7 Functions of marketing
All of us know marketing can lead to more sales for our business, but the question is, what are the main functions of marketing that make marketing so powerful to accomplish this?
In this article, we explained each of what are the seven functions of marketing. Also, other models describe this concept in 4, 5, or 9 core functions.
By knowing these marketing functions, you can get a bigger picture of a great marketing strategy for your clients and business.
The 7 functions of marketing are promotion, selling, product management, market-information management, pricing, financing, and distribution to audiences and customers.
Promotion goes beyond advertising. It includes content marketing, video marketing, email marketing, social media marketing, influencer marketing, etc. It’s not just buying ad space to reach your target audiences and show your product or service.
The promotion plays a large part in building brand awareness and brand consideration steps in the customer journey, so most marketing teams typically prioritize the promotion at the top of their KPIs.
Moreover, it can help brand management by improving brand images, a process known as public relations.
Increased sales and revenue are one of the primary marketing functions, but it usually becomes the first goal of every marketing campaign.
This gives your voice the appearance of someone who only wants to sell products, nothing more.
In the first step, customers want to get to know you. Later, some make a purchase, and some become your loyal customers. This is not a one-day venture.
Sales are where you link value creation and deliver it to the right customers who want this value.
Sales are the process that connects the value created by the business with the right customer.
It is possible to enhance the sales process by personalized sales messages and customize your branding according to your customer’s needs.
3. Product Management
Customers need solutions to their problems. If a business neglects this, it will fail in the short term.
To make your product what your customers want, you need a product manager and a product management process.
Many different methods exist to get your product’s ideas and needs, such as reviewing your customers’ problems, tracking their interaction with your product if possible, analyzing your competitors (competitive marketing intelligence), etc.
Considering these problems or ideas in product development, you can bridge the gap between what your customers want and what you have.
4. Market Information Management
Information is a valuable asset for any business. Therefore, one of the chief marketing purposes is to make it easier for organizations to track and gather information from trends, competitor analysis, and market research.
With this data combined, you can plan out the direction your product will take and how changes should be made to it, or in other words, what is known as data-driven decision-making.
This allows you to create a product that is suited to customer habits, competitive advantages, and trends.
Pricing is one of the 7 marketing functions, and if not done well, sales will decline and affect company income. It is also one of the 4 Ps of marketing (Marketing mix).
There are many different pricing strategies, but there are three significant elements to bear in mind: your cost of product creation, your competitive price, and the price customers are willing to pay for this product type.
One fact that you must consider: Your brand defines your price.
Nokia and Apple both make phones, but there are no Nokia phones that are more expensive than high-end iPhones.
Market research can show you how much each of your target audiences is willing to pay for your product, and Investing in your brand can allow you to increase your pricing in the long term if it is in your strategy.
Each department in the company gets a monthly budget limit and must produce results that sound good.
Financing is one of the unknown functions of marketing that can have a large impact on how you allocate your resources and manage your budget to run campaigns as you like.
Marketing teams usually don’t prioritize identifying the required amount of each element of their marketing campaign. Still, these measurement issues can make it challenging to deliver goals defined for each month and quarter.
In the long-term, if marketing fails to deliver its goals, the company starts losing money, and all departments suffer.
However, by properly financing your budget, you can increase your company’s income and negotiate to get more budget to produce more impactful results.
The last function of marketing is distribution. Distribution is one of the functions that are also included in supply chain management.
In this way, think of your product being promoted in various ways, including content writing services for your content marketing strategy, ads on Youtube, sponsorship of different programs related to your product, emails to your users, etc.
But when it comes to customers ordering your product, the demand can exceed your expectations, and your products could quickly run out of stock, or your website might go down, etc.
This can be a big problem when customers, users, and competitors go on social media like Twitter, Facebook, etc., and destroy your brand.
As you can see, we cannot bear to only one of the seven marketing functions. Each is an essential component of the marketing system.
We fail in different ways if we do not include one of them in our strategy. Maybe we reach our goals, but we don’t fully maximize the effort of our campaign.