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The Role of Money in Marketing .

September 4, 2011



Money is a  medium through which goods & services are bought and sold  between the two parties in the Market. Monetary system was the evolution from the from Barter system where goods & services were exchanged between the two parties in the market. Money may be in the form of Gold, Silver , Bronze or Paper currency. Presently Money is a Medium of exchange, a unit of account ,a standard or deferred payment , and store of value.

The   development of  Money Market system may date from around 3000 BC in Mesopotamia when Shekel were uses as the form of money. The Lydians were first people to use Gold and Silver coins in 600-650 B.C.  The Paper money or the Banknotes were used in China during the Song Dynasty  in the 7th century and were known as Jiaozi. Banknotes were used in Europe in 1661 by Stockholms Banco.The Gold was used as the medium of exchange between different countries during 17th and 19th centuries and the Gold standard was completely adopted as the Legal tender by all the countries in the 20th century. After the world war 2 , the U.S. Dollar replaced the gold standard as the International trading currency in the Bretton Woods Conference to the present date.

Man has been obsessed with money from the day he recognized its value . It assumes a number one position in his quest for Wine , Women and Wealth. He has invaded , plundered , looted, stole ,enslaved and colonized many kingdoms and countries to  achieve this aim. He has used all possible tools given in the book of Sex, Greed and Manipulation to achieve this aim. It also reflected his dark side as his demand for money never ceases.

The rise of corporate in the modern world owes its growth to his lust for more and more money. After all Modern corporatism is the evolved form of the Imperialism . Unlike the colonial powers it does not possesses a visible army or troops to invade but it has all possible resources to crush any resistance that comes in its way to achieve this goal. In fact the British used East India Company for more than hundred years to milk out gold and silver from its colony India . The American , the European , the Japanese multinationals all are now using  these tools to further their interests and earn profit. The Chinese and Indian companies are following them .

Marketing is the major arm of the Corporate to achieve this aim. After all Marketing and the Market are nothing but the tools developed by the Corporate to get more and more money from the masses. The companies are run by profit and even the Government agencies cannot sustain losses for a long time and continue to survive. To put across simply if there is no Marketing there will be no Market and if there is no market there will be no Business. Furthermore if there is no Marketing there will be no money and if there is no Money there will be no Market.

We all work for Money. Our hunger for better standard of living can only be satisfied if we have a high source of Income. Our needs create a demand for the product  which is satisfied by the Market.The money is invested in the marketing by the company to make it’s product more visible to the customers. Like any other organ of the company like finance, Administration , the Marketing also has its costs. Payment to its staff, agencies , Cost of advertisement, Stationary and much more .

The motive of Marketing by the company is not just to attract Customers but make them buy its product .

For that it has to attract only those customers who are willing to buy its product as well as have the ability to pay for it i.e who have the purchasing power to buy that product . This segment is called its Target Market. The Purpose of the Marketing from here becomes more clear . Attracting Willing and Wealthy Customers is the Motive of the Marketing People. Customers who are ready to buy not just one product of the company but many more of its product  again and again provided they are satisfied. A Valued Customer is a customer who spends millions of Dollars  to purchase the company’s product for a long period of time. The company must give special attention to its Valued Customers. Many companies spend billions of dollars to entertain such customers through marketing and sales promotions . Customer retention is the order of the day.

For any company to survive it has to invest its resources in the Marketing . The scope of Marketing has enlarged due to fact that the marketing environment has become more and more competitive . So the companies has to pump more and more money in the marketing. No doubt the Marketing heads today enjoy the life of the rich and famous as compared to the heads of other department.





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