Why Marketing is Important for Business?

Importance of Marketing

Marketing

Today, I am showing you the Importance of Marketing.

Marketing is an important factor in the business. It enhances the growth of the business, smooth delivery of products to consumer, employment, and generate economy in the country. I will show you how marketing is important for the business world.

1. Exchange of Goods –

Marketing ensures that all goods are to be available to consumers at a fast pace, without damage and uninterrupted issues from producers at a reasonable price and good quality. Even the supplier with the best production system suffers from backlog many times to reach the consumers. Marketing is essential to reach to end user.

Without marketing, it will take a lot of time to reach or may not reach adequately. For e.g., A company packs its products in good packaging quality and ensures the supplier handles them with care and delivers them to customers without any damage. A damaged product is returned to the company at any stage of delivery.

2. Growth of Business –

Marketing creates demand for the products which results in boosting production and makes the business profitable. It may also open new ventures for business leading to tremendous growth of the business. For e.g., Tata Group is into various sectors of business-like steel, cars, medical, finance, etc.

3. Product Positioning –

Marketing generates awareness of the products; it’s usage and benefits through demonstrations regarding how to use them through advertisements and selling thereby creating positioning in the mind of the customers.

4. Introduce New Products –

Marketing gives education to consumers about the arrival of new products in the market and encourages them to buy the new product. For this, the producer has to make a lot of effort into marketing than production to show the consumer about the product and its usage. Without marketing, the consumer will not buy the product otherwise.

Marketing induces buying behavior in the mind of consumers. For e.g., McDonald’s is famous for burgers. After the success of burgers, it introduces wraps which too become famous.

5. Employment –

Marketing creates various employment opportunities from the beginning till the end of the product till the delivery of the product. These activities require human resources in various departments to generate business. Thus, Marketing creates overall economic growth and employment in many related sectors.

6. Complex set of Activities –

Marketing is a broad concept. It includes various sets of activities like production, supply, finance, transport, warehousing, buying and assembling, storage, standardization and grading, information gathering, packaging, etc. These activities should run smoothly to ensure the smooth running of the business.

7. Growth of Economy –

Marketing raises the standard of living of the people by providing large-scale employment opportunities, and better quality goods, and services at reasonable prices. Hence, marketing enhances the growth of the economy in the country.

8. Overpromise the Product Specifications to Generate Sales –

Sometimes, Marketing overpromises the product description to boost sales to make customers believe that the product has no faults in quality. It hides some faults of the products through excessive marketing. For e.g., Sometimes Amazon shows the good quality product and deliver the worst quality product to customers.

9. Competitive Market –

Due to excessive marketing. It generates goodwill in the company. This results in diverting the minds of customers that the producer cares about them which results in rising share prices and growth for the business.

This leads to competition in the market and creates product differentiation in the eyes of the customers. For e.g., Mobile Phone companies like Samsung, Redmi, Apple, Vivo, etc. have an extraordinarily strong competitive market.

This is the importance of marketing in every aspect of the business.

Advantages of Marketing

Let us see the advantages of marketing to the business. How it affects the business?

1. Target Audience –

Marketing must understand the needs and wants of the customers. It helps to build products for the target audience. We must understand the likes, dislikes, habits, wants, needs, and behaviors of the customers. This information helps the producer to make the product according to customer satisfaction and promote the business.

2. Understand the Customers –

To understand the customers, we have to conduct market research on customers by surveys, filling forms, getting suggestions, and feedback on products. This generates data from customers and helps the producer to generate products based on the data available and to keep up with the trends and changes in the target audience’s behavior.

3. Brand the Business –

Marketing is not about only promoting awareness about the product and selling to customers. It also develops the culture, values, and purpose of the business. It makes the brand for the business. For e.g., Apple has created a brand name in the market.

4. Reveal the Competition –

Through market research, producers get the research data from surveys and utilize it to make a competitive product better than its competitors. It also reveals the details about the competitors, their products, and their weakness.

This advantage is gained by many producers and fills the gap of weakness in their products to boost growth and profit for their business. For e.g., There are many of competition for mobile phone brands. Some have a good quality camera, some have high battery power, some have a good memory, some have a quality display, etc.

5. Demand –

By researching the data of the consumers, producers know the demand of the customers in the market. They get to know the likes, dislikes, and habits of all the customers. Thus, filling the demand gap of the customers.

6. Limit Risks –

Marketing protects companies from unpredictable economic conditions and helps overcome the challenges faced in the market. It helps to make a profit in the long run for the business for many years.

7. Weak Sides of the Business –

It helps to identify the pain points of the business and reduces the chances of failure and finds solutions for the company. It helps to check the business conditions to live up to the current market trends.

Disadvantages of Marketing

As you have seen the advantages of marketing, there are disadvantages too in marketing, Marketing is not an easy process. It takes time and effort to build a brand in the market. Let’s see the disadvantages of marketing –

1. Cost of Marketing –

The cost of marketing is awfully expensive. Many marketing campaigns are expensive like TV ads, and print ads. Doing market research is also expensive to get data from customers. A company must spend a handsome amount of money on marketing.

It does not decide whether the cost of marketing will be covered or not. Big Companies can shift their cost to another product or strategy to cover up for the failed marketing plan. Small companies cannot be able to cover their loss in the marketing plan.

2. Time and Effort –

It takes time and effort to yield a return on the cost of marketing. Companies must spend months or a year on marketing to make their product recognizable in the market. Big Companies can spend time and effort working on better marketing plans if a marketing campaign fails. Small Companies cannot change their marketing plan immediately and they get low returns on their investment in marketing.

3. Long Process –

The marketing process is exceptionally long and hectic. It takes time, effort, and money to create a marketing campaign. A company must decide the best marketing campaign for its product to get the right message to the customers.

4. Target Audience –

It is difficult to target the audience for a single product. Customers have their likes, dislikes, habit, behavior, and wants. Some customers will purchase the product, some will not. Every customer has a different opinion in their mind.

For e.g., Baby products are used only for babies. They cannot be used by teenagers. Sportswear products can be used by sportspersons only, a common man cannot use the sportswear product.

5. Marketing Channel –

A company should use a proper marketing channel to promote its products. A wrong marketing channel can also create a burden for the company and customers will not purchase the product. Different marketing channels should be used for different types of products.

For e.g., Refrigerators, washing machines, etc. use TV ads to promote their product through demonstrations. Without a demonstration, customers will not purchase the product. Some products only need radio ads or print ads to promote their products like giving messages to customers about discounts and offers on meal products.

6. Adjust to New Trend –

Every day, a new trend is coming. Customers change their tastes very often. A person has different behavior when he is a child and has different tastes when he becomes a teenager. A company finds it difficult to change its marketing strategies suddenly and incur losses.

It takes time to develop a new marketing strategy to cater to changing environment. A company also wants to look after new market culture to sell its products.

7. Inaccurate Data –

With the change in the market trends, the data that is acquired by the company for their marketing campaign becomes old. A company must do marketing research on a timely basis to gain accurate data. They should collect relevant and genuine facts about the customers.

Some customers give false information too. So, a company cannot decide on which marketing channel to apply to specific customers for their products.

Keep Reading: Introduction to Marketing

3 thoughts on “Why Marketing is Important for Business?”

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