1. The economy has a direct impact on the way marketers push their products to consumers. Understanding the link between the economy and marketing can help business owners allocate their marketing resources and respond to changes in the economic climate.
2. Economists use a concept called the law of diminishing returns to explain how resources can be allocated to maximize return on investment. Over time, you may find that the cost of marketing or advertising a certain product meets or exceeds the amount of money you are generating from selling that product. This can happen when a competitor enters the field, when consumer tastes change or when your price point is too low or too high.
3. Part of responding to changes in the economy dealing with with your competitors, unless you're very lucky, your business inevitably will have to deal with competitors offering similar products at similar or even lower prices. Customers may be tempted to buy from the competitor if you don't respond to these economic changes. To keep competitive, you have to increase your marketing exposure and even rethink your target market.
4. Marketing is a branch within management concerned specifically with meeting consumer demands in addition it relates directly to consumers, while management does not involve customer interaction.
5. Marketing activities are planned by management, and their executions are monitored through managerial functions.
