Warehousing is a convenient place where goods are kept. It protects the products from dust, water, insects and sun. It creates the place and time utility. It also helps to maintain the stock so that there is no chances to be shortaged of products in the market. It means, it helps to regular flow of goods in the target market. As a result, there is no price fluctuation in the market. It also helps to take teh credit from the financial institutions. It accepts the risk and transfer to the insurance companies. Hence, it plays a vitakl role in marketing function. So respected office should take the correct decision on how to use, how much or what number of products should be kept on it.
Types of warehouses
The types of warehouses can be classified into the following categories.
1. Private warehouses: Those warehouse which are established and owned by private and large business for the private use is known as private warehouse. These type of warehouses are mainly established and owned by manufacturers to store their products until they are sold in the market. They are constructed near the factory building or near the market.
Private warehouses are mainly convenient to the owners. They are designed to meet the specific requirements of products storage and handling the needs of the company an organization. At present, the importance of such warehouse is decreasing because there are inadequate physical facilities more than other type of warehouse comparatively.
2. Co-operative warehouses: Those warehouse which are established and managed by co-operative societies are known as co-operative warehouses. The ownership of these warehouses are on the hands of few primary co-operative societies. Mainly those who can not invest the capital single to establish co-operative, they contribute equal capital and establish the co-operative warehouse. Services of such warehouse are first available to its members then to other people. Such warehouses are mainly established by the petty producers or farmers to store their products.
3. Public warehouses: Public warehouses are owned and managed by individuals, firms, companies or even public bodies like municipalities or government to store the products of general public. Licence should be taken from the government and should adopt the government rules and regulations to establish and operate teh public warehouses. They are run on commercial basis, so they are also known as commercial warehouses which offer specialized service to all the interested parties such as producers, traders, merchants even general public etc. against nominal charges.
4. Bonded warehouses: Bonded warehouses are those warehouses which are licensed by the government to accept imported goods for storage before custom duties are paid by the importers. These are mainly situated near the ports which are established by the government under the close supervision of custom authorities. Such warehouses plays significant role to promote international trade.
The importers have to enter into a bond with the custom officers, along with sureties, assuring the payment of duty before removing the goods from the bonded warehouses, which are known as 'bonded warehouses'. The goods in which custom duty is not paid, they are kept in the bonded warehouses, are known as goods in bond.
5. General Merchandise warehouse: The warehouse which provides the facility to store all kinds goods is known as general merchandise warehouse. Such types of warehouses are the most common type of warehouses. This is just a place to store for manufactured, semi- manufactured and new materials until they are required by producers, distributors, retailers, customers etc. It is a simple warehouse and does not provide any additional benefits to the product.
6. Speciality commodity warehouse: Speciality warehouse is constructed to store the certain goods which requires special treatment. It gives storage facility only for a particular products. Chemicals, fertilizers, petroleum products coffee, tobacco, cotton, wool etc. needs special warehouses with special facilities. The purpose of this warehouse is to keep the products of intrinsic value in original form.
7. Refrigerated warehouse: Refrigerated warehouse is established to store the perishable products such as fish, fruits, vegetables, dairy products etc. So that it is also known as cold store wares. It provides longer life to perishable products and maintains the intrinsic value of goods. These goods are available throughout the year dut to the establishment f cold storage houses. It also helps to maintain the reasonable price in the market. Generally, such type of warehouse is established at the consuming centre.
ion and grading of the product. The standard weights and measures are kilo, meter, liter etc. Thet determine quantity which ensure smooth marketing operation. They are enforced by the government and its local bodies.
b. Size: This is another important base for the standardization and grading of the product. Size helps to determine the standard and grade of the product. Readymade garment, shoes, nut-belt, pipe, screw, etc. are sold in size standards.
quality. It is difficult to establish the standard. However high, medium and low quality are the bases for this purpose. Furniture, food items, cotton and medicines etc. are classified under this basis.
d. Colour: Some of the products are also standardized and graded on the basis of their colour. Mostly, agricultural products 
Standardization means the establishment of certain standards of the qualities or the intrinsic physical properties of a commodity. It certifies that the products are of a certain quality. It is a model. It is a grade or a class. It is measured in units of qualities or characteristics of product of service. It may be based on a number of characteristics such as color, quality, weight and shape and size etc.
