It is an instrument to lift up the living standards even though human life is a patent example of interdependence, different sections of society are habituated to different standards of living. Differences in the manner of living are caused by such things as family and class traditions, educational and cultural influences, and social pressures of membership of different groups. There is a small class of people that enjoys highest standard of living. It is that class where people have dozens of shirts, suits, pants, shoes, ties, fleet of cars, batch af scooters; still they are not very happy. On the contrary, there is another class namely, poor class where it forms a vast majority with subsistence level or hand to mouth level of living. They are worse off, as they neither get sufficient staple food, reasonable shelter, and shattered shirts and patched pants, nor any scope to come up; still they are happy with whatever they get, as minds are rich in their case. In between these two extreme classes of rich and poor, there is still another group popularly known as middle class. In fact, it is considered as the back-bone of the nation. Unfortunately, this middle class is neither fully happy nor unhappy i.e. above the ordinary class and below the top class, leading a middle standard of living. Despite all such differences in their levels of living, every member of the society requires certain commodities and services to enjoy, to make his living decent and gracious. Therefore, for everything and anything, every body is to depend completely on this gigantic system. Thus, the shirts and pants you wear, banians and underwears that you use, the hair-oils and tooth- paste that you apply, the face power and snow that you use in make up, the medicine you consume, the cycle you ride on, the cars and scooters that you drive, the food you eat, the drinks cold or hot you take all are made available by marketing. Marketing of course, is not the sole economic determinent of the standard of living. It is, however, one of the triumvirate of important economic determinants of production, purchasing power. Marketing is a means through which production and purchasing power are converted into consumption.
Just as every industry provides employment opportunities to thousands of skilled and unskilled labour in various capacities, marketing does provide millions of employment opportunities which are gainfull. As you are aware, marketing is a complex mechanism involving number of functions and sub-functions which call for different specialized persons for employment. The major marketing functions are, buying and selling, transport, wharehousing, financing risk-bearing, market information and standardization. In each such function, different activities are to be performed by a large number of individuals or institutions. It is said that, roughly about 30 to 40 per cent of the total population is dependent on marketing directly or indirectly. They use this as a means of livelihood. This is of special significance to our country, where there are ‘population explosions and unemployment problems’ that are acute and terrifically awful. Economic stability is the sure sign of any efficient and dynamic economy. It implies that economic activities are not only at high level of performance but they are regular and continuous. It refers to the economic soundness of the nation which is consistent.
In other words, it implies existence of full employment, stabilized and flexible prices, perfect match of production with consumption. However, at times, due to certain drawbacks of natural and artificial factors, this economic stability may be disturbed. Due to extreme specialization and application of the principle of division of labour, production and distribution have become two separate sections of the economic organisation. Today, production is one thing and distribution another. Both are inter-dependent but not independents of one another. That is why, if the balance is lost, that creates untolerable and uncontrollable situation. If one of the wheels is out of order, it becomes a net-work for continuous trouble. That is, if production is more than what is required or vice-versa, economic life is ought to be perturbed. Now let us see how this excess production and lack of sufficient production affect the economy and economic stability. Profit is the core on which the whole super-structure of business is built. Profit is the pivot around which all marketing activities rotate. To earn this cream of profit, businesemen have to struggle hard, as there is no magic formula to have “wind fall profits”. There must be some instrument through which profits can be earned and multiplied. Marketing does provide many opportunities to earn profits in the process of buying and selling the goods, by creating time, place and possession utilities. Moreover for earning and realization of profits by producers and distributors implies an improvement or refinement in the fields of production and marketing, Which can be possible only from research programmes.
The problems of an enterpreneur are what, how, when, how much and for whom to produce? In the dead past, producer was in direct contact with consumers; since the needs of the community were very few and simple, they could be met very easily or even locally.
Thus, there were no intermediaries between producers and consumers. However, with the flight of time and as society developed economically, socially, politically, ethically, and culturally, the needs of refined people sprang into manifold varieties. To meet out this challenge, division of labour was applied. Production became mass and round-about. As the direct link was cut off, great gulf was created between producers and consumers. This was the opportune time when the middlemen entered the scene. Thus, marketing emerged as a new specialised activity along with production. As a result, producers are depending largely on the mechanism of marketing to decide what to produce and sell. Each producer is to feel the pulse of market via ‘marketing stethascope’ to make out as to what is going-on in the market.
The trends in the market are always changing because, markets are ever growing and, therefore, dynamic. Such changes have far reaching effects on production and distribution. Today tile minds of the buyers are not firm, but fluctuating very often. That is why, it is said “mood of the market changes fast like the taste of a fickle minded mistress”. Meaning thereby, the fashions, habits, tastes, and dislikes, preferences, styles do change with time, place and person. The producers will succeed, when they meet the new requirements or new demand of these ultra-modern people. Marketing as an instrument of measurement, gives scope in understanding this new demand pattern and thereby produce and make available the goods accordingly.