There are various functions of marketing described as below:

1. Marketing research: This refers to the study of a market so that customers needs, desires, and preferences can be identified and a product can be design and developed as per their requirement.
2. Marketing planning: The marketing plan involves laying out specific strategies to increase market share, promotion program and increase production capacity to meet increased demand.
3. Product planning development: A good design improves the quality of the product and makes it attractive and competitive in the target market. Development of product should be as per requirement of customers.
4. Packaging and labeling: Packaging refers to designing the package for the products and labeling refers to designing the label to be put on the package. Both play an important role in marketing the product.
5. Branding: Branding refers to giving a name, sign or symbols to the product. Brand name provides business an identity and distinguishes its product from that of its competitors.
6. Customer support services: These services are related to handling customers after goods are sold to them. Its main aim is to maintain a good relationship with customers.
7. Storage and warehousing: For smooth flow and regular supply of goods, business needs to maintain an appropriate stock level and thus require warehousing or storage facilities.
8. Transportation: Transportation facilitates movement of goods from the manufactures to the consumers and thus creates place utility.
9. Promotion: Promotional techniques are used to create product awareness amongst the potential target customers and persuade them to purchase the product. Like advertising, personal selling, publicity and sales promotion etc.
10. Standardization and grading: Standardization refers to producing products with predetermined specifications and grading classifies the product into different groups on the basis of size, quality etc.
11. Price Fixing: Price of the product affects the success or failure of a product in the market. Demand of the product is inversely related to its price. The marketers analyses all the factors, while setting prices.

Definition: According to Philip Kotler, “Marketing is that social process by which individuals and groups obtain what they need and want through creating offerings and freely exchanging products and services of value with others.”

Features: Following are the main features of marketing:

(i) Need and Want: Marketing is the process of fulfilling the needs and wants of the consumers. All the people have almost the same needs but their wants happen to be different, e.g., feeling hungry is a need but satisfying it by eating only sambhar and dosa is a want. A seller tries to find out the needs of the consumers and how those needs are to be satisfied.

(ii) Creating a Market Offering: It refers to provide complete information about the product and services e.g., providing information about the name of product and service, type, price, size, centre of availability, etc. A good market offer is always prepared keeping in mind the needs and priorities of the customers.

(iii) Customer Value: A buyer analyses the cost and the satisfaction that a product provides before buying it. When he find that the satisfaction, that it provides out weighs the cost factors, only then he buys it. The seller should manufacture the product keeping in view this tendency of the customer.

(iv) Exchange Mechanism: Literal meaning of marketing is exchanging things. Marketing has two sides — buyer and seller. Marketing becomes possible only by the medium of exchange between the two. For example, the seller gives goods and services and in exchange the buyer gives money or something equivalent to it. These days the distance between the place of production and the place of consumption has increased. To lessen this distance the help of many intermediaries like the agents, wholesalers, retailers, etc. is taken. All these reduce this distance through the medium of marketing. Therefore, it can be said that exchange is the essence of marketing.

Meaning: It refers to the aggregate of decisions taken with a view to successfully completing different marketing activities.

Components: Marketing decisions are mainly in respect of four variables, viz., product, price, promotion and place or physical distribution. These variables are called elements of marketing mix.

All four elements of marketing mix are described as under:

(i) Product Mix: It refers to the combination of all decisions relating to product. These decisions are mainly with regard to dimensions of the product (Product line, Product width, Line length, Product depth and Product consistency), its branding, packaging, labelling, colour, design, quality, size, after sale service, its weight etc. These decisions play an important role in attracting the customers to the product.

(ii) Price Mix: It refers to all those decisions which are concerned with the price fixation of any product or service. Determination of fair price of the product is a very important but difficult function of marketing manager. Fair price is that price which is acceptable both to the customers as well as producers. Price is one of the major factors which contribute a lot to finalise the deal between buyer and seller. Under price mix, besides fixing the price of the product or service, decisions regarding credit sale, discount, etc. are also included.

