In the first section of our highly detailed Principles of Marketing Tutorials we lay the groundwork for our study of the field of marketing with a close look at marketing’s key concepts and the important tasks marketers perform. We will see that marketing encompasses a wide array of business decisions that are essential to the success of nearly all organizations.
Coverage in this part of the tutorial includes a close examination of the definition of marketing. A dissection of the key terms in the definition will show that marketing’s primary focus is to identify and satisfy customers in a way that helps build a solid and, hopefully, sustained relationship that encourages customers to continue doing business with the marketer.
We also will spend a short time on the history of marketing and see how it has evolved from a process centered on simply getting as many people as possible to purchase a product to today’s highly complex efforts designed to build long term customer relationships. Additionally, we’ll see that marketing is not only important to individual organizations it also carries both positive and negative influences at a broader societal level. Finally we look at what it takes to be a marketer in today’s world.
Wednesday, January 14, 2009
Definition Dissected
Let’s examine our definition of marketing in a little more detail by looking at the key terms.
Strategies and Tactics - Strategies are best explained as the direction the marketing effort takes over some period of time while tactics are actionable steps or decisions made in order to follow the strategies established. For instance, if a company’s strategy is to begin selling its products in a new country, the tactics may involve the marketing decisions made to carry this out. Performing strategic and tactical planning activities in advance of taking action is considered critical for long-term marketing success.
Identify - Arguably the most important marketing function involves efforts needed to gain knowledge of customers, competitors, and markets (i.e., where marketers do business). We will see throughout this tutorial how marketing research is utilized in all decision areas.
Create - Competition forces marketers to be creative people. When marketers begin new ventures, such as building a new company, it is often based around something that is new (e.g., a new product, a new way of getting products to customers, a new advertising approach, etc.). But once something new is launched innovation does not end. Competitive pressure is continually felt by the marketer, who must respond by again devising new strategies and tactics that help the organization remain successful. For marketers, the cycle of creating something new never ends.
Maintain - Today’s marketers work hard to insure their customers return to purchase from them again and again. Long gone (see our discussion of History of Marketing below) are the days when success for a marketer was measured simply in how many sales they made each day. Now, in most marketing situations, marketing success is evaluated not only in terms of sales figures but also by how long a marketer retains good customers. Consequently, marketers’ efforts to attract customers do not end when a customer makes a purchase. It continues in various ways for, hopefully, a long time after the initial purchase.
Satisfying Relationships - A key objective of marketing is to provide products and services that customers really want AND to make customers feel their contact with the marketer is helping build a good relationship between the two. In this way the customer becomes a partner in the transaction, not just a source of revenue for the marketer.
Value for Both Customer and Marketer - Value refers to the perception of benefits received for what someone must give up. For customers, value is most often measured by how much benefit they feel they are getting for their money, though the value one customer feels may differ from what another customer feels even though they purchase the same product. On the other side of the transaction, the marketer for a for-profit organization may measure value in terms of how much profit they make for the marketing efforts and resources expended. For a successful marketing effort to take place both the customer and the marketer must feel they are receiving something worth while in return for their efforts. Without a strong perception of value it is unlikely a strong relationship can be built. Throughout this tutorial we will emphasize value and show ways marketers build value into the products they offer.
Strategies and Tactics - Strategies are best explained as the direction the marketing effort takes over some period of time while tactics are actionable steps or decisions made in order to follow the strategies established. For instance, if a company’s strategy is to begin selling its products in a new country, the tactics may involve the marketing decisions made to carry this out. Performing strategic and tactical planning activities in advance of taking action is considered critical for long-term marketing success.
Identify - Arguably the most important marketing function involves efforts needed to gain knowledge of customers, competitors, and markets (i.e., where marketers do business). We will see throughout this tutorial how marketing research is utilized in all decision areas.
Create - Competition forces marketers to be creative people. When marketers begin new ventures, such as building a new company, it is often based around something that is new (e.g., a new product, a new way of getting products to customers, a new advertising approach, etc.). But once something new is launched innovation does not end. Competitive pressure is continually felt by the marketer, who must respond by again devising new strategies and tactics that help the organization remain successful. For marketers, the cycle of creating something new never ends.
