Marketingis a business term that experts have defined in dozens of different ways. In fact, even at company level people may perceive the term differently. Basically, it is a management process through which products and services move from concept to the customer. It includes identification of a product, determining demand, deciding on its price, and selecting distribution channels. It also includes developing and implementing a promotional strategyincorporating both outbound and inbound marketing.
Collins Dictionary has the following definition of the term:
“Marketing is the organization of the sale of a product, for example, deciding on its price, the areas it should be supplied to, and how it should be advertised.”
Below is the American Marketing Association’s 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 refers to the activities of a business related to buying and selling a product or service. It involves finding out what consumers want and determining whether it is possible to produce it at the right price. The company then makes and sells it.
According to domycreatinvewritings.com, marketing covers a vast area of business, including:
- how you communicate
- the brand
- the design
- market research
- consumer psychology
- measuring effectiveness
At the core of marketing is an understanding of what customers need and value. A company’s long-term success depends on learning what its customers’ needs are. It then finds ways to add value through different approaches.
This involves targeting other businesses. We also call it business-to-business or B2B marketing. It involves supplying other companies with products or services.
Physical products that companies sell to other businesses are ‘industrial goods.’Industrial goods may include raw materials for companies that make plastics, yarn for use in the textile trade. It also includes aircraft for airlines and the military.
In fact, the term ‘industrial goods’ refers anything a company or organization needs and buys.
B2B services may include legal advice, management consultancy, tax consultancy, or training provision. IT services and the provision of temporary staff are also examples of B2B services. IT stands for Information Technology.
If you’re interested in B2B Marketing, you’d need a LinkedIn account. Here’s a post on the best practices to manage multiple LinkedIn accounts.
Marketing directly to consumers
We also call it B2C. The term refers to targeting the individual people who purchase products and use services. Specifically, people who bought for their own consumption.
This may include FMCGs (fast-moving consumer goods) such as food, beverages, and toiletries, or durable goods. For example, cars, televisions, refrigerators and other white goods are durable goods. ‘White goods’ are major appliances that traditionally have had a white enamel surface.
B2B + B2C marketing
Most large corporations have an integrated marketing approach. In other words, they focus on both individual consumers and businesses at the same time.
The Coca-Cola company, for example, knows that its B2C marketing must succeed. Put simply; it has to persuade supermarkets and smaller stores – B2B – to provide shelf space.
Most makers of durable goods also have an integrated marketing approach. For example, The Haier Group focuses on individual consumers (B2C). However, it also focuses on supermarkets, department stores, and other retail outlets (B2B). The Haier Group is world’s largest manufacturer of consumer electronics and home appliances.
Recruitment marketing includes all the tools and strategies that employers use to engage, attract, and eventually hire talented people. The aim is to encourage people to want to join the organization.
The practice takes advantage of data analytics, omnichannel communication, social media platforms, and other digital marketing strategies.
According to Adrian Cernat, CEO and co-founder of SmartDreamers:
“Recruitment marketing is the process of trying to attract and hire talented people. It includes the strategies and tactics that employers use to attract, engage, and nurture talented personnel before they apply for a job.”
A company’s marketing strategy should combine all its objectives into one integrated and comprehensive plan. In other words, it should not focus on one strategy at the expense of others.
It should use market research data to create its strategy. The company should focus on the ideal product mix to reach the optimum profit potential. The right product mix is also crucial to sustaining the business.
According to marketingstrategynow.com: “The best marketing strategy process allows you to specially target your products and services to the ideal buyers most likely to buy.”
An effective and successful marketing plan depends on a good strategy. A company’s strategy should begin with the setting of objectives that will support its overall aims.
It then needs to come up with a strategy that allows it to reach these objectives.
According to CIM:
“The strategy may involve research into product or service development, how the product or service will reach the market (channels) and how the customers will find out about it (communication).”
“It will also attempt to define a unique positioning for the product or business to differentiate it from its competitors.”
Fundamentally, sales and marketing are trying to achieve the same thing. In other words, they are trying to get more customers and revenues. However, they look at things slightly differently. Put simply; marketing focuses on the market, while sales focuses on the product. Sales also focuses on how to persuade consumers to like it and buy it. Some sales managers disagree with the image above, insisting that sales does continue after the sale of the product.
Typical marketing divisions
There are many divisions of marketing. Not all companies have the same names for each one. Below is a list of the most common divisions (Source: London School of Economics):
Advertising involves promoting an idea or product into the marketplace by placing ads in the media.
