What is Marketing?

Marketing Definition: What is Modern Definition of Marketing?Marketing; a tricky topic to define and frame in. the Marketing studies or field has rapidly moved and reached a very high level but still defining is into some fixed variables is just impossible. Marketing defined as is the process responsible for identifying, anticipating and satisfying customer requirements profitably.

Marketing is the part of the management process responsible for identifying, anticipating and satisfying customer requirements profitably.

Let’s try to understand the definition of marketing and also get a sense of its importance, reach, and radius in business, corporations, organizations and your life.

Marketing Definition

The AMA (American Marketing Association) is a prestigious and influential organization not just in the USA but also in the international arena.

The definition of marketing in 1964 was; “The process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and organizational objectives”.

It was until AMA approved and punished another on 2004;

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

In October 2007, they published a new one;

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.

The three definitions are not that different but there is a significant difference between them. I like to call them the generation gap.

The first definition of AMA “create exchanges that satisfy individual and organizational objectives” indicates that marketing is there for creating exchanges for the involved parties to serve their purpose.

They forgot about me and you; the customer’s benefit or value. They also somehow put a boundary to the marketing functions; “process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas”.

In the second definition; they include us-the customers’ value but “in ways that benefit the organization and its stakeholders”. Here they showed the Extend of the marketing activities; “function and a set of processes for creating, communicating, and delivering value”.

The third definition of marketing by AMA is to be the most precise one of the closet on. Well, they put values of customers and society at equals to the organization’s objectives.  Also, they put it in front and regarded it is as the main force behind the marketing activates. See the third change comes very quickly.

And it is rightly so. Businesses have found out that it is customers who are the only reason for the success, not the large capital or the product/service they produce. For some of them, it had to be found in a hard way.

We can say that marketing is all about delivering customer value and the businesses should be too. Businesses in trying to get customers’ attention and marketing include all those activates.

The marketing guru of Silicon Valley; Regis McKenna defined marketing in a very short and outrageous way;

Marketing is everything

A bold statement from Regis McKenna’s but take a look again and it’s very true. Marketing functions are not fixed on just products, pricing, promotion, and distribution. It is all the activates that affect how your customer perceives your company.

So in that sense; everything is marketing. Marketing is for understanding what the customer needs and then to provide it requires marketing to go beyond the marketing department.

And at the end, we are defining marketing like this-

Every action of an organization; either orbits around, depends on, forced by the activates that marketing makes to communicate with customers for indicating product’s or service’s value to them.

The universal functions of marketing are buying, selling, transporting, sorting, standardization and grading, financing, risk-taking, and market information.

  • Selling: The selling function involves promoting the product. It includes the use of personal selling, advertising, and other mass-selling methods.
  • Transportation: The transporting function. means the movement of goods from one place to another.
  • Sorting: The sorting function means involves holding goods until customers need it.
  • Standardization and Grading: The standardization and grading involve sorting products according to size and quality. This makes buying and selling easier because it reduces the need for inspection and sampling.
  • Financing: The financing provides the necessary cash and credit to produce, transport, store, promote, sell and buy products.
  • Risk-Taking: It involves bearing the uncertainties that are part of the marketing process. A firm can never be sure that customers will want to buy its products can also be damaged, stolen or outdated.

Who Performs Marketing Functions?

Marketing functions are all part of the marketing process and must be done by someone.

None of them eliminated. In a planned economy, some of the functions may be performed by government agencies. Others may be left to individual producers and consumers.

In a marketing directed economy, marketing functions are performed by producers, consumers and a variety of marketing specialists.

Role of Marketing in Economic Development

The main purpose of markets and middlemen is to make the exchange easier and allow greater time for production, consumption and other activities including recreation.

An effective marketing system is necessary for economic development. Improved marketing may be the key to growth in less-developed nations.

Without an effective marketing system, the less developed nations may not be able to escape the “vicious circle of poverty”.

Many people in these nations can’t leave their subsistence way of life to produce for the market because there are no buyers for what they produce. And there are no buyers because everyone else is producing for their own needs.

As a result, distribution systems and middlemen do not develop.

Breaking this vicious circle of poverty may require major changes in the marketing systems that are typical in less- developed nations. Without an effective marketing system, people can’t leave their subsistence way of life.

Marketing means delivering the goods and services that customers want and need. It means getting products to them at the right time, in the right place and at a price they’re willing to pay.

So, effective marketing is needed to link producers and consumers.

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