This document provides an agenda and overview for a presentation on markets and marketing. It includes definitions of key terms like market and marketing. It describes 5 concepts in marketing: production, product, selling, marketing, and societal marketing concepts. It outlines the importance of marketing for society/consumers and organizations. It also discusses different approaches to marketing like product, institutional, functional, management, and system approaches. Finally, it lists factors that influence the marketing concept such as growth of population, changing family concepts, and urbanization.

1. UNIT 1
MARKET & MARKETING

2. AGENDA
1. INTRODUCTION
2. MARKETING
3. FIVE CONCEPTS DESCRIBED
4. IMPORTANCE OF MARKETING
5. APPROACHES IN MARKETING
6. FACTORS INFLUENCING MARKETING
CONCEPT
7. FUNCTIONS OFMARKETING
8. MARKETING MANAGEMENT
2

3. INTRODUCTIO
N

4. 2/16/2023 PRESENTATION TITLE 4

5. MARKET
The word Market is derived from the Latin word “Marcatus” meaning merchandise,
wares, traffic or place where business is conducted The market actually refers to a set
up where potential buyers and sellers can meet to exchange goods or services. It is
basically a medium that facilitates these transactions in an economy. It allows for the
exchange of goods, services, information under the protection of the law and generally
in exchange for consideration.In a common sense, market means a place where goods
are bought or sold.
5

6. DEFINITION
According to Pyle, “Market includes both place & region in which buyers and
sellers are in free competition with one another.”
2/16/2023 6

7. ON THE BASIS OF
GEOGRAPHICAL AREA
A. Family Market: When exchange of goods or services are confined within a family or close members of the
family, such a market can be called as family market.
B. Local Market: Participation of both the buyers and sellers belonging to a local area or areas, may be a town
or village, is called as local market. The demands are limited in this type of market. For example, perishable
goods like fruits, fish, vegetables etc. But strictly speaking such markets are disappearing because of the
efficient system of transportation and communication. Even, then, in many villages such markets exist even
today.
C. National Market: a. Certain type of commodities has demand throughout the country. Hence it is called as
a national market. Today the goods from one corner can reach another corner with ease as the
communication and transportation facilities are developed well in India. This creates national markets for
almost all the products.
D. International Market or World Market: World or international market is one where the buyers and
sellers of goods are from different countries i.e., involvement of buyers and sellers beyond the boundaries of
a nation.

8. ON THE BASIS OF
COMMODITIES/GOODS
A. COMMODITY MARKET:
A commodity market is a place where produced goods or consumption goods are bought and
sold. Commodity markets are sub-divided into:
i. Produce Exchange Market: It is an organised market where commodities or
agricultural produce are bought and sold on wholesale basis. Generally it deals with a single
commodity. It is regulated and controlled by certain rules. e.g. Wheat Exchange Market of
Hapur, the Cotton Exchange Market of Bombay etc.
ii. Manufactured Goods Market: This market deals with manufactured goods. e.g.,
Leather goods, Manufactured machinery etc. The Leather Exchange Market at Kanpur is an
example of the same.
iii. BULLION MARKET: This type of market deals with the purchase or sale of gold and
silver. Bullion markets of Mumbai, Kolkata, Kanpur etc., are examples of such markets.
8

9. B. CAPITAL MARKETS:
New or going concerns need finance at every stage. Their financial needs are
met by capital markets. They are of three types:
i. Money Market: It is a type of market where short term seurities are
exchanged. It provides short term and very short term finance to industries,
banks, governments agencies and financial intermediates.
ii. Foreign Exchange Market: It is an international market. This type of
markets helps exporters and importers, in converting their currencies into
foreign currencies and vice versa.
iii. The Stock Market: This is a market where sales and purchases of shares,
debentures, bonds etc., of companies are dealt with. It is also known as
Securities market. Stock Exchanges of Mumbai, Kolkata, Chennai etc., are
examples for this type of market.
9

