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INTRODUCTION
TO
MARKETING
 Introduction to marketing
 Marketing is dynamic and impactful. The details differ between
industries, but at its most basic marketing is how businesses reach
prospective customers and communicate the unique benefits of a
product or service. It encompasses all the activities that companies
undertake to promote, sell, and distribute that product or service.
The goal is to generate sales and build a loyal customer base by
informing prospective and existing buyers about the offering.
Your target audience must first be aware that your product or service
exists before you can hope to inspire a purchase. An essential function
in any business, marketing supports efforts to acquire, keep, and grow
customer
 But marketing does not end there —
ongoing engagement also helps build
loyalty and establish a long-term
relationship. Effective programs and
campaigns reach and engage audiences,
differentiate the company from
competitors, and support larger business
objectives, such as increasing sales or
expanding to a new market.
 Nature of Marketing
 Managerial Function: Marketing is all about successfully managing
the product, place, price and promotion of business to generate
revenue.
 Human Activity: It satisfies the never-ending needs and desires of
human beings.
 Economic Function: The crucial second marketing objective is to
earn a profit.
 Both Art and Science: Creating demand for the product among
consumers is an art and understanding human behavior, and
psychology is a science.
 Customer-Centric: Marketing strategies are framed with the motive
of customer acquisition.
 Consumer-Oriented: It practices market research and surveys to
know about consumer’s taste and expectations.
 Goal-Oriented: It aims at accomplishing the seller’s profitability goals
and buyer’s purchasing goals.
 Interactive Activity: Marketing is all about exchanging ideas and
information among buyers and sellers.
 Dynamic Process: Marketing practice keeps on changing from time to
time to improve its effectiveness.
 Creates Utility: It establishes utility to the consumer through four
different means; form (kind of product or service), time (whenever
needed), place (availability) and possession (ownership).
 Goal oriented: Marketing seeks to achieve benefits for both buyers and
sellers by satisfying human needs. The ultimate goal of marketing is to
generate profits through the satisfaction of the customer.
 Guiding element of business: Modern Marketing is the heart of
industrial activity that tells what, when, how to produce. It is capable of
guiding and controlling business.
 System of Interacting Business Activities: Marketing is the system
through which a business enterprise, institution or organization
interacts with the customers with the objective to earn profit, satisfy
customers and manage relationship. It is the performance of business
activities that direct the flow of goods and services from producer to
consumer or user.
 Marketing is a dynamic processe. series of interrelated functions:
Marketing is a complex, continuous and interrelated process. It involves
continuous planning, implementation and control.
 Scope of Marketing – Goods, Services, Persons, Experiences,
Events, Places, Organizations as a Brand, Information,
Ownership of Property and Ideas

Some of these are as follows:

1. Goods:
Physical goods are one of the most common things that are produced
and marketed. Goods can range from customer products like soap,
utensils, clothes, shoes, etc. to electronics and heavy industrial
products. In developing nations most of the marketing activities are
aimed at physical products.
2. Services:
Services are goods of an intangible nature. Many services may also
include some tangible elements. Service marketing is normally believed
to be more difficult than product marketing. Services include- airlines,
legal services, hotels, education, medical services, transportation, etc.
3. Persons:
Celebrities need to maintain a larger than life image to maintain their
goodwill and market value. Celebrity marketing is a big business in
modern times. High profile persons like doctors, lawyers, etc. also
advertise themselves.
4. Experiences:
By combining a variety of goods and services, some organizations
create special experiences for their clients. Amusement parks, water
parks, safaris, circus, etc. are examples of marketable experiences.
5. Events:
Time-based events are promoted by marketers to attract advertisers
and customers. These would include large scale events like Filmfare
awards, Oscar awards or sports events like Cricket/Football World Cup,
Commonwealth Games, Olympics, etc.
6. Places:
Places are endorsed as tourist attractions. Cities, states and countries are
promoted as potential factory locations, residential or industrial areas.
Place marketers include travel agencies, real estate agents and
advertising agencies.
7. Organizations as a Brand:
It is not just the products and services of an organization which are
marketed, organizations often tend to market themselves as a brand.
P&G advertises the fact that it donates money towards children’s
education programmes. This is to build goodwill and strengthen brand
image.

