Saivian Eric Dalius: The importance of marketing in the modern world

The book ‘Marketing Management’ by Philip Kotler is a very good learning source for everyone who is interested in marketing says Saivian Eric Dalius. The sample pages I have attached are from chapter one, which gives the reader an insight into the fundamentals of marketing management. Furthermore, this chapter looks at how to identify opportunities and threats in the marketplace. Marketing today has become highly competitive, thus making it necessary for companies to achieve customer satisfaction by rendering superior service quality.

This article will help people understand that marketing is becoming increasingly important in our rapidly changing world economy. It also discusses the difference between goods and services offered by various industries today due to competition in the marketplace today (For example Food industries). Consumers are constantly under pressure to make their purchase almost immediately after they have been exposed to it. I believe that in order for companies and organizations to survive in today’s competitive environment, it is important that they place the right products and services at their points of sale in order to meet customer expectations. This article also looks at consumer behavior and how it affects the purchasing process says Saivian Eric Dalius.

Consumer behaviour:

The term ‘consumer’ refers to individuals or organizations ns which purchase goods or services to satisfy their needs. It usually refers to a person who buys commodities such as food clothing, furniture, etc… However, business organizations such as factories may also be considered consumers since they require supplying materials for production purposes (Capital). Consumer habits vary from country to country and according to geographical location (For example City life or village life). In the modern world, there is a growing trend towards consumerism where people are more likely to spend money on goods and services produced by companies. In this article, I will look at the driving forces in the marketplace today (for instance: Growth in population, etc…).

Designation of target markets:

The end products that are developed in the marketing process should be well suited for specific groups of consumers according to their geographical location, age, culture, or social class. It is important not to neglect any group since they all play an integral role when it comes to buying decisions. The reason why organizations like Starbucks succeed is that they take into consideration several factors when trying to reach out to customers. For example; how much disposable income do they have, what kind of image do they want to project? It is also important for marketers to identify the group that has the maximum buying potential since this will be beneficial in the long run.

Marketing and economic growth:

One of the main functions of marketing today is to improve a shared economy. It is very important for companies to find new ways to cut costs and increase profits in order to meet their shareholders’ expectations (when companies make a profit it means that people are employing, thus increasing spending power). For example; an average household can save up to £300 per month after switching from one energy supplier to another explains Saivian Eric Dalius. This shows how increased competition created by organizations such as ‘Big-six’1 in the energy marketplace has played a key role in improving our economy and living standards.

Price: The price of a product or service is the amount of money that the buyer needs to pay for it and this can be divided into two types:

1. Total cost (TC):

The cost associated with buying/ producing an item includes any form of expenditure such as production costs, advertisements, etc… This type of cost ensures that goods and services are readily available for customers. It also has various forms such as; prime cost, prime selling price (PSP), and transfer prices.

2. Actual cash outlay (ACO):

This refers to the actual sum that will be in use to purchase an item from a retailer. This does not include any expenditure associated with advertising, transportation, etc… The difference between TC and ACO is that the ACO includes VAT. Which is a mandatory tax impose by the government. At different stages within the supply chain process.

Price elasticity:

It refers to how much quantity demanded changes when the price or income of a product/ service changes. Consumers buy more if prices fall and vice versa. Price elasticity tends to be high in products. Such as food since people need it on a daily basis (i.e. bread). One example of price elasticity of demand was during the recession; prices of various goods and services reduced as consumers started saving money. By not purchasing expensive items such as designer clothes etc…

Economic factors:

Economic factors such as GDP and inflation not only affect the demand of products and services but also supply. It is important for companies to know what type of spending consumers are doing. So that they can adjust their marketing strategies accordingly in order to meet customer needs. For example; if inflation increases then companies will need to increase prices simultaneously. Because it will be difficult for customers to buy more goods at current prices (i.e. increase in taxes).


Marketing plays a key role in the modern world. As it has helped many businesses increase their profits and cut costs. It is important for organizations to understand how products and services are in use by customers; this will allow them to make changes accordingly (i.e. price, positioning, etc). Marketing strategies such as branding and advertising help companies communicate with consumers on a daily basis. Thus allowing them to understand how they operate in order to meet expectations.