10. ON THE BASIS
OF ECONOMICS
a. PERFECT MARKET: A market is said to be a perfect market, if it satisfies the following conditions:
i. Large number of buyers and sellers are there.
ii. Prices should be uniform throughout the market.
iii. Buyers and sellers have a perfect knowledge of market.
iv. Goods can be moved from one place to another without restrictions.
v. The goods are identical or homogenous.
It should be remembered that such types of markets are rarely found.
b. IMPERFECT MARKET: A market is said to be imperfect when
i. Products are similar but not identical.
ii. Prices are not uniform.
iii. There is lack of communication.
iv. There are restrictions on the movement of goods. 10

11. ON THE BASIS OF
TRANSACTION
i. SPOT MARKET: In such markets, goods are exchanged and
the physical delivery of goods takes place immediately.
ii. FUTURE MARKET: In such markets, contracts are made
over the price for future delivery. The dealing and settlement take
place on different dates.
11

12. ON THE BASIS OF
REGULATION
i. REGULATED MARKET: These are types of markets which
are organised, controlled and regulated by statutory measures.
Example: Stock Exchanges of Mumbai, Chennai, Kolkata etc.
ii. UNREGULATED MARKET: A market which is not
regulated by statutory measures is called unregulated market.
This is a free market, where there is no control with regard to
price, quality, commission etc. Demand and supply determine the
price of goods.
12

13. ON THE BASIS
OF TIME
i. VERY SHORT PERIOD MARKET: Markets which deal in
perishable goods like, fruits, milk, vegetables etc., are called as very
short period market. There is no change in the supply of goods. Price is
determined on the basis of demand.
ii. SHORT PERIOD MARKET: In certain goods, supply is adjusted to
meet the demand. The demand is greater than supply. Such markets are
known as Short Period Market.
iii. LONG PERIOD MARKET: This type of market deals in durable
goods, where the goods and services are dealt for longer period usages.
13

14. ON THE BASIS OF
VOLUME OF BUSINESS
i. WHOLESALE MARKET: In wholesale market goods
are supplied in bulk quantity to dealers/ retailers. The
goods and services are not sold to customers directly.
ii. RETAIL MARKET: In retail market the goods are
purchased from producer or wholesales and sold to
customers in small quantities by retailers.
14

15. ON THE BASIS
OF IMPORTANCE
i. PRIMARY MARKET: The Primary producers of farm sell their output or
products through this type of markets to wholesalers or consumers. Such markets
can be found in villages and mostly the products arrive from villages.
ii. SECONDARY MARKET: In this market, the semi finished goods are marketed.
Here finished goods are not sold. The commodities arrive from other markets.The
dealings are commonly between wholesalers or between wholesalers and retailers.
iii. TERMINAL MARKET: It is a central site that serves as an assembly and
trading place for commodities in a metropolitan area. For agricultural commodities
these are usually at or near major transportation hubs.
15

16. MARKETIN
G

17. MARKETING
• Marketing means a business function entrusted with the creation and satisfaction
of customers to achieve the aims of business.
• Marketing is a very wide term. It includes all the activities involved right from the
production of the goods, until their consumption. Every activity in between, like
designing, pricing, promotion, distribution, transportation, warehousing etc are
activities of marketing.
DEFINITION
• According to American Marketing Association, “Marketing is considered with the
people and the activities involved in the flow of goods and services from the
producer to the consumers.”
• According to W.J.Stanton, “Marketing is a total system of business activities
designed to plan, price, promote and distribute wants satisfying goods and
services to the present and potential customers.”
17

18. FIVE
CONCEPTS
DESCRIBED

19. THE PRODUCTION CONCEPT
This concept is the oldest of the concepts in business. It holds that consumers will
prefer products that are widely available and inexpensive. Managers focusing on
this concept concentrate on achieving high production efficiency, low costs, and
mass distribution. They assume that consumers are primarily interested in product
availability and low prices. This orientation makes sense in developing countries,
where consumers are more interested in obtaining the product than in its features.
THE PRODUCT CONCEPT
This orientation holds that consumers will favor those products that offer the most
quality, performance, or innovative features. Managers focusing on this concept
concentrate on making superior products and improving them over time. They
assume that buyers admire well-made products and can appraise quality and
performance. However, these managers are sometimes caught up in a love affair
with their product and do not realize what the market needs. Management might
commit the “better-mousetrap” fallacy, believing that a better mousetrap will lead
people to beat a path to its door. 19