Maintain - Today’s marketers work hard to insure their customers return to purchase from them again and again. Long gone (see our discussion of History of Marketing below) are the days when success for a marketer was measured simply in how many sales they made each day. Now, in most marketing situations, marketing success is evaluated not only in terms of sales figures but also by how long a marketer retains good customers. Consequently, marketers’ efforts to attract customers do not end when a customer makes a purchase. It continues in various ways for, hopefully, a long time after the initial purchase.
Satisfying Relationships - A key objective of marketing is to provide products and services that customers really want AND to make customers feel their contact with the marketer is helping build a good relationship between the two. In this way the customer becomes a partner in the transaction, not just a source of revenue for the marketer.
Value for Both Customer and Marketer - Value refers to the perception of benefits received for what someone must give up. For customers, value is most often measured by how much benefit they feel they are getting for their money, though the value one customer feels may differ from what another customer feels even though they purchase the same product. On the other side of the transaction, the marketer for a for-profit organization may measure value in terms of how much profit they make for the marketing efforts and resources expended. For a successful marketing effort to take place both the customer and the marketer must feel they are receiving something worth while in return for their efforts. Without a strong perception of value it is unlikely a strong relationship can be built. Throughout this tutorial we will emphasize value and show ways marketers build value into the products they offer.
What Marketers Do
In order to reach the goal of creating a relationship that holds value for customers and for the organization, marketers use a diverse toolkit that includes (but is not limited to) making decisions regarding:
1. Target Markets – markets consist of customers identified as possessing needs the marketer believes can be addressed by its marketing efforts
2. Products – consists of tangible (e.g., goods) or intangible (e.g., services) solution to the market’s needs
3. Promotion – a means for communicating information about the marketing organization’s products to the market
4. Distribution – the methods used by the marketer that enable the market to obtain products
5. Pricing – ways for the marketer to set and adjust the cost paid by the market to obtain products
6. Supporting Services – additional options that enhance a product’s value
While these decisions are shown with a number, the order of decision-making does not necessarily follow this sequence. However, as we will discuss, in almost all cases marketers should first identify target markets (#1) prior to making decisions #2 through #6 (commonly called the Marketing Mix) since these decisions are going to be directed toward satisfying the desired target markets.
Each option within the marketer’s toolkit is tightly integrated with all other options so that a decision in one area could, and often does, impact decisions in other areas. For instance, a change in the price of a product (e.g., lowering the price) could impact the distribution area (e.g., requires increased product shipments to retail stores).
Additionally, options within the toolkit are affected by factors that are not controlled by the marketer. These factors include economic conditions, legal issues, technological developments, social/cultural changes, and many more. While not managed in the way marketers control their toolkit, these external factors must be monitored and dealt with since these can cause considerable harm to the organization. Ignoring outside elements also can lead to missed opportunities in the market especially if competitors are the first to take advantage of the opportunities. As part of the strategic and tactical planning process discussed above it is wise for marketers to pay close attention to the environment outside the organization.
Finally, as noted earlier, research plays a significant role in all marketing decisions areas. As we will see in the Marketing Research Tutorial, marketing decisions should not be made without first committing time and resources to obtaining needed information.
1. Target Markets – markets consist of customers identified as possessing needs the marketer believes can be addressed by its marketing efforts
2. Products – consists of tangible (e.g., goods) or intangible (e.g., services) solution to the market’s needs
3. Promotion – a means for communicating information about the marketing organization’s products to the market
4. Distribution – the methods used by the marketer that enable the market to obtain products
5. Pricing – ways for the marketer to set and adjust the cost paid by the market to obtain products
6. Supporting Services – additional options that enhance a product’s value
While these decisions are shown with a number, the order of decision-making does not necessarily follow this sequence. However, as we will discuss, in almost all cases marketers should first identify target markets (#1) prior to making decisions #2 through #6 (commonly called the Marketing Mix) since these decisions are going to be directed toward satisfying the desired target markets.
Each option within the marketer’s toolkit is tightly integrated with all other options so that a decision in one area could, and often does, impact decisions in other areas. For instance, a change in the price of a product (e.g., lowering the price) could impact the distribution area (e.g., requires increased product shipments to retail stores).
