BUSINESS MANAGEMENT BULLETIN

The Reasons Behind Product-Line Expansions

2022-10-28T11:36:00.003+05:30

Every sector of consumer goods and services has seen a proliferation of items over the past few years, and there are no signs that this trend is slowing down. the majority of businesses are moving full-steam ahead with their line extensions and other product-expansion efforts. However, increasing amounts of evidence show that such aggressive strategies might be dangerous, as John A. Quelch and David Kenny contend in "Extend Profits, Not Product Lines."

Generally, businesses use line extensions as a component of their marketing campaigns for a number of reasons: Line extensions can satiate consumers' wishes by offering a wide variety of goods under a single brand; managers view extensions as a low-cost, low-risk solution to address the needs of multiple customer categories; and managers often use extensions as a short-term competitive weapon to increase a brand’s control over limited shelf space.

However, there is a caution that despite all the ostensible advantages, the costs of needless line extensions are extremely substantial. For instance, when a line is over segmented, the strategic purpose of each product is muddied. A business running the risk of losing customers by expanding its line. Retailers are unable to expand a category's shelf space simply because there are more products, and line extensions rarely increase category demand. Most importantly, overextending oneself might result in hidden.

Here are several recommendations for honing product-line strategies in order to avoid these pitfalls: enhance cost accounting, allocate resources to well-liked products, study consumer behaviour, coordinate marketing initiatives, collaborate with channel partners, and promote an environment that is supportive of product-line deletions. Companies that concentrate on a product line can boost earnings and sales volume.

Why Did Elon Musk Purchase Twitter?

2022-05-04T09:55:00.002+05:30

Elon Musk purchased Twitter for $44 billion USD on April 25th, 2022. Musk, the CEO of Tesla and the world's richest man, plans to take Twitter private and has stated that he wants Twitter to adhere more closely to the ideas of freedom of speech and free expression, which he called "the bedrock of a functioning democracy" (In the same statement, he described Twitter as the "digital town square where matters vital to the future of humanity are debated.") Musk is a prolific tweeter, and it is expected that he will continue to utilize the site, maybe reactivating former President Donald Trump's account.

Why Elon Musk bought Twitter?

I'm guessing it's because he has some serious political and social convictions about how Twitter should be governed, and he doesn't think it is. I also believe he enjoys and benefits from tweeting and would like it to be tailored to his needs. His company's value is enhanced by this status as a curious public figure on Twitter, so he definitely sees a lot of value in tweeting and likely wants to acquire it.

A late fee of $40 for a rented VHS tape triggered Reed Hasting to start Netflix and caused Blockbuster ruin just in couple of years

2021-03-21T01:59:00.001+05:30

Once Blockbuster had a chance to buy Netflix with a very reasonable deal ($50 million) but it refused the offer. If Blockbuster accepted the offer, they could have saved themself from getting defeated by Netflix. Blockbuster laughed at Netflix’s deal at that time. In the year 2010 conditions has completely changed. Blockbuster went for bankruptcy and Netflix made a huge annual net income of $161 million.

What is Blockbuster?

Blockbuster, officially Blockbuster LLC is an American-based provider of home movie and video game rental services. Primarily the services were offered at video rental shops, but later alternatives included DVD-by-mail, streaming, video on demand, and cinema theater. Due to tough competition from Netflix, the company was defunct after September 23, 2010.

Netflix ruined Blockbuster just in couple of years.

In the year 1997: A late fee of $40 inspired Reed Hasting to start Netflix

Reed Hastings, the co-founder of Netflix, disremembered to return a rented VHS tape of the movie called “Apollo 13”. For that he was charged with $40 as late fee. This made Hastings to take a revolutionized decision. He along with Marc Randolf, who also happened to be co-workers, decided to transform the movie-rental business and started Netflix. Eliminating the late fee was their major key feature.

In the year 1998: Opened DVD rental business which was completely new that time

Netflix formally opened its DVD rental business this year with just 30 employees. At that time period, still customers were used to renting VHS tapes of Blockbuster. That time DVD players were not so popular and very less people owned those because it was an expensive purchase. Though, Netflix founders were completely willing to take the risk. They envisioned the future for their company. Their plan worked good. The website received a lot of traffic. As a part of their strategy, Netflix partnered with Toshiba, HP, and Sony and offered DVD rentals to new DVD player buyers for free.

