Importance of Marketing Essay

1210 WordsSep 28, 20145 Pages
Today’s central problem facing business is not a shortage of goods but a shortage of customers. Most of the world’s industries can pro- duce far more goods than the world’s consumers can buy. Overcapacity results from individual competitors projecting a greater market share growth than is possible. If each company projects a 10 percent growth in its sales and the total market is growing by only 3 percent, the result is excess capacity. This in turn leads to hypercompetition. Competitors, desperate to attract customers, lower their prices and add giveaways. These strategies ultimately mean lower margins, lower profits, some failing companies, and more mergers and acquisitions. Marketing is the answer to how to compete on bases other than price. Because of overcapacity, marketing has become more important than ever. Marketing is the company’s customer manufacturing department. But marketing is still a terribly misunderstood subject in business circles and in the public’s mind. Companies think that marketing exists to help manufacturing get rid of the company’s products. The truth is the reverse, that manufacturing exists to support marketing. A company can always outsource its manufacturing. What makes a company prosper is its marketing ideas and offerings. Manufacturing, purchasing, research and development (R&D), finance, and other company functions exist to support the company’s work in the customer marketplace. Marketing is too often confused with selling. Marketing and sell- ing are almost opposites. “Hard-sell marketing” is a contradiction. Long ago I said: “Marketing is not the art of finding clever ways to dispose of what you make. Marketing is the art of creating gen- uine customer value. It is the art of helping your customers be- come better off. The marketer’s watchwords are quality, service, and value.” Selling starts only when you have a product.

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