The compilation of these Marketing Notes makes students exam preparation simpler and organised.
Role of Marketing and Marketing Mix
It is often said, “marketing makes the world go round”. Marketing and all its elements have become so synonymous with business and products, that one cannot imagine a world without marketing. In fact marketing, along with marketing mix, plays an essential role in our economies also. Let us take a look.
Marketing and Marketing Mix
Marketing can simply be described as a sum total of all processes and activities involved in the efforts to create and sell goods and services to the customers. Every activity from designing the product, pricing, packaging, selling, promotion, etc is an element of marketing.
In every market, while launching a product there are both controllable and uncontrollable factors. The uncontrollable factors, over which the company has absolutely no say, are the government policies, money in the market, economic conditions, etc. But then there are controllable factors like the design of the product, its price point, etc. These controllable factors are what we call marketing tools.
And marketing mix is a unique set of these marketing tools the company must shape to be ideal for the market conditions. The four main elements of the marketing mix are Place, Product, Price, and Promotion.
Role of Marketing and Marketing Mix
In the Firm/Company
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 the 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 these 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.
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).
Example:
Question:
The word Market has come from the Latin word _____________
a. Matico
b. Marketio
c. Marketo
d. Marcatus
Answer:
The correct answer is “d”.
Marcatus is the Latin word for place of trade or business.