20. 20
THE SELLING CONCEPT.
This is another common business orientation. It holds that consumers and businesses, if left alone, will
ordinarily not buy enough of the selling company’s products. The organization must, therefore, undertake an
aggressive selling and promotion effort. This concept assumes that consumers typically show buying inertia or
resistance and must be coaxed into buying. It also assumes that the company has a whole battery of effective
selling and promotional tools to stimulate more buying. Most firms practice the selling concept when they have
overcapacity. Their aim is to sell what they make rather than make what the market wants.
THE MARKETING CONCEPT.
This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized
in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of
the company being more effective than competitors increating, delivering, and communicating customer value
to its selected target customers. The marketing concept rests on four pillars: target market, customer needs,
integrated marketing and profitability.
THE SOCIETAL MARKETING CONCEPT.
This concept holds that the organization’s task is to determine the needs, wants, and interests of target markets
and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original
Marketing Concept). Additionally, it holds that this all must be done in a way that preserves or enhances the
consumer’s and the society’s well-being.
This orientation arose as some questioned whether the Marketing Concept is an appropriate philosophy in an
age of environmental deterioration, resource shortages, explosive population growth, world hunger and poverty,
and neglected social services.

21. IMPORTANCE
OF MARKETING

22. 2/16/2023 PRESENTATION TITLE 22

23. MARKETING AND SOCIETY / CONSUMERS
1. INCREASE IN THE STANDARD OF LIVING
Importance of marketing, modern society is divided into three classes (1)Rich Class (2) Middle Class and (3) Poor class. Standard
of living of society is mainly depends on purchasing power of these classes. Better standard of living needs, fulfillment of various
wants, which is possible with the help of marketing.
2. EMPLOYMENT OPPORTUNITIES
Importance of marketing, marketing is a prominent instrument of employment. These process includes various activities such as
buying, selling warehousing, transportation, grading, finance, risk undertaking, etc., which provides employment to the number of
persons. Thus marketing generates sufficient scope for employment to thousands of people and improve their income levels.
3. ECONOMIC STABILITY
Importance of marketing, marketing plays a vital role, in the economic stability of a country. Economic growth depends on
economic stability. Economic stability depends on balance between production and consumption, i.e. demand and supply. To
maintain balance in production and consumption marketing is necessary. Marketing maintains this balance and stabilizes the
economy.
4. Creates utility
Importance of marketing, marketing is an economic activity. It creates ownership, place and time utility in goods and services.
Marketing creates demand. Various activities of marketing create utility. E.g. Exchange of goods offered,s ownership, time utility
and place utility is created due to warehousing and transportation. Thus, marketing provides value to the goods and services. It also
provides goods at the right time at right place and at reasonable price.
5. SATISFACTION OF HUMAN WANTS
Importance of marketing, marketing plays a significant role in the distribution of goods and services to the consumer satisfaction
of their wants. It is the activity which transfers goods and service from the place of consumption to satisfy the needs of society.
23