Additionally, options within the toolkit are affected by factors that are not controlled by the marketer. These factors include economic conditions, legal issues, technological developments, social/cultural changes, and many more. While not managed in the way marketers control their toolkit, these external factors must be monitored and dealt with since these can cause considerable harm to the organization. Ignoring outside elements also can lead to missed opportunities in the market especially if competitors are the first to take advantage of the opportunities. As part of the strategic and tactical planning process discussed above it is wise for marketers to pay close attention to the environment outside the organization.
Finally, as noted earlier, research plays a significant role in all marketing decisions areas. As we will see in the Marketing Research Tutorial, marketing decisions should not be made without first committing time and resources to obtaining needed information.
The Definition of Marketing
This quote is one of my personal favorites. Whenever I set out to develop a marketing plan I always try to keep this definition in mind and try to see if each element is being satisfied in some way. By looking at each area, advertising, promotion, publicity, and public relations, I am able to develop a marketing plan that is well rounded and well planned. The following is a step by step breakdown of each element and how they can be utilized to create a marketing campaign with pizzazz.
To advertise is to call public attention to your business by emphasizing desirable services and qualities with the intention of arousing customer desire. There are numerous ways to advertise, so it is to your advantage to investigate each media available and determine which will work best for marketing campaign. The most obvious form of advertising is the written ad. Ads can be placed in the yellow pages, in local and national classifieds, in magazines, and on the internet. Ad placement depends almost entirely on the reading and listening habits of your current and potential customers, so do your homework. Your ads should clearly outline the benefits associated with utilizing your services, so use words that will help them identify how they will benefit personally. Your ads should answer the question: “What’s in it for me?”
Other forms of advertising include websites, brochures, flyers, direct mail, radio, newsletters, e-zines, on-line discussion groups, and bulletin boards. Evaluate the costs associated with each and develop an advertising plan that will not only reach your target audience but will be reasonable for you.
This quote is one of my personal favorites. Whenever I set out to develop a marketing plan I always try to keep this definition in mind and try to see if each element is being satisfied in some way. By looking at each area, advertising, promotion, publicity, and public relations, I am able to develop a marketing plan that is well rounded and well planned. The following is a step by step breakdown of each element and how they can be utilized to create a marketing campaign with pizzazz.
To advertise is to call public attention to your business by emphasizing desirable services and qualities with the intention of arousing customer desire. There are numerous ways to advertise, so it is to your advantage to investigate each media available and determine which will work best for marketing campaign. The most obvious form of advertising is the written ad. Ads can be placed in the yellow pages, in local and national classifieds, in magazines, and on the internet. Ad placement depends almost entirely on the reading and listening habits of your current and potential customers, so do your homework. Your ads should clearly outline the benefits associated with utilizing your services, so use words that will help them identify how they will benefit personally. Your ads should answer the question: “What’s in it for me?”
Other forms of advertising include websites, brochures, flyers, direct mail, radio, newsletters, e-zines, on-line discussion groups, and bulletin boards. Evaluate the costs associated with each and develop an advertising plan that will not only reach your target audience but will be reasonable for you.
To advertise is to call public attention to your business by emphasizing desirable services and qualities with the intention of arousing customer desire. There are numerous ways to advertise, so it is to your advantage to investigate each media available and determine which will work best for marketing campaign. The most obvious form of advertising is the written ad. Ads can be placed in the yellow pages, in local and national classifieds, in magazines, and on the internet. Ad placement depends almost entirely on the reading and listening habits of your current and potential customers, so do your homework. Your ads should clearly outline the benefits associated with utilizing your services, so use words that will help them identify how they will benefit personally. Your ads should answer the question: “What’s in it for me?”
Other forms of advertising include websites, brochures, flyers, direct mail, radio, newsletters, e-zines, on-line discussion groups, and bulletin boards. Evaluate the costs associated with each and develop an advertising plan that will not only reach your target audience but will be reasonable for you.
This quote is one of my personal favorites. Whenever I set out to develop a marketing plan I always try to keep this definition in mind and try to see if each element is being satisfied in some way. By looking at each area, advertising, promotion, publicity, and public relations, I am able to develop a marketing plan that is well rounded and well planned. The following is a step by step breakdown of each element and how they can be utilized to create a marketing campaign with pizzazz.