It plays important role in marketing as it assures for the quality uniformity of the product to the customers.
Elements/Functions of Standardization:
There are some elements/functions of standardization which are discuss briefly.
1. Determination of standard: Standard is a model. It is an example. It is a grade and class, which generally measures accepted fixed value. It consists of basic limits to the qualities of product. It may be based on a number of facto
rs such as colour, quality, weight, shape and size and strength etc. To determine the standard of the product is major duty of Manager in the organization. Because it assures the customers for consuming or using the product through it's quality uniformity. There are three types of standard-- Quality standard
- Quantity standard
- Standard of size and measurement
2. Grading: Simply, grading means the division of productd into classes of similar characteristics in size and quality. It separates the products on the basis of pre-determined norms or standards of shape and size, colour, degree fo cleanliness, acidity or other significant characteristics. It classifies the products in accordance with the needs of the standards. It indicates a certain standard of quality or performance, which facilitates to the people for easy using the goods and services.
3. Inspection: After grading the product, it is necessary to inspect the effectiveness of grading. The aim of checking or inspecting is to test the goods in order to determine the characteristics. It is the process to confirm the standard of the product. It helps whether it maintains or does not maintain the quality.
4. Labelling: A label may be a piece of paper including printed statement or a met
al imprinted, may be a part of package or attached on it. It includes price, content, name, place, quality, weight etc. of products. The process of attaching the label is called labelling. It helps to know the detail information of products.There are many importance of standardization but among them ten of them are listed below:
1. Easy sales
2. Wider market
3. No risk
4. Satisfaction
5. Good will
6. Easy claims against losses
7. Easy loan facility
8. Reasonable price
9. Low transport cost
10. Reduce sales cost
11. Product information
12. Mass production
13. Employment opportunity
14. Long period contract
In modern marketing technology, selling is a means of promotion, i.e. persuassive communication. It persuade a propective buyer to buy the goods or services. Main objectives of selling is to dispose goods at satisfactory price. It is related with product planning and development in addition to create the demand.
Elements/Functions fo selling
There are different elements or functions of selling. They are listed and discussed below.
a. Product planning and development
b. Contact
c. Demand creation
d. Negotiations
e. Contract
Product planning and development is one of the important elements of selling. If there is no product, the question of selling does not come. The starting point of marketing is with a satisfactory product through which consumer's satisfaction aimed. All producers must aim to make to produce a quick mover.
It is the process, which covers the technical knowledge of the product as to its cost and profit consideration available from sale. It is the starting of new idea of one product up to the day it has gone out of the market. The nature of the product is decided by product planning, while product development acts according to plan, i.e. it makes the goods available in accordance with the plan, in connection with the quality, quantity, price, place and time of a customers. It includes product designing, branding, packaging and labeling. So, it is customer- oriented function
, which covers several marketing activities.Selling function can be operated smoothly if there is contact between buyers and sellers. After contacting the potential buyers, the sellers must create the demand for particular product. Demand creation means special efforts to stimulate a want or desire for goods with the ultimate objectives of sale as profit. It is the process that designed to stimulate the existing desire to take the shape of demand.
Negotiation is the bargaining or discussion between the buyers and sellers to fin
alise the terms and conditions of scale. It can be oral or in written form wher the buyers try to reduce the price and request to provide the better services from the sellers. Finally, they come into the point which leads them to make a contract. Contract is the written agreement where all the terms and conditions for buying and selling are clearly written when it is prepared, both buyers and sellers will sign there. After the signature, the sale is completed and the title is transferred from sellers to buyers. If there is any dispute, the parties proceed to the court of law to get redress.
According to prof. Pyle, Marketing function has two major groups. They are concerntration and dispersing function which is clearly given in the following lists or groups.
Marketing Functions:
Concerntrating:
1. Buying and Assembling
2. Transportation
3. Storing
4. Grading
5. Financing
6. Risk Bearing
Dispersing:
1. Selling
2. Transportating
3. Storing
4. Grading
5. Financing
6. Risk Bearing
7. Dividing
But according to Clark and Clark "Marketing functioning as an act, operation or service by which original producers and the final consumers are linked together."
From the above definition, marketing functions can be classified into the main three categories.