In the year 1999: Netflix launched subscription-based services for the first time

Netflix joined hands with Groupe Arnault, a France-based company by Bernard Arnault. It was hugely benefited by that alliance. With the help of $30 millionas an investment by Groupe Arnault, Netflix launched subscription-based service. The idea of renting as many DVDs as customers want for just $16 a month was really loved by the target audience. (Initially allowed customers to hold 4 DVDs in their possession at a stipulated time). There was no late fee for not returning a DVD in a given period.

In the year 2000: Netflix offered it business just for $50 million to Blockbuster

Despite its growing popularity, Netflix was still earning a stingy $5 million in revenue. In the interim Blockbuster, (Netflix’s biggest competitor) was killing it and making a huge$4.5 billionis is when Netflix knocked on Blockbuster’s door and asked for some help but Blockbuster kicked them out in a rather rude way. Surprisingly, this year Netflix was desire for external assistance because it experienced$58 million in losses..

Year 2001 — DVD players Became Popular

Reed Hastings managed to keep Netflix flooded while he hoped for DVD players to go mainstream. And it finally happened and DVD players were now cheap and people started buying them. But DVD players were useless without the right DVDs. No worries yet Netflix was there to fill this gap by offering suitable DVD rentals.

In the year 2003: This time Netflix experienced hug profits

Usually, good things come to those who wait. After years of hardships and brutal rejections, 2003 turned out to be the first lucrative year for Netflix. The company also crossed the 1 million subscribers mark this year.

In the year 2004: Tough co petition started between Netflix vs. Blockbuster

Blockbuster understood that the old VHS rental model might not be their best bet, and the company started its online DVD by mail service, which was alike to Netflix. The situation was just like ‘the big boy was in direct DVD rental competition with the little guy’, but that didn’t stop Netflix’s progress.

In the year 2005: Year Netflix’s Revenue Increased while Blockbuster’s Revenue Decreased

Netflix was gradually growing its profits as well as its popularity. This was the time during which they sent 1 million DVDs daily. It has been observed that customers advanced to ordering for DVDs in online instead of visiting the stores directly. A compared to 1998, when Netflix opened its operations, 2005 was totally a new era. Still Blockbuster depends on their brick-and-mortar film rental model which becoming obsolete. Blockbuster experienced revenue loss and also popularity gradually.

In the year 2007: Netflix kept rising high and a new concept of On-Demand Vidoe Streaming Service

Netflix sent its billionth DVD this year. The company now also started offering an on-demand video streaming service. But they hadn’t obtained the copyrights to bestselling movies or TV shows yet, so the videos available on Netflix’s on-demand service were, for the lack of a better word, generic. During this time, Blockbuster’s profits were declining further and Netflix’s profits were rising.

Sandi Harding, the owner of the single remaining Blockbuster store in the world. Source

In the Year 2008: More popular videos were added to its service

Netflix comprehended that it needed to provide more popular videos for its on-demand video streaming service to succeed. So, the company signed a deal with Starz to bring more than a couple thousand movies and shows onboard.

Blockbuster’s profits declined further.

In the Year 2010: Netflix captured major market share and Blockbuster Went Bankrupt

By this time, Netflix had signed deals with the entertainment industry giants, such as Disney, Lionsgate, MGM, Paramount, and Sony. Netflix became awfully popular in North America and gripped a 20% share of peak-hour traffic.

Conclusion

Long-sightedness and adaptability are crucial for surviving and thriving as a business. Blockbuster’s decisionmakers’ failure to embrace new opportunities and treating their competitors with arrogance led to their destruction.

Remember, your customers will pay for what’s best for them. No matter how popular your business is, your customers will go to your competitors at the drop of a hat if they’re offered better products or services.Netflix ruined Blockbuster just in couple of years.

With love and passion, noting is impossible: A Story of Kamal Khushlani, Founder & Managing Director of Mufti

2021-03-07T22:23:00.001+05:30

Retail icon of India awards, Brand of the year in men’s casual wear at APEX awards, Customer loyalty initiative of the year award and retailer of the year award- attainment of all these happened for a new brand in the apparel industry with the time span of 20 years.

It is Kamal Khushlani, the Founder and Managing Director of Apparel brand MUFTI. He lost his father at the age of 19. He hails from a middle-class background. He started his journey with a barrowed capital of Rs.10,000 from his maternal aunt and grew his business to a Rs. 395 crore brand today. Kamal did all these with his love and passion towards fashion retail business. His ambition is to provide an alternative dressing solution that didn’t conform to the ‘Uniform’ codes of mainstream fashion.