To advertise is to call public attention to your business by emphasizing desirable services and qualities with the intention of arousing customer desire. There are numerous ways to advertise, so it is to your advantage to investigate each media available and determine which will work best for marketing campaign. The most obvious form of advertising is the written ad. Ads can be placed in the yellow pages, in local and national classifieds, in magazines, and on the internet. Ad placement depends almost entirely on the reading and listening habits of your current and potential customers, so do your homework. Your ads should clearly outline the benefits associated with utilizing your services, so use words that will help them identify how they will benefit personally. Your ads should answer the question: “What’s in it for me?”
Other forms of advertising include websites, brochures, flyers, direct mail, radio, newsletters, e-zines, on-line discussion groups, and bulletin boards. Evaluate the costs associated with each and develop an advertising plan that will not only reach your target audience but will be reasonable for you.
Definition of Advertising
One Definition of Advertising
Advertising is bringing a product (or service) to the attention of potential and current customers. Advertising is focused on one particular product or service. Thus, an advertising plan for one product might be very different than that for another product. Advertising is typically done with signs, brochures, commercials, direct mailings or e-mail messages, personal contact, etc.
One Definition of Promotion
Promotion keeps the product in the minds of the customer and helps stimulate demand for the product. Promotion involves ongoing advertising and publicity (mention in the press). The ongoing activities of advertising, sales and public relations are often considered aspects of promotions.
One Definition of Marketing
Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return. Marketing is usually focused on one product or service. Thus, a marketing plan for one product might be very different than that for another product. Marketing activities include "inbound marketing," such as market research to find out, for example, what groups of potential customers exist, what their needs are, which of those needs you can meet, how you should meet them, etc. Inbound marketing also includes analyzing the competition, positioning your new product or service (finding your market niche), and pricing your products and services. "Outbound marketing" includes promoting a product through continued advertising, promotions, public relations and sales.
One Definition of Public relations
Public relations includes ongoing activities to ensure the overall company has a strong public image. Public relations activities include helping the public to understand the company and its products. Often, public relations are conducted through the media, that is, newspapers, television, magazines, etc. As noted above, public relations is often considered as one of the primary activities included in promotions.
One Definition of Publicity
Publicity is mention in the media. Organizations usually have little control over the message in the media, at least, not as they do in advertising. Regarding publicity, reporters and writers decide what will be said.
One Definition of Sales
Sales involves most or many of the following activities, including cultivating prospective buyers (or leads) in a market segment; conveying the features, advantages and benefits of a product or service to the lead; and closing the sale (or coming to agreement on pricing and services). A sales plan for one product might be very different than that for another product.
Difference Between Marketing and Advertising?
There are many technical and complicated definitions of both advertising and marketing and the differences between them. But it can be stated rather simply:
- Advertising tells a story about something to attract attention. Advertising is a step in the marketing process.
- In business, “marketing” is the planning of, and steps taken, to bring merchants and consumers together.
WebProNews describes marketing this way: “The best way to distinguish between advertising and marketing is the pie chart. Mentally visualize breaking the pie chart down into several slices that include advertising, product pricing, distribution, customer service, sales strategy, etc.”
If you are still not clear, ”Quick Sprout” offers an interesting and creative pictorial of the differences between advertising, marketing, public relations, and branding.
Marketing
Marketing: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products.
After reading both of the definitions it is easy to understand how the difference can be confusing to the point that people think of them as one-in-the same, so lets break it down a bit.
Advertising is a single component of the marketing process. It's the part that involves getting the word out concerning your business, product, or the services you are offering. It involves the process of developing strategies such as ad placement, frequency, etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and of course the Internet. Advertising is the largest expense of most marketing plans, with public relations following in a close second and market research not falling far behind.
The best way to distinguish between advertising and marketing is to think of marketing as a pie, inside that pie you have slices of advertising, market research, media planning, public relations, product pricing, distribution, customer support, sales strategy, and community involvement. Advertising only equals one piece of the pie in the strategy. All of these elements must not only work independently but they also must work together towards the bigger goal. Marketing is a process that takes time and can involve hours of research for a marketing plan to be effective. Think of marketing as everything that an organization does to facilitate an exchange between company and consumer.
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