All marketing organisations operate either to earn profit or pursue some other goals such as community service, improvement of quality of life or promotion of a cause, say UNICEF working for the welfare of children or ‘Helpage’ working for the cause of senior citizens. Whether it is a profit organisation or a non-profit organisation, marketing plays an important role in achieving its objectives. It helps the individual consumers in raising their standard of living by making available the products and services that satisfy their needs and wants. It also plays a significant role in the economic development of a nation.
The role of marketing in different situations may be described in brief as follows:
Role of marketing in a firm:
Marketing is actually the key to achieving the main objective of the firm. This can be to earn profits or to achieve some other aim. Even non-profitable organizations (like say for example Red Cross) require the modern tools and ideologies of marketing to achieve their goals. Marketing will not only help them spread awareness but can also significantly help with raising funds and securing donations.
In a firm marketing helps them realize consumer needs. Market research will allow the firm to recognize the needs of the consumers to be met, and even help design the perfect goods/services to meet this needs. Right from the design process, to the distribution channel, promotions etc up to the after-sales service are a part of marketing.
If the marketing philosophy is executed perfectly, the firm will meet all the needs of a potential consumer. And a happy customer is a return customer. Marketing is the key to the success, growth and long-term future of any firm.
Role of marketing in the Economy:
The economic development of a country is very closely related to marketing, so it can be said marketing plays an invaluable role in the economy. It mainly motivates firms and other producers to manufacture goods according to the need of the consumer, and this sets off a chain of events.
Marketing will also help overcome the obstacles to entering a new market. It keeps the demand and supply of goods in check by ensuring smooth production and distribution of goods. So the production and consumption balance out and the price remains stable in the long run.
At the end of the day, marketing is basically a non-replaceable element of the economy. It connects the production centres with the consumption centres. These economic activities (occurring due to marketing) keep the economy running and even boost the GDP of the country. It leads to higher per capita income, more savings and hence more investments (cyclic flow of money).