24. MARKETING AND ORGANIZATIONS
1.GAIN INCOME
Importance of marketing, organizational profits depends on its income, while the future of organization depends on its
profit. Importance of marketing, organizational profits based on its income, while the future of organization depends
on its profit. Organizations can earn the profit through various activities. Marketing provides 'Market' to goods and
services. The function of marketing develops, wants and fulfils the same. Organizations can spend on production and
marketing through the income earned.
2.MARKETING INFORMATION IMPORTANCE OF MARKETING
modern economics is dynamic in nature. There are tremendous and rapid changes in likes, dislikes, price and demand.
An entrepreneur has to take decisions according to changed environment. Entrepreneurs have to search new products,
new customers, new market, new process of production and so on. Producer can collect all this information from
various marketing sources and can introduce changes in their production, and can survive in the competition.
3.SOURCE AND CHANNEL OF NEW IDEAS
Importance of marketing, Marketing is a significant and complex aspect of the modern dynamic economy. Dynamic
changes constantly occur in the field of marketing, which is very essential for providing sources and channels of new
ideas and guiding policies.
4.DECISION MAKING
Importance of marketing, Producers produce goods and services. He has to take major decision like what to produce?
Where to produce? How much to produce? All these decisions directly affect the profit. These decisions are major and
hence are difficult to take. Marketing helps producers to take the proper decisions, at the right time. Hence, “Success”
of business and proper decisions are interdependent, which is possible due to marketing.
24

25. APPROACHES
IN
MARKETING

26. 1. PRODUCT OR COMMODITY APPROACH:
Under the commodity approach the focus is placed on the product or it is an approach on the marketing on
commodity wise basis. In other words, the study relates to the flow of a certain commodity and its movement
from the original producer right up to the ultimate customer. The subject-matter, under this study, is commodity.
2. INSTITUTIONAL APPROACH:
In the institutional approach, the focus is on the study of institutions- middlemen, wholesalers, retailers,
importers, exporters, agencies, warehousing etc., engaged in the marketing during the movement of goods. The
approach is also known as middlemen approach. Here, emphasis is given to understand and analyses the
functions of institutions, who are discharging their marketing functions.
3. FUNCTIONAL APPROACH:
The functional approach gives importance on the various functions of marketing. In other words, one
concentrates attention on the specialized services or functions performed by marketers. In this approach,
marketing splits into many functions-buying, selling, pricing, standardization, storage, transportation,
advertising, packing etc. This may be studied one after another. Here each function is studied in detail in order
to understand it and analyses the nature, need and importance of each function.
4. MANAGEMENT APPROACH:
This approach is the latest and scientific. It concentrates upon the activities or marketing functions and focuses
on the role of decision-making at the level of firm. This approach is mainly concerned with how managers
handle specific problems and situations. It aims through evaluation of current market practices to achieve
specific marketing objectives. 26

27. 27
5. SYSTEM APPROACH:
The system approach can be defined as “a set of objects together with the relationships among them and their
attributes.” Systems focus on interrelations and interconnections among the functions of marketing. The system
examines marketing connections (linkage) inside as well as outside the firm. Inside the firm there is a co-
ordination of business activities-engineering, production, marketing, price etc.
6. Societal Approach:
This approach has been originated recently. The marketing process is regarded as a means by which society
meets its own consumption needs. This system gives no importance as to how the business meets the
consumer’s needs. Therefore, attention is paid to ecological factors (sociological, cultural, legal etc.) and
marketing decisions and their impact on the society’s well-being.
7. LEGAL APPROACH:
This approach emphasizes only one aspect i.e., transfer of ownership to buyer: It explains the regulatory aspect
of marketing. In India, the marketing activities are largely controlled by Sales of Goods Act, Carrier Act etc.
The study is concentrated only on legal aspects, leaving other important aspects. This does not give an idea of
marketing.
8. ECONOMIC APPROACH:
This approach deals with only the problems of supply, demand and price. These are important from the
economic point of view, but fail to give a clear idea of marketing.

