Importance of Marketing
Why marketing is so important? Marketing has a great role in achieving business goals, it is used as a strategy by business communities to achieve their business goals and objectives.
Marketing is not only for the business, rather it is equally important to consumers and nations too. Here, we will discuss the importance of marketing from a business, consumer, and society’s point of view.
To The Business
For the business, marketing is a great way to reach potential customers, get to know them, understand their needs and expectation, and achieve success by satisfying the customers. The major importance of marketing to the business, organization, or marketer is pointed as below.
Basis of Organization’s Existence. Customers are the king these days, any of the business’s success is determined by the extent it provides satisfaction to its customers. The more satisfied customers the more successful business is and vice versa.
Proper marketing is a great way to ensure customer satisfaction, hence it becomes the social and economic basis for the existence of the business.
Source of Revenue. Marketing also helps businesses to generate profits. Since other activities are also essential for the company’s source of revenue, marketing ensures production of goods, merchandising functions, right product & place distribution, and other supportive activities.
The proper performance of these activities is the important business’s source of revenue and its survival.
Information For Planning and Decision. Marketing helps businesses to gather important information from the marketing environment. A good understanding of environmental factors such as customers, supplies, distributors, government, competitors, etc. has a great role in proper planning and decision making that ensures the betterment of the firm.
Management of Innovation and Change. Peoples needs go on changing, one prodcut that satisfies consumers needs, may not satisfy in future. For this, to be reachable near to consumer satisfaction, the firm has to continuously gather information about the customer’s changing preferences, need, and desires.
Marketing as a business strategy helps businesses to develop innovative customer-satisfying ideas to secure the firm’s future.
Distribution of Product. Once the prodcut order is placed, the ordered prodcut should be delivered to the right customer at the right time. Marketing, for the firms exactly, ensures this.
Adaptation. Another essential importance of marketing to the business is that it helps businesses to adapt to changing situations. Since customers and market situations and need are changing, marketing helps businesses to understand the changed situation of the market and asks to change when necessary.
To The Customers
Only for the business marketing is not beneficial, it also helps customers in many ways. The significant importance of marketing to the customers can be understood in the following points.
Creation of Utilities. It is through marketing that much of a product’s utility is created and the customers’ need and wants is satisfied. There are several utilities that the marketing has created to satisfy the customer’s wants.
- Form Utility. Form utility is associated with the production, where physical changes are made. For example, cotton is converted into desired clothes, by which the value of prodcut is created.
- Place Utility. Marketing ensures the right product distribution through or makes available products where the demand is high. Marketing thus creates place utility through the physical distribution of products from one place to another.
- Time Utility. It is believed that the product should be made available where demand exists. Too early or lately distribution of products has no value because people do not buy them. Thus, marketing creates time utility by distributing goods at the right time.
- Information Utility. Marketing provides valuable information about the consumer’s demand, taste, competitive position, etc. Which ensures the right product production. Similarly, marketing provides valuable information about the product to the distributors and dealers. Which in turn, helps dealers to keep the adequate quantity of products to deliver the right product to the right place at the right time.
- Possession Utility. Through marketing intermediaries such as wholesalers, dealers, retailers the ownership of goods is transferred to ultimate customers. In turn, consumers enjoy the possession utility of the product.
Information. Another importance of marketing to the customers is that it ensures the information about the product. By which customers enjoy valuable benefits such as product’s price, manufacturer name, quality, design, materials used in production, and so on.
Satisfaction. Since marketing is the customer-oriented philosophy of business, it always focuses on fulfilling customers’ needs and wants and providing satisfaction to them. Marketers always try to earn profit only after customer satisfaction is assured. In this way, marketing gives valuable treatment to the customers.
The facility of Selection. Marketing helps to create healthy competition in the market. In this particular situation, many competitors bring a variety of products to the market and customers get a chance to select the best product for them from the available to satisfy their needs.
Upgrade In Living Standard. It is marketing through which customers receive varieties of goods manufactured in different places of the world. Some products provide easiness to their life, some provide luxury, and some may provide valuable knowledge. All these things may bring changes in consumers’ lifestyles and upgrade their living standards.
To The Economy and Society
Good marketing also ensures that the nation’s economy and society also should be benefited or should not be harmed. It can be justified by the following points.
Source of Massive Employment. Marketing consists of many significant activities, which generate sufficient employment in the country and abroad. It relieves the government in this field. Some employment is the main source of people’s income, marketing helps to improve the living standard of people.
Maintain Supply and Demand Situation In The Country. It is the prime duty of each government to feed the people and make their life safe. With the increased population in the country, their needs & demands also go on increasing over time.
To fulfill their increased needs and demand, the supply position of the country needs to be improved. With the help of the marketing process, a country can concentrate its activities on analyzing the marketing environment of the country and produce desired goods at the desired level, equalize supply with demand, and disperse the product and facilities to the target market as per their demand and hence, keep the people satisfied.
Assures the Desired Rate of Economic Growth. Development in agriculture, industry trade and other service sectors of the country is possible only through the development of marketing activities because marketing directly affects these sectors. Similarly, marketing can develop entrepreneurship and managerial talents in the country.
Therefore, marketing helps in achieving the desired rate of a country’s economic growth, which is the main basis of people well being and success.