A discussion on the definition of marketing and how it has evolved over the years.

1. What is Marketing?
Ashish K. Pillai

2. 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.
Ashish K. Pillai

3. So Marketing Is…..
An Activity…. performed by organizations (and
individuals too) to achieve business and ultimately
overall objectives
A Set of Institutions… formal and informal that exist
to create a sync between consumers, organizations
and other stakeholders
Processes….. A collection of tasks that aims to
achieve the marketing and overall business
objectives
Ashish K. Pillai

4. What Does Marketing Do??
CCDVTP
Create
Communicate
Deliver
Value
To Target Segment
Profitably
Ashish K. Pillai

5. The Key is
Value
Marketing…creates value for the
customer, communicates that value, delivers that
value to the target customer and helps the
company make a profit doing all that!
Ashish K. Pillai

6. Value is the benefit the customer derives by
purchasing and using your product.
Benefits
Value =
Costs
Ashish K. Pillai

7. Dealers &
Promoters Employees The Govt.
Suppliers
Customers
Consider Marketing the art and science of
delighting the customers while keeping the other
stakeholders happy!
Ashish K. Pillai

8. The Definition of Marketing is Dynamic!!!
The American Marketing Association, established in 1937
is responsible for defining marketing which is used as the
default definition in most texts and by most business
schools
The first official definition of marketing was adopted in
1935 by the National Association of Marketing
Teachers, the predecessor of AMA
The 1935 Definition:
Marketing is the performance of business activities
that direct the flow of goods and services from
producers to consumers
Ashish K. Pillai

9. Evolution of the Definition of Marketing
In 1960, AMA decided to review the original 1935
definition of marketing and decided to leave it
unchanged
In fact the 1935 definition stood till it was revised finally
in 1985, 50 years later!!!
The 1985 definition:
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods and services to create exchanges that
satisfy individual and organizational objectives
Ashish K. Pillai

10. 1935 Definition Vs 1985 Definition
The1935 Definition The 1985 Definition
The focus was on the The definition focused
physical exchange and on “exchange” &
on economies of doing clarified the role of 4Ps
so in achieving a
satisfactory exchange
The definition focuses The definition was
primarily on operational strategic in nature
issues
Ashish K. Pillai

11. 1985 Definition Vs 2007 Definition
The1985 Definition The 2007 Definition
The focus was on the The focus was on value
exchange creation and delivery
The definition was
The definition focuses strategic in nature
primarily on operational
issues Underlines the
continuous nature of
marketing and the
Kept the marketing interconnectedness of
function isolated the marketing actors
Ashish K. Pillai

12. The Future Definition of Marketing…
The new definition of marketing talks about “value
creation” and not about “value co-creation”. Value
creation is something a company does and value
co-creation is what the company does along with
the customer. (Sheth & Uslay, 2007)
So value co-creation elevates the customer to the
status of a partner! The next definition of
marketing will have to incorporate value co-
creation.
Do You Agree???
Ashish K. Pillai

13. What then is Marketing Management?
“Management” of all organizational activities that
constitute marketing
According to Kotler:
Marketing management is the art and
science of choosing target markets and
getting, keeping, and growing customers
through creating, delivering, and
communicating superior customer value.
Ashish K. Pillai

14. Marketing is Not Selling!!!
There will always be a need for some selling…. But
the aim of marketing is to make selling
superfluous… The aim of marketing is to know and
understand the customer so well that the product
or service fits him and sells itself. Ideally, marketing
should result in a customer who is ready to buy. All
that should be needed is to make the product or
service available.
Peter Drucker
Ashish K. Pillai