(iii) Promotion Mix: It refers to informing the customers about the product, persuading them to purchase these products. This job is done by the company through the medium of advertisement, personal selling, sales promotion and publicity. Decision with regard to all these factors directly influence the sale of the product.

(iv) Place Mix: It refers to the combination of all decisions relating to make products available to consumers. If the product is not available on right time, in right quantity and at right place then consumer will not be able to buy it. In such a situation, all activities of Marketing Mix will turn futile. So to make Marketing Mix a success, Place Mix is very important. To make the product reach the consumers the decisions regarding the following are included in ‘Place Mix’:

(a) Channels of Distribution: It refers to that path through which products reach consumers. In this path many people and firms participate.

(b) Physical Distribution: It involves decisions relating to the transportation, inventory, warehousing and order processing of goods.

Place mix: It refers to a set of decisions that need to be taken in order to make the product available to the consumers for purchase and consumption.

A manufacturer should keep into consideration the following factors while selecting a channel of distribution.

1. Product-related factors:
   1. Unit Value of the Product: When the product is very costly it is best to use small distribution channel. For example, Industrial Machinery or Gold Ornaments are very costly products that's why for their distribution small distribution channel is used. On the other hand, for the less costly products long distribution channel is used.
   2. Perishability: A manufacturer should choose minimum / no middlemen as channel of distribution for such an item or product which is of highly perishable nature. On the contrary, a long distribution channel can be selected for durable goods.
2. Market-related factors:
   1. Number of Buyers: If the number of buyers is large then it is better to take the services of middlemen for the distribution of the goods. On the contrary, the distribution should be done by the manufacturer directly if the number of buyers are less.
   2. Types of Buyers: Buyers can be of two types: General Buyers and Industrial Buyers. If the more buyers of the product belong to general category then there can be more middlemen. But in case of industrial buyers there can be less middlemen.
3. Company-related factors:
   1. Desire to control the channel of Distribution: Manufacturer ambition to control the channel of distribution affects its selection. Consumers should be approached directly by such type of manufacturer. For example, electronic goods sector with a motive to control the service levels provided to the customers at the point of sale are resorting to company-owned retail counters.
   2. Financial Strength: A company which has strong financial base can evolve its own channels. On the other hand, financially weak companies would have to depend upon middlemen.
      
      
4. Government-related factors: Considerations related to the government also affect the selection of a channel of distribution. For example, only a license holder can sell medicines in the market according to the law of the government. In this situation, the manufacturer of medicines should take care that the distribution of his product takes place only through such middlemen who have the relevant license.

Meaning: It refers to all those decisions which are concerned with the price fixation of any product or service.

Factors to be kept in mind before Pricing:

(i) Cost of Production: Cost of production is the main component of price. No company can sell its product or services at less than the cost of production. Thus, before price fixation, it is necessary to compile data relating to cost of production and keep that in mind. There are two types of cost: (a) Fixed Cost (e.g., Rent of building, Salary of permanent staff, etc.)

(b) Variable Cost (e.g., Material, Labour, etc.). At least the price should be able to recover the variable cost as the fixed cost are incurred whether the production takes place or not.

(ii) Demand for Product: Intensive study of demand for product and services in the market be undertaken before price fixation. If demand is relatively more than supply, higher price can be fixed.

(iii) Price of Competitive Firms: It is necessary to take into consideration prices of the products of the competing firms prior to fixing the price. In case of cut-throat competition it is desirable to keep price low.

(iv) Purchasing Power of Customers: What is the purchasing power of the customers and at what price and how much they can purchase? It should also be taken into consideration.

(v) Government Regulation: If the price of the commodity and services are to be fixed as per the regulation of the government, it should also be bome in mind.

(vi) Objective: Usually, at the time of price fixation a certain amount of profit is added to the cost of production. If company’s objective is to earn wants higher profit it may add higher amount of it.