1.

Explain any four facilitating functions of Marketing.

Answer»

(i) Financing: This is the service of providing credit and money necessary for the producer on the seller to make goods available to the consumers. Financial is the lifeblood of modern business. It is the lubricant that facilitates the marketing of products. The prosperity working and future of a business unit mainly depends on the availability of adequate finance. Finance should also be available in sufficient amounts to face trade cycles, recession etc.

(ii) Price Determination: This is the process of fixing the price of a product on service. 

Generally, the price of a product is determined by the following factors:

• The demand for the product 

• Nature of the product 

• Cost of the product 

• Extent of competition 

• Government regulation if any etc. 

• Condition of product

The price of a product should be determined in such a way that it brings in the largest volume of sales with a sufficient margin of profit.

(iii) Grading: This refers to the classification of goods into well-defined classes on the basis of certain standards. The main objective of grading to introduce uniformity. It facilitates the fixation of prices of various grades in advance. It is costly to sell graded goods as consumers.

(iv) Sales Promotion: This is an effort to stimulate consumers to purchase more and more of a particular commodity. It is a marketing effort the function of which is to inform customers about the merits of a product on sen ice. It is used to create; capture and maintain demand. It influences the attitudes of behaviour and the purchase decision of consumers.



Discussion

No Comment Found

Related InterviewSolutions