Role of Marketing
According of Mc Carthy, an effective macro market system is a necessary
ingredient for economic development. To peter Drucker, marketing may be the key to
growth is less developed nations. Marketing can enable fuller utilization of resources and
facilitates integration of countries and continents. For Nurkse marketing carries with it
the solution to break through the vicious circle of poverty in very country. Hence, in every
developing and less developed country efforts should be made to reorganize the marketing
system.
It is well known that producers and consumers are separated from each other on several
counts. Marketing should enable removing these separations. This could be understood by
analyzing Mc Carthy‟s view point.
1. Spatial separation: This refers to the geographical separation between the
producers and consumers. Producers have several compelling reasons to locate
their operations in a particular place. But the consumers are wide spread. This
separation could be avoided with a well knit logistic function. That is, by ensuring
that the products reach the consumers at the right time, at right price in right
shape and at right place. Simply this means if marketing can ensure time utility,
place utility and form utility through its performance, then the spatial separation
would disappear.
2. Separation in time: One of the basic functions of producers is to determine the time
when the product/service is required by the consumers. If it does not reach the
consumer at the time of need, it loses its appeal to consumers. Generally producers
over come this problem by using various rigorous forecasting and estimation
techniques. Similarly by a well-planned inventory management, produces can
easily manage demand and supply.
3. Separation of information: Most of the ills in marketing are caused by lack of
information. Marketing information could be relating to various aspects like,
product functioning or use, availability, price, etc. it is always said that the basis
reason for market imperfection is deliberate information lack out. Selective
information sharing is viewed as a marketing tactic. The more the consumers are
ignorant the more the producer benefits. Hence if marketing ensures flow of
relevant and useful information to the consumers at the right time, it would help to
narrow the separation of intended of benefits and realized benefits.
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4. Separation in values: One of the major role performed by marketing is to enable
both the producers and the consumers to determine the value of the
product/service. Normally producers to would determine the price of the
product/service based on their cost of production. Consumers would consider price
payable with the economic utility conferred by the product/service and their own
capability to pay. If the interests of these two groups should be served, then
marketing alone can achieve this. It has the demand forces and supply forces to
interact and determine the true value of a product/service. This way both the seller
and the buyer stand to gain.
5. Separation of ownership: The basic requirement for exchange to take place is the
transfer of ownership from the seller to the buyer. Sellers would transfer their
ownership for a consideration and the buyers would get their ownership for a
consideration. When the consideration in question is acceptable to both the parties,
exchange is facilitated. Hence, it is marketing which can facilitate legal transfer of
ownership for a consideration from the sellers to buyers. This is because producers
do not want to retain the ownership of goods they produce and consumers want to
get the ownership of goods before consuming the product or service.
6. Discrepancies of quantity: It is well known that producer‟s objective is to minimize
cost and maximize production. That is unless there is scale economy; producers
would not be able to optimize their operations. On the other hand, consumers
always require the product/service in convenient small quantity. This makes it
imperative that marketing should provide efficient warehousing and storage
system so that both producers and consumers would achieve their objectives.
7. Discrepancies of assortment: A fundamental function of marketing is grading and
standardization. Through this, marketing can enable the consumers to get the
product of his choice and the producers would confine to manufacturing the grade
or standard that they are capable of. FOR EXAMPLE, local manufacturers would
build the features in their products to fulfill the expectations of the consumers in
the locality, while a country level producer has to meet the requirements and
aspirations of multitude of consumers with varying preferences. Some time, the
manufacturers would have two brands one for the locality and the other for the
country as a whole. Therefore, it is marketing which can give indications of
consumer‟s preference and choice with which the producers would be able to plan
and produce the product/service meeting such preferences/choice of the consumers.
Economy as explained by Mamoria and Joshi could be discussed to
appreciate the contribution of marketing in modern economy. These are explained
below.
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1. Improvement in marketing efficiency brings about reduction in distribution
cost, which could help to reduce the price. This in turn, would add to the
national income.
2. When the marketing cost declines, the society stands to gain as product/service
will be available at a cheaper price adding to the social well-being.
3. It is marketing which brings together the producers and consumers thereby
facilitating both to share the common benefits in terms of new varieties and
quality goods.
4. With widening of market, the employment potential of the country would also
widen.
5. Scientific marketing contributes by eliminating unfair trade practices and
stabilizing the price level.
6. Productive efficiency would increase, as marketing would ensure optimum
allocation of resources.
7. Artificial scarcity would be avoided when marketing forces are allowed to
operate.
8. Time and place utility of a product are achieved only through marketing.
9. Value addition to services takes place with marketing. For example, when a
wholesaler or retailer performs his function, the product moves from the
production end to consumption end. This is certainly a value addition to the
service.
10. Pattern of consumption is determined other by the structure of the marketing
system and by the value added to the goods or services through performance of
marketing activities.