What is the Importance of Marketing?

Marketing benefits three different parties involved in the marketing process-
1. Manufacturer
2. Buyer
3. Society

Benefits accruing to the Manufacturer –

a. Marketing brings efficiency in the organisations structure. With clearly defined task responsibilities and integrated marketing management structure, the overlapping of activities and confusions is taken care of. For any information or data requirement the management can reach out to that particular department. It becomes easy to bring changes in any marketing strategy because of clear differentiation of tasks.

b. Marketing sustains the company by bringing in profits. Marketing is the only activity by which the company predicts the production requirements curtailing to the consumers desires. By satisfying the needs and wants of the buyers Marketing sustains the organisations activities. It helps directs and develops the organisation

c. Marketing is the source of new ideas. The marketing process involves providing market offerings to the target market at a profit to the company. A lot of research takes place in getting the market requirements and getting the desired offering created. It’s the marketing people who are in continuous touch with the consumers and various partners involved in the communication and distribution of the offering. The feedback mechanism helps in continuous improvement of the offering and achieving customer loyalty for a long period.

d. Marketing helps in deciding and achieving long term business goals. The top management has to depend on the marketing functions to understand the market. Therefore it is of utmost importance that an organisation has a strong Marketing function. The marketing oriented company continuously helps an organisation in creating and modifying the product that is better and competitively priced.

Benefits accruing to the Buyer –

a. Meeting the needs as well as future needs of buyers. Marketing research identifies those needs or wants which a potential buyer wants and may desire in future.

For example-
1. Water tanks placed on a house were constructed from cement and mortar. As it needed continuous cleaning and was difficult to move it or repair it, the manufacturers started making water tanks made of good quality plastics which took care of all the problems related to the permanent water tanks made from mortar and cement.
2. After industrial revolution most of the households had working couples. The new concept to meet the unmet needs gave rise to Fast Food offerings which the organisations started delivering at the door step.

b. Makes a better offering available at competitive price.Marketing popularises an offering via communication channels which results in increase in demand and draws in competition.Increase in competition leads to a better offering at a reduced price. Thus the growing demand and increasing competition both help in bringing down the price of the product or service.
For example-
Prices of Television Sets has gone down considerably because of the entry of new local as well as global players. Same holds true for Mobile handsets.

c. Information about the product or service available before purchase. Due to labeling of products the buyers have all the details and characteristic available with them before they buy the product. It is a law in some states to share all the details of the products on the package.
For example, nutritional information on food items, etc. The demonstration of products at the stores or home help the buyers take a concrete decision on making the purchase.

Benefits accruing to the Society –

a. Marketing helps improve standard of Living. Marketing continuously creates demand of better products and services in the market which improves the standard of living of the people. A women who desired to look like a movie star can easily buy beauty products in a town or on the internet at a reasonable rate because of the variety offered by the manufacturers. It is for meeting the unmet needs that products are created and made easily accessible.

b. Marketing creates Employment. Marketing involves a range of activities and creates employments in advertising agency, in the company sales force, in the distributors’ sales force, in public relation firms etc. Due to rise in the demand of products, manufacturers go into mass production which brings in more employment. If the demand increases more the manufacturers enter global markets resulting in more employment opportunities. Manufacturing hubs in developing countries or BPO sector gives rise to employment and spending power of the society.

c. Marketing helps stabilize economic condition. An ideal stable economy comprises of a balanced demand and supply. With continuous change in living standards of people the demands keep changing which results in change in the strategy of the organisation. This results in a continuous effort in stabilising the economy. Any mismatch in supply or demand result in either less production or more production which is not good for an economy. An effective marketing strategy helps create a balanced economy by constant production to meet the market demand.