Marketing definitions


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Marketing definitions

  1. 1. 2010 Marketing Definitions Review and analysis A review and analysis of different marketing definitions. By Mohamed Khalifa Ibrahim ESLSCA - MBA - Marketing Management Assignment # 1 IM05 - 7/28/2010
  2. 2.  Marketing DefinitionsMarketing Each part of the marketing definition defines what marketing is and how it is practiced. To explain the marketing definitions, we need toDefinitions examine the following important terms: needs, wants and demands; products andReview and analysis services; value, satisfaction and quality; exchange, transactions and relationships;Introduction and finally markets as shown in figure 1. (3)D efinitions applied to academic disciplines have important practical and symbolic implications. Forfuture and current practitioners, adefinition indicates certain training,qualifications, and competencies.A definition also serves to promote thelegitimacy of a scholarly community in theeyes of other academics. At the societallevel, formal definitions may subtlyinfluence longer-term trends in commerce,public perception, and policy making. (1) Figure 1: shows that these core marketing conceptsA number of attempts have been made to are linked, with each concept building on the onecategorize definitions of “marketing” before it. †Crosier (1988) for example reviewed over We can distinguish between a social and athan 50 definitions, placing them in to three managerial definition of marketing, thebroad categories, which are: social definition shows the role marketinga) Definitions that conceived of marketing plays in society, defined as “It is a societalas a process connecting the producer with process by which individuals and groupsits market via a marketing channel. obtain what they need and want throughb) Definitions that viewed marketing as a creating, offering and freely exchangingconcept or philosophy of business. products and services of value with others”.c) Definitions that viewed marketing as an For managerial definition, marketing haveorientation present to some degree in both been mainly described as “the art of sellingconsumer and producer the phenomenon products”. (4)which makes the process and the concept In this essay, I review & analyze somepossible.(2) marketing & marketing managementMarketing could be defined as an definitions based on the 4 Ps, segmentation,academic discipline with recognizable targeting and positioning (STP) presented inbody of theory in relation to the issues study a chronological manner, in addition toand processes.(2)† Adapted from P. Kotler, et al; Principles of Marketing; 4th European edition 2005. Page 2
  3. 3.  Marketing Definitionsproviding a new definition of marketingmanagement. Definitions are like belts. The shorter they are, the more elastic they need toDefinitions and Review be.The marketing definition has been —Stephen Toulmin (1961, p. 18)developed over time, nowadaysmarketing is based around providing Levitt – 1960* defined marketing as “Selling is preoccupied with the seller’s need to convert hiscontinual benefits to the customer, these product into cash; marketing with the idea ofbenefits will be provided and a satisfying the needs of the consumer by means oftransactional exchange will take place. the product and the whole cluster of thingsThere are many definitions of marketing. associated with creating, delivering and finallyThe better definitions are focused upon consuming it”customer orientation and satisfaction of This definition shows the evolution in this eracustomer needs. where the marketing concept starts, as itFred E. Clark – 1925* defined marketing as: talks about satisfying consumer needs“those efforts which effects transfer in the instead of the producer needs,ownership of goods.” segmentation, targeting and positioningThis definition illustrates the concept of presented by the word “creating”, alsomarketing at that time, not involving product, price and place were presentedcustomers needs, value or satisfaction, in by the word “delivering”.addition the term goods and not Rodger – 1971* defined marketing asmentioning services, illustrates the concept “Marketing is the primary management functionof this era “production concept”, the which organizes and directs the aggregate ofphrase “transfer the ownership” focuses on business activities involved in converting customerdistribution excluding the rest of the 4 Ps purchase power for a specific product or serviceand the segmentation, targeting or into effective demand for specific product orpositioning. service and in moving the product or service toAMA** – 1948 defined marketing as final consumer or user so as to achieve company“Marketing is the performance of business set profit or other objectives”activities that direct the flow of goods and services This definition illustrates the managementfrom producers to consumers or user” part of the definition as shown in wordsThis definition focuses on the distribution “management, organizing, and directs”, but thepart of marketing and excluded the rest of planning and controlling part ofthe four P’s, here also there is no management are missing here, needs andmentioning of the segmentation, neither demands of customers are presented in thistargeting nor positioning, reflecting the era definition but from the organizationof selling concept, but in this definition the prospective, the segmentation, targetingterm consumer appeared for the first time. and positioning are mentioned in a general way under the word “aggregate of business* The Blackwell encyclopedic dictionary of marketing; Volume 4 September 1997.** AMA = American Marketing Association  Page 3
