Importance of marketing is mainly attributed to the following category:
A. Importance to the Firms:
1. Business planning and decision-making-
Marketing is helpful not only to plan the production but also in business planning and taking various decisions regarding business. In today’s economy, production is planned according to the sales forecasts and not according to the production capacity of the firm. All activities such as planning, production, purchase, finance or design revolve around the marketing decisions. Thus, marketing decisions influence. the business decisions.
2.Increasing profits-Every business is carried on with the profit motive. Marketing helps in increasing the business profits by reducing the selling cost on one hand and increasing the demand of the product on the other hand through advertising and sales promotion activities.
3.Source of information–
Business collects various information regarding customer’s changing behaviors from time to time through marketing. Marketing also provides information to the firm about the competitors, products, production, marketing and price policies. It helps the firm in framing its own policies or making necessary adjustments therein accordingly.
C. Importance to underdeveloped economy-
Marketing has a special significance in underdeveloped economies. A rapid development of the economy is possible only by adopting the modern methods of marketing. An effective marketing system will help mobilize modern and innovative techniques of marketing.
D. Importance to Developed Economy-
In developed countries, the volume of production with all its up-to-date technology is generally more than the demand. In order to maintain the level of production, it is absolutely necessary that the quantity produced must be disposed off rapidly within the country itself or abroad which is possible only by a very sound and advanced “Marketing System”.
E. Importance in Buyer’s and Seller’s Market-
When the supply of goods exceeds the demand, it is called buyer’s market. On the other hand, when the demand for the goods and services exceeds supply, it is called seller’s market. In such a situation, only those firms succeed which adopts, “Marketing System”.