28. FACTORS
INCLUENCING
MARKETING
CONCEPT

29. There are good many factors that influence the marketing concept. Any firm operating under the marketing
concept receives signals from the market place. That is, detailed information regarding the consumer needs,
wants, desires and the desire backing or supporting parameters.
1. Growth of Population:
It goes without saying that an increase in population leads to increase in demand for goods and services. Market
we mean people their diverse needs desires and wants.
2. CHANGING CONCEPT OF FAMILY:
Over the years, the concept of joint family has lost its importance though it has many plus points. In place of
joint families, we come across the nucleus families which are divided which are a product of Western World.
This is based on astute individual freedom, supported by education, occupational mobility, migration and self-
relevance. More families mean more goods and services needed.
3. MORE DISPOSABLE INCOME:
The young generation has the advantage of increased and new job opportunities caused by changing values of
culture, life-style and quality of life. That is, their income avenues are increasing, leading to enhanced
purchasing power. Increased purchasing power backs up needs and desires and finally buying action.
4. MORE DISCRETIONARY INCOME:
The people are left with more surplus even after meeting their needs that enables to cross the barrier of hand to
mouth fashion of living. This discretionary income is now meant for not necessities but comforts and luxuries.
In fact, all are not lucky enough to have such surplus. However, it affects the very cycle of thinking and course
of action.
29

30. 5. Technological Advancement:
The process of science and technology is never ending. One invention or discovery leads to
another.The technological advancement is so fast that people are greatly and deeply
influenced by the wave of planned obsolescence. They shorten the life of products though
they can last longer. Thus, in earlier generations, the watch lasted for 20 years, 30 years and
even 50 years.People used to take pride in its longer life. Now a wrist watch, if it comes to
repairs, they exchange or dispose off as a scrap and go for new.
6. MASS-COMMUNICATION MEDIA:
The people learn about the arrival of new products and services because of the onslaught of
mass- communication media print audio visuals that hasten the speed of change and
exchange. Modern ad world has revolutionized the marketing process.
7. CREDIT FACILITIES:
Credit is the greatest weapon that makes the people to go in for those products which they
cannot easily afford. Now credit cards, zero per cent interest schemes have further made the
people to meet their pressing needs. A person speaks of car which he used to dream. Dreams
are a reality caused by modern credit and the plastic money.
30

31. FUNCTIONS OF
MARKETING

32. 1. BUYING
Function of marketing buying is the first step in the marketing process. Proper decision about what to buy, how to buy, where to buy and at
what price to buy, must be taken after adequate and appropriate research. Every trading concern needs efficient and economical buying to
get adequate profit.
2. SELLING
Functions of marketing selling involve a transfer of title of goods to the buyer. The main aim of sale of goods is to earn the profit. The
selling function creates demand for the products and involves creation and expansion of markets for the goods produced in anticipation of
demand. Thus selling increases profit of the business and production of goods and services available to the consumers in the society.
3. ASSEMBLING
Functions of marketing assembling means collecting goods of similar nature from different sources of supply, at one convenient central
place for further processing or distribution. Assembling is mostly done in case of agricultural goods. When goods are assembled at one
place, the cost of warehousing, standardizing, grading, packaging, labeling of goods is much
lesser. Demand for agricultural goods is perennial (through the year) and thus supply is maintained throughout the year.
4. STANDARDIZATION
Functions of marketing, A standard is a norm or criteria given to a product. It is a mental process of fix standards for a given product like
size, weight, color, strength, texture, purity, durability, performance, etc. A standard reflects the quality of the product and helps quality
control. It creates trust and confidence in the minds of customer. Organic certification for
agricultural goods and Fair-trade certification mark for manufactured and industrials goods. Standardization is very essential for branded
goods.
5. GRADING
Functions of marketing, grading refer to classification of products in different categories on the basis certain fixed standard. Grading is a
physical process. It follows standardization. Each product is grouped or graded. It reflects a certain level of quality. 32

