Kirloskar Institute of Advanced Management Studies

Kirloskar Institute of Advanced Management Studies

Importance of Marketing

Posted on: February 25, 2017

Marketing is often correctly described as the single success formula for most businesses. The field covers advertising, public relations, promotions, and sales. Hence, we can think of Marketing as covering the introduction, promotion, and sales of a product or service.

So what makes this function so important?

1. Marketing identifies the customer need:
Marketing provides the inputs for what a customer wants, how it should be promoted and effectively delivered.

According to Prof. Haney Hansen “Marketing involves the design of the products acceptable to the consumers and the conduct of those activities which facilitate the transfer of ownership between seller and buyer.”

2. Marketing raises and maintains the standard of living of the community:
Professor Malcolm McNair has said that “Marketing is the creation and delivery of standard of living to the society”. Marketing has played an important role in raising and maintaining living standards of the community. Community comprises of three classes of people i.e., rich, middle and poor. Everything which is used by these different classes of people is supplied by Marketing.

3. Marketing creates employment:
Marketing is complex mechanism involving many people in one form or the other. Marketing covers buying, selling, financing, transport, warehousing, risk bearing and standardisation. In each such functionm different activities are performed by a large number of individuals and bodies. Huegy and Mitchell have rightly pointed out that “In order to have continuous production, there must be continuous Marketing; only then employment can be sustained and high level of business activity can be continued”.

4. Marketing as a source of revenue:
The performance of Marketing function is all important, because it is the only way through which the business can generate revenue and bring in profits. Buskirk has pointed out that, “Any activity connected with obtaining income is a Marketing action. It is all too easy for the accountant, engineer, etc., to operate under the broad assumption that the company will realise many dollars in total sales volume. However, someone must actually go into the market place and obtain dollars from society in order to sustain the activities of the company, because without these funds the organisation will perish.”

5. Marketing acts as a basis for decisions:
A businessperson is confronted with many problems in the form of what, how, when, how much and for whom to produce? In the past complexity was lower on account of local markets. There was a direct link between producer and consumer.

In modern times Marketing has become a very complex and tedious task. Marketing has emerged as a new specialised activity along with Production.

As a result, producers are depending largely on the mechanism of Marketing to decide what to produce and sell. With the help of Marketing techniques a producer can regulate its production.

6. Marketing acts as a source of new ideas:

The concept of Marketing is a dynamic one. It has changed with the passage of time. Such changes have far reaching effects on Production and Distribution. With the rapid change in tastes and preference of people, Marketing provides key inputs and ideas to the business.

Marketing as an instrument of measurement gives scope for understanding this new demand pattern and thereby produce and make available the goods accordingly.

7. Marketing is helpful economic development:
Adam Smith has said that “nothing happens in our country until somebody sells something”. Marketing is the kingpin that sets the economy revolving. The Marketing organisation, more scientifically organised, makes the economy strong and stable, the lesser the emphasis on the Marketing function, the weaker will be the economy.

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