Role of Marketing in Economy
Marketing plays a important function in the progress of an economy. It acts as a medium in the economic growth of a country and helps in raising the standards of living of the people. Development of a nation can be judged by the level of standard of living of its people. On this basis, an underdeveloped country may be stated to be one which is characterized by factors like poverty, scarcity of goods and services, prevalence of agriculture, etc.
Marketing can play a major role in the economic development of a nation. It can motivate people to undertake new activities and to set up enterprises for producing goods that are needed by the consumers. Marketing has acquired a vital place for the economic expansion of the whole country. It has also become a requirement for attaining the object of social welfare.
Role of Marketing in Economic Growth
- Marketing stimulates the aggregate demand thereby enlarges the size of market
- Delivery of standard of living to the society
- Decrease in distribution cost
- Increasing employment opportunities
- Protection against business slump
- Increase in national income
Marketing can help in overcoming obstacles posed by high prices due to imbalances in the levels of production and consumption. In other words, marketing can help in finding out right type of products and services that a firm should manufacture, the places where it should make such products obtainable for sale, the price at which the products should be sold and the channels that should be used for moving the products to the final place of expenditure or use. This connection between the business and expenditure centres, accelerates the economic movement leading to higher incomes, more expenditure and increased savings and investment.