33. 6. Branding
Functions of MARKETING, branding means giving a name, mark, symbol, color or a combination of these to a product. An
identity of a product is created, and a customer can distinguish the products from those of competitor's products. Brands give an
assurance of a certain level of quality and performance of the product. Branding is a tool used to survive, face and fight
competitions.
7. TRANSPORTATION
Functions of marketing, transportation refers to movement of goods and services from the place of production to the place of
consumption. It removes the problem of distance and helps in continuous production of goods, on a large scale. It helps in
expanding markets and maintains price stability and generates employment. It also helps in balanced development of a country.
8. WAREHOUSING
Functions of marketing, warehousing creates time utility. Goods have to be stored after they are produced until they are consumed.
At present, the goods are produced in anticipation of demand and so the producers store the goods systematically in warehouses
until the time of sale. Storage helps to keep the steady flow of goods throughout the year and also maintain price stability. The
producer can concentrate on production on a large-scale and also benefit from the economics of scale.
9. FINANCING
Functions of marketing, finance is the life blood of business, and finance is very essential for the smooth conduct of marketing
function. At every stage, it is very important to have adequate and cheap finance. Finance is made available through loans and
advances from banks and financial institutions.
10. MARKET RESEARCH
Functions of marketing, modern marketing requires a lot of information accurately, adequately and promptly to solve many
marketing problems. The study of the marketing problems enables the seller to know when to sell, where to sell, what price to sell,
who are the competitors, etc. The market information helps the seller to know the likes, dislikes, taste, and preference of the
customers.
33

34. MARKETING
MANAGEMENT

35. Meaning
• Marketing management has the direct responsibility to find out areas where the
company’s products and services fail to fulfill consumer needs and expectations
and to initiate vigorously marketing programs to provide desired satisfactions
explicitly demanded by consumerism. Marketing management’s nature and
objectives will have become vastly more consumer-oriented and much less
product and/or corporation-oriented for the maximum long-range benefits of the
corporation itself.
• Marketing management is the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals.According to the
American Marketing Association :
• "Marketing Management is the process of planning and executing the conception,
pricing promotion and distribution of ideas, goods and service to create exchanges
that satisfy individual and organisational objectives"
35

36. OBJECTIVES OF MARKETING MANAGEMENT
The main objective of all enterprises is to satisfy the customer needs and attain maximum profit. In the similar way, marketing
management aims to accomplish these business objectives effectively. Some of the basic objectives of marketing
management are as follows :
1) CREATING NEW CUSTOMERS :
The prime objective of marketing manager is to build new customers for the company's product. Managers Use different
techniques like advertisement, sales promotion, etc., to attract new customers. This objective helps in increasing sales of the
organisation.
2) SATISFYING CUSTOMER'S NEEDS AND WANTS :
Marketing managers should carefully determine the needs and demands of the customers in order to satisfy them with its
products and services. The process of marketing management is customer-oriented and all its marketing activities revolve
around customers.
3) INCREASING THE BUSINESS PROFITABILITY :
Marketing department is the main source of income for the organisation. The productivity and profitability of marketing
department ensures long-term survival and success of the organisation. Hence, profit-making is one of the major aims of
marketing management whichcan be guaranteed through high sales volume.
4) ENHANCING THE STANDARD OF LIVING :
Another key objective of marketing management is to enhance the living standards of people. Therefore, marketing involves
various innovative techniques and marketing research to introduce wide range of goods and services to the consumers.
5) MANAGING THE MARKETING MIX :
Marketing mix refers to the association of four basic elements of marketing i.e., product, price, place and promotion (4 Ps).
Marketing management helps to effectively plan and implement these elements in the most appropriate manner to meet the
customer demands.
36

37. 37

38. 1) DEFINING MARKETING OBJECTIVES :
The major function of marketing management is to define the marketing objectives. The marketing objective should be unambiguous and
in accordance with the organisational objectives. These objectives can be short-term or long-term.
2) PLANNING :
After deciding the short-term or long- term objectives of the organisation, the next function of a marketing manager is to plan different
ways to accomplish the objectives. Different approaches like marketing strategies, formulation of marketing programs and sales
forecasting etc., are utilized for effective planning
3) ORGANIZING :
After designing the the plan, implementation of plan is important. But before implementation, many things need to be gathered and
organised in order to achieve the defined objectives. It involves several functions at different levels of the organisation such as defining
structure of the organisation, outlining the power, duties and responsibilities of different organisational members, etc.
4) STAFFING :
The survival and success of an organisation largely depends upon its employees. Therefore, it is very important to hire right candidate at
right place to attain business objectives. The marketing department coordinates with the HR department to employ only those candidates
who possess the desired capability.
5) DIRECTING :
Direction can be understood as creating new markets, providing guidance, inspiration, leadership, motivation and supervision to the
employees in order to achieve organisational objectives. Marketing manager is responsible for directing all interrelated marketing
activities. They also synchronize these activities with other departments in the organisation.
6) COORDINATING :
For a marketing head, the main task is to keep a check on the coordination between different departments and various activities associated
with the marketing, warehousing, production, transportation, product planning and customer satisfaction 38

