1. IMPORTANCE OF MARKETING?
Meaning: -Marketing is important to business and non business organization. It is also beneficial to customers and society. Marketing is one of the vital functional areas of a business organization. Marketing is the art and science of getting and growing customers by offering products/services that enhance their satisfaction. Today’s business is customer oriented. One need to build, maintain and enhance long term customer relationship.
Definition: -In 2008 American Marketing association gave a broader definition of marketing as follow:- “Marketing is the activity, set of institution and process for creating, communicating, delivering and exchanging offering value that have value for customers, clients, partners and society at large.”
1. Organizational objectives: -Marketing helps to achieve organizational objectives. Systematic activities such as effective product designs, pricing, promotion and distribution helps a firm to increase its sales and generate profits, brand image, market shares, corporate image etc.
2. Customer satisfaction:- Nowadays. Marketers place focus on customer satisfaction. Customer satisfaction has a connection between product performance and customer expectation.
3. Competitive advantage: -Effective marketing helps to face competition in the market. Professional marketers are proactive in decision-making. They need to come up with; 1. Innovative design or models. 2. Creative promotion schemes. 3. Effective customer relationship techniques, etc.
4. Corporate image: -Effective marketing enables a firm to develop and enhance its corporate image. Due to effective marketing (right product, price, etc.,) the firm achieves higher performance. A good corporate image in the minds of customers, employees, shareholders, suppliers, dealers, etc., helps a firm to expand and grow.
5. Brand Loyalty: - Effective marketing helps to develop brand loyalty. Brand loyalty refers to;
· Repeat purchase by satisfied customers
· Recommendations by existing customers to friends, neighbors’ and others.
· Marketing guru A1 Ries says that customer word of mouth is the best alternative to advertising.
6. Brand Equity: -Marketing activities develop brand equity. Brand equity is the incremental value of brand over and above its physical qualities. Customers are willing to pay premium price for effectively marketed brands.
7. Business Expansion: -Marketing enables a firm to expand its business from local level to national and even at international level. A firm can expand its business with the help of market related activities brands.
8. Brand Image: -Marketing activities improves brand image. Brand image is the perception (awareness) of the brand in the mind of customers. Good brand image gives competitive edge to the firm in the market.
9. Helps to introduce new product: -Reputed firms find it easier to introduce new products in the market, this is because; they enjoy confidence and support of the loyal customers. They also provide unsolicited (unwelcome) feedback.
10. Motivation to employees: -Marketing helps to motivate employees, especially, that of the marketing department. Due to effective marketing, the company may get higher performance in terms of market share, profits, etc. therefore, the employees may be motivated by giving higher incentives, monetary incentives and non-monetary incentives.
11. Higher returns to share holders: -Effective marketing may bring in more returns in terms of profit to the firm; therefore, the shareholders may be rewarded in terms of regular and higher dividend, bonus shares. Etc.
12. Benefits to other stake holders: - Effective marketing may bring in higher returns to the firm. Not only the employees and shareholders are benefited, but also the other stakeholders, like 1. Government may get higher tax revenue, 2. Dealers may get extra incentives. 3. Suppliers may get more orders and payment on time. 4. Society may be benefited to social development activities by profitable firms.