7 Functions of Marketing and Their Importance in Business Growth

Marketers can reach out to the target audience by delivering quality content or product demonstrations that will attract the audience. Marketers’ ultimate goal is to increase sales and enhance business. Marketers need to nurture the leads throughout the sales process whether it is consumers or B2B prospects.

• Pricing involves setting the price for a product or a service to maximize the profit, keeping in view the consumers’ perception of the value, production price and the competitors’ pricing.
• It’s a massive commitment in terms of money and logistics but worth it.
• This function revolves around the product and service distribution to the list of customers.
• This ensures accurate targeting of customers and provides better marketing campaign results.

For effective product management activities, the marketing team conducts surveys, competitor analysis, and leaves room for growth to deliver and manage the best business products. It’s also crucial to growing your product options for future benefits. Marketing works together with finance to fund production or business activities, increase customer purchases and company profit. Through effective financing, you can create better marketing strategies without spending too much money.

What Is Marketing? And 7 Important Marketing Functions

Look at all the traffic its content attracts in the screenshot below.

With over 13-years-of-experience in the marketing, public relations and non-profit fields, Erin is a driven copy and content writer, digital designer, strategic planner and public speaker. Throughout the course of her career, Erin has managed multiple teams, bringing sales and marketing success to non-profits and for-profit organizations. She brings empathetic, devoted leadership to the team, drives growth through tactical thinking and a consummate work ethic.

Content Marketing 101: A Beginner’s Guide To Effective Promotion

Setting the correct price for your product or service can be a challenge. If you price it too high, you might lose customers – but if you price it too low you might be robbing yourself of profits. The “right” price normally comes through trial and error and doing some market research. They do this by advertising their products, and by making their products available in stores. It’s a massive commitment in terms of money and logistics but worth it. Certainly, money is well spent because it positions Peet’s to sell their products at premium prices and gain customers’ trust.

• Designing the right products helps meet the customers’ needs and reach the business’ goals.
• Plus, knowing the prices your competitors charge can help make sure that the customers would be willing to pay for your product.
• You’re correct to think that distribution should be the responsibility of the supply chain management team.
• As an example, you can consider a store which sells a specialty snack which is available only in that store and none other.

Sales showcase the change in value ownership and provide consumers with the services and goods they desire. It possesses business-to-business sales to manufacturers, wholesalers, retailers, and consumers’ retail sales. This article lists the 7 functions of marketing and describes why they’re important.

Effective marketing management can affect financing in a company in many ways. The most obvious connection is, of course, budgeting for marketing campaigns. Financial restraints can impact marketing decisions, including the marketing channels you can use. Esteemed brands can sometimes sell their products at a higher price point than most competitors because they enjoy the trust of their customers. For example, J.Crew collects its customers’ zip codes with every purchase.

Characteristics of an Effective Marketing Mix

Therefore, becoming acquainted with these components as a marketing professional can let you better understand your industry, develop effective marketing campaigns and promote your brand. Public relations can help you form concepts and ideas around your organization. This field has adapted with social media heavily, utilizing the platforms to disseminate information, communicate directly with an organization’s audience, and control the conversation. After understanding the seven functions of marketing, you might wonder just how crucial they are. To answer that, let’s discuss their benefits and how significant their impact is. To determine the best pricing strategy for you, conduct market research, focus on competing products, and understand your audience’s preferences.

They are typically ready for unforeseen situations and better understand their company’s growth and future timeline. Market research plays a critical role in creating and implementing business strategies to meet market needs. The importance of marketing in the business is to emphasize identity and satisfy customer requirements through communication. Distribution defines how and where your customers can buy your products.

Beliefs about Marketing

Marketing research means collecting or going through data of your target market, their interests and needs. The marketers can then come up with the best strategies to focus just on these aspects. For example, if you are creating online courses, your website would be the primary way of marketing them and gaining sales and hence finances..

This is the most critical function of the marketing manager to determine a price for the product. Then, of course, production costs, margins, competitive product prices, government policies, etc. Marketing programs that improve customer loyalty further ensure long-term sales, while product development programs generate new revenue. Finance also plays a crucial role 7 marketing function in marketing success by providing customers alternative payment methods such as loans, long-term credit, or leasing. Most retailers let customers pay with options like Visa or MasterCard, while others offer their credit. For instance, marketing builds awareness and branding for a product, allowing a company’s sales staff or retail staff to sell more products.

Matching Products to Customers

Many new businesses need some source of secure financing to build a sustainable workflow. Marketing is the support system that keeps businesses moving forward. In an article by avada.io it states ‘finance and marketing have a very close relationship with each other. Without marketing and competitor research, it might seem like your marketing department is just guessing at what your audience wants and who your audience is. The best methods to get these benefits are constant market updates, a company’s adaptability to change, and always questioning your current strategies to find ways to grow.

The key is to not come on the readers too strong ‒ no one likes to be sold. Promotion means creating awareness about your product through mass communication and encouraging people to purchase it. As the economy becomes more project-focused, the need for highly functional project managers becomes more imperative. As an example, you can consider a store which sells a specialty snack which is available only in that store and none other. For this, customers would be willing to pay a higher price if they like the product simply because there are no other options.

Feel free to adjust your business strategies with these functions. While we tend to think of selling and marketing as being closely linked, selling is last on the list of the seven functions of marketing. Market research is about gathering information concerning your target customers. Answering these questions requires that you do some on-the-ground observation of the market trends and competing products. If you’re familiar with financing, then you know it means to get money to run your business. Clearly, without marketing, you’d not be able to sell digital products to customers and make profits in return to finance your business.

Each function contains a set of responsibilities and tasks for a marketing team to create, organize and execute a successful campaign. There are 7 functions of marketing that contribute to the overall work of marketers. When you enter the field of marketing, it’s become crucial to comprehend the seven marketing functions and their roles. Each function defines a key component of the marketing process and underlines how marketers help their businesses succeed.

Promotion is at the core of every marketing activity, from social media posts, newsletters, ads, and discounted products. In order to earn effective results, the promotion needs to have the right tool and platform that will reach your target audience. Regardless of the industry, promotion increases brand awareness, lead generation, and product sales for businesses — which are a few of the factors that make marketing important. When, where, and how you distribute your products largely depends on your target audience and brand perception. For example, if you’re a high-end luxury brand, you won’t be distributing your products through Target, right? Hence, marketing guides the distribution of products according to the promotional campaign and where the target audience typically buys such products.