I have made a website but forgot to create sitemap which resulted badly for my ranking in google. why?
Sitemap helps the search engines to index all pages in your site very quickly. Read more about the sitemaps and its importance here in the sticky thread http://forums.digitalpoint.com/showthread.php?t=531765
sitemap is good for google to properly index your site. makes your url appear much faster in google search than not submitting one.
Yes, the only reason to create XML sitemap is to let the crawler know about your web structure and indepth of web pages.
I'm guessing that by that you mean that google is willing to dig deeper into the website if it has a sitemap. Or do you really mean "prefer"?
Its only my opinion but i beleive that if you submit a site map to google not only will your site be indexed faster but you will find that the bots crawl your site more regular. Just my opinion.