What is the definition of marketing? This is a question that
was posed to me and several other marketing professionals in a recent poll. I
was not surprised when I read the results of the poll that answers were very
broad in their description and varied one from the other. Marketing is not like
defining other business functions. For instance, sales is pretty easy to
define. It is the function of selling something to a customer. Accounting is
keeping records of your financial transactions. But marketing, is a bit harder
to define.
Is it advertising?
Is it consumer research?
Is it throwing a customer appreciation luncheon?
Is it putting your logo on T-shirts?
If you are involved in marketing for your company, you know
the answer to these questions are yes, yes, yes and yes… plus a lot more yeses.
Marketing can become the catch all for a lot of different activities within a
company. Let’s look at how the experts define marketing.
The American Marketing Society1 defines it like this:
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.
"Value…
for society at large?” With that definition, it appears that any activity, including seeking world
peace, is marketing! Let’s go to another source. The Merriam-Webster Dictionary2
gives these three definitions of marketing:
1. a. The act or process of selling or purchasing in a
market
b. The process or technique of
promoting, selling, and distributing a product or service
2. An aggregate of functions involved in moving goods from
producer to consumer
"An aggregate of functions” may be a more honest definition
of marketing in today’s business environment. I believe that marketing is like
one of those very large umbrellas under which you can place a short busload of
people. Under that umbrella would be a number of business functions designed
to:
1. Define
your products/services
2. Help
you define and understand your target market who are likely to purchase your
products/services
3. Make
you aware of the tactics of your competition and how you stack up against them
4. Promote
the awareness of your brand
5. Advertise
a reason to purchase your products/services
6. Gain
the confidence of these customers so they will purchase from you again
If I could shorten all of this, I would say that marketing
has to do with any function that is driving towards a sale. If it doesn’t have
a connection to a sale, it is not marketing. So the next time your boss claims
that the company picnic belongs in marketing because you are printing your logo
on cups for the event, tell him to show you the connection to sales (and then
tell him to give the company picnic to HR!)
Now wait a minute! You might be thinking of several
marketing functions that don’t have a connection to sales. What about
sponsorships of charitable events? What about giving to civic causes? What
about press releases, blogs and "likes” on the company Facebook page? They
aren’t driving anyone to a sale and they are part of marketing, aren’t they? It
depends upon your strategic direction with marketing. Under point #2 above, we
listed that understanding your target market was an important marketing
function. This understanding includes getting a good grasp on what the people
that make up potential customers value. If your sponsorships, press releases,
blog posts and Facebook following is in accord with the values of your target
market, then you can make a case that those activities are influencing them in
a positive way to purchase from you. Understanding the values, attitudes and
choices of your target market is a very important for long term sales. But if
your sponsorships are running counter to the values of your target market, you
are doing yourself long-term harm.
Marketing is the big umbrella. If it is driving to a sale,
it belongs under the umbrella. If it is not, let it get wet! It doesn’t belong.
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1. American Marketing Association web site: www.ama.org/AboutAMA/Pages/Definition-of-Marketing.aspx
2.
Merriam Webster Online Dictionary: http://www.merriam-webster.com