The first in a series of videos on marketing and strategy. We welcome suggestions for future videos.
The definition of marketing may sound like a trivial topic for a post. I mean, after all, who really cares about definitions and aren’t there more important topics in marketing, like strategy and implementation.
Well, you’re right, but the definition of marketing is important because it sets the stage for other discussions of marketing. It also determines what is part of marketing and what belongs in another discipline.
Actually, there’s been a pretty big discussion across marketing folks — through the AMA — resulting in changes in the definition of marketing that reflect changes in the way we think about marketing. Value became the central tenant of marketing.
Summary: Definition of marketing
American Marketing Association Definition Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is NOT: advertising or selling.
What is Marketing ? Creating Value Consumers buy solutions not products Consumers buy the “Best Solution” Value is benefit – cost
What is Marketing? Communicating value Advertising Promotions Word of mouth Public relations Sales
What is Marketing ? Distributing value Product available where consumers search for them (place utility) Products in a form easily used by consumers (form utility) Products available when consumers want them (time utility) Products can be easily acquired through cash or financed (possession utility)
Who gains value in marketing? Consumers Employees Vendors and distributors Financial institutions and stockholders who lend money to the business Society (concept of Corporate Social Responsibility)
How can this help you succeed? Provide strategic direction for your business What is your mission? To maximize the value provided to some segment. What should you focus on? Value How to distribute assets? In a manner that creates value for at least 1 stakeholder. All the money coming into a business comes from selling to consumers
Who’s responsible for marketing in your business? Everyone plays a part Accountants make sure bills are right and materials are available for sales to happen Finance managers make sure there’s cash flow to keep operations going Managers make sure employees are happy – happy employees = happy customers
Who’s responsible for marketing in your business? Operations provide utilities to customers IT – help communicate value and provide utilities to consumers Research and Develop – keeps a steady stream of new solutions coming.
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Hausman and Associates, the publisher of MKT Maven, is a full service marketing agency operating at the intersection of marketing and digital media.