8. Information:
Marketing of information is one of developed economy’s major industrial
activity. Schools, colleges, universities, study centres; publishers of
encyclopedia, educational magazines, CDs, websites, etc. are marketing
information.
9. Ownership of Property:
Ownership is the intangible right of owning either real property (real
estate) or financial property (shares, bonds). Real estate agents,
investment companies and banks make marketing efforts for transferring
ownership from one hand to another.
10. Ideas:
Ideas form the basis for any marketing activities. It is basically an idea
which is converted into a product or service for satisfying needs of
customer. For example it was the idea of information sharing that gave
birth to the internet.
Importance of marketing can be studied as follows:
(1) Marketing Helps in Transfer, Exchange and Movement of
Goods:
 Marketing is very helpful in transfer, exchange and movement of goods.
Goods and services are made available to customers through various
intermediaries’ viz., wholesalers and retailers etc. Marketing is helpful
to both producers and consumers.
 2) Marketing Is Helpful In Raising And Maintaining The Standard
Of Living Of The Community:
 Marketing is above all the giving of a standard of living to the
community. Paul Mazur states, “Marketing is the delivery of standard of
living”. Professor Malcolm McNair has further added that“Marketing is
the creation and delivery of standard of living to the society”.
 By making available the uninterrupted supply of goods and services to
consumers at a reasonable price, marketing has played an important
role in raising and maintaining living standards of the community.
Community comprises of three classes of people i.e., rich, middle and
poor. Everything which is used by these different classes of people is
supplied by marketing.
 (3) Marketing Creates Employment:
 Marketing is complex mechanism involving many people in one
form or the other. The major marketing functions are buying,
selling, financing, transport, warehousing, risk bearing and
standardisation, etc. In each such function different activities are
performed by a large number of individuals and bodies.
 Thus, marketing gives employment to many people. It is estimated
that about 40% of total population is directly or indirectly
dependent upon marketing. In the modern era of large scale
production and industrialisation, role of marketing has widened.
 (4) Marketing as a Source of Income and Revenue:
The performance of marketing function is all important, because
it is the only way through which the concern could generate revenue
or income and bring in profits. Buskirk has pointed out that, “Any
activity connected with obtaining income is a marketing action. It is all
too easy for the accountant, engineer, etc., to operate under the
broad assumption that the Company will realise many dollars in total
sales volume.
 (5) Marketing Acts as a Basis for Making Decisions: A
businessman is confronted with many problems in the form of what,
how, when, how much and for whom to produce? In the past problems
was less on account of local markets. There was a direct link between
producer and consumer.
 In modern times marketing has become a very complex and tedious
task. Marketing has emerged as new specialised activity along with
production.
 As a result, producers are depending largely on the mechanism of
marketing, to decide what to produce and sell. With the help of
marketing techniques a producer can regulate his production
accordingly.
 (6) Marketing Acts as a Source of New Ideas: The concept of
marketing is a dynamic concept. It has changed altogether with the
passage of time. Such changes have far reaching effects on production
and distribution. With the rapid change in tastes and preference of
people, marketing has to come up with the same.
 Marketing as an instrument of measurement, gives scope for
understanding this new demand pattern and thereby produce and make
available the goods accordingly.
 (7) Marketing Is Helpful In Development Of An Economy:
 Adam Smith has remarked that “nothing happens in our country until
somebody sells something”. Marketing is the kingpin that sets the
economy revolving. The marketing organisation, more scientifically
organised, makes the economy strong and stable, the lesser the
stress on the marketing function, the weaker will be the economy.
Production Product
concept concept

Societal
Selling
marketing
concept
concept

Marketing
Concept,
 The Production Concept
 The production concept is focused on operations and is based on the assumption that
customers will be more attracted to products that are readily available and can be
purchased for less than competing products of the same kind. This concept came about
as a result of the rise of early capitalism in the 1950s, at which time, companies were
focused on efficiency in manufacturing to ensure maximum profits and scalability. 
 This philosophy can be useful when a company markets in an industry experiencing
tremendous growth, but it also carries a risk. Businesses that are overly focused on
cheap production can easily lose touch with the needs of the customer and ultimately lose
business despite its cheap and accessible goods.