Kamal’s first journey as entrepreneur with ‘Mr & Mr’ brand

In 1992, Kamal Khushlan identified a gap in how the menswear was evolving as Indian fashion trends were observing a great shift. Though there were many brands and styles in jeans like bootcut to bellbottom, every brand was offering a similar pattern almost with the same quality level. Kamal desired to come up with a product was advanced fashion for Indian men. However, he had a profound interest in the fashion business, because of his middle-class background and lost his father at the age of 19, he had no money to exploit on his vision. He had no regrets for working with a video cassette company to make his dream come true. Finally, he started his dream project by borrowing Rs.10,000 from his maternal aunt (mother’s sister) and took a first step of his entrepreneurial journey. In 1992, he launched ‘Mr & Mr’ shirt company which manufacturing and retailing shirts for men.

Launch of Mufti in 1998

Though, his new business was running fine, Kamal felt that there was enough vacuum in the apparel industry to fill by using his business skills. A self-taught fashion designer, brand strategist, and futurologist Kamal had a firm belief in creating a new wave of culture and fashion that originates in India and is incorporated worldwide. With this as his vision, he launched Mufti in 1998. ‘Mufti’ is a Hindi term which means ‘casual dressing’ as opposed to a uniform. Kamal has chosen this name because the company made cloths that were very diverse from those sold by other brands during that time period and he positioned his brand accordingly as an alternative clothing.

Kamal started Mufti single-handedly: Fellow commuters laughed at him while carrying stock on his bike

Kamal started Mufti with single-handedly. He used to transmit kilos of textile fabric on his bike and drop it off at the workshop and then come back to collect the finished products for sale. For so many years he did the same all by himself. He recycles the money he what he earned from his business. He had no office and no table. He was the workers and proprietor of his business. He just used the space underneath of his dining table as warehouse. When he had to collect the shirts from the workshop, he could pick up about 60 pieces at one time as had a large suitcase on which he got straps attached by mochi. It would look really funny as many a times he would be in traffic where his bike could pass through but he had to wait as the with of the suitcase slung on his back was too wide for him to pass. So, he was a laughing stock for his fellow commuters.

Raised as a delightful brand by customers

In 2000s, Mufti gained prominence, expanding from exclusive brand outlets to large and multi-branded outlets and large-format stores. The reason behind its expansion lies in the love and acceptance of its customers. Customers loved the new style, fit, cut and comfort they offered. The older brands were continuing with the old patterns of fashion while Mufti introduced new styles. That differentiated Mufti from other Indian brands.

Mufti was one of the first brand to introduce stretch jeans for men

Kamal says that Mufti was one of the first brands to acquaint with stretched jeans for men. He describes that Denim is a rigid fabric and stretchable fabric was used in jeans exclusively for women then. When Mufti presented it in the men’s fashion, it was well-received by the market. Mufti’s source of material from many Indian mills including KG Denim, Arvid mills, NSL and Mafatlal. The buttons and other accessories are also obtained from India and the collection is made in third-party manufacturing units in Bangalore, Ludhiana, Tirupur, etc.

The company has over 600 employees on its direct payroll and indirectly employs over 2000 people. It manufactures a range of over 500 products every season which includes jeans, trousers, shorts, athleisure, jackets, t-shirts and more.

The challenges being faced by Mufti

In its journey of 23 years Mufti has seen many ups and downs. During this remarkable journey, the company has faced its own set of challenges, especially when it came to expansion. A few years back the company launched a whole new women’s collection in jeans. Nevertheless, they soon realised that women could not be was not their target audience as they were not picking up Mufti’s collections. Tus, it lasted only for a short period of time. The business also moderately hit by demonetization and implementation of GST for a couple of months. After that affect, it gained its momentum and has been running successfully for the past few years. Raising the concept of e-commerce is another major challenge that need to be exploited. However, being a brand, the company’s focus is to spread across all sales channels. Though there are huge discounts in the e-commerce platforms, Mufti neither give discounts on sole platforms nor do they have a distinct inventory. If one channel has a discount, it will be for everywhere else that Mufti brand is present.

Journey with a barrowed capital of Rs.10,000 to a Rs.395 crore brand

Since its beginning, Mufti has grown as a denim casualwear brand and presently retails through 300 exclusive brand outlets, 1200 multi-brand outlets and 110 large format stores like Central and Shoppers Stop throughout India. It also entered the footwear market in 2017 and launched men’s shoes across 100 stores in India. Mufti reached a turnover of Rs.350 crore in 2018 and expecting to grow in the future. Mufti is presently focusing on integrating new brands in its collection and is also planning to enhance to its footprints in Indian market by expanding its reach to every corner of the nation. They currently not planning to enter the foreign market as of now.