The term means working with the local community. This is not only good for the company’s standing locally, and as a way of growing customer loyalty, but it is also great for morale within the firm
Examples include sponsoring local events, chairing meetings, volunteering in schools or local youth centers, and belonging to local associations.
Basically, this involves providing assistance and advice to people who purchased the product. In many business, sellers also provide this service to customers before, during, and after a sale.
Good customer service produces satisfied customers. In other words, their experience meets or exceeds their expectations. If your competitors have good customer service and you don’t, you will probably lose market share to them.
This approach involves delivering your message directly to consumers via leaflets, forms, fliers, catalogs, as well as street promotion.
Distribution is part of the management chain. It involves transporting one product from storage to a shop or supermarket.
Market research is the process of gathering and analyzing information. The data will make the company more aware of how people will react to its current and future products.
Business owners are conducting market research all the time. When they talk to customers about their business, they are conducting market research. Whenever somebody tries to find out what the competition is doing, they are conducting market research.
Good market research can produce a wealth of data about the business’ products, customers, and the marketplace.
Media planning is closely-related to advertising. It is an advertising strategy we employ to target consumers using a range of informational outlets.
Advertising or media planning agencies usually conduct this kind of work. They find the best media outlets to reach the target market.
Examples of media outlets include the internet, posters, television, radio, physical newspapers and magazines, etc.
When setting the price, you should take into account how much something costs to produce and deliver. You should also consider how much competitors are selling it for, its quality, the brand, etc.
Most product prices rarely stay the same for long. Production costs may change, salaries can rise, or competitors might suddenly offer discounts or raise their prices. You need to be aware of every factor that influences price all the time.
“A strategic communication process that builds mutually beneficial relationships between organizations and their publics,” says the PRSA.
Sales includes planning and supporting the sales team by pushing ahead with sales targets. It also involves formulating a plan as to how to reach potential and existing customers. Salespeople aim to hit those targets.
One-to-one marketing involves communicating directly with each customer. The company then tailors the approach to each customer’s tastes and preferences.
Impression management is the process of shaping people’s perceptions of things, other people, places and events.
In marketing and sales, it means getting consumers to perceive your products or services in a good light.
The Internet and marketing
With the advent of the Internet and ad-blocking software, inbound marketing has become increasingly popular. It involves using content – newsletters, blogs, podcasts, reviews, etc. – that online users like, to lure them in.
In the past, company’s sales personnel used to be the experts. However,today the experts are the consumers.
A term that Internet marketing specialists use all the time is the ‘bounce rate.’ The bounce rate refers to the percentage of people who leave the website after visiting a page.
In other words, instead of going to another page within the same site, they leave – they bounce out. The lower the bounce rate, the better.
Global Marketing refers to the planning, creating, placing, and promoting a business’ goods or services in the worldwide market. Is is a specialized skill. Executives who manage to implement an effective strategy, can take their company to the next level.
During the 1960s and 1970s, many Japanese business practices emerged, which later spread across the world. In some cases, engineering and marketing overlapped. For example, Kansei Engineering is engineering that is based on human emotions. Not only do Kansei developers focus on what products can do, but also on how they make consumers feel.
Marketing principles are agreed-upon marketing ideas that sellers use for a successful marketing strategy. We also refer to it as the principles of marketing.
Some companies follow the 4Ps Strategy of product, price, place, and promotion. We also refer to it as the 4P Marketing Mix. Others, on the other hand, may follow the 7Ps Strategy of product, place, price, promotion, people, physical environment, and process.
Video – Introduction to Marketing
This video provides a very brief and easy-to-understand explanation of the basic concepts of marketing:
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. (What does marketing mean to you answer? ›
Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses.What is your own definition of marketing? ›
Marketing is the process of getting people interested in your company's product or service. This happens through market research, analysis, and understanding your ideal customer's interests. Marketing pertains to all aspects of a business, including product development, distribution methods, sales, and advertising.What is the definition of marketing PDF? ›
Marketing is a System of Interacting Business Activities: Marketing is that process through which a business enterprise, institution, or organisation interacts with the customers and stakeholders with the objective to earn profit, satisfy customers, and manage relationship.What was the first definition of marketing? ›
The preamble of the AMA's constitution and bylaws included the 1935 definition of marketing devel- oped and adopted by the National Association of Marketing Teachers. This definition defined marketing as “those business activities involved in the flow of goods and services from production to consumption” (AMA 1937).What is the real definition of market? ›
market, a means by which the exchange of goods and services takes place as a result of buyers and sellers being in contact with one another, either directly or through mediating agents or institutions.What is marketing short essay? ›
Marketing is a process of finding out what the customer wants and meeting those requirements. Within the company, the marketing group has to consider customer values and customer satisfaction before considering offering a product. Marketing is part of our everyday world, and can be perceived everywhere and every time.What is marketing in 1000 words? ›
Essay on Marketing – 2 (1000 Words)
According to Philip Kotler, “Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others”.
