18 Role and Importance of Selling in Country Economy

Production and the creative activities in an economy depends on the selling activities. Selling is as basic to our society as metabolism is to live. This sales function is similar to lifeblood in an economy.

role and importance of selling in country economy
role and importance of selling in country economy

It is selling through which employment opportunities, income and savings, and investment are generated.

Selling plays an important role in our economy, and it has been helpful to us to lead a standard of living that we enjoy the benefits of new goods and services.

What is the Role of Selling in Marketing Concept?

The role of selling in a planned economy can be discussed under the following points:

1. Essential Activity

It can be noted that supply without demand is of no value, output that cannot be sold at a profit is not an asset but a liability.

Production without selling spells insolvency. It is the performance of salesmen that creates wants, desires, and demand for the goods.

Selling is the beginning point of production. Better selling is the key to better business.

2. Productive Activity

Selling creates wants which in turn give rise to entrepreneurial and investment activities.

When selling is ignored, demand is reduced and in effect, the wheels of production and investment come to halt.

Also, it is the seller who creates time, place, knowledge and possession utilities.

3. Basic of Production

Selling makes production happen and it forms the basis of further production.

Much of the goods sold by salesmen would never be sold at all through other means.

Selling is the promoter, pusher of productional activities.

Related: 21 Key Benefits and Importance of Sales Forecasting.

4. Key to Better Business

Developing a sound selling plan and strategy is critical to the success of any firm.

Selling creates demands which lead to the expansion of the business. Selling is a powerful force that expands markets.

It makes possible to compete customer relationship even in global markets.

In short, selling creates customers which is the key to growing business.

5. Provides Satisfaction

Selling creates new expectations and fulfills them. In the absence of selling art, customer satisfaction remains low.

It is the selling that recognizes consumer’s needs, likings, tastes, interests, feelings and rising expectations associated with buying and then takes care of them.

Thus, selling is a good source of providing satisfaction for consumers.

6. Promotes New Products

Selling creates awareness of the use of new products.

Salesmen provide knowledge about the quality, design, and uniqueness of new products.

It is through selling efforts that new products are accepted and used by consumers.

Salesmen eliminate hesitation, fear, and doubts about using new products.

Through consultative selling, new products can easily reach global markets.

7. Better Utilization of National Resources

Selling promotes entrepreneurial activities by creating demand and by influencing their needs.

This promotes better use of raw material, capital, and labor. Selling expands domestic as well as international markets.

This helps in the maximum utilization of natural, financial and human resources.

8. Raise Standards of Living

The higher standards of living that we enjoy are partially the result of selling.

Selling guides customers for profitable buying of new goods and services at reasonable prices.

Customers buy newly designed products with good uses. This raises their standards of living.

9. Creation of Job Opportunities

Selling increases demand which may, in turn, boost up job opportunities.

What is the nature and role of selling?
What is the nature and role of selling?

Selling cannot be replaced by machines or other technology.

It needs skillful salesmen to perform. Selling is a proud business activity.

Related: 21 Benefits and Limitations of Personal Selling (Explain with Examples).

10. Selling is Proud Activity

Selling is a proud activity for those who accept it as a creative, challenging, and rewarding path of life.

Salesmen have a good image and respect in society.

Selling is a proud business activity.

11. Increase in Nationa Income

Selling adds to national income. It increases larger production, higher per capita income, and more job opportunities.

All these factors add to national income.

12. Promotes Economic Growth

Today’s age centers around “selling” not production.

It stimulates consumers’ interests, demands, and buying.

It encourages large scale production and higher investments which are essential for the prosperity of a nation.

13. Other Roles of Selling

Selling is an action-oriented and creative activity. It plays some more of the following roles:

  1. Selling protects trade cycles.
  2. It eradicates poverty and scarcities.
  3. It contributes to government revenues.
  4. It is helpful in capital formation.
  5. It promotes market research.
  6. It contributes to national prosperity.

Read More:

Scroll to Top