There are other functions to facilitate functions of exchange and physical distribution of marketing. Standardization and grading, finance management and risk taking are the important facilitating functions of marketing:
1. Standardization And Grading
Standardization and grading of products are the other important functions of marketing. Generally, standardization and grading are made with the name of trademark of producer or company. For the goods such as fruits, vegetables, eggs, etc. uniformity in quality and size is not possible. So, standardization of each product should be determined on the basis of the quality, size, type, color etc. After the standard has been determined, they should be sorted out or classified on the basis of the standard. This is called grading. This makes buying and selling easy. In this way, standardization and grading make the buyers and sellers feel easy. Otherwise, the buyers need to inspect all the products intended to buy. This becomes very difficult.
1. Standardization And Grading
Standardization and grading of products are the other important functions of marketing. Generally, standardization and grading are made with the name of trademark of producer or company. For the goods such as fruits, vegetables, eggs, etc. uniformity in quality and size is not possible. So, standardization of each product should be determined on the basis of the quality, size, type, color etc. After the standard has been determined, they should be sorted out or classified on the basis of the standard. This is called grading. This makes buying and selling easy. In this way, standardization and grading make the buyers and sellers feel easy. Otherwise, the buyers need to inspect all the products intended to buy. This becomes very difficult.
2. Financing
Finance is as necessary in marketing as in production of goods or services. If necessary finance is not managed at cheaper interest rate, functions of marketing cannot be run smoothly. Finance is necessary in the marketing for different reasons. For example, arrangement of adequate finance should be made i\o meet different expenses before selling the products, to meet the changes in fashion and interest, to meet competition in market and changes in demand and meet the ensuing decline in price. Finance is also necessary for storing and transporting goods. Arrangement of adequate finance should be made to face any problem arisen from uncertainty of price, from credit sale, etc.
3. Risk-taking
Risk-taking is the other important facilitating functions of marketing. Business firms or entrepreneurs should take various risks in the course of marketing. Theft, cheating, strike, lock-up, war, over burden of loan, social help, illness, hurt, accident etc. may create personal inability inviting unexpected events in future. Accident may happen while transporting goods from one place to another. Quality of the goods may decline causing decline in price or prices may change. Such events adversely affect the business firms and entrepreneurs. Moreover, the risks related from political reasons etc. make marketing functions and entire business world uncertain.
Finance is as necessary in marketing as in production of goods or services. If necessary finance is not managed at cheaper interest rate, functions of marketing cannot be run smoothly. Finance is necessary in the marketing for different reasons. For example, arrangement of adequate finance should be made i\o meet different expenses before selling the products, to meet the changes in fashion and interest, to meet competition in market and changes in demand and meet the ensuing decline in price. Finance is also necessary for storing and transporting goods. Arrangement of adequate finance should be made to face any problem arisen from uncertainty of price, from credit sale, etc.
3. Risk-taking
Risk-taking is the other important facilitating functions of marketing. Business firms or entrepreneurs should take various risks in the course of marketing. Theft, cheating, strike, lock-up, war, over burden of loan, social help, illness, hurt, accident etc. may create personal inability inviting unexpected events in future. Accident may happen while transporting goods from one place to another. Quality of the goods may decline causing decline in price or prices may change. Such events adversely affect the business firms and entrepreneurs. Moreover, the risks related from political reasons etc. make marketing functions and entire business world uncertain.
Also Read:
Marketing manager properly anticipate business uncertainty and risk and should make efforts to prevent them. Market research should be carried out; information and data should be collected and properly analyzed. Then policy and strategy should be formulated on the basis of the conclusion of the analysis so that risks can be prevented. Insurance can be made against the risk if theft, robbery, fire etc. But some other risks caused by change in demand, fashion etc cannot be avoided or handed over . For this, business firms themselves should take proper care. They should identify the nature, causes of risks and adopt preventive measures accordingly.