 The Product Concept

 The product concept is the opposite of the production concept in that it assumes that
availability and price don’t have a role in customer buying habits and that people
generally prefer quality, innovation, and performance over low cost. Thus, this marketing
strategy focuses on continuous product improvement and innovation. 
 Apple Inc. is a prime example of this concept in action. Its target audience always eagerly
anticipates the company’s new releases. Even though there are off-brand products that
perform many of the same functions for a lower price, many folks will not compromise
just to save money. 
 Working on this principle alone, however, a marketer could fail to attract those who are
also motivated by availability and price. 
 The Selling Concept
 Marketing on the selling concept entails a focus on getting the
consumer to the actual transaction without regard for the
customer’s needs or the product quality — a costly tactic. This
concept frequently excludes customer satisfaction efforts and
doesn’t usually lead to repeat purchases. 
 The selling concept is centered on the belief that you must
convince a customer to buy a product through aggressive
marketing of the benefits of the product or service because it
isn’t a necessity. An example is soda pop. Ever wonder why you
continue to see ads for Coca Cola despite the prevalence of the
brand? Everyone knows what Coke has to offer, but it’s widely
known that soda lacks nutrients and is bad for your health. Coca
Cola knows this, and that’s why they spend astonishing amounts
of money pushing their product. 
 The Marketing Concept
 The marketing concept is based on increasing a company’s ability to
compete and achieve maximum profits by marketing the ways in which
it offers better value to customers than its competitors. It’s all about
knowing the target market, sensing its needs, and meeting them most
effectively. Many refer to this as the “customer-first approach.”
 Glossier is a recognizable example of this marketing concept. The
company understands that many women are unhappy with the way
that makeup affects the health of their skin. They also noticed that
women are fed up with being told what makeup products to use. With
this in mind, Glossier introduced a line of skincare and makeup
products that not only nourish the skin but are also easy to use and
promote individualism and personal expression with makeup.
 The Societal Concept
 The societal marketing concept is an emerging one that
emphasizes the welfare of society. It’s based on the idea that
marketers have a moral responsibility to market
conscientiously to promote what’s good for people over what
people may want, regardless of a company’s sales goals.
Employees of a company live in the societies they market to,
and they should advertise with the best interests of their local
community in mind. 
 The fast-food industry is an example of what the societal
concept aims to address. There’s a high societal demand for
fast food, but this food is high in fat and sugar and contributes
to excess waste. Even though the industry is answering the
desires of the modern consumer, it’s hurting our health and
detracting from our society’s goal of environmental sustaina
 To facilitate the study, these different approaches
may be broadly classified as follows:
 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.
  take an example of a commodity, say rice.
 One has to study the sources of rice, location, people
involved in buying and selling, means of transport,
problems of selling the product, financing, storage,
packing etc. Thus, we get a full picture of the marketing
from the original producer to the ultimate consumer. The
method of study is repeated for each item. 
 2. Institutional Approach:
 The activities of each institution form a part of marketing and
collectively complete the marketing functions. In the process of
moving the goods from the producer to the final consumers, a large
number of persons are engaged. This system pays attention to the
problems and functions of marketing institutions-transporting, banks
and other financial institutions, warehousing, advertising, insurance
etc. This method does not give adequate knowledge of the entire
marketing functions and also’ fails to explain the interrelations of
different institutions.
 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.
 Generally there are two factors-controllable and uncontrollable, which
are more concerned with the decision-making. Controllable include
price adjustment, advertisement etc. Uncontrollable-economical,
sociological, psychological, political etc. are the basic causes for
market changes. And these changes cannot be controlled by any firm.
 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.
 Need of marketing
 1. Marketing informs
 To attract consumers in a crowded marketplace, your target audience
needs to know why they should choose your business over someone
else’s. This is where marketing comes in to educate current and
potential customers about your business and how it serves a need
they have.
 The content on your website that communicates your business’s
mission, product demonstration videos you post, photos you display
that show exactly what your products look like — elements like these
let prospective customers know who you are and what makes you
unique.
 2. Marketing engages
 It’s one thing to offer a superior in-person experience or an easy online
shopping journey. But marketing keeps your business in people’s minds
after a transaction is over — and before they need you again.
 To turn first-time customers into lifelong fans who will sustain your
business, you have to establish and build relationships with the people
who’ve interacted with your business. Social Media is a great place to
start. After following a brand on social media, 91% of followers visit the
brand’s website or app. And a startling 89% will buy from that brand
Sending post-purchase follow-up emails and mailing out postcards with
