SIGNIFICANCE OF MARKTING
Customer decides as to what products suits their needs. Education, media, etc has
changed the type of goods required by customers. Especially in the last decade there is
total shift of goods required by the customers. Mobile Repairing centers, day care centers
computer centers, which had no place are very important now a days. Marketing affects
our livers in many ways. The product satisfy customer needs and wants and also remove
hindrances between the marketers and customers by creating utilities for them by adding
value to the product. By removing these hindrances, marketing ensures free and smooth
exchange of goods and services from marketers to customers. These utilities are as follows.
2.2.1 Form Utility.
Form utility converts the raw form of products into meaningful final products. Thus,
customers force marketers to direct production department in terms of specific customer
needs satisfaction.
2.2.2 Person Utility:
Person Utility fills the gap between the producers and the ultimate customer. Marketing
helps to remove the hindrance of person by means of trade. Trade, as a part of marketing,
plays a major role in establishing contact between producers as providers of goods and
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services and customers as users or consumers of those goods and services to satisfy their
needs. Various traders, namely, wholesaler, retailer, and mercantile agents operate to
provide person utility.
2.2.3 Exchange Utility
Marketing helps to bring together the producers of goods ready to sell their goods for
money and the consumers of those goods ready to part with their money (purchasing
power), thus removing the hindrance of exchange. Moreover, with money as the medium
of exchange, payment for goods and services is made through banks. In this way, banks
help to remove the hindrance of exchange and enable the buyers to procure goods on
credit. Further, bank often finance trade in ways more than one. Thus exchange utility is
provided by money, banking, and finance.
2.2.4 Place Utility
Place utility brings the producer of goods and services closer to the customer. Goods may
be produced at one place where advantages of location in market may be available
whereas the buyers of such goods may be situated at a far off place. The barrier of
distance between the place of production and the market where these products can be sold
is removed by different means of transport. Besides transporting goods from the place of
production to that of consumption, the services of insurance to cover the risk of loss
during transit and storage and packaging to protect goods against damage and pilferage
are also aimed at removing hindrance of place.
2.2.5 Time Utility
Goods are normally produced in anticipation of demand and as such they are to be stored
as long as the demand for the same comes up. Such stored goods are to be released as and
when demand materializes. This function of storage and preservation is performed by
warehouses which remove the hindrance of time by balancing the time gap between
production and consumption, thus creating time utility. During this process of storage,
insurance plays its role by removing the risk of loss or damage through left or fire
2.2.6 Knowledge Utility.
Advertising and salesmanship help to remove the hindrance or lack of knowledge on the
part of the prospective buyers by bringing to the notice of the customer the utility of
buying the goods and services offered.A producer may find it difficult to sell his products
unless and until he brings it to the knowledge of the prospective consumers the utility and
the distinctive features of his products.