Marketing Function
1. Merchandising function:
a. Buying
b. Selling
c. Standardization and
d. Grading
2. Physical function:
a. Transportation
b. Warehousing
3. Facilitating function:
a. Financing
b. Risk Bearing
c. Marketing Information
d. Promotion
1. Merchandising function: It is also known as exchange function. This function helps to transfer the goods as well as ownership from one party to another party. This function is done for matching the products with buyer's need and making available them in the target market.
a. Buying: It is one of the important functions of marketing. It is the process to transfer of ownership from seller to buyer. Buying is indeed an art and we need expert buyers to make scientific purchases in modern market. In marketing, the buying and selling are very important. There are some basic objectives of buying.
1. to get the right quantity
2. to get the right quality
3. to get in right time and
4. to get in right place.
Buying is very closely related to production and marketing department. Producers must work in co-operation to fulfill the needs of marketing set by top management.
Elements/Functions of buying: There are some elements of buying which are also known as functions of buying. They are discussed as follows:
1. Planning to Purchase: It is the first element or functions of buying. The buyers should make the plan to purchase the goods. Their plan may vary and base on their anticipated sales and consumers' demand. It must be depend on customers' demands and needs. Under planning of purchase, three elements, functions are listed beloew:
a. Preparation of budget b. Determining the rate of turnover and c. Changes in price.
2. Contact: It is related with the location and determination of sources of supply. The buyers must contact to the number of potential suppliers. While selecting the suppliers, the buyers must consider the efficiency, financial strength, reputation and goodwill of the suppliers.
3. Negotiation: It refers to the process fo bargaining between buyers and sellers. 
Buyers and sellers meet together with a view to discuss the contents of contract such as price, payment, quality, quantity, mode and time of delivery, transportation and discount etc. After the detailed discussion, they agree to make the terms and conditions for buying and selling goods and services.
4. Assembling: It means bringing or collecting a large number of similar goods of many producers or different sources at a proper place at proper time. It is also known as centralization.
5. Contact: It is a written document where all the terms and conditions such as quality, quantity, price, discounts terms of delivery and payment etc. are clearly written. When it becomes finalized, both buyers and sellers activities start. If anyone party violate this contract, another party can appeal to the court for justice and penalty has to be paid as specified in the contract agreement.
Methods/Types of Buying: Buying methods depend on the nature, size and volume of business. There are some methods to buy the goods. Thet are discussed below. a. Concentrated buying b. diversified buying c. Reciprocal buying d. Hand to mouth buying e. Speculative buying f. buying by samples g. buying by inspection h. Buying by description i. buying by contract j. buying by tender.
If purchases are made from a ssingleor a very few suppliers,is known as concentrated buying. Under this method, the buyers purchase all the required goods from a single seller or selected a few sellers. Buyers can get reasonable price rate, quantity discount, best services, low handling and transportation cost, adn prompt delivery. But if the supplier fairs to maintain regular supply, it will have adverse effect. There is also limited choice to buy the goods due to single or few number of suppliers.
If purchase are made from a large number of suppliers that is known as diversified buying. The buyers enjoy competitive price and wider selection facilities. The danger of putting all eggs in one basket is removed. But this method can't provide quantity discount to the buyers. Similarly, it also increases transportation cost.
Reciprocal buying is like barter system where buyers and sellers enter into a contract to buy and sell the products mutually. Under this method, better quality of goods can be obtained at reasonoable price. It helps to build the good relation and increases purchasing and selling activities. But it reduces the choice of suppliers. There is limited choice and sometimes prices may be higher too.
Hand to mouth buying method also known as conservative buying. Under this method, buyers purchase in small quantities or lots to meet the current or immediate needs. There is no risks of loss and no speculation. Minimum capital is sufficient to purchase the goods and no problem of storage. Speculative buying is also known as forward buying because purchase are made in a big quantity. This method is opposite of hand to mouth buying. By expecting a hugher price in the near future, buyers may purchase the goods in large quantities. However, there is high risk of overstocking and fluctuation of price due to imbalance of market.
Under the buying by samples method, buying purchase the goods according to the sample. Sample are given to the customers by the suppliers. The seller sends the s
ample and price list of the products to the customers. The products and price should be accurate according to the sample and price list. Otherwise, the buyers can return the product. It is very easy for distant places because they can inspect the samples but the best selection of sample is required. But in the method of buying by inspection, the buyers directly visit different stores to inspect the products. The buyers inspect and examine the products directly with the product, thet can purchase the goods. This method is more applicable for wholesalers and retailers.