special offers or information on new service are just a few more ways
that marketing can help you stay in touch with your target audience.
 3. Marketing builds reputations
 As a business owner or aspiring entrepreneur, you likely already
understand how important your reputation is to your success. It truly
can be the deciding factor in whether or not a consumer chooses to
reach out to you or one of your competitors. Because marketing
spreads the word about your business, it’s a major factor in the
reputation your business takes on. Strong, professional marketing
indicates that you’re a reputable business. The connection is
undeniable.
 4. Marketing sells
 It’s simple logic — you can’t make a sale if no one knows about your
products or services. And while setting up shop in your neighborhood
may bring in some walk-in business, marketing extends your reach
and draws attention to what you’re selling so that people can buy it.
 Emails showcasing new releases, social media posts alerting
customers to an upcoming sale and online business listings that help
local consumers find you are a few examples of how you can use
marketing to build the kind of awareness that generates revenue.
 Needs
 “Needs” is the basic human requirements like shelter, clothes, food,
water, etc. which are essential for human beings to survive. If we
extend this further, other needs are education, healthcare or even
a social thing, for example, belonging to a certain society or self-
expression. One can say that the products which fall under the needs
category of products do not require a push. Instead the customer
buys it themselves. But it’s actually not true. in today’s world with
thousands of brands competing in the same categories with identical
offerings satisfying the same needs, even the “needs category
product” has to be pushed in the consumers’ mind. Example
of needs category products / sectors – Agriculture sector, Real Estate,
Healthcare etc.
 Needs
 “Needs” is the basic human requirements like shelter, clothes, food,
water, etc. which are essential for human beings to survive. If we
extend this further, other needs are education, healthcare or even
a social thing, for example, belonging to a certain society or self-
expression. One can say that the products which fall under the needs
category of products do not require a push. Instead the customer
buys it themselves. But it’s actually not true. in today’s world with
thousands of brands competing in the same categories with identical
offerings satisfying the same needs, even the “needs category
product” has to be pushed in the consumers’ mind. Example
of needs category products / sectors – Agriculture sector, Real
Estate, Healthcare etc.
 We all know about Maslow’s hierarchy of needs which categorizes needs
into 5 levels starting from physiological needs at the bottom and going
up to self-actualization needs. But what’s important as a marketer to
know which level of need is your brand targeted to. Let’s look at some
of the examples of brands which are targeting different levels of needs
 1.     Physiological Needs – Food companies (Nestle, Pepsi, Coca
Cola)
 2.     Safety Needs – Insurance companies (ICICI Prudential, Tata
AIG, HDFC Life)
 3.     Social Needs – Social networking sites (Facebook, Twitter,
Instagram)
 4.     Esteem Needs – Luxury brands (iPhone, Mercedes, Estee
Lauder)
 5.     Self-actualization needs – Non-Profit organizations and NGOs
(UNICEF, Teach for India)
 Wants
 "Wants" are a step ahead of needs Wants aren’t essential for humans
to survive, but it’s associated with needsSimply put, A want is a
product desired by a customer that is not required for us to survive.
So, want is the complete opposite of need, which is essential for our
survival. Wants aren’t permanent and it regularly changes. As time
passes, people and location change, wants change accordingly.
  Wants are directed by our surrounding towards reaching certain
needs. Therefore, human’s wants can be varied depending on each
individual’s perception, environment, culture, and society. For
example, an Indian needs food but he may want a Dosa or Paratha
while an American may want Burger or Sandwich. Example
of wants category products / sectors – Hospitality industry,
Electronics, FMCG, Consumer Durables etc.
 Demands
 Wants turn to be Demands when a customer is willing and having
the ability to buy that needs or wants. The basic difference
between wants and demands is desire. A customer may desire
something but he may not be able to fulfill his desire. Consequently,
for people, who can afford a desirable product are transforming their
wants into demands. In other words, if a customer is willing and able
to buy a need or a want, it means that they have a demand for that
need or a want. You might want a BMW for a car or an iPhone for a
phone. But can you actually buy a BMW or an Iphone? You can,
provided you have the ability to buy them. Example of demands –
Luxury cars, 5 star hotels etc.
 Many people want a BMW, but only a few can buy one. So, it’s very
crucial that one must measure not only how many people want their
product, but also how many are willing and have the ability to buy it.
 Customer value is present when a customer perceives that they will
get a certain value from a product or service that they intend to buy.
Mathematically, the value is calculated by subtracting the cost involved
to purchase the product/service from the total benefit the customer
receives.
 The cost before making a purchase includes the cost of the product,
time and effort spent to understand the product, emotional stress, etc
to name a few. Total benefits here imply the customer experience,
product quality,
 customer service -- everything a customer benefits from this
purchase.
 Each customer has different expectations so it’s really hard to define
customer value and satisfaction.
 Building customer satisfaction and value is also another tough task,
however, by understanding their nature, you can have a clearer picture
of how to do improve them.
 Marketing Vs Selling

