Definition of Marketing

“Marketing” seems to mean different things to different people. Some think of Ron Popeil and late-night infomercials, while others may think of the circulars and coupons they get in their Sunday paper. Many also think of the spam in their inboxes and the junk mail the mailman delivers every day. In reality all these views are correct, but marketing is much, much more.

Marketing involves selling products and services, but that doesn’t mean marketing is limited to sales activities. The American Marketing Association defines marketing as “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.” Sounds impressive, but what does that really mean? This definition is chocked full of information, so let’s break down each component of the definition.

The Activity
Marketing involves activity. That sounds obvious, but it is important to remember that marketing is not passive; It requires active participation on the part of the marketer. It may sound like this active participation means solely promoting your product or service, but it really means employing the entire marketing mix (product, price, place and promotion), plus some of the legwork that goes into implementing the mix, such as market research, financial planning, strategy, etc.

Set of Institutions
Even the best salesperson in the world knows that marketing is a group effort that involves a variety of individuals and groups, internal and external to his organization. From an overall perspective marketing involves many institutions/groups, such as market researchers, advertising agencies, sales support, research and development, financial forecasting, distributors, etc. A key to good marketing is being able to manage and coordinate all these institutions and groups.

Processes
Marketing has to be process driven. While flying by the seat of your pants may sound like fun to some people and may even work for the short term, eventually it will land you in trouble. Without processes in place, you will not be able to plan effectively, determine what is working or not working, figure out which efforts have a positive or negative effect on sales or even learn from your successes and mistakes. To do all this, you really need a mapped-out process that can be honed and replicated.

Creating
Marketing is an innovative field that attracts very creative people. Marketing ideas and strategies are limited only by your imagination, and we see this high level of creativity in action every day. I have always respected an artist who can make his audience feel a certain emotion or understand a certain idea or point of view. But I admire a marketer who can make his audience act even more. Understanding and feeling are just the first steps for a marketer, while mobilizing toward action is what really counts. This is true creative power in action.

Communicating
If a tree falls in the forest, but no one is around to hear it fall, does it make a sound? This philosophical question mirrors a problem marketers face; You may have the best product or service in the world, but if you don’t communicate the benefits and features of that product or service well to the right audience (and not necessarily only through advertising) how is the world going to find out about it? Communication is important to marketing your product or service, and this communication can come in many forms, from overt advertisements and promotions to more subtle activities such as the effectiveness of your supply/value chain and branding.