Almost every marketing textbook has a different definition of the term “marketing.” The better definitions
are focused upon customer orientation and satisfaction of customer needs;
- The American Marketing Association (AMA) uses the following: “The process of planning and
executing the conception, pricing, promotion, and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organizational objectives.”
- Philip Kotler uses, “Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”
- The Chartered Institute of Marketing (CIM), “Marketing is the management process that
identifies, anticipates and satisfies customer requirements profitably.”
In a January 1991, Regis McKenna published an article in the Harvard Business Review (HBR) entitled “Marketing Is Everything.” In the article the McKenna states, "Marketing today is not a function; it is a
way of doing business." Indeed we now call this the top level of Marketing – Marketing as a business
philosophy. So yes, marketing is everything. In essence it’s the process by which a company decides
what it will sell, to whom, when & how and then does it!
what it will sell, to whom, when & how and then does it!
This brings us to the second level of Marketing; Marketing as Strategy. This entails understanding the
environment the business is operating in; customers, competitors, laws, regulations, etc and planning
marketing strategy to make the business a success. This second layer is about segmenting (S) the market,
deciding which customers to target (T) and deciding what messages you want the targets to associate with
you; what is called Positioning (P). The overall process is usually referred to as; segmentation-targetingpositioning
(STP) which is covered in Chapter Three.
STP however is not alone at this level; it is closely allied with the concept of Branding, which is not just
about logos and names. Brands are now about image – or more correctly its perception, branding is a link
between the attributes customers associate with a brand and how the brand owner wants the consumer to
perceive the brand: the brand identity. Over time, or through poorly executed marketing or through
societal changes in markets, a brand’s identity evolves gaining new attributes from the consumer’s
perspective.
Not all of these will be beneficial from the brand owner’s perspective and they will seek to bridge the gap
between the brand image and the brand identity, by trying to change the customers perceptions – brand
image – to be closer to what’s wanted brand identity; sometimes this necessitates a brand re-launch. A
central aspect to brand is the choice of name. Effective brand names build a connection between the
brand’s personality as it is perceived by the target audience and the actual product/service, by implication
the brand name should be on target with the brand demographic, i.e. based in correct segmentation and
targeting. Level two of Marketing can thus be summarised as STP + Branding; Branding is covered in
Chapter Four.
The third level of marketing is about the day to day operational running of marketing, it encompasses the
control of the Marketing Mix and the processes within a business that help create and deliver that
company’s products and services to the customer. This level spans all aspects of a business and across
all customer contact points including:
environment the business is operating in; customers, competitors, laws, regulations, etc and planning
marketing strategy to make the business a success. This second layer is about segmenting (S) the market,
deciding which customers to target (T) and deciding what messages you want the targets to associate with
you; what is called Positioning (P). The overall process is usually referred to as; segmentation-targetingpositioning
(STP) which is covered in Chapter Three.
STP however is not alone at this level; it is closely allied with the concept of Branding, which is not just
about logos and names. Brands are now about image – or more correctly its perception, branding is a link
between the attributes customers associate with a brand and how the brand owner wants the consumer to
perceive the brand: the brand identity. Over time, or through poorly executed marketing or through
societal changes in markets, a brand’s identity evolves gaining new attributes from the consumer’s
perspective.
Not all of these will be beneficial from the brand owner’s perspective and they will seek to bridge the gap
between the brand image and the brand identity, by trying to change the customers perceptions – brand
image – to be closer to what’s wanted brand identity; sometimes this necessitates a brand re-launch. A
central aspect to brand is the choice of name. Effective brand names build a connection between the
brand’s personality as it is perceived by the target audience and the actual product/service, by implication
the brand name should be on target with the brand demographic, i.e. based in correct segmentation and
targeting. Level two of Marketing can thus be summarised as STP + Branding; Branding is covered in
Chapter Four.
The third level of marketing is about the day to day operational running of marketing, it encompasses the
control of the Marketing Mix and the processes within a business that help create and deliver that
company’s products and services to the customer. This level spans all aspects of a business and across
all customer contact points including:
- A company's web site;
- How they answer the phones;
- Their marketing and PR campaigns;
- Their sales process;
- How customer contact staff present themselves (in person and on the phone);
- How a business delivers its services;
- How a business “manages" its clients
- How a business solicits feedback from its clients.
These operational issues are covered in Chapters Five, Six and Seven.
From the above we see that:
- Marketing involves an ongoing process. The environment is “dynamic.” This means that the
market tends to change—what customers want today is not necessarily what they want tomorrow. - This process involves both planning and implementing (executing) the plan.
To summarise then we can see that a simple definition of marketing would be, “The right product, in the
right place, at the right time, at the right price,” Adcock et. al. This is a succinct and practical definition
that uses Borden/McCarthy's 4Ps – Product, Price, Place & Promotion., which are covered in Chapter
Five.
right place, at the right time, at the right price,” Adcock et. al. This is a succinct and practical definition
that uses Borden/McCarthy's 4Ps – Product, Price, Place & Promotion., which are covered in Chapter
Five.
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