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1.7. CONTRIBUTION OF MARKETING TO THE SOCIETY
Marketing in under developed and developing countries has been rightly
explained by Peter F. Druker. He says “Marketing occupies a critical role in
respect of the development of developing nations”. It contributes for the speedy
development of such nations in the following ways.
i)
Development of marketing leads to integration of various sectors of the
nation such as agriculture and industry.
ii)
It makes the fullest utilisation of resources and production capacities.
iii)
It mobilises unknown and untapped economic energy
iv)
It contributes to the development of entrepreneur and managerial class of
people.
The contribution of marketing in socio-economic system can be
summarised as follows:
1.
National Income:
The nation’s money is composed not of money, but of the goods
and services which money can buy. Any increase in efficiency of the
marketing process results in lower costs of distribution and lower prices
to consumers. This brings an increase in the national income.
2.
Distribution Cost:
Marketing aims at reducing the cost of distribution to the extent
possible, to make it available to the consumers at reasonable price. It
increases the consumption and profits of the firm. Hence, the
shareholders may also get better share in profits. A part of the profit may
also be utilised for further research work, for labour saving devices or for
innovating new manufacturing techniques. Thus, the society is benefited
in the long run.
3.
Production and Consumption:
Marketing Process links the production and consumption. It
brings new varieties, quality and beneficial goods to consumers from the
manufacturing centres. A wealth of merchandise can be purchased at
retail stores which were not available previously. It, thus, provides the
connecting link between production and consumption and avoids the
scarcity of goods.
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4.
Business Slumps:
Scientific marketing has a stabilizing effect on the price level.
Producers produce what consumers want and consumers have a wide
choice of products, there are no frequent ups and downs in prices. A
sound marketing system gives protection against business slump by
discovering new markets, reducing cost of distribution, making it
consumer oriented, diversifying and improving the product, extending
after sales service etc.
5.
Transmutation:
The existence of a market and the specialists engaged in
performing marketing functions are helpful in creating form utility to the
latent resources to suit the requirements of consumers. Thus, the
consumer needs can be satisfied by the marketer.
6.
Productive Efficiency:
The information about the use of machinery and freely after sales
services makes the farmers aware of the latest development and helps
them in improving their productive efficiency.
7.
Imbalance in supplies:
Scientific marketing remedies the imbalance in the supply by
making available the surplus stocks at deficit areas. Through better
provision of transport facilities and storage, market develops the trade in
perishable goods, most of which at present go to waste.
8.
Value of goods:
Place utility is created when a product is made readily accessible
to the potential consumer. Time utility is created when a product is
available to customers when they want it. Possession utility is created
when a customer buys the product i.e., the ownership title is transferred
to the buyer.
9.
Value of Service:
Marketing adds value to the services e.g., business, medical,
entertainment and educational services by performing the services
involved.
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10.
Patterns of Consumption:
Patterns of consumption are determined by the structure of marketing
system which is set up to carry the flow of goods and services from
producer to consumers. The value added to the goods and services
through performance of marketing activities also explains the pattern of
consumption.
11.
Employment Opportunities:
Marketing is essential for full employment. In order to have
continues. Production, there must be continuous marketing and high
level of business activity to be continued. The continuous marketing
activity is required for performing various marketing functions such as
buying, selling, transportation, warehousing, financing, risk bearing, etc.
Each function has countless job openings. It is a continuouss source of
employment and provides livelihood to a number of unemployed
persons.
12.
Living Standards :
Marketing helps in increasing the standard of living of the people.
It is logical that a reduction in the per unit cost of distribution of goods
and services to the society would result in a higher standard of living.
13.
Expansion of Home Market :
Marketing can serve to expand the home market and thus provide
a more secure base for export. When a country is self sufficient and is in
a position to go for exports, it results in favourable balance of trade. It is
an indicator of economic development of a country.
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