A. Exchange Functions:
Buying- Buying is the one part of exchange process, other being the selling. Buying is the first step in the process of marketing. A manufacturer has to buy raw materials for production, a wholesaler has to buy goods to sell to the retailer, and a retailer has to buy goods to be sold to the consumer. Buying involves transfer of ownership of goods.
Assembling– Assembling means creation and maintenance of the stock of goods, purchased from different sources. The goods have sometimes to be collected and assembled at one place. Buying and assembling are two distinct processes which involve elements such as kind, quality, and price, date of delivery and other terms and conditions. All this requires specialized knowledge on the part of the buyers.
Selling-Selling is important from the point of view of the seller as well as the consumer. The profit-making object of a business concern is achieved only through the sale of goods. This function involves product planning and development, creation of demand, market research, selection of channel of distribution, negotiation of terms of sale such as quality, quantity and price of product, etc.
B. Physical Supply Functions:
Transportation- Transportation is he movement of goods from the Centre of production to the Centre of consumption. Marketing system requires an economical and effective transportation system. A god system of transportation increases the value of goods by the creation of place utility. The opening of new markets has been possible by the quick transportation &communication. It has resulted in the extension of markets, regular supply, lower price and improved services to the consumers.
Storage and Warehousing– When production is seasonal but consumption is annual or when production is continuous but consumption is seasonal storage becomes necessary. Storage involves holding and preserving of goods between the time of their production to the time of their consumption.
C. Facilitating Functions:
Standardization- Standardization has now been accepted as an ethical basis of marketing. A standard is a measure that is generally recognized as a model for comparison. Standards are determined on the basis of color, weight, quality and other factors of a product. It facilitates purchase and sale of goods. Goods are purchased by brand name.
Grading- Grading is the act of separating or sorting out goods into a number of grades according to established specifications, such as quality and size of the product. Grading is required for the products like food grains, fruits, cosmetics, etc.
Branding– Branding is the art of marketing. It is the measurement of giving a particular name, term, sign or symbol to a product/ service for specific identification of one seller or group of sellers. The identification creates consumer awareness, which in turn helps to build good product image and enhance chances of repeat purchases. A brand is essentially a seller promise to provide specific features, benefits and services consistently to the buyers.
Packaging– Package is the external wrapper or container of the product. Packaging may be defined as the general group of activities which involve designing and producing the container or wrapper for a product. A good package protects the product against deterioration, preserves the freshness and flavor of the product, provides convenience to the customers, increases economy and communicates information about the product. A good package makes the handling of the product easier for both the consumer as well as the dealer. Good packaging also helps in inventory control.
Labelling– A label is a small slip placed on the product. It gives information regarding the nature, contents, price, batch no., ownership, etc. of the product. A label is medium through which the manufacturer gives necessary information to the consumer about the product. The label is usually affixed on the package. A label plays an important role in making the package and branding function meaningful. Labelling thus helps in the identification of the product. It stresses the features of the product which are advertised. And by mentioning the price of the product, labeling helps in curtailing defraudation of consumers by the retailers.