---
title: "Importance of marketing in business"
subject: "Organization and Management"
chapter: 6
key: "semester_7/organization_and_management:marketing-importance"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/marketing-importance
site: BCT Engineering
---

# Importance of marketing in business

Organization and Management · Chapter 6: Purchasing and Marketing Management

- Asked in: 2074 Asoj, 4 marks; 2073 Shrawan, 4 marks; 2073 Chaitra, 8 marks; year not given (asked 3 times)
- Video: [Marketing - what is its role in business and why does so much get spent on marketing every year?](https://www.youtube.com/watch?v=hX-X4SndI2w) — Two Teachers
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/marketing-importance
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-6

## Question

How important is marketing in business? Why is marketing important in an organization?

## Short answer

Marketing is essential because no business survives without customers. It identifies needs, creates demand through promotion, guides production, and earns profit by delivering value, thereby building image, competitive advantage, and supporting all other business functions.

## Answer

Marketing is the process of identifying customer needs and satisfying them through the creation, promotion, pricing and distribution of goods and services at a profit. It is important because no business survives without customers.

#### Importance of marketing in business
1. **Creates demand and sales:** Advertising and promotion make customers aware of products, as Nepal Telecom and Ncell do with data packs.
2. **Satisfies customers:** Market research finds what customers want, so products match needs.
3. **Earns profit:** Higher sales and good prices give revenue for survival and growth.
4. **Gives competitive advantage:** Branding, quality and service distinguish a firm (Wai Wai noodles, Dish Home).
5. **Guides production:** Information on tastes and trends guides what to produce.
6. **Expands the market:** Finds new customers, regions and export opportunities.
7. **Builds image and goodwill:** Good customer relations create a loyal base.
8. **Creates employment:** Sales, advertising, transport and retail jobs.

#### Importance to the organization and economy
1. **Link between the firm and society:** Brings feedback from the market.
2. **Raises standard of living** by making goods and services available.
3. **Supports other functions:** Finance, HR and production depend on sales.
4. **Encourages innovation** through competition.
5. **Contributes to the economy:** Trade creates tax revenue and economic growth.

Without marketing, even excellent products fail to reach customers; with it, even a small firm can grow, as many online sellers in Nepal using Facebook and Daraz have done.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Why is marketing important to a business?
   A. It removes competition
   B. No business survives without customers
   C. It avoids profit
   D. It replaces production
   Answer: B. Marketing identifies and satisfies customer needs, creating the sales that keep the firm alive. (Key point: Why marketing matters)

2. How does marketing guide production?
   A. It designs machines
   B. It fixes factory wages
   C. It stops research
   D. Information on tastes and trends shows what to produce
   Answer: D. Market research tells the firm what customers want. (Key point: Guides production)

3. How does marketing give competitive advantage?
   A. By lowering product quality
   B. By avoiding promotion
   C. By copying rivals
   D. Branding, quality and service distinguish the firm
   Answer: D. Branding, quality and service make a firm different from rivals. (Key point: Competitive advantage)

4. What does marketing act as between firm and society?
   A. A tax collector
   B. A lender
   C. A barrier
   D. A link bringing feedback from the market
   Answer: D. Marketing brings market feedback to the firm. (Key point: Link with society)

## Related in Organization and Management

- [Salesmanship as ingredient of marketing](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Asalesmanship-marketing) — Organization and Management, chapter 6
- [Functions of marketing](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amarketing-functions) — Organization and Management, chapter 6, asked 2×
- [Define marketing and advertising](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Adefine-marketing-advertising) — Organization and Management, chapter 6
- [Advertising as a form of marketing](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aadvertising-form-marketing) — Organization and Management, chapter 6

## Related in other subjects

- [Patent vs trademark; business organization](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Apatent-trademark-business-law) — Engineering Professional Practice, chapter 5