Everything you need to know about the definitions of marketing. Marketing is a very broad term that is difficult to conceptualize and define.
The American Marketing Association defines marketing as the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
In the words of Cundiff and Still – “Marketing is the term used to describe collectively those business functions most directly concerned with the demand stimulating and demand-fulfilling activities of the business enterprise”
Philip Kotler’s definition of Marketing is – “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other”.
Definitions of Marketing by Eminent Authors like Philip Kotler, Peter F. Drucker and a Few Others
Definitions of Marketing – Definition by Philip Kotler
Marketing, more than any other business function, deals with customers. Creating customer value and satisfaction are the heart of modern marketing thinking and practice. Marketing is the delivery of customer satisfaction at a profit. The two fold goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction.
ADVERTISEMENTS:
Marketing has been defined by the American Marketing Association as – “Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user”.
In the words of Cundiff and Still – “Marketing is the term used to describe collectively those business functions most directly concerned with the demand stimulating and demand-fulfilling activities of the business enterprise”
Philip Kotler’s definition of Marketing is – “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other”.
ADVERTISEMENTS:
Businessmen refer marketing as the process of distribution. Marketing represents all business activities involved in the determination, creation and satisfaction of human wants at fair prices.
A simple meaning of ‘marketing’ is selling of goods and services. Of course, sale of goods leads to transfer of ownership and possession of goods. The term ‘marketing’ has a wider coverage.
Marketing is a comprehensive term. It includes a group of business activities in order to create and promote consumer demand and to direct the flow of goods/services from the original producer to the final consumer in the process of distribution.
The American Marketing Association defined marketing as:
ADVERTISEMENTS:
“The performance of business activities that direct the flow of goods and services from producer to consumer/user.”
This definition has four weaknesses or limitations:
1. It does not cover the function of discovery of demand (through marketing research) and the function of promotion of demand by advertising and salesmanship. It merely concentrates on the physical flow or movement of goods from the centre of production to the centre of distribution.
2. It fails to point out close inter-relationship between the product (supply) and the market (demand).
ADVERTISEMENTS:
3. It does not stress the function of exchange, viz., the transfer of ownership, which is the heart of marketing.
4. It ignores the importance of marketing management responsible for planning, organizing and conducting marketing campaign through a proper marketing mix of product, price, promotion and distribution.
Definitions of Marketing – With Comments
Marketing is an on-going (continuous) process of discovering and translating consumer wants into appropriate products and services (by means of planning and developing a product on the basis of marketing research and information), creating demand for these products (through pricing and promotion) under keen competition, and serving the demand (through transport and storage) with the help of channels of distribution, such as wholesalers and retailers. Marketing programme is called marketing mix. It covers product planning or merchandising, pricing, promotion and physical distribution.
Our definition honours consumer needs and desires. It stresses managerial approach to marketing. It emphasizes the need for marketing programme covering the four aspects of marketing mix. It points out the need of promotion to attract demand. Problem of physical distribution is to be solved by serving the demand through marketing channels with the help of their specialized marketing functions.
ADVERTISEMENTS:
Comments:
1. Marketing activities are divided into three main divisions-
(a) Merchandising activities
(b) Physical distribution activities and
ADVERTISEMENTS:
(c) Supporting activities facilitating merchandising and physical distribution functions.
2. All marketing activities have one sole purpose, viz., creation of a customer and maintenance as Well as growth of demand under keen competition.
3. Marketing research/information helps us to create and maintain demand.
4. Merchandising and physical distribution functions establish best adjustment between the product (supply) and customer wants (demand).
ADVERTISEMENTS:
5. Customer satisfaction assures retention of customers and therefore normal profits even under keen competition.
Paul Mazur hit the nail on the head when he spoke of marketing as the delivery of a standard of living to society. This statement catches the real spirit of the marketing process. It is a consumer- oriented statement. It emphasizes the major function of marketing, viz., satisfaction of social demand for material goods and services.
