Importance of Marketing: Marketing is a system of interacting business activities designed to plan, price, promote and distribute wants - satisfying products and services to present and potential customers. Marketing is analyzing, planning, implementing and controlling of activities related to need and / or want satisfaction.
The marketing activities are important for producers, customers, society and Indian economy as given below.
Importance to the producers:
- Makes business planning possible.
Marketing and marketing research activities tell the producer that how much to produce and what to produce? It also tells about demand and supply gaps in the market and future trends. Without forecasting and knowing about product, price or geographical convenience of the consumers, it becomes almost impossible to plan.
- Helps business decision making.
Decisions are based on environmental and other variables. Decision making is much helped by marketing activities like marketing research, planning, analyzing, selling, promotional activities etc..
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- Increases profits.
Profits are much increased by promoting and selling activities.
- Image enhancement.
The images of corporate, organization and product are enhanced with advertising, publicity, personal selling and sales promotion activities. It is also enhanced with other marketing activities.
- Value addition.
Value addition by various marketing activities like analysing product, price and other related things, planning marketing programs etc. are much useful for producers.
- Communication between firm and society.
The firm and society communicates through marketing. Activities of marketing initiates and / or increases the communication.
Importance to society:
- Provides standard of living.
Newer products, cutting prices and other competitive activities provide better products to consumers at fewer prices.
- Provides employment.
Marketing activities like selling, advertising, researching etc. Provide direct employment to so many people while indirectly it also helps in employment generation like distribution.
- Protection while recession in the economy.
During recession or depression, marketing provides some assurance that some sales will be done and organization sustainability is protected.
- Helps increasing national income.
Marketing by providing standard of living and employment generation, helps in increasing national income.
- Reduction in distribution cost.
By increasing volume of distribution, the cost of distribution is reduced by marketing.
- Dynamic environment.
Marketers became dynamic by competitive environment and thus, they developed the capacities to sustain against changes in the economy and market.
Importance to consumers:
- Quality and quantity of product.
Because of competitive environment generated with the help of marketing, consumers get what they wish in terms of standardization of quality and quantity.
- Caveat vendor instead of caveat emptor.
Caveat emptor means “buyer beware” while caveat vendor means “ provider beware ”. This became increased reality with the arrival of consumer protection act 1986 in India.
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- Customer is the uncrowned king of the market.
Consumers’ desires and wishes are all important for organizations. Organizations became consumer centric. Thus, customers’ words became rule. Thus, we can say that customer is the uncrowned king of the market.