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Definition of Marketing

Definition of Marketing

Marketing can be defined as the process of creating awareness a product or service to a targeted customer base. Whenever a company produces a product it must also find a customer to purchase the product in order to generate revenue. Many strategies for marketing exist and companies formulate plans to promote their product offering to customer base and the general public. Some industries are highly competitive and marketing is the primary determinant of success. Unique approaches to marketing are developed frequently and consumers are exposed to this through a variety of mediums, such as television, radio, internet, etc. The mediums used of advertising are virtually limitless as product promotions can been seen around every corner. Ultimately, the goal of marketing is to create brand awareness and increase the sales volume for the product being promoted. Companies have developed a wide variety of creative methods for implementing their marketing strategies and continue to look for new ways to reach out to consumers.



The definition of marketing varies among different institutions, but it is clear that the primary objective is to reach customers to increase sales and create product awareness. The American Marketing Association defines marketing as “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” (American Marketing Association 2007). The most important aspect of this quote is point about offering items of value to customers. Advertisements must communicate to the potential customer why the product has value. A customer will make his or her purchasing decision based on the perceived value of the product. Many factors can have an impact on the value of the product, such as price and quality. Discounts and sales are a very successful marketing technique because they increase the perceived value of a product. A primary objective of nearly any marketing plan is to find ways to communicate the value of the product offering to the potential customer.

 

The Four Ps of Marketing



Many definitions of marketing use the four P’s, which include product, place, promotion, and price. There are countless variables that go along with each category and every product will have a unique set of parameters (Jolly, 2007). The definition is broad, but it exposes the importance of networking in the marketing process. In order for marketing to be successful, it normally requires a network of people to deliver a successful strategy. It is often said that word of mouth promotion among customers is the most effective form of marketing, so it is beneficial for a company to create advertisement that nurture this type of behavior. In some cases, a product will gain a cult following which can greatly reduce the need for marketing expenditures. The uses of the product are satisfied to the point that they actively recommend the product to other potential customers. In addition, the four P’s of marketing make the distinction of location. The demographics of an area have a large impact on the way companies market their products. Location is an important factor to consider for both large and small companies.

The impact marketing has on organizational success is dependent upon the type of industry. In general, marketing is a crucial part of organizational success and investment in advertising and promotion is needed to reach sales goals. When a product is manufactured by a company it does not add value to shareholders until it is sold to consumers. Companies must accurately determine their need for marketing and create a strategy that incorporates a marketing plan. Some industries are more dependent on marketing than others, which make its contribution to organizational success unique to each individual company. For example, most farmers do not need aggressive marketing tactics to be aggressive. This industry relies on internal contracts and the needs of connected buyers. Since their product does not go directly consumers, there is little need for marketing. On the other hand, the Vodka industry is highly dependent on marketing. There are hundreds of Vodka produces that promote a product that is very similar and virtually indistinguishable by most consumers. Consumers make their purchasing decision primarily based on the marketing efforts of the producer. Marketing activities are very visible and creative in this industry and can be seen often on television, print, and billboards. Overall, the impact of marketing on organizational success will depend on the needs of the industry.

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