Finally…

The remarkable journey of Kamal Khushlani is a great example for many youngsters today who aspires to be an entrepreneur. Its best to dive right in and learn the hard way to come up in life. One should not compromise with situations and the challenges they face. If you have an idea, start it today. There is no better time than now to get going. It doesn’t mean to quit your present job and jump into your idea completely from day one but there is always small progress that can be made to start the movement. Finally, with love and passion, nothing is impossible.

Believe in your idea and break the self-limiting principles: An exciting story of Bajaj auto ltd comeback with Pulsar in new millennium

2021-02-27T00:59:00.005+05:30

Two decades for one of the India’s favorite motorcycle-Pulsar and it was the savior of Bajaj Auto Ltd in the new millennium. The road was not so smooth for its launch in the year 2001. Here is an exciting story of the birth of Bajaj Pulsar.

Scenario

As India funneled towards new millennium, there was a great shift in the preference of consumers from scooters to motorcycles. The entire market was favor to the motorcycles. By the year 1999 motorcycles surpassed the sales of scooter for the first time. Already Bajaj failed to excite the market with their motorcycle Bajaj Kawasaki Boxer. Its cost was too high, quality was low. Though its brand name ‘Bajaj’ became the synonym for scooters but failed to manage competition and stood in fourth position after Hero Honda, Yamaha and TVS. It was the situation either a brave or the foolish would have invest their money in the Bajaj Auto Ltd.

Idea of Rajiv Bajaj

In 1991, Rajiv Bajaj (Elder son of Rahul Bajaj, Chairman of Indian conglomerate company Bajaj Group) has completed his M.S. in Manufacturing Systems from University of Warwick in UK. He was just in his 30’s when he tried to sell his idea of making an indigenously developed performance-oriented motorcycle without any support of their Japanese partner Kawasaki. It was a tough time for him and his team to convene his own board of directors to his idea. How he succussed in this challenge was rest of the story.

The idea of Rajiv Bajaj MD of Bajaj Auto Ltd was to make 200cc motorcycle when the company could not make even a 100cc one. He decided to do this with the help of 15 guys who have never experienced in making a motorcycle but the first time they are going to do this. And his plan was to do that motorcycle by their own without the help from Kawasaki. The fastest motor cycle he is planning to make when the company couldn’t in a position to make mass motorcycles.

Taking ownership of one’s mistakes is the first step for success: Rajiv Bajaj Did

Regarding their failure with the first motorcycle, there was a great suspicious whether something went wrong with Kawasaki or with Bajaj. Kawasaki couldn’t have gone wrong for sure because the same motorcycle made in Japan wouldn’t had these problem. Rajiv concluded that something went wrong with Bajaj Auto Ltd only. Really it takes a great courage for accepting one’s own mistakes and faults committed and it is the first step for success.

The biggest challenge was to get the right product at the right price and to bring in Japanese style of management practices. But the people at Bajaj did not want to change from their current practices to the desired future practices. They all with the opinion “it is ok in Japan not in India”. So, the problem was the deep-rooted attitude: Bajaj was a scooter company and the motor cycle development was given least priority. Around 1996, it was only 10% of their business. As the quality of the products were poor, offering fuel efficiency is a challenge, the manufacture processes were outdated. Simply to all together, Bajaj Auto did not know the art of making motorcycles and people at Bajaj Auto were highly reluctant to change their attitude.

Sanjiv Bajaj younger brother of Rajiv joined the way

Sanjiv Bajaj who completed his MBA from Harvard University joined the company. He believed that any successful company needs a good product. But most of the workers in the Pune plant did not have faith that they could bring Japanese management practices.

Sometimes people need to be taught by examples

The knowledge what Rajiv Bajaj acquired through his MS in Manufacturing Systems propelled him to bring the similar changes just as Japanese. But the own board of directors have not supported him and laughed at his idea. Their view was Indians were not able to achieve Japanese level of technology and quality. The two brothers believed in their idea and decided to start a new plant. A place called Chakan which is an hour driven from Pune was their choice. They understood that sometimes people have to be taught by examples. That is what they did in Chakan.

Chakan plant was to produce exclusively the new concept bike completely with the new workforce who are the fresh graduates from college and open to new ideas. This young crew are crazy about bikes and well understood the requirements of customers.