 Sales are the process of

 Marketing is the process rounding up customers
of delivering goods and to increase sales.
services to create value  It views business as a
for the customer and
goods-producing
 It views the business as process.
a customer satisfactory  The cost determines the
process. make a profit.
price.
 Consumers determine
the price.
 This concept is applicable  This concept is useless in
to the pure competition a pure competition
market. market
  Long-term
 Short-term

 To identify the needs of

 To instigate shoppers in such a customers and create products
way that they turn out as to satisfy those needs.
buyers.

 One-to-Many relation ship

 One-to-One Relationship
 Advertisement, Sales, Research,
Customer satisfaction, After
 Selling of the product. sales services etc.
 Marketing Environment
 Definition: The Marketing Environment includes the Internal
factors (employees, customers, shareholders, retailers & distributors,
etc.) and the External factors( political, legal, social, technological,
economic) that surround the business and influence its marketing
operations.
 Internal Environment
 External Environment
 Micro environment
 Macro environment
 Demographic Environment
 Social and Cultural Environment
 Legal Environment
 Political Environment
 Economic Environment
 Technological Environment
 Internal Environment
 The internal environment consists of all the factors and forces inside
the organization that can affect or can be affected with, the choices,
activities and decisions of the organization.
 These forces include Production, Finance, HR, Research and
Development, Company location, Company image and marketing-mix
components of product, price, promotion and distribution.

External Environment
 The external environment are the factors and forces which are
external to the organization and marketer has little or no control.
 There are two types of external environment: macro and micro
environment
 Micro environment
 The forces and factor close to the company that affect its ability to serve
its customers – the company, market channel firms, customer markets,
competitors and publics, which combine to make up the firm’s value
delivery system.
 Current and Potential Customers

 Your customers are vital to the growth and sustainability of your

company. In order to grow, you must locate customers, understand
their needs and then satisfy those needs both efficiently and
profitably.
 Competitors
 Your competitors however have the same remit as you when it
comes to sourcing and satisfying the needs of the customer. They
will make it difficult to liaise with customer groups, as by definition
they are largely pursuing the same sets of customers like you. As a
marketer, you must therefore not only monitor what competitors are
doing in the external marketing environment today but also
anticipate their likely response to your campaigns and predict what
they will do tomorrow.
 Intermediaries (Distributors/Wholesalers/Retailers)

