Meaning of Market
The term market is derived from the Latin word ‘Mercatus‘, which means ‘to trade’, ‘to trade
merchandise or a place where business is transacted.
In simple words market is a place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers. The transaction of buying and selling takes place with exchange of money.
Meaning of Marketing
Marketing is a key function of modern management. We are exposed to marketing of products and services and ideas almost every day. The study of marketing plays an important role as everyone of us performs marketing activities in one or the other form.
Marketing has different meanings based on audience, media platform, and business in changing markets.
Definition of Marketing
- Nature of Principle of Management
- Importance of Principles of Management
- Henri Fayol 14 Principles of Management
- Scientific Principles of Management
- Techniques of Scientific Management
In the absence of marketing, many businesses would fail to exist. The prime object of production is to distribute goods and services by using effective marketing.
Businesses could have the most amazing products or services, but if no one knows it exists then businesses will not be able to sell them. There is a need to use marketing to promote business. Without marketing, it is difficult to reach potential customers.
In the olden days, the role of marketing was only to communicate the product to the consumers, but this is not the case today. The role of marketing is too diverse in the modem world. Effective marketing helps organizations to survive in competitive environments.
Importance of Marketing to the Society
1) Increase in Standard of Living
The prime objective of marketing is to provide goods and services to the customers to satisfy their needs. Paul Mazur defined marketing as, “The delivery of standard of living to the society“.
Marketing helps to identify the needs of the customers and take an initiative to provide quality goods at cheaper prices. This will help to increase and maintain the standard of living of the customers.
In modern times, large-scale production of goods and services reduced its prices due to which even the poorer sections of society can attain a reasonable level of living.
2) Provides Employment
Modern marketing is a total system that covers almost all functions of organization such as buying, selling, financing, transport, warehousing, risk bearing, research, and development, etc.
To run this system there is a need of people. Thus, marketing gives job opportunities to people. In the modern era of automation, lesser employments are available in the production function and the role of marketing has widened. It gives more opportunities of employment in marketing.
Converse, 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“.
3) Decreases Distribution Costs
Marketing activities help to provide cheap goods and services to society. Effective utilization of channel of distribution can help in reducing the cost prices of the products and services.
Reduction of cost will help to increase the potential consumers for the products or services. It also assures timely availability of the product.
4) Consumer Awareness
Marketing helps society by informing and educating consumers. The function of marketing is to fulfill the needs of the consumers. Marketing helps consumers to know about new products and services available in the market and its usefulness to the customer.
Marketing provides satisfaction to society by supplying relevant information, goods, and services to the people of society according to their demands and taste. Marketing can also include more practical information to assist in making a purchase, such as addresses, phone numbers, product release dates, store hours, and Web addresses.
5) Increase in National Income
Every economy revolves around marketing, production, and finance to the industry. The scientifically organized marketing activities help in the economic development of the country. Effective marketing of products and services result into industrialization, more job, and makes the economy stronger and stable. Marketing can bring about rapid development of the country by integration of agriculture and industry.
6) Managing Consumer Expectations
Marketing research helps organizations to understand the needs of the consumers. It helps in developing products that fulfill customers’ expectations. Customers’ reviews collected through different sources can help the organizations to make necessary changes in the products.
Businesses use marketing to make consumers aware of major changes, such as mergers and transfers in ownership that affect product offerings or seek to improve quality. Government regulations prevent marketers from making false or misleading claims.
Importance of Marketing to the Firm
1) Increases Awareness
Marketing helps in creating awareness about the existing products, new arrivals as well as the company which sells a particular product in the market. This raises awareness among the potential consumers. It creates brand image among the consumers.
2) Increases Sales
Once marketing creates awareness about the products or services among the consumers, it attracts them to purchase the same. A successful marketing campaign helps to increase the sales of the organization. An increase in sales generates profit for the organization.
This income and profit are reinvested in the business to earn more profits in the future. In modern business, the survival of the organization depends on the effectiveness of the marketing function.
3) Creates Trust
People want to buy from a business that has a trustworthy reputation. Creating trust among the customers is a time-consuming process. Creating trust among the consumers helps the business to earn loyal customers. Once your business can establish this trust with your clients, it creates customer loyalty. Happy customers enhance the brand image in the market.
Effective marketing plays an important role in building a relationship between the customers and the organization. Effective pricing policy and timely after-sales services improve the image of the organization. A majority of the activities of the marketers are directed towards building the brand equity of the business.
4) Basis for Making Decisions
From the inception of an idea to delivering the final product to the customer, a businessman has to take several decisions. The businessman has to look after many problems such as what, how, and when. how much and for whom to produce? As the scale of operation increases, these decisions become more complex. Marketing helps to take right decision at right time.
5) Source of New Ideas
Marketing helps businesses to understand the needs of the consumers. Feedbacks from the consumers help in the improvement of the existing products. There is a rapid change in the tastes and preferences of people.
Marketing helps in understanding these changes. It helps to understand new demand patterns that emerged in the market. The research and development department develops products accordingly.
The 4p’s of marketing mix i.e. product, price, place, and promotion play a huge role in product development. Inventions and innovations are taking place as per the need of the Research and Development team of the business.
6) Tackling the Competition
There is increasing competition in almost all sectors of the economy. It is difficult for any business to create a monopoly for their products and services. The role of marketing is important to create a brand image in the minds of potential customers.
Marketing not only helps to communicate the products and services to the consumers but also motivates them to buy the same. Sound marketing strategies can portray a better image of the business than the competitors. Businesses can make use of modern technology for effective marketing.
Importance of Marketing to the Consumers
1) Promotes Product Awareness:
Through different marketing activities, companies promote their products and services. This helps consumers to know about different products and services available in the market. It helps the consumer in making buying decisions.
It also creates awareness among the consumers about different brands and features of the product available in the market. A consumer can compare product features, price, availability, and other essentials because of marketing. Marketing helps to improve the quality of life of the consumer.
2) Provides Quality Products
There is increasing competition in the market. Consumers are getting easy access to information about the products and services available in the market.
It creates moral pressure on businesses to provide quality goods to consumers. Supplying defective products may create a negative image of the business which affects the consumer’s loyalty.
3) Provides a Variety of Products
Marketing creates awareness among the consumers about the product. At the same time, it attracts consumers to buy the same. With the customer population and preferences becoming wider, and the competitive options becoming more available, market segmentation has become critical in any business or marketing plan.
In fact, businesses launch products keeping market segmentation in mind. A businessman needs to provide a variety of goods to cater to the needs of the different market segments of the consumers. Variety may change according to the price, size, and quality of the product.
4) Helps in Selection
A variety of products with different brands is available in the competitive markets. Marketing helps the consumer choose the best products and services from the different options available.
5) Consumer Satisfaction
The first and foremost objective of any sound marketing policy is to satisfy the consumers with an assurance of good quality products. When an offering meets the customer’s expectations, the customer is satisfied.
Marketing leads to consumer satisfaction through honest advertising, assurance of quality products, and availability of innovative products. Thus, marketing takes every effort to satisfy the consumer.
6) Regular supply of goods
Through efficient distribution channel of marketing regular supply of goods is possible. It helps to maintain the balance between demand and supply. It results into stable prices.