39. 7) MOTIVATION :
Every individual's effort is countable in the modern marketing approach. A successful team leader is the one who is
able to motivate all its employees and keep their morale high. Motivation helps the employees to work efficiently
towards the attainment of business objectives viz., high volume sales and profit with customer satisfaction.
8) CONTROLLING :
Sometimes, a good marketing plan flops. This happens due to the poor implementation of marketing activities.
Therefore, it is crucial for marketing managers to maintain a proper control over the marketing activities. The control
process mainly involves establishment of standards, performance evaluation and taking corrective actions. It also
helps the marketers to maintain the operational cost and budget of the organisation.
9) ANALYSIS AND EVALUATION :
In marketing management, it is necessary to analyse and evaluate the performance and productivity of the employees.
This helps the organisation to identify the ability of an employee to achieve the business objectives.
10) PROMOTION :
Promotion is the key role of marketing managers. The manager should introduce various promotional methods to
increase the sales of the product. He should also introduce new and innovative methods and strategies for promotion.
11) RESEARCH AND DEVELOPMENT :
With the changing tastes and preferences of the consumers, marketers must keep a track on the prevailing trends of
the market. Therefore, it is the responsibility of marketing managers to conduct research and development in order to
define the benefits and limitations of a particular product.
39

40. ECONOMIC DEVELOPMENT OF A
COUNTRY!
Marketing has acquired an important place for the economic development of the whole
country. It has also become a necessity for attaining the object of social welfare.As a
result of it, marketing is considered to be the most important activity in a business
enterprise while at the early stage of development it was considered to be the last
activity. For convenience, the importance of marketing may be explained as under:
i) DELIVERY OF STANDARD OF LIVING TO THE SOCIETY:
A society is a mixture of diverse people with diverse tastes and preferences. Modern
marketing always aims for customer satisfaction. So, main liability of marketing is to
produce goods and services for the society according to their needs and tastes at
reasonable price.Marketing discovers needs and wants of society, produces the goods
and services according to these needs creates demand for these goods and services.
They go ahead and promote the goods making people aware about them and creating a
demand for the goods, encouraging customers to use them. Thus, it improves the
standard of living of the society.
40

41. ii) DECREASE IN DISTRIBUTION COST:
Second important liability of marketing is control the cost of distribution. Through effective marketing the
companies can reduce their distribution costs to a great extent. Decrease in cost of distribution directly
affects the prices of products because the cost of distribution is an important part of the total price of the
product.
iii) INCREASING EMPLOYMENT OPPORTUNITIES:
Marketing comprises of advertising, sales, distribution, branding and many more activities. So the
development of marketing automatically gives rise to a need for people to work in several areas of
marketing. Thus the employment opportunities are born. Also successful operation marketing activities
requires the services of different enterprises and organisation such as wholesalers, retailers, transportation,
storage, finance, insurance and advertising. These services provide employment to a number of people.
iv) PROTECTION AGAINST BUSINESS SLUMP:
Business slump cause unemployment, slackness in the success of business and great loss to economy.
Marketing helps in protecting society against all these problems.
v) INCREASE IN NATIONAL INCOME:
Successful operation of marketing activities creates, maintains and increases the demand for goods and
services in society. To meet this increased demand the companies need to increase the level of production
in turn raising their income. This increase, in turn, increases the national income. Further effective
marketing leads to exports adding to the national income. This is beneficial to the whole society.
41