It also includes product planning or merchandising. It makes the business organization a full-fledged marketing organization. However, it is too general and lacks descriptive tone in marketing. It is too broad and vague.
Marketing covers three basic activities:
1. Discovery of consumer needs and desires revealing the marketing opportunities which can be exploited by a firm.
2. Matching the organizational resources and limitations (competition, government regulations, etc.) with the product. This process of matching the strengths and weaknesses of the firm with the product demanded by the society is the managerial function of the firm.
ADVERTISEMENTS:
3. Formulating and implementing the marketing programme, called marketing mix, covering product, price, promotion and distribution in order to accomplish the twin objectives of profitability and consumer satisfaction.
Definitions of Marketing
Marketing is a business activity that focuses on providing value and benefits to customers not only by selling products/ services. It also uses different means to communicate, distribute and determine relevant pricing strategies to customers and other stakeholders like employees, suppliers, partners, shareholders, distributors, etc., with products / services, ideas, values and benefits whenever and wherever they desire. This customer-oriented process that involves interaction with multiple stakeholders to create awareness and boost business revenues is called marketing management.
“Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer values of management.” —Philip Kotler and Kevin Lane
“Marketing management is the process of increasing the effectiveness/efficiency by which marketing activities are performed by individuals or organizations.” —Ben M. En
Based on the aforementioned definitions it is clear, that marketing management is the process of planning and executing the conception, pricing, promotion and distribution of products, services and ideas to enable exchange between buyers and sellers.
Marketing a Science or an Art?
ADVERTISEMENTS:
The handling of marketing responsibilities clearly calls for a diversity of human talents. These responsibilities require the men who have personality traits which will enable them to do an effective job in dealing with customer.
They must be artistic and imaginary people to create effective advertising and sales programmes and to develop new ideas is distributors methods. They must have strong analytical abilities to cope with the strategical and logistical aspects of marketing operations. This all proves that marketing management is a science.
But on the other hand, a continuous practice in the problems of personalizing, advertising and sales promotion etc., develops is them a group of ‘artists’. Therefore, authors are of this opinion that marketing management is both; a science as well as an art. In time, these two streams – the scientific aspects of marketing management and artistic aspect of marketing management influence and educate each other and out of this intermingling comes the new generation of successful marketing managers.
There are many definitions of marketing, some highlight the process, some the functional activities, and some the orientation of marketing. The Institute of Marketing accepts the following as its primary definition- “Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably”.
In essence, marketing requires:
(a) The identification of consumers’ needs covering what goods and services are bought; how they are bought; by whom they are bought; and why they are bought.
ADVERTISEMENTS:
(b) The definition of target market segments by which consumers are grouped according to common characteristics – whether demographic, psychological, geographic, etc.
(c) The creation of a differential advantage within target segments by which a distinct competitive position relative to other companies can be established, and from which profit flows.
The increasing acceptance of the marketing concept whereby the organization looks outwards to the satisfaction of consumers’ needs-and those of society-in establishing its competitive position, rather than looking inwards to its entrenched technology has created a deeper interest in analyzing marketing costs for the purposes of establishing marketing strategy and controlling marketing efforts in executing that strategy.
