Objectives and Importance of Marketing
Principles of Marketing Notes
CBCS Pattern
B.Com 5th Sem Hons
Marketing
Marketing is an ancient art and is found everywhere.
Formally or informally, people and organizations engage in a vast numbers of
activities relating to exchange of goods and services that could be called
marketing. Good marketing has become an increasingly vital ingredient for
business success. It is embedded in everything we do- from the clothes we wear,
to the web sites we click on, to the ads we see. Marketing deals with
identifying and meeting human and social needs or it can be defined as “meeting
needs profitably”.
The American Marketing Association has defined
marketing as “an organizational function and a set of processes for creating,
communicating and delivering value to the customers and for managing customer’s
relations in ways that benefit the organization and the stake holders.”
Peter Drucker says it this way that,” the aim of marketing is to know & understand the customer so well that the product or service fits him and sells itself. All that should be needed is to make the product or the service available.”
Objectives of Marketing
The major objectives of marketing are as follows:
1. To satisfy the customers: The marketing manager must scientifically
study the demands of customers before offering them any goods or services.
Selling the goods or services is not that important, as the satisfaction of the
customer’s needs. Modern marketing thus always begins and ends with the needs
of customers.
2. To increase profits for the growth of the business: The marketing
department is the only department which generates revenue for the business.
Sufficient profits must be earned as a result of sale of want-satisfying
products. If the firm is not earning profits, it will not be able to survive in
the market. Moreover, profits are also needed for the growth and
diversification of the firm.
3. To generate customer base for the business: The Marketing manager
must attract more and more customers to buy the firm’s products and services.
This will also result into increased sales.
4. To determine marketing-mix that will satisfy the needs of the customers:
Product, pricing, promotion and physical distribution should be so planned as
to meet the requirements of different kinds of customers.
5. To increase the quality of life of people: Marketing Management
attempts to increase the quality of life of the people by providing them better
products at reasonable prices. It facilitates production and distribution of a
wide variety of goods and services for use by the customer.
6. To create good image: To build up the public image of firm over a
period is another objective of marketing. The marketing department provides
quality products to customers at reasonable prices and thus creates its impact
on the customers. The marketing manager attempts to increase the goodwill of
its business by initiating image building activities. If a firm enjoys goodwill
in a market, it will increase the morale of its sales-force. They will show
greater loyalty and will develop a sense of service to the customers. This will
further enhance the reputation of the business.
Importance and Uses of Marketing (Role of Marketing)
Marketing is a
unique function of business which satisfies social values, needs and wants of
an individual. It serves as the springboard for all industrial production. The
importance of marketing can be studied under the following heads:
A. Uses to the Society
(1) Employment of
Various Persons: Since the things are manufactured
or produced due to marketing, hence many people get employment through the
production activities. Transport, storage and wholesale and retail services
cover many persons. In this way, it might be said that by marketing the
employment is created.
(2) Availability of
Various Products for Use: Today, the sphere of
marketing has become worldwide or international. Due to it, the products
manufactured in the foreign lands too become available for consumption. All
this could become possible due to the growth of the marketing and its
development.
(3) Increase in the
National Income of Country: If the marketing
activities are efficiently undertaken and things are produced in accordance
with the needs or requirements of the customers, there must be some increase
in the demand of the things. The production goes up which leads to the increase
in the national income.
(4) Protecting the
Economy against the Evil Effects of Depressions: If
the produced goods are not sold, there shall be piled up the unsold materials
with the producers and they will fall victim to the depression effects. Thus
the marketing keeps the economy safeguarded against the evil effects of the
depressions.
(5) Increase in the
Standard of Living: By an efficient system of
marketing, there is a fall in the prices of the products which ultimately leads
to the enhancement in the consumption capacity of the society which ultimately
brings reforms and improvement in the standard of living of the society.
B. Uses to the Producers
(1) Helpful in
Earning More Profits: Whenever any manufacturer
produces some commodity, he has to seek the help of so many people in letting
the same reach the hands of the consumers. For instance, there is the need of
the middlemen, the godown owners, the traders, the owners of transport companies,
etc. By establishing proper distribution channel, more profits can be earned.
(2) Getting Information
Regarding Demand. By the study of marketing,
the producers are able to get information regarding the changing demands.
(3) Reduction in
Distribution Costs. By the wide studies of
distribution, it is also known that the products be passed on to the consumers
on the minimum possible costs.
(4) Helpful in Production
Planning. The producer, by studying the
marketing, could plan his various policies pertaining to production.
C. Uses to the Consumers
While purchasing the products, the consumers must have
full knowledge of the things. This can be possible only through marketing. By
the study of marketing, the consumer is able to acquire knowledge as to how the
middlemen resort to their exploitation. For avoiding the middlemen's
exploitation, the consumer co-operative societies are being promoted and
developed.
D. Uses to the Middlemen
By the 'middlemen' is meant those persons who send the
products from the producer to the consumer. The lower are the expenses of the
middlemen, the greater is their profit. By studying the marketing, they get the
knowledge as to how the expenses of distribution be kept lower. Unless the
middlemen possess sufficient knowledge of marketing, they can't become
successful.
E. Uses to the Nation
With the help of marketing, in the progressive and developing countries too, good managers and entrepreneurs can be encouraged. For resorting to the most efficient use of the resources available in the country, marketing of the commodities is very necessary. By the study of marketing, the economy could be kept safeguarded against the evil effects of instability. Only due to the marketing, the processes of production and distribution continue to exist. In it the condition of full employment could be achieved. Really speaking, marketing occupies an important role in the economic development.
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