There are three main characteristics of marketing functions. Firstly, the functions affect not only the cost of marketing, but also the value of products to consumers. Processing, transportation and storage provide form, space and time utility for consumers. The exchange and facilitating functions grease the wheel of the marketing machinery and perhaps provide services at lower costs than farmers and consumers can perform them. In evaluating marketing functions, consideration must be given to both costs and benefits of the functions.

Secondly, although it is frequently possible to “eliminate the middleman”, it is very difficult to eliminate marketing functions. Usually, eliminating the middleman involves the transfer of marketing functions-and costs-to someone else. For example farmers may assume the storage, selling and transportation functions, eliminating brokers and commission men. This reduces the cost of performing a marketing function, but does not eliminate the marketing function from the marketing process.

Thirdly, marketing functions can be performed by anyone anywhere in the marketing system. Conceivably, all the functions could be performed by a single firm which had complete control of a commodity from farm to the retail level. On the other hand, there are specialized firms and industries such as railroads, grain brokers, and speculators- who perform only one marketing function.