructed on the foundation of trade credit. . Storage and warehousing: Storage involves holding and preserving of goods between the time of their production and at the time of their use. wars etc. goodwill of the consumers and even spread of sales throughout the month or even a year. enhancement of creditworthiness. The facilitating functions are: a) b) c) d) Financing Risk – taking Standardization Marketing information Financing: It is difficult to perform various marketing functions without the availability of adequate and cheap finance.

APPROACHES TO THE STUDY OF MARKETING: Marketing can be approached from various angles for an in-depth understanding of the complexities involved. . It plays a special attention to the problems and operations of each type of marketing institutions. This approach failed to bring out effectively the interrelationship of all the institutions. sociological and political forces. standardization. characteristics and the extend of market of the product etc. involvement of different middlemen. institutional and managerial aspects of marketing are studied. retailers and facilitating institutions. These forces are not under the control of the firm. This information becomes the basis of many decisions in marketing. Functional Approach: The functional approach splits down the field of marketing into few functions such as buying. marketing organizations and policies. adequately and promptly. Uncontrollable factors are economic. advertisement. transportation. selling.Marketing information: Modern marketing requires a lot of information accurately. The marketing situation of each product is studied under the basis of sources and conditions of supply. This approach is termed as “descriptive approach”. The institutions normally include producer. The different approaches are: a) b) c) d) e) f) g) Product or Commodity Approach Industrial Approach Functional Approach Decision – making or Management Approach Legal Approach Economic Approach System Approach Product or Commodity Approach: This approach undertakes the study of marketing on the basis of commodity. financing. marketing research etc. The changes in marketing are mainly due to two factors controllable and un-controllable factors. These forces are controlled by the firm. Controllable factors are prices. Decision – making or Management Approach: This approach is based on the fact that marketing is purely a management function. Industrial Approach: In this approach the description and analysis of different institutions engaged in marketing are undertaken. risk taking. The commodity serves as a focus around which organizational. The disadvantage is it is timeconsuming as depends upon the product. agents. wholesaler. personal selling etc. grading. storage.

Value and price and demand and supply factors are important in market mechanism. Regulatory aspects are studied under this approach. Sales of goods act. But each family was a self-sufficient unit as far as production and consumption functions were concerned. Marketing has product planning. distribution etc as sub-systems. They produced what they wanted and no surplus was available. the effect of transfer of title in a legal way. This is the first stage in the historical evolution of marketing. Ex. promotion. Production oriented stage: . This idea was later on changed by shifting the emphasis from ‘exchange’ to ‘satisfaction of human wants’. people started to settle on the banks of rivers. Each of these functions is dependent but they are independent also. demand and price. Common Carriers Act etc.Legal Approach: This approach concentrates only on one approach i. There are numerous enactments passed in our country which regulate or control marketing activities. The stages in evolution of marketing are:        Self-sufficient stage Exchange-oriented stage Production oriented stage Sales-oriented stage Marketing oriented stage Consumer-oriented stage Management-oriented stage Self-sufficient stage: After the stage of nomads. But such an approach alone is incapable of giving the whole idea of marketing. pricing. This has led to agriculture. Thus market came into existence.e. This necessitated exchange of surplus products and Barter system came into existence. System Approach: This is an advancement of management approach. This system is an organized body of independent parts that have separate but identifiable areas of operation. Economic Approach: In economic approach it is concerned with the problems of value. EVOLUTION OF MARKETING CONCEPT: The traditional objective of marketing had been to make the goods available at places where they were needed. The concept of marketing was absent in this stage. Exchange-oriented stage: As people engaged continuously in agriculture the problem of surplus production came.

the entire philosophy underwent a subtle change. Producers gave more emphasis to production rather than consumption. It was believed that if the product is of quality and priced reasonably it will lead to satisfactory sales and profit. Management-oriented stage: - 1991 – present As consumer orientation became an accepted marketing philosophy. During this stage it is realized that measuring consumer needs or behaviour alone is not enough. They realized the importance and purpose of marketing. . Consumer-oriented stage: - 1960 – 1990 “Have what you can get rid of with responsibility” There is a change in the outlook of producers towards marketing. Customer satisfaction should be the real and correct perspective on which marketing policies of an organization should be built.- 1869 – 1930 “make what you know how to make” This stage came with the dawn of industrial revolution. Marketing oriented stage: - 1950 – 1960 “have what you can get rid of” When consumer demand and the production capacity of the manufacturers came into equilibrium they were forced to re-think the philosophy of marketing. Today marketing considerations are most crucial in business planning and decision – making. In this stage the role of marketing was ignored. In this stage there is a need for organized marketing procedure. Under this concept the greater emphasis was on increasing the sales than on customer satisfaction. Sales-oriented stage: - 1930 – 1950 “Get rid of what you have” The industrial revolution made social changes too. It was formally approved that “the aim of marketing is to know and understand the consumer so well that the product or service fits him and sells itself.