Introduction to marketing - SS2 Commerce Lesson Note

Marketing is the process of promoting and selling products or services to customers. It involves activities such as market research, product development, pricing, advertising, and distribution. Marketing plays a crucial role in the functioning of an economy for several reasons.

• Meeting Customer Needs: Marketing helps identify and understand customer needs and preferences. By conducting market research, businesses can gather valuable insights about their target audience, allowing them to develop products or services that meet those specific needs. This ensures that resources are allocated effectively and efficiently to produce goods and services that customers actually want.
• Creating Awareness and Demand: Marketing creates awareness about products or services by effectively communicating their features, benefits, and value to potential customers. Through advertising, promotions, and other marketing techniques, businesses can generate demand and attract customers. This stimulates economic activity by encouraging consumption and driving revenue for businesses.
• Facilitating Exchange: Marketing acts as a bridge between producers and consumers, facilitating the exchange of goods and services. By promoting products and services, marketing connects businesses with potential customers, helping to create mutually beneficial transactions. This exchange of goods and services drives economic growth and generates revenue, benefiting both producers and consumers.
• Competition and Innovation: Marketing fosters competition among businesses. As companies strive to differentiate themselves and attract customers, they are incentivized to innovate, improve product quality, and offer better value to consumers. This competition drives efficiency, encourages innovation, and leads to the development of new and improved products or services, benefiting the overall economy.
• Economic Growth and Employment: Marketing contributes to economic growth by driving sales and revenue for businesses. When businesses thrive, they expand their operations, invest in new infrastructure, and create job opportunities. This leads to increased employment rates, improved income levels, and overall economic development.