  4. 4.  Marketing Definitionsactivities”, the McCarthys 4 Ps not executing the conception, pricing, promotion, andpresented except for the distribution part. distribution of ideas, goods and services to create exchanges that satisfy individual andR. Bartles – 1970’s* defined marketing as organizational objectives”.“Marketing is the process whereby society, tosupply its consumption needs, evolves distributive In this definition, we can see thesystems composed of participants, who, interacting management part of marketing present inunder constraints - technical (economic) and the words “planning and executing”, but theethical (social) - create the transactions or flows controlling, leading and organizing parts ofwhich resolve market separations and result in management are missing from thisexchange and consumption.” definition, McCarthys Four Ps areThis definition reckons the economic and presented in a smooth sequence, thesocial prospective of marketing. The part of concept of satisfaction customers &needs is presented as a whole in “society, to organizational needs is introduced here forsupply its consumption needs” assuming that the first time together (Win-Win concept),needs cannot vary from group of people to the exchange process is also presented.another, resulting in excluding thesegmentation part and as a sequent Dennis Adcock –1993 **defined marketingtargeting and positioning. Transaction and as “The right product, in the right place, at theexchange are presented in a different way right time, at the right price”that they should be, excluding the 4 P’s, in In this definition Adcock focused only onmy opinion this is the worst and most McCarthys Four Ps in general but whendifficult to understand definition of digging deep inside it is also consideringmarketing I’ve seen till now. segmentation, targeting and positioning inKotler – 1980 **defined marketing as addition to satisfaction of needs in the“Marketing is the human activity directed at phrase “right product & right time”, alsosatisfying human needs and wants through an creating demand through adding the wordexchange process” “the right price”, there is no mentioning toIn this definition Kotler generalized the promotion part from the 4 Ps. Here themarketing from management or management part of the definition is alsoorganizational activity to cover all man absent.kind, satisfaction of needs and want is thecore focus of this definition, the Kotler et al – 1994 **defined marketing assegmentation, targeting and positioning in "a social and managerial process by whichaddition of the McCarthys 4’Ps are individuals and groups obtain what they need andgeneralized under the word “human activity”, want through creating and exchanging products and value with others”this definition is short easy to understandbut too general. This definition included both social and managerial aspects of marketing inAMA – 1985 defined marketing as”Marketing is the process of planning and addition to the core concepts of: Needs,* The Blackwell encyclopedic dictionary of marketing; Volume 4 September 1997.** Definitions adapted from Page 4
  5. 5.  Marketing Definitionswants and demands with product, value customer relationships in ways that benefit theand satisfaction, plus exchange and organization and its stakeholders.”transaction, and finally market and Here in this definition STP is presentedmarketing, within this exchange and clearly under the term “creating”, while thetransaction, customers will only exchange idea of CRM is presented clearly by thewhat they value, although the 4P’s and the name, also the 4 Ps are presented underSTP are covered by the word “process”, but the words “delivering, and communicating”.it still needs to be more clear. The management part of the definition isRoger Palmer – 2000* defined marketing as presented and not only focused on the“Marketing is essentially about marshalling the marketing department but also it includesresources of an organization so that they meet the the whole organization but it excluded howchanging needs of the customer on whom the to? As this definition is missing theorganization depends” (planning, organizing, leading andIn this definition Palmer stated that the controlling) parts of the managementneeds of customers are changing, focusing concept. The phrase “set of processes” ison the satisfaction of these needs but he good in that it covers the idea thatomitted the 4 Ps and the STP, the marketing is not a single event but rather amanagement component of the definition combination of many activities. Theis also absent. “stakeholder” approach versus the previousKotler – 2002** defined marketing as focus on individuals and organizations is“Marketing management as the art and science of tricky because it enables the definition toapplying core marketing concepts to choose target incorporate a broad number of people ormarkets and get, keep, and grow customers firms that interact with marketers or theirthrough creating, delivering, and communicating offerings.superior