Support from supply chain

The role of vendors who supply the parts is very important to reduce the cost and improve the quality of motorcycle manufacturing. Many of the vendors for Bajaj company were not good in their quality. Then Rajiv decided to cut down size of their vendors from nearly 1000 to around 200 valuable vendors. With the help of foreign consultants these vendors were given training to produce quality components. Dealers role is also important to promote the sell the products. Here in the case of Bajaj, dealers had been selling only scooters. Selling scooters entirely a different concept. Rajiv Bajaj completely renovated dealers so that they even could sell motorcycles. Bajaj dealership was designed in such a way that they able to cater the needs of new motorcycle buying customers.

Role of R&D Team

It is really spirit of the engineers who are important for R&D. Abraham Joseph, the R&D Head who is a Mechanical Engineer from the National Institute of Technology. He led the entire team of R&D. Many of the people in R&D department were youngsters with the average age of 30 years. The reason to have more young people in R&D was the inspiration Rajiv Bajaj got from first time visit to Kawasaki R&D in Japan. He thought that he would see a lot of grey-haired people with thick glasses. Surprisingly he saw the people there with the average age of 26 or 27. The engineer does not need experience but require passion to work. The team committed number of mistakes initially with Pulsar engine before they got it right. That was really a learning experience for them. One the survival test they have is to take the engine full throttle. Now, full throttle on a bike is rare on the road. Their target was full throttle for 100 hours continuously. The first time, it failed within 10 minutes. Today, the Pulsar engine goes 300 hours full throttle.

Birth of Pulsar

The role of Marketing team is another big important thing for the success of Bajaj Auto Ltd. The marketing team provided the great inputs for the concept bike. In their market survey they identify there is a set of customers who are looking for something more than just a bike for commuting purpose. They expecting a bike with rugged styling and more power along with fuel efficiency. Initially the design department made 8 to 10 different designs and later they narrowed down those to 3 to 4. With the inputs received from the target audience through market survey, two prototypes of bikes were made. Out 2 to 3 variations of engines Rajiv selected one finally.

Rajiv Bajaj personally looked after every details right from the styling and painting to the design of the console, the right grip and even the spark plug to use. For doing all this they have taken nearly 24 to 30 months. With all these great efforts from the R&D, Styling and Marketing departments, finally the Pulsar bike was launched in November 2001 with two engine options of 150cc and 180cc.

Initially, the company thought that the target audience would be 25 to 35 age group people. But, when they saw the sales chart, surprisingly it was even being preferred by 35 to 45 age group people. Here the reason they understood was, the Pulsar fulfilling the desire of the riders to take a youthful persona. It was powerful, cheaper and macular looking than other bikes in its category. Finally, the Pulsar has comfortably outsold any other 150 cc motorcycle in India and has dominated the 150 cc and above sales since its paunch. In the interim, instead of sitting idle on its successes, Bajaj has been constantly upgrading its models and giving the mighty Japanese a run for their money.

Finally…

Today, though there are vast number of successful bikes with different variants from different companies available, in my opinion Pulsar was the first bike symbolizes the spirit of a progressing India of the 21^st century. It also represents the manufacturing and managerial power of Indians.

Moral of the story

To tell moral of the story, first let me explain about how elephants are kept in Thailand.

To keep elephants from running away Thai people prefer just tie a rope or a single chain to the elephant’s leg and secure it to a stake in the ground. Once the elephant leg is secured, it will not run away. Though the elephant has the power to break the chain or rope simply but it will not do that. The reason is, the entire process conditioned. It lies in making the elephant believe that it cannot break the string. This conditioning begins from young. When the elephant is a baby and still too weak to walk or even stand properly, they tie leg to the stake in the ground.by the time elephant tries to run to its mother, it would not able to break the chain that binds it. Whenever it attempts to run, the chain catch its leg and it will fall onto the ground. After experiencing all the pain from falling again and again, one day the elephant will not bother to pull the chain any more. The moment this happens, the keepers know that the elephant has been conditioned to be trapped for the rest of his life.

The workers at Bajaj Auto Ltd were also the same way trapped by their self-limiting beliefs and habits. If they wish to change then they really could do that. But they never attempted for that because they strongly believed that they could not achieve Japanese levels of quality and efficiency.

Rajiv and Sanjiv Bajaj has shown tremendous courage and self-belief that ‘nothing is impossible’. They have evidenced that Indians are capable of contending with best in the world and in this process they have made every Indian proud.

Conclusion

The self-limiting beliefs are still presenting among many people. If they able to come out of those, they really could do wonders. Believing in one’s own strength and ideas is more important than fearing by looking at others strength and power. Though a great criticism you receive initially, you will become an ideal person for many later.

