The Role of Marketing

1. The first and foremost role is that it stimulates potential aggregate demand and thus, enlarges the size of the market. You might ask,  how does it help in the economic growth of a country? The
answer is that through stimulation of demand people are motivated to work harder and earn additional money (income) to  buy the various ideas, goods and services being marketed. An additional advantage which accrues in the above context is that it  accelerates the process of monetizing the economy, which in turn  facilitates the transfer of investible resources.

2. Another important role which marketing plays is that it helps in the discovery of entrepreneurial talent. Peter Drucker, a celebrated writer in the field of Management, makes this point  very succinctly when he observes that marketing is a multiplier of managers and entrepreneurs.


3. It helps in sustaining and improving the existing levels of  employment. You may ask, how does it happen? The answer is  that when a country advances economically, it takes more and  more people to distribute goods and proportionately a lesser  number to make them. That is, from the employment point of  view, production becomes relatively less significant than  marketing and the related services of transportation, finance,  communication, insurance, etc. which spring around it.

 CONCLUSION

In this unit, you have learned about the term ‘marketing’, its functions  and roles in the socio-economic development of a nation. You also learned some basic terms which are regarded as the basic concepts underlying marketing.

 SUMMARY

Although marketing cannot operate in isolation of other sectors of the economy, marketing plays an important role in any economic  development, since goods by themselves cannot get to the target users  except through marketing institutions. Stages of marketing era were examined in order to appreciate the role of marketing in nation building.