HOW DOES MARKETING CONTRIBUTE TO ECONOMIC EXPANSION? HOW CAN OUR MARKETING SYSTEM BE IMPROVED TO HELP US ACHIEVE STILL HIGHER LEVEL OF ECONOMIC ACTIVITY IN THE FUTURE
Marketing is an economic process by which goods and services are exchanged between the producers and consumers and their values is determined in terms of money prices.
In other words, marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.
The American Marketing Association defined marketing as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”. The term developed from the original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering views marketing as “a set of processes that are interconnected and interdependent with other functions. Whose methods can be improved using a variety of relatively new approaches.
CONTRIBUTION TO ECONOMIC EXPANSION
Marketing is seen as the task of creating, promoting & delivering goods & services to customers & business. Marketers are skilled in stimulating demand for the company’s products they are responsible for demand management. Marketing managers seek to influence the level, timing & composition of demand to meet the organizations objectives.
Marketing people are involved in marketing ten types of entities A. Goods: Physical goods constitute the bulk of production and marketing efforts. B. Services: A growing portion of business activities are focused on the production of services. The U.S. economy today consists of a 70-30 services to goods mix. C. Events: Marketers promote time-based events such as trade shows, artistic performances, and the Olympics.
D. Experiences: By orchestrating several services and goods, a firm can create and market experiences such as Walt Disney World's Magic Kingdom. E. Persons: Celebrity marketing is a major business.
F. Places: Cities, states, regions and whole nations compete actively to attract tourists, factories, and new residents.
G. Properties: Are intangible rights of ownership of either real property (real estate) or financial property (stocks and bonds).
Marketing affects our economy in many ways. First the stimulation of demand is a key not only to consumption but to income and employment as well. Just consider when a family buys a new television set. They generate income directly for the salesman who gets a commission, for the retailer (who presumably earns a profit, and for the manufacturer are encouraged to stay in business and to continue to provide employment.
There are also many indirect beneficiaries to this marketing transaction, among them the businesses that supply components to the television manufacturer, the transportation companies that handle the shipping of parts and finished products, warehousemen, advertising agencies, merchants who sell to the employees of the television manufacturer, and countless more people and firms.
This marketing concept holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organisational objectives, an organisation should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
The concept of marketing thinking starts with the fact of human needs and wants. We all have some needs residing in ourselves. These needs exist. Remember that needs can never be created.
Needs: Needs are...
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