 Your business may require a network of wholesalers, distributors

and/or retailers. These ‘intermediaries’ provide an invaluable service in
getting your products to the customer. You must therefore think
carefully about how best to distribute your goods and build
relationships. This area can be fierce in competition as not everyone
can get access to the channels of distribution that they want.
 Suppliers
 One other important area to consider in the external marketing
environment is your suppliers. A key supplier can be an important part
of your business and may even attribute to your competitive
advantage. Losing important suppliers can interrupt production flow or
your competitive edge and prevent you from getting your product to
your customers. Choice of suppliers, negotiation of terms and
relationship building all become important tasks of the marketer.
 The general public: Your organisation has a duty to satisfy the
public. Any actions of your company must be considered from the
angle of the general public and how they are affected. The public has
the power to help you reach your goals; just as they can also prevent
you from achieving them.
 Macro Environment Factors
 Demographic forces: Different market segments are typically
impacted by common demographic forces, including country/region;
age; ethnicity; education level; household lifestyle; cultural
characteristics and movements.
 Economic factors: The economic environment can impact both the
organisation’s production and the consumer’s decision-making
process.
 Natural/physical forces: The Earth’s renewal of its natural
resources such as forests, agricultural products, marine products, etc
must be taken into account. There are also natural non-renewable
resources such as oil, coal, minerals, etc that may also impact the
organisation’s production.
 Technological factors: The skills and knowledge applied to the
production, and the technology and materials needed for the
production of products and services can also impact the smooth
running of the business and must be considered.
 Political and legal forces: Sound marketing decisions should always
take into account political and/or legal developments relating to the
organisation and its markets.
 Social and cultural forces: The impact the products and services
your organisations brings to market have on society must be
considered. Any elements of the production process or any
products/services that are harmful to society should be eliminated to
show your organisation is taking social responsibility. A recent
example of this is the environment and how many sectors are being
forced to review their products and services in order to become more
environmentally friendly.
 Marketing management
 Everything you need to know about marketing
management. Marketing Management performs all managerial
functions in the field of marketing.
 Marketing Management identifies market opportunities and comes out
with appropriate strategies for exploring those opportunities
profitably.
 It has to implement marketing programme and evaluate continuously
the effectiveness of marketing-mix. It has to remove the deficiencies
observed in the actual execution of marketing plans, policies, and
procedures. It looks after the marketing system of the enterprise.
 Importance of marketing can be studied as follows:
 (1) Marketing Helps in Transfer, Exchange and Movement of
Goods:
 Marketing is very helpful in transfer, exchange and movement of
goods. Goods and services are made available to customers through
various intermediaries’ viz., wholesalers and retailers etc. Marketing
is helpful to both producers and consumers. To the former, it tells
about the specific needs and preferences of consumers and to the
latter about the products that manufacturers can offer. According to
Prof. Haney Hansen “Marketing involves the design of the products
acceptable to the consumers and the conduct of those activities
which facilitate the transfer of ownership between seller and buyer.”
 2) Marketing Is Helpful In Raising And Maintaining The Standard
Of Living Of The Community : Marketing is above all the giving of a
standard of living to the community. Paul Mazur states, “Marketing is
the delivery of standard of living”. Professor Malcolm McNair has further
added that “Marketing is the creation and delivery of standard of living
to the society”.
 By making available the uninterrupted supply of goods and services to
consumers at a reasonable price, marketing has played an important
role in raising and maintaining living standards of the community.
Community comprises of three classes of people i.e., rich, middle and
poor. Everything which is used by these different classes of people is
supplied by marketing.
 3) Marketing Creates Employment: Marketing is complex
mechanism involving many people in one form or the other. The major
marketing functions are buying, selling, financing, transport,
warehousing, risk bearing and standardisation, etc. In each such
function different activities are performed by a large number of
individuals and bodies.
 Thus, marketing gives employment to many people. It is estimated that
about 40% of total population is directly or indirectly dependent upon
marketing. In the modern era of large scale production and
industrialisation, role of marketing has widened.
 (4) Marketing as a Source of Income and Revenue:The
performance of marketing function is all important, because it is the
only way through which the concern could generate revenue or income
and bring in profits. Buskirk has pointed out that, “Any activity
connected with obtaining income is a marketing action. It is all too easy
for the accountant, engineer, etc., to operate under the broad
assumption that the Company will realise many dollars in total sales
volume.
 However, someone must actually go into the market place and obtain
dollars from society in order to sustain the activities of the company,
because without these funds the organisation will perish.”
 (5) Marketing Acts as a Basis for Making Decisions: A
businessman is confronted with many problems in the form of what,
how, when, how much and for whom to produce? In the past problems
was less on account of local markets. There was a direct link between
producer and consumer.
 In modern times marketing has become a very complex and tedious
task. Marketing has emerged as new specialised activity along with
production.

 6) Marketing Acts as a Source of New Ideas:The concept of
marketing is a dynamic concept. It has changed altogether with the
passage of time. Such changes have far reaching effects on production
and distribution. With the rapid change in tastes and preference of
people, marketing has to come up with the same.
 Marketing as an instrument of measurement, gives scope for
understanding this new demand pattern and thereby produce and make
available the goods accordingly.
 (7) Marketing Is Helpful In Development Of An Economy:
 Adam Smith has remarked that “nothing happens in our country until
somebody sells something”. Marketing is the kingpin that sets the
economy revolving. The marketing organisation, more scientifically
organised, makes the economy strong and stable, the lesser the stress
on the marketing function, the weaker will be the economy.
THE END