Marketing is a crucial aspect of every business operating on the face of earth. In view of business terminology, marketing is defined as an activity directed towards understanding and fulfilling customer needs for some profit.
1. What is Marketing?
The need of a customer is the core target businesses battle for day in and day out. Renowned American psychologist namely Abraham Maslow in his theory ” Hierarchy of Needs ” mentions that there exist a number of needs in a hierarchy such as a biological need, esteem need, self actualisation need etc in every human being.
What marketers do is that they chase these needs and then create, communicate and deliver value to solve these needs of people, says Philip Kotler, a reputable marketing management author and professor. In short, what we mean is that marketing is identifying and serving a need of customers not for free but for a profit.
2. Why is Marketing Important?
No marketing means no success. A business that runs only after profits, no matter whether or not expectations of a customer are matched, won’t ever achieve complete success. However, an enterprise that is focused on satisfying needs of a customer won’t only generate profits but will also build its brand image in the target market.
Profit is an outcome of fulfilling customer needs. Not only generating profits is a legitimate objective of an organisation but it is also an important requirement that helps in keeping several stakeholders such as customers, employees, suppliers etc interested in running a business.
But an enterprise with a single minded focus on profit maximisation won’t survive simple because customer interests get largely avoided which eventually makes that enterprise windup.
In contrast, if a business puts focus on serving the needs and wants of customers, the goal of maximising profits will easily be attained. It is only possible when business owners understand the importance of marketing.
In conclusion, marketing should be treated as a central business function as it helps in establishing long term relationships with customers.