Growing need of artificial intelligence in Human Resource Management

2021-02-18T08:48:00.009+05:30

The use of Artificial Intelligence (AI) technologies is transforming the industrial sectors to an appreciable level. McKinsey’s latest forecast of AI’s impact on the global economy is that AI will generate $13 trillion in global economic activity by 2030.
The HR department is not left behind the race. The HR professionals today are focusing to optimize the combination of human and automated work to gain a simple, seamless, and intuitive work environment. It provides them time for creativity, intelligence, and empathy to deliver an enhanced candidate and employee experience.

Impact of Artificial Intelligence in Human Resource Management

The impact of AI is expanding to a greater extent in human resource management. It starts from the recruitment process to exit process of an employee that includes training, engagement, perks, records, and so forth. A few of the influences are highlighted here.

Personalized experience

The influence of AI is more felt in the talent acquisition processes like screening of prospective candidates, recording and maintaining the database, automating interview schedules, sending a message, answering job seekers’ queries, and more. It helps in preliminary mundane tasks.

The results are significant, measurable, and immediate. It reduces the hiring time and increases productivity for HR professionals. The team is left with time for higher-value work like sourcing, recruitment marketing, employee engagement, and hiring managers.

For instance, The Job Intelligence Maestro (JIM) for DBS Talent Acquisition Team reduced the screening time from 32 minutes to 8 minutes per candidate.

AI-backed programs introduce the new employee to job profile, new hire information like reporting authority, team members, task assignment, administrative tasks, policies, and almost all first-hand information through an app or laptop on his/her first day.

Workforce management decisions

Some of the areas (apart from recruitment) where AI is creating an impact include HR strategy and employee management, analyse company policies and practices, manage payrolls, automate workforce, investigate corporate compliance, litigation strategy, analyse success, and other related programs. The technical-minded HR personnel can readily apply technology to HR functions, learning, and development applications.

Smart people analytics

Leveraging big data tracks employee’s performance and sentiment as well. AI tracks the employees’ activities like browsing, emails, projects, and other tasks for a brief period. It can single out heading out employees and report to administration. This helps the organization to improvise engagement and retention strategies.

Conclusion

AI-based HR applications raise employee productivity. It has the ability to analyse, predict, diagnose and become a more capable resource while focusing on employee needs and outcomes.

However, there are challenges like privacy, talent gap, maintenance, integration capabilities, or limited proven applications. But exercising proper caution while deploying AI services will solve unnecessary issues. AI systems must be managed carefully by finding reliable learning data sets, using the right implementation approach, seeking clarity, eliminating bias, and considering unintentional consequences.

Role of marketing in economic development of a country

2021-02-16T23:33:00.005+05:30

Marketing has acquired an important place for the economic development of the whole country. It has also become a necessity for attaining the object of social welfare.

As a result of it, marketing is considered to be the most important activity in a business enterprise while at the early stage of development it was considered to be the last activity.

For convenience, the importance of marketing may be explained as under:

Delivery of standard of living to the society:

A society is a mixture of diverse people with diverse tastes and preferences. Modern marketing always aims for customer satisfaction. So, main liability of marketing is to produce goods and services for the society according to their needs and tastes at reasonable price.

Marketing discovers needs and wants of society, produces the goods and services according to these needs creates demand for these goods and services. They go ahead and promote the goods making people aware about them and creating a demand for the goods, encouraging customers to use them. Thus, it improves the standard of living of the society.

Decrease in distribution cost:

Second important liability of marketing is control the cost of distribution. Through effective marketing the companies can reduce their distribution costs to a great extent. Decrease in cost of distribution directly affects the prices of products because the cost of distribution is an important part of the total price of the product.

Increasing employment opportunities:

Marketing comprises of advertising, sales, distribution, branding and many more activities. So the development of marketing automatically gives rise to a need for people to work in several areas of marketing. Thus the employment opportunities are born. Also successful operation marketing activities requires the services of different enterprises and organisation such as wholesalers, retailers, transportation, storage, finance, insurance and advertising. These services provide employment to a number of people.
Protection against business slump:
Business slump cause unemployment, slackness in the success of business and great loss to economy. Marketing helps in protecting society against all these problems.
Increase in national income:
Successful operation of marketing activities creates, maintains and increases the demand for goods and services in society. To meet this increased demand the companies need to increase the level of production in turn raising their income. This increase, in turn, increases the national income. Further effective marketing leads to exports adding to the national income. This is beneficial to the whole society.