Marketing is the pulse of business growth and development. It is a vital element of any business that is a primary catalyst for growth and profitability. The ultimate goal of marketing is to reach customers and sell or advertise a product or service. Its role encompasses multiple functions that move in unison to attain the ultimate purpose of the business. In the absence of marketing, a business would automatically collapse. Therefore, comprehending the critical functions of marketing ensues the success and growth of a business. This blog shall comprehensively depict the seven essential functions of marketing, hence importance in accomplishment of the business objectives.
Market Research
Market research refers to the activity carried out to collect and analyze data to understand the customers’ needs, preferences, and trends in the market . It helps in acquiring knowledge to make comprehensive decisions. Every business should conduct market research to ascertain that the products and services they produce fulfill the requirements of the consumers . A company can explore various opportunities, their competitors and make a well-rounded decision after fully conducting the research. The tools and methods used in the market function to gather necessary information about its customers, competitors, and the available opportunities include surveys, focus groups, and data analysis.
Market research helps businesses to be in a better position to understand their target market and customer segments. Marketing the segment marketing campaigns are then developed considering the customers’ needs. When market research shows that almost all customers are loving eco-friendly products, then such a business can develop products and sell them according to the needs of the market. In the process of market research, businesses identify the profitable niche in the entire market and an increase in its performance.
Product Development
Product development refers to the marketing function, which involves creating and enhancing products or services offered to meet the needs and preferences of the clients . This aspect of marketing is critical since it ensures that the business sells what the customers actually want. Through collecting feedback from clients and exploiting ideas from market research, corporations can see where they need to improve and where they can focus on more significant innovation . The end objective is to develop a product or service that will enthrall a consumer, distinguish a corporation from its opponents, and bring back the customer.
In a highly competitive business environment, product differentiation and innovation are key enablers of the competitive edge. Successful product development sees to it that the products are demand-driven and customer-focused leading to customer retention. For them to remain competitive, the company must undertake necessary research and creation of the products that will precisely meet the customers’ needs. Lastly, new businesses must undertake product development in their initial stages of the operations in order to develop their own products that will always remain unique as opposed to the established firms.
Pricing Strategy
Pricing strategy is also another important role of marketing. It is the process whereby an organization sets its price for goods and services. The marketing pricing strategy influences customers’ impression and also the decision on the purchase while also affecting the business success. Among the existing pricing strategies is cost-based pricing, which is determined by the cost of the item to be produced. Value-based pricing entails determining the value of service of the product perceived by the target customer. Competitive pricing, on the other hand, involves setting the prices based on the current and existing prices in the market.
Pricing strategy should be designed in such a way that it balances customer affordability with profitability and positioning in the market. There are several factors to look at before making a pricing decision. They include production cost, the activity of your competition, buying behavior of customers, and market trends. Examples of pricing strategy include value-based pricing where one uses prices to introduce a new product that offers superior features to clients. The use of cost-based pricing is appropriate for a simple or low feature product. Having the right pricing strategy is critical to the success of any business.
Promotion
Promotion refers to how one communicates with customers to create awareness of a brand and guide sales. It is the marketing function whose objective is convincing the customers to buy goods and services. Promotion is an essential part of brand experience, in that brands are valuable commodities to firms. They drive customer engagement and loyalty that drives sales revenue . Some of the promotional means are advertising, public relations, social media and influencer marketing. Promotion should be consistent and impactful across the board, thus firms should adopt Integrated Promotional Technology.
Promotion is eventually essential for building a strong customer base and accelerating revenue growth. Businesses may implement various promotional strategies depending on the target audience, product or service specificity, and type of marketing budget. Social media marketing is an effective way to engage the younger audience, while the collaboration with the ambassadors or influencers is appropriate for reaching already established ones. In general, the promotion should focus on a clear and comprehensive message that would speak to the target audience and would be communicated effectively through chosen channels.
Distribution
The other function is the distribution function, which is the process of giving customers access to products or services by several channels. The distribution function of marketing is the fast, efficient, and cost-effective delivery of products or services to customers. A distribution network that works well is critical to reaching target markets, satisfying customers’ demands, and improving overall business performance. E-commerce and globalization have made omnichannel distribution strategies very vital. Omnichannel distribution encompasses a multi-channel strategy involving a combination of physical locations, online Stores, and non-affiliated third-party outlets to provide customers with a seamless and consistent retail experience.
Distribution is an essential component of a successful marketing strategy. It guaranties that products and services are easily accessible to the target market, thereby removing barriers to entry and enhances consumer satisfaction . In today’s highly competitive marketing environment, firms that can effectively source their products to the customer are more likely to succeed. As such, the marketing approach should have distribution as a key marketing function.
Branding
Branding is a marketing function designed to create an individual brand identity for the company. This function is at the core of marketing since it is the primary mechanism influencing consumer choice and creating an emotional bond with the business. Branding is consistent with such elements as logo, color, message, and value, which together form the company’s identity . As a result, a strong brand develops brand loyalty, increases the awareness of the brand, and affects market place strategy. Central concepts for effective operation are similar messages and profound knowledge of the segment.
Branding, therefore, involves establishing a branded house that is unique and attractive to the customers. In the current environment, it is almost impossible to stand out without branding as customers have a lot of choices. Therefore, branding is critical to a business’s success as it ensures that the consumer can identify with the business, thus making a loyal consumer . Branding leads to consumer perception which influences the consumer’s purchasing decision. Thus, with current competition, branding is essential for a business to be successful.
Customer Relationship Management (CRM)
Customer Relationship Management is a marketing function that aims to maintain and establish relationships with a business’s customers at all stages of their life. It is technology dependent and data-driven, helping companies collect and categorize information, tailor marketing and subsequently improve, and retain customers. CRM systems allow for the collection of relevant information regarding customers: their preference, behavior, past purchases, etc., to personalize the approach and promote marketing plans. Relationships are built through communication tailored to individual preferences, whereas outstanding customer service is a must to make every customer satisfied with his or her experience.
However, a CRM strategy, success in execution, can help a business grow. Implementing a CRM strategy helps in creating an understanding of customers and customization of marketing efforts which lead to customer satisfaction rather than customer content. Thus, businesses can retain their customers and increase repeat business thus promoting the overall business success . Thus the current competition means players have to concentrate on customer relationship marketing, and CRM as an important function of marketing can help them succeed in the objective.
Conclusion
The seven functions discussed in the paper are vital in the successful development of a business marketing strategy. The seven building blocks of a marketing function system, including market research, product development, pricing, promotion, distribution, and CRM, alongside branding, form the path that a good business must follow and even take it a step ahead by emphasizing them. By considering these functions and what they can do for one’s business and tailoring them to unique business needs, a strategic leader is establishing a successful route for the business to grow and be profitable in the competitive and challenging 21st century. This strengthens the most important aspects of business, improving customer experience, customer loyalty, and customer satisfaction. As one concentrates regarding these functions, one should also consider how one would use them to promote one’s business. Leveraging the existing marketing functions of any business’s marketing potential fully requires the utilization of the seven discussed above essential ones.
