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The Importance of Marketing Financial success often depends on marketing ability. Finance, operations, accounting, and other business functions will not really matter if there is not sufficient demand for products and services so the company can make a profit. There must be atop line for there to be a bottom line. Many companies have now created a Chief Marketing Officer, or CMO, position to put marketing on a more equal footing with other C-Level executives such as the Chief Executive Officer (CEO) and Chief Financial Officer (CFO). Press releases from organizations of all kinds-c-from consumer goods makers to health care insurers and from non-profit organizations to industrial product manufacturers-trumpet their latest marketing achievements and can be found on their Web sites. In the business press, countless articles are devoted to marketing strategies and tactics. Marketing is tricky, however, and it has been the Achilles' heel of many formerly prosperous companies. Large, well-known businesses such as Sears, Levi's, General Motors, Kodak, and Xerox have confronted newly empowered customers and new competitors, and have had to rethink their business models. Even market leaders such as Microsoft, Wal-Mart, Intel, and Nike recognize that they cannot afford to relax. Jack Welch, GE's brilliant former CEO, repeatedly warned his company: "Change or die." But making the right decisions is not always easy. Marketing managers must make major decisions such as what features to design into a new product, what prices to offer customers, where to sell products, and how much to spend on advertising or sales. They must also make more detailed decisions such as the exact wording or color for new packaging. The companies at greatest risk are those that fail to carefully monitor their customers and competitors and to continuously improve their value offerings. They take a short term, sales driven view of their business and ultimately, they fail to satisfy their stockholders, their employees, their suppliers, and their channel partners. Skillful marketing is a never ending pursuit. BOSTON BEER COMPANY Jim Koch founder of Boston Beer Company whose Samuel Adams beer has become a top-selling" craft" or "micro" beer, started out in 1984 carrying bottles of Samuel Adams from bar to bar to persuade bartenders to carry it. For 10 year she couldn't afford an advertising budget; he sold his beer through directs a les and grass roots publications His hard work paid off. Boston Beer found its sales passing the $200 million mark as it became the leader in the craft beer market as a consequence it, began to spend millions of dollars on T V advertising employ dozens of sales people and carry on sophisticated marketing research. It discovered that continued success required setting up and managing a capable marketing department But the original passion and desire to move forward remains. In 2002, Boston Beer introduced a unique, limited edition "extreme" brew, Samuel Adams Utopias. The potent 50-proof, $100-a-bottle Utopias claimed the official record as "The Strongest Beer in the World. At Samuel Adams we are constantly innovating and creating new ideas that will push the envelope and revolutionize beer drinkers' expectations of beer, "said founder Koch. The Scope of Marketing to prepare to be a marketer, you need to understand what marketing is, how it works, what is marketed, and who does the marketing. Importance of Marketing in Business The first importance of marketing and that is self evident is that the consumers get an opportunity to know about various products that are available in the market. Due to marketing they may have to pay a higher price but in case, there was no marketing or advertising, how would the consumers know about the products? The importance of marketing industry, that employ a large number of people, is in itself a crucial factor as it sustains economic balance. Marketing fosters healthy competition among brands and this increases the level of competence among firms. Consumers are able to enjoy better products and they are at affordable prices. Marketing helps in earning and revenue generation of many companies, either directly or indirectly. For example, consider advertising, which can be considered to be a subset of marketing, influences television, newspapers and hoardings. With the internet writing a new chapter in the history of marketing, online marketing has evolved to be a multi-billion dollar industry. The importance of marketing can be best understood when we consider the competition in the market. If there is no marketing, only the dominant companies will exist in the market and they can move on to dominate the prices and establish monopoly over the product. With large number of companies fighting for quality, the consumer can demand low price and high quality. In other words, a balanced market is created due to healthy competition. Marketing also helps in innovation of new products, designs and quality so that consumers buy only the latest products. This drives the firms to focus on the research and development areas. Not surprising hefty amounts are invested in the R & D of products. Importance of Marketing Strategy The importance of marketing plans outweighs any other decision that can be taken in the realm of marketing strategies. Yes, marketing plan is essential to grab the market segment before any other player captures the market. What are the target groups? Which segment of the market presents higher revenue generating opportunities? These are some of the questions that marketing teams ponder over, in the pursuit of achieving a good plan. This is where the importance of marketing research comes into picture. The market research team analyzes and understands the requirements of the consumers. Conducts polls and researches and comes up with data and statistics that help to logically target a market. Another factor that governs the marketing plans is the marketing mix elements. Marketing mix elements are the sets of factors that help firms to achieve their targets of reaching the products to the consumers and also achieve organizational objectives. The importance of marketing mix is, that it takes into account the four P's of marketing, that are Product, Price, Promotion and Place of distribution. Home | Link Exchange | Site Map | Disclaimer | Privacy Policy | Contact Us 2008-2010 www.MBACareerProgram.com