a) What is marketing segmentation?
b) Explain six functions of marketing.
Explanation
(a) Market Segmentation: This is the process of dividing a company’s market
into identifiable groups in a way that specific products can be developed to satisfy each group.
(b) Functions of Marketing
- Risk bearing - it involves the calculation of marketing risk and taking necessary insurance cover to reduce their impact on the marketing of goods and services;
- Distribution - marketing ensures that goods and services are moved from points of production to points of consumption ;
- Exchange - marketing ensures that goods and services are sold and sales targets are set and met to achieve the company’s marketing objectives;
- Warehousing - through warehousing goods can be produced ahead on demand and then stored until they are needed;
- Promotion/ Advertising - it creates adequate awareness of the company’s products and services;
- Standardization and grading - it establishes specified quality that products must conform to and classify them into different sizes to suit each market segment;
- Pricing - marketing determines the pricing structures, margin and discount policies and pricing strategies to be adopted by a company;
- Product development - marketing identifies the consumers’ needs and wants and plans and designs effective products based on the identified needs and wants;
- Marketing research - marketing provides information on marketing mix and how they could be effective to the target market
- Financing - marketing provides income to the company through sales of goods and services.