Importance of marketing to the firm:
Marketing plays an important role for the well being of a firm. This is evident from the following words of the Peter F. Ducker, "Marketing is the distinguishing and the unique function of the business". The importance of the marketing to a business firm may be summarized under following heads.
1. Helpful in business planning and decision making: marketing is helpful not only to plan the production but it is helpful also in business planning and taking various decisions regarding the business. In today's economy production is planned according to the sales forecast and not according to the production capacity of the firm. A firm will produce what it marketing decisions affect the business decisions. All other activities such as planning, the demand production, purchase, finance, or decision revolves around the marketing decisions.
2. Helpful in increasing profits: every business is carried on with the profit motive. Marketing helps in increasing the business profits by reducing the selling cost on the one hand and by increasing the demand of the product through advertising and sales promotion activities on the other hand.
3. Helpful in the communication firm and in the society: business collects various information regarding consumer's behaviour and changes therein from time to time through marketing. Marketing also provides information to the firm of the competitions, price policies, productions policies, advertisement, and sales promotion policies. It helps the firm in framing its own policies or marketing necessary adjustment there in accordingly moreover marketing provides extensive information of the product regarding its quality price, utility and place of the availability to the society. Thus, society comes to know about the new products.