How marketing benefits the society

Marketing is practiced in every country where goods are in abundance. One of the inadequacies of the UK National Plan of 1964 was the emphasis on increasing production as if that were a means of increasing the wealth of the nation. In fact, wealth comes from selling goods, not from simply producing them; ask any businessman left with a warehouse full of unsaleable goods. Equally, any emphasis on increasing productivity is inadequate without a parallel increase in consumption. Producing more goods per worker implies more sales needed per worker and, logically, more consumption to absorb the extra produce. You cannot increase the wealth of the nation without raising consumption and that requires marketing. Production is a poor second, for wealth can be improved without raising the level of production. Increasing prices alone will suffice but only in the short term.

The principal benefits of marketing to society are:

1. Lowering of prices

2. Improving quality

3. Reducing business risk

4. Aiding technological progress

5. Subsidizing education and leisure

6. Reducing cognitive dissonance

7. Providing jobs

8. Creating consumer choice.

These factors all contribute to improving the standard of living of the nation, and in many ways perform the socialistic doctrine of more for everyone. The way in which this is achieved is complex but the philosophy is simple. Consider the factors below:

1. Lowering of prices

All economists agree on the principle of the economies as scale. Some may question its truth in practice, but all agree that it is possible and often achievable. Certainly the unit-cost price of a product is reduced after mass markets have been opened. Not all achieve dramatic reduction in price, for many reductions are almost indiscernible. Women's tight, prior to mini-skirts, were used generally by entertainers and sport personalities, and a typical good-quality pair retailed at Euro 1.50 a pair. Therefore in real terms prices are falling relative to increases in purchasing power.

2. Improving quality

In the earlier part of the century competing goods were largely homogeneous and not distinguishable one from the other. But with the advancement of advertising, manufacturers started to put their name on their product and branding spread. So in competition for the purchasers' money, manufacturers struggled to improve the quality of their output. Sometimes this would be by the reformulation of a product and sometimes by repackaging or even redesigning the product to make it more acceptable. In this way frozen foods or instant mixes are considered improvements in quality.

3. Reducing business risk

Although this may seem primarily to the benefit of the capitalist, it does nonetheless bring considerable benefit to society. Marketing helps to improve the quality of business decisions, and that can mean avoidance of waste of resources and less likelihood of business failure and unemployment.
It also implies more confidence in the taking of risks, and hence the whole of the society benefits from the extra product choice thus made available.

4. Aiding technological progress

In the struggle to prosper, or even survive, firms must innovate-- not just in commercial practice but in product themselves. It is modern marketing that has enable product such as Xerography, ballpoint pens, co-lour television and the like to become readily available to those who want them. Technological progress rarely comes from the scientist working outside commercial pressures. The only commercial technological spin-off from the American space program me was non-stick frying pans. Yet commercially there have been many new ideas, ranging from moon-walk toys to telephone operator mouthpieces.

5. Subsidizing education and leisure

Neither the newspaper industry nor commercial television could survive today without marketing subsidies. Newspapers rely on advertising revenue for the larger part of their income, while commercial television is dependent entirely on the advertisers' money. These two media account for the most significant proportion of after-school education, whether it be cultural, academic, scientific, moral, religious, artistic or whatever. Advertisers also support most of the leisure pursuits; because they want to appeal en mass they tend to spend their money where people gather together, at sports grounds etc. Furthermore, advertisers support such activities as round the world voyages, beauty competitions and man's flamboyant struggle against the elements. So modern life would be inconceivable without marketing influences.

6. Reducing cognitive dissonance

All buyers are wary of making a mistake, for no one can be an expert of all things. But well-promoted goods offered by well-known companies with such politics as sale on approval, sale or return, or after-sales services provide reassurance. In this way consumers are relieved of anxiety. They will be able to buy relatively expensive items confidently of the quality and assured of service and attention should something be wrong.

7. Providing jobs

Higher levels of demand brought by marketing necessitate distribution channels and physical distribution facilities. As such, the infrastructure of the nation involving ports, roads, motorways, ships, trucks, trains, airports, and telecommunication networks becomes critical and the provision of these services brings jobs to millions.

8. Creating consumer choice

Competition and the need to achieve a return of investment compels firms continually to extend their product range. Consumers are provided with a full choice, sufficient to satisfy all but the most difficult tastes.