Definitions of Marketing – By Famous Authors like Hugey, Mitchell, Hansen, Cundiff, Peter F. Drucker, and Philip Kotler
“Marketing includes all activities involved in the creation of place, time and possession utilities. Place utility is created when goods and services are available at the places they are needed; time utility when they are needed; and possession utility, when, they are transferred to those who need them.” — Converse, Hugey and Mitchell
“Marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then in turn expanding this demand.” — Hansen
“Marketing is the business process by which products are matched with market and through which transfers of ownership are effected.” — Cundiff
ADVERTISEMENTS:
“Marketing includes those business activities which are involved in the flow of goods and services from production to consumption.” — Converse
“Marketing is the economic process by which goods and services are exchanged and their values determined in terms of money prices.” — Duddy and Reizan
“Marketing is concerned with the people and activities involved in the flow of goods and services from producer to consumer.”—American Marketing Association
“Marketing is the creative management function which promotes trade and employment by assessing consumer needs and initiating research and development to meet them. It co-ordinates the resources of production and distribution of goods and services and determines and directs the nature and scale of the total efforts required to sell maximum production to the ultimate user.” — UK Institute of Marketing
“Marketing is the creation and delivery of standard of living; it is finding out what customer wants, then planning and development of a product or service that will satisfy those wants; and then determining the best way to price, promote and distribute that product or service. It is a toted system of business activities designed to produce and distribute want satisfying goods and services to potential customers.” — W.J. Stanton
“The purpose of business is to create a customer by which he lays stress on two aspects- (a) Identification of consumer needs and (b) Organising the business to meet these needs.” — Peter F. Drucker
ADVERTISEMENTS:
“Marketing is the set of human activities directed at facilitating and consummating exchanges.” — Philip Kotler
All these definitions throw light on one or the other aspect of marketing. No single definition is complete and new dimensions are added to the concept by recent writers on the subject.
However, we can identify from the above definitions as to what marketing is:
i. It is a creation of utility in terms of time, place and possession.
ii. It is a process of converting customer needs into product and service and demand creation.
iii. Matching consumers and products.
iv. It is a consumer to consumer activity.
v. A creative management function involving production of goods and services, pricing them, promoting them and distributing them to the consumers to satisfy their wants.
Thus marketing encompasses all activities of exchange conducted by producers and middlemen in commerce for the purpose of satisfying consumer demand. New dimension added to the marketing concept is ‘Systems Approach’. It is an integrated approach bringing all marketing activities under an integrated whole. Under Systems – approach marketing is defined as an ongoing social process for the creation and delivery of standards and styles of life.
Definitions of Marketing – Some General Marketing Definitions by Peter F. Drucker
Marketing is a very broad term that is difficult to conceptualize and define. The American Marketing Association defines marketing as the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
Marketing is concerned with the decisions that relate to a business’ customers, competitors, and promotion agencies. Marketing focuses on how customers make choices and how companies should design products, services, and programs to satisfy their customer needs.
i. A network in which buyers and sellers interact to exchange goods and services for money.
ii. A place where products and services and their competitive substitutes are bought and sold, an opportunity to sell, or the demand for goods and services.
iii. A place, or mechanism, where buyers and sellers can communicate and complete an exchange for goods or services if they agree on the price and terms and conditions of sale. Markets allocate resources and goods and services.
iv. Trade or traffic in a particular good or service; place where goods or services are bought and sold.
v. A group of buyers and sellers of a particular good or service.
vi. An aggregate of people who, as individuals or as organizations, have a need for certain products and the ability, willingness and authority to purchase such products.
vii. The place in which or the arrangement by which goods and services are bought and sold.
viii. The prospective customers for a given product or service.
ix. A region or area in which goods can be bought and sold. Generally delineated by either geography or business segment.
x. Consists of all people and/or organizations who desire (or potentially desire) a good or service, have sufficient resources to make a purchase, and the willingness and ability to buy.
xi. Tim Cohn’s definition of marketing is to find out what your customers want and then give it to them.
xii. Peter Drucker’s definition of marketing is-
“Marketing and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. And you get paid for creating a new dimension of performance, which is innovation. Everything else is a cost center.”
i. A general definition of marketing-
The act or process of buying and selling in a market.
ii. Another marketing definition- The commercial functions involved in transferring goods from producer to consumer.
Some think it is advertising or product brochures while others, a sneak attack on an unsuspecting public. You will have heard phrases like ‘Marketing Gimmicks’ and in general, marketing receives a bad press. This is not only unfortunate, because marketing has nothing to do with trickery, but unfair because the essence of marketing is value.
The goal of marketing is long-term satisfaction not short-term deception. All successful companies rely on customers returning to repurchase goods and services. Responsible marketers support this theme.
‘Because the purpose of business is to create and keep customers, it only has two central functions – marketing and innovation. The basic function of marketing is to attract and retain customers at a profit.’ Peter Drucker.
