Marketing is 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.

Marketing, of course, includes sales and advertising. The key to understanding marketing is “Exchange”. What we do in marketing is all about creating exchange. The exchange should have value for the stakeholder.

What is the Role of Marketing in an Organization?

Marketing is used for the following roles in an organization:

• Product Development – Well starting at the very beginning what products should we make and what features should it have?
• Promotion – How do we make the product or organization known to those in the market.
• Product Pricing – What should be the amount of value exchanged for the product?
• Sales – How do you carry out the transaction that changes ownership of the product?
• Distribution – How do you get the product in the hands of the consumer or customer?
• Creating Revenue – How does the product generate revenue for the business (e.g., sales, licensing, etc.)

Why is Growth Important for a Business?

There is an old saying in business, “If you’re not growing, you’re dying.” The reason for this saying is tied to the competitive aspects of business in a capitalist market.

Economics tells us, if there is value to be grabbed by carrying on a commercial activity, then new businesses will enter the market to grab that value.

As the market becomes oversaturated and prices for goods drop below profitability, then businesses will die out, competition will lessen, prices will rise, and profitability will be restored.

There will be a constant fluctuation of businesses in the market below and above the point of equilibrium (where cost equal price).

As such, businesses are always seeking to increase their sales, revenue, and market share.

How is Business Growth Related to Marketing?

Marketers are in the business of driving additional customers (and hopefully revenue) for a business. Thus, marketers are the drivers of business growth.

To do so, marketers must be able to meet demand. Demand is generally growing, as the population of the world is growing.

Lastly, new technologies and innovations are bringing and ever-increasing number of products into the market. Marketers are charged with making potential customers aware of these products.

How do Marketers Create Growth?

Marketers generally create growth in the following ways:

• Market Penetration – Market penetration means we’re going to sell more product in our existing market.
• Market Development – Market development means creating demand for existing products in a new market.
• Product Development – Product development means selling new products in an existing market.
• Diversification – Diversification refers to creating new products to sell in new or different markets.

What is the Role of Marketing in Society?

The role of marketing in society is to:

• Provide Goods and Services – The essence of a market involves the exchange of value in the form of goods, services, and information. Marketing makes people aware of those goods and services – whether those goods are a basic need or a personal want.
• Public Service Announcements – A critical role of marketing is to disseminate important information to the public. PSAs are generally disseminated by the Government or designated Non-Governmental Organization (NGO).
• Non-Profits – Non-profits exist for the public good. As such, making individuals aware of that public good is essential to the non-profit mission.

Why is Marketing Important?

Marketing is important for the following reasons:

• Providing for Societies Needs
• Allowing businesses to Operate
• Facilitating the Sharing of Information
• Helping Us Get Jobs

What is the Purpose of Marketing? 

The point of marketing is to create value for the company, it’s customers, and society. 

How does Marketing Affect the Economy?

Marketing decisions affect how resources are allocated or distributed throughout the system. That is, it determines who has access to and can obtain resources. Decisions, such as product development, pricing, promotion, affect the total productivity associated with a product. It affects the level of demand for a product. The operations function carried out by marketers ensure the consistent supply of resources to meet demand.