Marketing has acquired an important place for the economic development of the whole country. It has also become a necessity for attaining the object of social welfare.
As a result of it, marketing is considered to be the most important activity in a business enterprise while at the early stage of development it was considered to be the last activity. For convenience, the importance of Marketing Environment may be explained as under:
- Delivery of standard of living to the society
A society is a mixture of diverse people with diverse tastes and preferences. Modern marketing always aims for customer satisfaction. So, a main liability of marketing is to produce goods and services for the society according to their needs and tastes at a reasonable price.
Marketing discovers needs and wants of society, produces the goods and services according to these needs creates demand for these goods and services they go ahead and promote the goods making people aware about them and creating a demand for the goods, encouraging customers to use them. Thus. it improve es the standard of living of the society.
- The decrease in distribution cost
Second important liability of marketing controls the cost of distribution. Through effective marketing, the companies can reduce their distribution costs to a great extent. The decrease in cost of distribution directly affects the prices of products because the cost of distribution is an important part of the total price of the product.
- Increasing employment opportunities
Marketing comprises of advertising, sales, distribution, branding and many more activities. So the development of marketing automatically gives rise to a need for people to work in several areas of marketing. Thus the employment opportunities are born. Also, successful operation marketing activities require the services of different enterprises and organization such as wholesalers, retailers, transportation, storage, finance, insurance and advertising. These services provide employment to a number of people.
- Protection against business slump
Business slump cause unemployment, slackness in the success of a business and great loss to the economy. Marketing helps in protecting society against all these problems.
- Increase in national income
Successful operation of marketing activities creates, maintains and increases the demand for goods and services in society. To meet this increased demand the companies need to increase the level of production, in turn, raising their income. This increase, in turn, increases the national income. Further effective marketing leads to exports adding to the national income. This is beneficial to the whole society.