17 IMPORTANCE OF MARKETING

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American marketing guru Philip Kotler defined marketing as "a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others".

What is the importance of marketing? How does marketing help individual and company achieve their goal?

The importance of marketing are as follows:

1. Identify consumer needs: Marketing can help businesses identify their customer needs. 

Through market research, businesses can understand their potential. Additional market research can assist businesses in developing more detail of their customer and identifying key characteristics that can be used to target the customer.

2. Create customer satisfaction: A satisfied customer is pleased with the product provided by a company. 

Market research is a marketing function that allows a firm to obtain and analyze information about its target market. 

This information is then utilized to design goods and services that meet the needs of its target market, resulting in customer satisfaction.

3. Create brand awareness: For consumers to buy from a company, they first need to know what the company is selling. 

The marketing mix of promotion allows the company to perform this role effectively. 

Promotion strategies are usually formulated to reach as many potential customers as possible and tell them what the company is offering. 

Thus, marketing help creates brand awareness.

4. Create comparative advantage: Competitive advantage is what sets a company's goods or services apart from all the other options available to a customer. 

Marketing is generally used to position a company's product as superior to that of its competitors.

A company's marketing message frequently includes phrases like "excellent quality" and "cheap pricing," all in an attempt to persuade consumers that its product is superior to that of its competitors. 

A company's marketing message can also convey the shortcomings of its competitors and why its product is better and superior to that of its competitors.

5. Foster Goodwill: According To BDC, ''Goodwill refers to the value a company gets from its brand, customer base and reputation associated with its intellectual property. Goodwill is a long-term asset that generates value for a company over several years''.

Companies usually used marketing promotion to help build an image of being a good corporate citizen. often, we see company publicized their charitable activities in a bid to enhance goodwill.

Furthermore, most marketing departments look for local, regional, and national events in which the company might participate to generate publicity.

For example, during the recent matriculation program at the University of Lagos, numerous companies such as Wema Bank and Stanbic IBTC Bank, etc contributed to the sponsorship of the product to build a reputation as a corporate social citizen.

As another example, Companies such as Coca-cola and Heineken all sponsor the Euro 2020 to generate publicity. 

6. Locates target market: A target market is a group of people that have been identified as potential customers for a company's product because they share similar characteristics. 

Every company's marketing offering has some target market, which can only be identified through market research. 

Without marketing, No company can correctly identify its target market

7. Saves resources and reduces wastage: Yes! By assisting businesses in identifying their target market, marketing can help them save time and money.

If the business correctly identifies its target market, it will focus all of its marketing resources and communication on that precise target market, which is more likely to buy from them than any other market, thereby reducing wastage of marketing and business resources.

Indeed, Companies identify their target market correctly and offer products that suit this target market that is more efficient and effective than those who do not.

8. Create place utility: If you have read our last post on utility, you'll know that utility is the satisfaction that an individual derives from consuming units of a good.

Marketing creates place utility, which is the utility created by making a product available and accessible to a consumer. 

Businesses use marketing to create place utility by making products available to customers when they are needed.

Businesses can create a place utility for consumers who don't want to leave the comfort of their home to purchase by delivering the goods to their doorsteps.

9. Create form utility: Marketing also creates form utility or the value that a consumer receives as a result of the product's design and shape meeting his expectations.

Marketing creates form utility by making products in the form they want. For most products, form utility is usually created in the production process when raw materials are transformed into a form that is useful to the consumer.

For example, no one wants to buy unprocessed wood or cotton. Consumers will buy this timber and cotton after it has been turned into furniture and textiles, respectively, because it is now in the shape that they desire.

Thus, marketing creates form utility by making it available in the form desired by the consumer. 

10. Create time utility: Another type of utility created by marketing is time utility or the utility acquired by a consumer as a result of the items being made available at the precise time he desires.

Generally, successful Marketing is required that products be made available to consumers when they need them. 

Banks, for example, display good marketing by making banking services every time and anytime their consumer needs it. Even when a bank is closed, it frequently offers online banking services. 

This is to ensure that a product (in this case, banking) is available at the precise moment that the customer requires it.

11. Create possession utility: marketing also create possession utility or the utility that consumers as a result of owning goods. 

Marketing always emphasized quality products, which can help increase the utility that consumers get from owning a product.

12. Necessary for selling: marketing plays an important role in selling. It helps the sales team identify customer needs that need to satisfy.

No business can sell something that the consumers do not need them. Marketing is how businesses identify consumer needs that need to be satisfied.

13. Raise the standard of living: By making goods available to everyone that needs them and matching supply with demand, Marketing also makes goods improve the standard of living. 

14. Create employment: Marketing involves a chain of activities such as advertising, selling, warehousing, transportation. 

All of these activities require some form of people involvement. Therefore, people are employed accordingly to perform these functions.

15. Generate profit: As all accountants know, profit is the difference between revenue and cost. 

Marketing entails determining customers' needs, which can help the company reduce costs by targeting the market.

By also identifying and satisfying customer needs, consumers help increase sales.

Since marketing reduces cost and increases sales, it can help the company generate profit. It's no surprise Mark Burgess defined marketing as "the process by which a company profitably translates customer needs into revenue.

16. Necessary for economic development: Renowned economist Adam smith once said "nothing happens in our country until somebody sells something". This highlights the importance of marketing to economic development. 

Because marketing stimulates sales, it is natural to consider marketing to be one of the most important determinants of economic development. 

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17. Identifies opportunity and threat: Company perform a SWOT analysis as part of the Marketing process

SWOT is the acronym for Strengths, weaknesses, opportunities,  and threats. Therefore, SWOT analysis is used to determine the strength, weaknesses, opportunities, and threats to marketing efforts.

Because SWOT analysis is part of the marketing process, companies can get adequate information for sales forecasting and production planning if they do their marketing right.

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