Modern marketing is the ability to harness the full capabilities of the business to provide the best experience for the customer and thereby drive growth. In a recent McKinsey survey, 83 percent of global CEOs said they look to marketing to be a major driver for most or all of a company's growth agenda.What is the meaning of marketing Wikipedia? ›
Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; operation of advertising campaigns; attendance at trade ...
Social marketing is an approach used to develop activities aimed at changing or maintaining people's behaviour for the benefit of individuals and society as a whole.Who is the father of marketing? ›
Philip Kotler, the Father of Modern Marketing, Will Never Retire.Who founded marketing? ›
Philip Kotler is widely acknowledged as the father of modern marketing and with 57 books to his name it's not hard to understand why he is such an authority.What is the importance of marketing? ›
The importance of marketing for your business is that it makes the customers aware of your products or services, engages them, and helps them make the buying decision. Furthermore, a marketing plan, a part of your business plan helps in creating and maintaining demand, relevance, reputation, competition, etc.What do you mean by real definition? ›
adjective. existing or occurring in the physical world; not imaginary, fictitious, or theoretical; actual. (prenominal) true; actual; not falsethe real reason. (prenominal) deserving the name; rightly so calleda real friend; a real woman. not artificial or simulated; genuinereal sympathy; real fur.What is marketing in 500 words? ›
Marketing is about identifying and meeting human and social needs profitably. It is customer-centric and seeks to deliver value and satisfaction to customers wherever they are. Good marketing is the essence of business success. In an economic jungle only customer maniac organisations survive in the long run.What is marketing 2marks? ›
It is a human activity directed at satisfying needs and wants through exchange process. “The aim of marketing should be know and understand the customer so well that the product or service sells itself.” – Peter F. Drucker. 3.What is marketing in a sentence? ›
The company will increase its budget for marketing. She has a job in marketing. She runs the company's marketing department.
The 7 functions of marketing are promotion, selling, product/service management, marketing information management, pricing, financing and distribution. Understanding the core functions of marketing can help you better focus your efforts and strategies to support your business.What is the introduction of marketing? ›
Marketing is a form of communication between a business house and its customers with the goal of selling its products or services to them. Goods are not complete products until they are in the hands of customers. Marketing is that management process through which goods and services move from concept to the customer.
Digital marketing, also called online marketing, is the promotion of brands to connect with potential customers using the internet and other forms of digital communication. This includes not only email, social media, and web-based advertising, but also text and multimedia messages as a marketing channel.What is mean marketing management? ›
Marketing management refers to the strategies, tools and analyses used in promoting a business. Businesses use marketing management techniques to identify opportunities for growth and connect effectively with new target markets.What is the meaning of 4 Ps? ›
The marketing mix, also known as the four P's of marketing, refers to the four key elements of a marketing strategy: product, price, place and promotion.What are the 4 types of marketing? ›
The four Ps are a “marketing mix” comprised of four key elements—product, price, place, and promotion—used when marketing a product or service. Typically, businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience.What are the 7 of marketing? ›
The 7Ps of marketing are – product, pricing, place, promotion, physical evidence, people, and processes. The 7 Ps make up the necessary marketing mix that a business must have to advertise a product or service.What are 3 types of markets? ›
The four popular types of market structures include perfect competition, oligopoly market, monopoly market, and monopolistic competition.What are marketing principles? ›
The 4 basic marketing principles are product, price, place and promotion.What are the 5 rules of marketing? ›
- Marketing is not about you and it never will be. BRAND MANAGEMENT. ...
- What others say about you is more important than what you say about you. MESSAGE MANAGEMENT: ...
- Your highest performing salespeople are free. CUSTOMER MANAGEMENT. ...
- Measure the right things. SURVIVAL MANAGEMENT. ...
- In conclusion.
It's called the seven Ps of marketing and includes product, price, promotion, place, people, process, and physical evidence.