Marketing Management: Role of marketing in the firm and in the economy

Efficient marketing management is a pre-requisite for the successful operation of any business enterprise. A business organisation is differentiated from other organisations by the fact that it produces and sells products. The importance of marketing in modern business is discussed below:

Role of Marketing in the Firm

1. Marketing is the beating heart of the business organisation: 

 The marketing function is rightly considered the most important operative function of the management. There are several departments in an enterprise which are essential for the growth of marketing, but still, marketing is the sole revenue-producing activity. Without the basic marketing decisions, the chief executive cannot plan, the production manager cannot produce, the purchase manager cannot purchase, and the financial controller cannot budget.

 2. Marketing gives top priority to the needs of the consumers:

Quality of goods, storage, display, advertisement, packaging etc. are all directed toward the satisfaction of customers.

3. Marketing helps in the creation of place, time and possession utilities:

Place utility is created by transporting goods from one place of production to consumption centres. Time utility is created by storing the goods in warehouses until they are demanded by customers. Possession or ownership utility is created through the sales of the goods. The significance of marketing lies in the creation of these utilities to satisfy the needs of the customers and thereby earn a profit. It a firm is able to satisfy its customers, it will have better chances of survival and growth even in the fast-changing environment.

Role of Marketing in the Economy 

Marketing plays a significant role in the development of the economy. It acts as a catalyst in the economic development of a country by ensuring better utilisation of the scarce resources of the nation. Since a business firm generates revenues and earns profits through its marketing efforts, it will engage in better utilisation of resources of the nation to earn higher profits.
Marketing determines the needs of the customers and sets out the pattern of production of goods and services necessary to satisfy their needs. Marketing also helps to explore the export markets.

1. Marketing helps in improving the standard of living of the people:

It does so by offering a wide variety of goods and services with freedom of choice. Marketing treats the customers as the king around whom all business activities revolve. Besides product development, pricing, promotion, and physical distribution of products are carried out to satisfy the customer.

2. Marketing generates employment for the people: 

A large number of people are employed by modern business houses to carry out the functions of marketing. Marketing also gives an impetus to further employment facilities. In order to ensure that the finished product reaches the customers, it passes through wholesalers and retailers and in order to man the numerous establishments, many people are employed