Importance of Marketing-TU Notes-Bikram Adhikari - Learn Something New With BIKRAM ADHIKARI

Marketing  is  an  integral  component  of  every  business  organization.  The  importance  of  marketing can be explained through three key perspectives. 

Importance of Marketing to the Consumer

The   importance   of   marketing   to   the   consumer is explained as follows:  

a.    Provide information:     

Marketing     helps   consumer   to   take   a   proper   decision concerning what to buy and what  not  by  providing  information  of  the  product.  Through  marketing,  customers  get  information  in  regard  to  the  types,  quality,  price,  use,  etc.  of a product.  

b.Provide satisfaction: 

One of the key aspects of marketing is that it provides variety of offerings.   Getting   variety   of   offerings   at   their   place   of   convenience   provides   satisfaction to consumers.  

c.      Selection   facility:   

Marketing   is   crucial   in   disseminating   the   information   about   products  and  services  to  the  consumers.  Every  company  puts  a  lot  of  effort  in  developing promotional campaigns making consumers aware of the choices they have in  front  of  them.  As  such  marketing  facilitates  the  selection  process  for  consumers  to  satisfy their needs and wants. 

d.      Rise  in  the  living  standard: 

Marketing focuses on satisfying the customer. It does so by providing quality products and services at a reasonable price. These products and services in turn help to bring positivity in life by upgrading the living standard of the consumers. 

e.     Quality     products:   

Consumers   can   get   new   and   qualitative   products   through   marketing. Producer produces qualitative goods to fulfill the needs and wants of the consumers.  In  the  absence  of  marketing,  it  is  impossible  to  deliver  the  qualitative  products  to  consumers  as  marketers  would  not  know  about  the  qualities  that  the  consumers look for in a product. 

Importance of Marketing to the Firm 

The importance of marketing to the firm is explained through the following points: 

a. Business planning and decision making:

 A business firm can survive and succeed if it takes right decisions at the right time. Firms require accurate, complete, and reliable information about various aspects of consumer and market. Marketing system aids to the firm by providing information for business planning and decision making.  

b.     Product  distribution: 

 A  successful  exchange  relationship  depends  upon  developing  the right product and using the proper channel of distribution to make it available at the  right  place.  Marketing  activities  exactly  do  that.  They  help  the  firm  in  creating  a  smooth and efficient product distribution channel making the firm sustainable. 

c.      Income      generation:  

Although  many  activities  are  essential  to  a  company’s  growth,  marketing  is  the  only  activity  that  generates  revenue.  Marketing  includes  production  of  goods,  merchandising  function,  physical  distribution  of  goods,  and  many  other  supportive functions lending to generation of income.  

d.     Communication  between  firms  and  society: 

 Marketing  is  an  important  means  of  communication   between   firm   and   society.   Marketing,   by   developing   exchange   relationship, helps the firm to establish a connection with the society. It basically acts as a bridge between the producers and the consumers. 

Importance of Marketing to the Society and Nation

The  system  of  marketing  is  based  on  the  society  it  exists  in.  It  is  thus  obvious  that  marketing  integrates  the  various  sections  of  the  society  in  its  process.  If  society  is  crucial  for  the  existence  of  marketing  system,  marketing  is  also  equally  important  to  the  society.  The importance of marketing to the society is discussed in the following points:

a.     Creation     of     utilities:

It  is  through  marketing  that  much  of  a  product’s  utility  is  created,  and  the  customer’s  needs  and  wants  are  satisfied.  There  are  several  utilities  that the marketing creates to satisfy the customer’s wants: 

Form utility: Form utility is associated primarily with production, which involves the physical  or  chemical  changes.  For  example,  cotton  is  converted  into  desired  clothes;  lumbers are converted into beautiful and sophisticated furniture. By converting cotton into clothes, lumbers into furniture, the value of the product is created. 

Place utility: Marketing helps to distribute or supply goods in the marketplaces where demand  exists.  Therefore,  through  physical  distribution  of  goods  from  one  place  to  another, marketing creates place utility. 

Time  utility: Goods should be made available when demand exists for it or when people  demand  it.  Too  early  or  lately  distribution  of  goods  has  no  value  because  people do not buy it. Marketing creates time utility by distributing goods at the right time.  

Information  utility: Marketing provides valuable information to manufacturer about the demand position, competitive situation in the market, consumer taste, and needs, etc.  By  considering  this  information,  manufacturer  becomes  capable  of  producing  a  right product that can satisfy the customers. Likewise, it also provides information to the general public about the product that is created. As such the information utility is created. 

Possession   utility:   Goods   are   manufactured   in   one   corner   of   the   world   and   distributed   to   other   corners.   Manufacturers   manufacture   the   goods   for   the   comsumtpion by ultimate users. In this distribution process, marketing intermediaries like   agents,   wholesalers,   and   retailers   participate.   Each   marketing   intermediary   transfers  ownership  from  one  another,  assume  possession  of  goods  and  make  all  the  parties  equally  responsible  in  performing  marketing  tasks  for  customer  satisfaction  and achievement of marketing objectives and goals.

b.    Employment  opportunities: 

Marketing  activities  are  the  biggest  generator  of  jobs  in  the  society.  Hence,  the  importance  of  marketing  in  the  economic  upliftment  of  the  society is huge. Today, more than two-third of the world's labour force is engaged in marketing   jobs.   Marketing,   in   the   form   of   production,   selling,   distribution,   advertising, promotion, etc., generates immense employment opportunities.  

c.      Resources      utilization:     

 Marketing  is  a  process  through  which  concepts  are  developed  into  products  for  the  customer.  Movement  of  concept  requires  an  efficient  use  of  the  human,  financial  and  physical  resources  of  the  society.  Proper  use  of  resources  is  critical in the development of the country.  

d.     Rise  in  the  living  standard:  

Marketing  benefits  the  society  in  two-fold.  Firstly,  it  generates products and services that satisfy their needs and wants. Secondly, it helps to generate  income  by  providing  employment  opportunities.  These  two-fold  benefits  in  tandem lead to the rise in living standard of the society.  

e.     Economic     importance: 

Marketing  is  vital  in  developing  and  driving  an  economy  based on the consumer. Production of goods and services as per the consumers' needs and wants leads to higher employment opportunities, tax revenue for the government and overall economic growth in the society.