(a) What is marketing? (b) Explain five importance of marketing in an economy.

Answer Details

(a) What is marketing?

Marketing is the process of identifying, anticipating and satisfying customers' needs and wants profitably. It covers all the business activities involved in moving goods and services from the producer to the final consumer, including product planning, pricing, promotion and distribution.

(b) Five importance of marketing in an economy

1. Bridges the gap between producers and consumers: Marketing moves goods and services from where they are produced to where they are needed, satisfying consumer wants.
2. Creates employment: Marketing activities such as selling, advertising, transporting and warehousing provide jobs for many people.
3. Encourages large-scale production: By guaranteeing a market for output, marketing enables producers to specialize and produce on a large scale, lowering costs.
4. Raises the standard of living: Marketing makes a wide variety of goods and services available to consumers, giving them wider choice and improving welfare.
5. Provides information and stimulates demand: Through advertising and promotion, marketing informs consumers about products and creates and increases demand, which boosts sales and national income.