The Purpose of Marketing and How It Interrelates in an Economy

Webster’s definition of marketing is ” (1) The act or process of buying and selling in a market. (2) The commercial functions involved in transferring goods from producer to consumer.” The comprehension of the functionality and need for marketing is a good starting point in understanding what’s the purpose and how it interrelates in awitheconomy and enhances consumer awareness. If one has a good understanding of future trends, then a person should be able to have better knowledge (than the competitor) about customer wants and needs, and one can develop a new and better way to approach the market.

The individual that I interviewed for this study is an executive for AT&T that has well over 10 years of marketing experience in many various business environments. The importance of selling involves understanding the background, foundation, and mentality which truly identifies the important significance of marketing. The example that I use below deals with the growth and restructuring of the ecological services industry that lead to a shift in the market strategies used to differentiate themselves based on their market and their consumers’ wants and needs.

During the 1980s, the business ecological services industry grew by leaps and bounds — growth rates of 25% and 30% per year were not infrequent, often for several years repeated. Even in the “softer” and more aggressive segment of the ecological business, the simplest amount of advertising was often enough to attract increasing business in this seller’s market.

This type of growth, common through the end of the ’80s, left most managers understandably somewhat satisfied about building formal sales departments and developing strategic marketing plans.

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Most focused their attention on operational challenges and the technical requirements of getting the work done. The sales and marketing activities that did get done were usually conducted by more technically oriented people, or by the chief executive on a time-available basis.

The predictable wisdom in the middle 1980s — that the demand for ecological services would continue to grow explosively, leading to continued progression and productivity — was quickly proven to be short-sighted. The emerging ecological industry fell victim to the powers of the free enterprise system and quRegardsickly turned into a more cutthroat marketplace. With ever-greater numbers of firms in need of a more fixed level of work, management attention in the ecological industry necessarily began to shift toward escalating or simply maintaining sales revenues.

Most sectors of the environmental industry are service businesses, and many — like the ecological consulting sector — are properly categorized as professional service businesses. Service-intensive businesses must differentiate themselves based on their market understanding and customer service — their ability to understand what the customer wants, and how those wants and needs are changing. Today, and going forward, the nurturing and management of a creative and productive marketing function, to strategically direct the company and support its direct sales efforts, represents one of the most critical prerequisites for future success.

The importance of marketing online

In regards to the Internet, it is considered the great new inexpensive sales medium. Over 400 million individuals are estimated to access the Internet as of March 2002. This is a global figure, which also brings forward the undeniable fact that the Internet is the one medium, which can be used to reach every city and every country over the globe. If a business has a website, this in itself means it is approachable by the global market, and it is vital that the business takes advantage. The only way to market globally is via the Internet, and the business must take time to learn how to do this effectively. Normal media advertising and promotion (such as through magazines, radio, and local promotions) cannot gain the site remotely as much traffic as marketing on the Internet can. If done correctly, the sky can be the limit.

Conclusion

Marketing is as essential to a business as oxygen is to the human body. It is of great importance in understanding the background, foundation,n, and mentality that identifies the significance of marketing. The comprehension of the functionality and need for marketing is a good starting point in understanding what’s the purpose and how it interrelates with an economy and enhances consumer responsiveness in its buying power.