customer value.” AMA – 2007 defined marketing asHere in this definition, the term “art and “Marketing is the activity, set of institutions, andscience” is too general, STP is presented processes for creating, communicating, delivering,clearly, while the idea of CRM is presented and exchanging offerings that have value forfor the first time by the term “get, keep, and customers, clients, partners, and society at large.”grow customers” alarming marketers that In this definition the marketing is defined asmarketing is a continuous process not a an activity, where it surpasses thesingle transaction, also the 4 Ps are organizational frame, including the rolepresented under the words “delivering, and marketing plays within society at large, orcommunicating”. as a broader activity than the previous oneAMA – 2004 defined marketing as did, in addition to the phrase “set of“Marketing is an organizational function and a set institutions, and processes” , where it includesof processes for creating, communicating, and the managerial part of the definition.delivering value to customers and for managing This new the term “offering” refers that marketing is not just a commercial activity* Definitions adapted from** Kotler & Keller; Marketing management  Page 5
  6. 6.  Marketing Definitionsused for products or services, it is also used Customer at the center of business:by governments or NGOs to raiseawareness or calling for a cause where P. Drucker* defined marketing asthey are not necessarily selling anything. “Marketing is not only much broader than selling,The STP and the 4Ps are presented under it is not a specialized activity at all It encompassesthe term “creating, communicating and the entire business. It is the whole business seendelivering”, finally as the previous two from the point of view of the final result, that is,definitions discussed here satisfaction of from the customers point of view. Concern andcustomers needs is not presented at all responsibility for marketing must thereforeneither mentioning that these needs are permeate all areas of the enterprise.”dynamic and changing constantly. In this definition Peter Drucker focuses mainly on the customer as the center ofAnd here are some common definitions business, it is too general not covering thethat are focused on just one specific area: STP or the 4Ps, or the managerialProfitability: component of the definition.Barwell*defined marketing as Competitors surpassing:“This customer focused philosophy is known as the Jobber* defined marketing asmarketing concept. The marketing concept is aphilosophy, not a system of marketing or an “The achievement of corporate goals throughorganizational structure. It is founded on the belief meeting and exceeding customer needs better thanthat profitable sales and satisfactory returns on the competition.”investment can only be achieved by identifying, What is interesting in this definition is thatanticipating and satisfying customer needs and Jobber is the only one addressed the issuedesires.” of competitors while defining marketing.CIM** defined marketing as “Marketing is the The 4 Ps and the STP also are notmanagement process that identifies, anticipates represented in this definition.and satisfies customer requirements profitably”In this definition (as with Barwells definition) My definitionit addresses not only identifying customer “Marketing is a social and managerial set ofneeds, but also satisfying them and institutions, and processes for creating,anticipating them in the future. Also both communicating, delivering, and exchangingdefinitions has an emphasis on profitability, offerings that have value for customers, leading toignoring that in the 21st century there are a have the right product, in the right place, at thelot of NGOs and governments that uses right time, at the right price, from the customersmarketing not aiming to profit from it. The 4 point of view, through identifying, anticipating,Ps and the STP are all not represented in this satisfying and exceeding customers’ dynamicdefinition. needs and wants continuously better than the competition.”* Definitions adapted from** CIM = Chartered Institute of marketing. Page 6
  7. 7.  Marketing DefinitionsIn my opinion a successful marketer is theone who gain more customers more thancompetitors, through exceedingcustomers’ satisfaction, and anticipatingfuture changing needs of those customers.In this definition STP is presented clearlyunder the term “creating”, while the 4 Ps arepresented under the words “delivering, andcommunicating” , in addition to the phrase“set of institutions, and processes”, where itincludes the managerial part of thedefinition. The term “offering” refers thatmarketing is not just a commercial activityused for products or services; it is also usedby governments or NGOs, the term”continuously” refers to the building up ofCRM.References1- George M. Zinkhan & Brian C. Williams; The New American Marketing Association Definition of Marketing: An Alternative Assessment; Journal of Public Policy & Marketing; Vol. 26 (2) Fall 2007, 284–288.2- Barbra R. Lewis & Dale littler; The Blackwell encyclopedic dictionary of marketing; Volume 4 September 1997.3- P. Kotler, V. Wong, J. Saunders & G. Armstrong; th Principles of Marketing; 4 European edition 2005.4- P. Kotler & K.L. Keller; Marketing management: th 12 edition 2007  Page 7