One of the primary functions of marketing is to expand the market. Advertising uncovers hidden customer desires and generates new demand, while also identifying underserved markets and identifying the potential for new product sales. This broadens the market and enables manufacturers to increase production while simultaneously improving their profit margins. Resultantly,
By making products and services more available, marketing makes it easier to swap ownership and possession of things and services. Creating time, location, and possession utilities allow it to offer time, location, and possession utilities to goods and services. In the long run, it is advantageous to both producers and consumers. Individuals and consumers learn about the specific needs and preferences of producers and customers about the products that manufacturers may be able to offer.
Marketing helps to ensure that resources are used in the most efficient way possible:
Marketing efforts are extending the market area, allowing producers to use their resources to their maximum potential, which would only be partly utilized otherwise. As a result of making the most efficient use of available resources, the overall cost per unit is reduced.
Due to the increased frequency with which they are needed to help in the marketing process, marketing has a multiplier impact on several other activities like banking, shipping, insurance, and warehousing, among others.
In economic terms, a country's national income is defined as the total quantity of goods and services that it has. Ultimately, all marketing efforts lead to increases in the production of existing industries, increases in the investment in new industrial units, and increases in the provision of extra services to customers as a consequence of their combined effect. It is because of the increase in both the country's total national income and its per capita income that the country becomes wealthier. The journey of an economy from its underdeveloped to its developing phases is what ultimately leads to the creation of a developed economy.
Additionally, the community has access to more services and amenities in addition to having more cheap as well as more costly products of necessities and luxuries available. Consequently, the overall quality of life for the community improves as a consequence. Increasingly, even the weakest segments of society are discovering that a wider range of products and services are becoming cheaper as the cost of commodities and services continues to fall.
Marketing contributes to the creation of an atmosphere that encourages greater production and services. As a result, there is an increase in social overhead as a result of the addition of more highways, more warehouse facilities, more transportation and communication infrastructure, more banks, more training, and technical institutions, and more personnel required for the same, as well as an increase in job opportunities Aside from that, marketing is a complex process that involves a variety of roles and sub-functions, each of which necessitates the hiring of a different kind of specialized person. According to some estimates, between 30 and 40 percent of the whole population is engaged in direct or indirect marketing operations in some capacity.
Marketing not only contributes to keeping the economy humming, but it also contributes to maintaining constant and stable economic conditions in which everyone is happy and satisfied. It contributes to the reduction of the gap between producers and consumers. It connects the two wheels of a nation's economy, namely, the production and consumption wheels, by acting as a link between them. Marketing, by establishing a balance between production and consumption, helps to guarantee stable prices, full employment, and a healthy economy for all participants in the market.
Nine methods in which marketing is utilized as a foundation for decision-making are described below:
When starting a company, an entrepreneur is faced with a slew of questions, including what to produce, how to make it, when to create it, how much to create, and for whom to create. When local markets and direct connections between producers and consumers were in place in the past, there were fewer obstacles to overcome.
On the other side, in today's world, marketing has become very complex and time-consuming. Recently, it has emerged as a new specialized activity, alongside manufacturing, that has gained traction. A direct result of this is that producers must rely extensively on marketing processes to decide what, when, and how much to produce.
Additionally, it removes information barriers, educates people, cultivates their minds, and entices them to buy the best of the best, allowing for the ultimate objective of getting the maximum amount of pleasure to be achieved via commerce.