If the purchase is made on the basis of detail information about the product feature, price and quality etc. through the booklet or catalogue is known as buying by description. Under this method, seller provides all the detail information such as size, performance and uses of product, so that buyers can purchase on the basis of description given by the sellers. Advertisement and brand name of the product also sopport to purchase and sale of the goods. Un
der this method of buying by contract, purchase is made under a contract for a long period with fixed suppliers. The buyers purchase the goods continuously at a fixed price according to the contract. It is mainly suitable when the price is stable and not liable to wide fluctuation but the buyer cannot got the benefit of favourable change in the price. When products are made on the basis of tender is known as buying by tender. Generally, large companies and government offices purchase the goods under this method. All the interested suppliers will send the quotation or submit the form according to the buyers requirement.
1. Advertising: Advertising is paid form of non-personal presentation and
promotion of ideas, goods and services. It is done by an identified sponsor. It includes mass media such as radio, Tv, newspaper, maggzines, display etc. It conveys the message about the products and try to persuade the consumers to buy the goods. So, it can be taken as an important and effective tool to create the demand of the product.2. Personal selling: Another element to create the demand is personal selling. Under this
presentations, meetings, incentives programs are used as tools to create the demand of customers. Similarly, push sale is done under this method.3. Sales Promotion: Sales promotion is such markting activities other than advertising, personal sellling, publicity and public relation. It is an aggressive method of selling which is used for short term to ecourage the customers. Samples, coupons, discounts, contests, free goods, gifts, trade fair and exhibitions etc. are used as tools of sales promotions. These tools create the demand of the products and help to increase the sales volume more than in normal period.
4. Publicity: Publicity is non-personal and non-paid stimuli of demand for a product/services or a business unit through mass media such as radio, Tv or stage. It is done through news and feature story in a publication to craate teh favourable impression towarda the product ro organization.
5. Public relation: Public relation is another important tool to create the demand. It creates, develop and maintains the good rlation between the organizations and the general public customer meetings, periodical reports, press conference, public speech etc are the
tools used under this method. These tools help to increase the goodwill and maintain the good-relation as a result it helps to promote the sales by creating the demand of customers.
There are different concepts of needs, wants and demand below. All these words may have same meaning in ordinary sense. Here, their meaning, uses and concepts are discussed below which make us to understand more during the learning of market and marketing. In economics and marketing viewpoints they have different meanings. They are being discussed below clearly.
Needs: Needs are a state of felt deprivation. The necessity of something is need. For marketing, human need is the starting point which is complex in nature. When one want is satisfied another want is felt. Human needs can be physical, social and individual. Physical needs are food, clothing shelter. Social needs are love and affection, friendship etc. and individual needs for knowledge and self expression. These needs are not created by marketers but they are a basic part of the human life.
Wants: The term wants means something desired or needed. It is said that man is a bundle of desires and the nature of human beings is to desire many things for the betterment living standard and for the satisfaction by consuming different goods and services. Human wants are un
limited but resources are very limited. Limited resources should be implemented wants. For this purpose, economists suggested to rank the problem and study about the alternatives use of resources. The cube is that wants expands with the civilization. The most important nature of want is that it differs from person to person, it depends upon society, civilization and various other factors like living status, wealth, age, gender and so on. Some important features of wants are wants are unlimited, complementary, competitive, vary with time, place and person, all wants are not equally important, wants multiply with civilization. Thus, in the marketing wants should be properly identified and evaluated to meet their unfulfilled wants.
Demand: In ordinary sense demand and want mean same thing, but in economics, there words give different meaning. Demand is not the same as desire or need or want. Demand
for a commodity means effective desire, willingness and ability to pay. So, demand means the combination of effective desire, price, quantity and time. Demand is the quantity that will be purchased from particular commodity at various prices at a given time and place. By demand we we mean the various quantities of a given commodity which consumers would buy in one market in a given period of time at various prices, or at various incomes at various prices of related goods.
In demand, two things should be noted.
i. Demand always means demand per unit of time.
ii. The condition on which the thing is demanded should be specified.
