a) What is marketing segmentation? b) Explain six functions of marketing.

Answer Details

(a) What is market segmentation?

Market segmentation is the process of dividing a large, varied market into smaller groups (segments) of buyers who have similar needs, tastes or characteristics, so that the seller can design products and marketing programmes to suit each group. Markets may be segmented on the basis of age, sex, income, taste, geographical location or occupation.

(b) Six functions of marketing

1. Buying: Marketing involves buying goods and raw materials in the right quantity and quality for resale or production.
2. Selling: It involves persuading customers to purchase goods and services, which brings in revenue to the business.
3. Transportation: Marketing moves goods from the place of production to where they are needed by consumers, creating place utility.
4. Storage (warehousing): It involves keeping goods safely from the time of production until they are demanded, creating time utility.
5. Grading and standardisation: Goods are sorted into grades of uniform quality and size so that buyers can order by description.
6. Advertising and sales promotion: Marketing informs and persuades customers about goods and services to create and increase demand.

(Other valid functions: financing, risk-bearing, and market research.)