Microsoft Word marketing doc

2.9 
Risk Management and Insurance 
One of the important functions of marketing management is risk bearing.
In any marketing activity uncertainity is bound to exist. This uncertainity may 
result in the form of either loss or profit. The unpredictable nature of the 
consumers, changing fashions, increasing competition and increasing costs of 
production have led to the concept, “Risk-bearing”. 
All these uncertainities have to be faced in the marketing activity by any 
producer or entrepreneur. Some of the risks may be avoided by taking 
insurance coverage. 
2.10 Marketing Information and Promotion 
Marketing information is a vital resource in business for taking 
marketing decisions. Information has to be collected, processed and interpreted.
Decisions are based on facts and figures. Marketing executives are expected to 
know the trends in market demand, supply, prices and related market 
information. If the company is equipped with latest market information, risk of 
loss can be reduced in marketing, in pricing, in forecasting demand and in 
facing competition in the market. Securing and using market information is a 
mark of good marketing management. Modern means of communications such 
as computer based marketing information system can be adopted for adequate, 
up-to-date, reliable and timely information. 
Sales promotion refers to all those marketing activities, other than 
advertising, personal selling and publicity that stimulate consumer purchasing 
and dealer effectiveness. Sales promotion techniques are indirect and non-
personal consumer promotional activities may be in home promotional schemes 
such as samples, demonstration, coupons, contests, etc., or in store promotional 
schemes such as temporary price reduction, premium offers, demonstration etc.
Dealers promotional activities include discount on purchases, display and 
advertisement allowance, prizes, gifts, etc. 

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SUMMARY 
Production and marketing are important factors in the economic life of 
all marketing economies. All the steps and functions which make the flow of 
goods from manufacturer to ultimate consumers are very important for the 
success of all economic activities. 
Specialised activities or operations which are performed in the marketing 
of goods and services are called marketing functions. 
Marketing 
function 
is 
a homogeneous group of activities which help in 
the flow of goods from the manufacturer to the consumer. 
Marketing functions have been classified by different marketing experts 
in different ways. 
The various marketing functions are : 
1. 
Buying and Selling 
2. Transportation 
& 
Storage 
3. 
Standardisation and Grading 
4. Financing 
5. 
Risk management and Insurance 
6. Marketing 
information and promotion. 
QUESTIONS 
1. 
“Production and marketing are important factors in the economic life of 
all marketing economies” – explain. 
2. 
Explain the different functions of marketing. 
3. Briefly 
explain. 
i) 
Standardisation and Grading 
ii) 
Financing 
iii) 
Risk management and Insurance 
iv) 
Marketing information and Promotion 
v) 
Buying and Selling 
vi) 
Transportation 
and 
Storage 

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