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TOPIC 1
Definition of Marketing
Our starting point for learning about marketing is to begin with the basics and that starts
with defining marketing. Since marketing has been an important part of business for a
long time we could consult one of the many hundreds of books written on the subject to
locate a definition. Or, as is more the custom today, we could search the Internet to see
how marketing is defined. Whether we search print or electronic form we will find that
marketing is defined in many different ways.
Some definitions focus on marketing in terms of what it means to an organization, such
as being the key functional area for generating revenue, while other definitions lean
more toward defining marketing in terms of its most visible tasks, such as advertising
and creating new products.
There probably is no one best way to define marketing, however, whatever definition is
used should have an orientation that focuses on the key to marketing success –
customers.
For the purpose of this module we will define marketing as follows:
Marketing consists of the strategies and tactics used to identify, create and
maintain satisfying relationships with customers that result in value for both the
customer and the marketer.
1. The Role of Marketing
As we’ve seen the key objective of an organization’s marketing efforts is to develop
satisfying relationships with customers that benefit both the customer and the
organization. These efforts lead marketing to serve an important role within most
organizations and within society.
At the organizational level, marketing is a vital business function that is necessary in
nearly all industries whether the organization operates as a for-profit or as a not-forprofit. For the for-profit organization, marketing is responsible for most tasks that bring
revenue and, hopefully, profits to an organization. For the not-for-profit organization,
marketing is responsible for attracting customers needed to support the not-for-profit’s
mission, such as raising donations or supporting a cause. For both types of
organizations, it is unlikely they can survive without a strong marketing effort.
Marketing is also the organizational business area that interacts most frequently with
the public and, consequently, what the public knows about an organization is
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determined by their interactions with marketers. For example, customers may believe a
company is dynamic and creative based on its advertising message.
At a broader level marketing offers significant benefits to society. These benefits
include:
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Developing products that satisfy needs, including products that enhance society’s
quality of life
Creating a competitive environment that helps lower product prices
Developing product distribution systems that offer access to products to a large
number of customers and many geographic regions
Building demand for products that require organizations to expand their labor
force
Offering techniques that have the ability to convey messages that change
societal behavior in a positive way (e.g., anti-smoking advertising)
Criticisms of Marketing
While marketing is viewed as offering significant benefits to organizations and to
society, the fact that marketing is a business function operating in close contact with
the public opens this functional area to extensive criticism.
Among the issues cited by those who criticize marketing are:
Marketing Encourages People to Purchase What They Do Not Need
Possibly the criticism most frequently made about marketing is that marketers are only
concerned with getting customers to buy whether they want the product or not. The
root of this argument stems from the belief that marketers are only out to satisfy their
own needs and really do not care about the needs of their customers.
As we will discuss, while many marketers are guilty of manipulating customers into
making unwanted purchases, the vast majority understand that undertaking such
tactics will not lead to loyal customers and, consequently, is unlikely to lead to longer
term success.
Marketers Embellish Product Claims
Marketers are often criticized for exaggerating the benefits offered by their products.
This is especially the case with the part of marketing that engages in customer
communication, such as advertising and salespeople. The most serious problems arise
when product claims are seen as misleading customers into believing a product can
offer a certain level of value that, in fact, it cannot.
But sometimes there is a fine line between what a rational person should accept as a
“reasonable exaggeration” and what is considered downright misleading. Fortunately,
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many countries offer customers some level of protection from misleading claims since
such business practices may subject the marketer to legal action. Again, using such
tactics is likely to lead to marketing failure as customers will not be satisfied and will
likely not return.
2. Characteristics of Modern Marketers
As we’ve seen, marketing is a critical business function that operates in an environment
that is highly scrutinized and continually changing. Today’s marketers undertake a
variety of tasks as they attempt to build customer relationships and the knowledge and
skill sets needed to perform these tasks successfully are also varied.
So what does it take to be a successful marketer? Obviously, at the center of a
successful marketing career is an understanding of the important concepts that are
discussed in the Principles of Marketing Tutorials. But basic marketing knowledge is just
the beginning, for today’s marketers must possess much more. Among the most
important knowledge and skills needed to be successful are:
Basic Business Skills
Marketers are first and foremost business people who must perform necessary tasks
required of all successful business people. These basic skills include problem analysis
and decision-making, oral and written communication, basic quantitative skills, and
working well with others.
Understanding Marketing’s Impact
Marketers must know how their decisions will impact other areas of the company and
others business partners. They must realize that marketing decisions are not made in
isolation and that decisions made by the marketing team could lead to problems for
others. For example, making a decision to run a special sale that significantly lowers the
price of a product could present supply problems if the production area is not informed
well in advance of the sale.
Technology Savvy
Today’s marketers must have a strong understanding of technology on two fronts. First,
marketers must be skilled in using technology as part of their everyday activities. Not
only must they understand how basic computer software is used to build spreadsheets
or create slide presentations, but in a world where information overload is a problem
marketers must investigate additional technologies that can improve their effectiveness
and efficiency, such as multifunction cellphones, GPS navigation services and web3
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based productivity applications. Second, marketers must understand emerging
technology and applications in order to spot potential business opportunities as well as
potential threats. For instance, the rapid growth of search engines requires marketers to
firmly understand how these fit within an overall marketing strategy.
The Need for a Global Perspective
Thanks in large part to the Internet, nearly any company can conduct business on a
global scale. Yet, just having a website that is accessible to hundreds of millions of
people worldwide does not guarantee success. Marketers selling internationally must
understand the nuances of international trade and cultural differences that exist
between markets.
Information Seeker
The field of marketing is dynamic. Changes occur continually and often quickly.
Marketers must maintain close contact with these changes through a steady diet of
information.
In the remaining parts of the Principles of Marketing Tutorials we explore in further detail
the key concepts and strategies that are consistent across nearly all industries and
marketing jobs. While reading the tutorial will not guarantee marketing success, it will
certainly offer the foundation needed to be a Modern Marketer.
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