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.