Explain the role of marketing.
Marketing was considered as a societal, economic process through which products and services were exchanged between buyers and sellers and included activities that preceded the existence of money and a market economy. While the underlying meaning of marketing has remained the same, development of institutional and centralised structures in the global market has upgraded the role of marketing today.
The role of marketing can be further explained considering its role in a firm and in an economy as discussed below:
- Role in a Firm:
Marketing ensures consistent level of revenue generation by strategically determining target markets and customers. It attempts to determine the nature and requirements of customers and accordingly, enables a business to plan for production scheduling, purchase of raw materials, inventory management, financing sources, distribution, warehousing and delivery of products/services to the final or end- consumer.
- Role in an Economy:
With a customer in mind, marketing attempts to improve the standard of living of people. Marketing encourages several institutional systems, government or private sector, to adopt new technologies, innovation, foster creativity and information dissemination systems. It also helps restore the resources of an economy by maintaining healthy competition among citizens and stakeholders without creating wastes. An economy that emphasises less on marketing can be addressed as a weaker or an underdeveloped economy.
