Objectives and Importance of Marketing | Principles of Marketing Notes CBCS Pattern | B.Com 5th Sem Hons

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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