This theme connects the concept of profit with a customer orientation as the ethos for achieving it.
“Marketing and innovation are the two chief functions of business. You get paid for creating a customer, which is marketing. And you get paid for creating a new dimension of performance, which is innovation. Everything else is a cost center.” Peter Drucker E. Jerome McCarthy originally wrote his classic book Basic marketing which defined the 4 Ps of Marketing or as I call them the 4 Principles of Marketing. The 4 Principles of Marketing are a good starting point for developing your marketing plan.
Definitions of Marketing – Top 5 Popular Definitions of Marketing by Various Authors like William J. Stanton, Cundiff, Still and Govoni, Philip Kotler and Peter F. Drucker
Marketing management is one of the important components of business management. It is concerned with managing all the marketing activities of an organization. According to the American Marketing Association (AMA), “Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.”
Marketing covers a wide range of functions—marketing activities begin before the production process and continue even after the sales have taken place.
Some other popular definitions of marketing are given below:
William J. Stanton:
“Marketing is the creation and delivery of a standard of living; it is finding out what consumers want, then planning and developing a product or service that will satisfy those wants; and then determining the best way to price, promote, and distribute that product or service. Stated more formally, marketing is a total system of business activities designed to plan, price, promote, and distribute want-satisfying goods and services to the benefit of the present and potential customers later”.
Cundiff, Still and Govoni:
“Marketing is the managerial process by which products are matched with markets and through which the consumers are enabled to use or enjoy the product.”
Philip Kotler:
“Marketing is the set of human activities directed at facilitating and consummating exchanges. Three elements must be present to define a marketing situation-
(i) Two or more parties who are potentially interested in exchange; (ii) each possessing things of value of the other; and (iii) each capable of communication and delivery.”
In a revised definition, Kotler states, “Marketing means working with markets, which in turn means attempting to actualise potential exchanges for the purpose of satisfying human wants and needs. Marketing is human activity directed at satisfying needs and wants through exchange process.”
Peter F. Drucker:
“Marketing is not a function of business, but a view of the entire business seen as the economic organ to provide goods and services. This is the marketing view of business. Everything the business does in that respect is marketing. Marketing is not only much broader than selling; it is not a specialised activity at all. It encompasses the whole business concern, and responsibility for marketing must, therefore, permeate all areas of the enterprise.”
He further says- “Marketing is the only distinguishing and unique function of business. If we want to know what a business is we have to start with its purpose. And its purpose must be outside the business itself. In fact, it must lie in society since a business enterprise is an organ of society. There is only one valid definition of business purpose: to create a customer.”
H.L. Hansen:
“Marketing is the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then in turn expanding this demand.”
Definitions of Marketing – With Traditional and Modern Views on Marketing
Marketing is a process of buying and selling of products and services in exchange of consideration to satisfy the consumer’s needs. It consists of all those activities that a seller undertakes, in order to ensure that a company is able to sell the product at a price that gives them adequate profit in returns.
Today, marketing is regarded as the most important of all management functions in any business organisation. Goods and Services cannot be sold by merely producing them, but they have to move from place of production to customers for consumption. In the modern world, producers are bound to be consumer oriented because customers have a wide range of products and brands to which they can switch which gives them the utmost satisfaction, i.e., the product has to be developed according to the needs and wants of the customer.
Thus, marketing involves development of products or services according to the needs of the customer and then moving them from place of production to place of consumption profitably, to satisfy customer wants.
“Marketing includes all activities involved in the creation of place, time and possession utility.” —CONVERSE, HUEGEY AND MITCHELL
“Marketing consists of those activities which effect transfers in ownership of goods and care for their physical distribution.” —F.E. CLARK
“Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user”. —AMERICAN MARKETING ASSOCIATION
“Marketing is the economic process by means of which goods and services are exchanged and their values are determined in terms of money prices.” —DUDHEY AND REIZAN
Traditional and Modern View of Marketing:
1. Traditional View:
In olden time, marketing was defined as the flow of goods from the producers to the consumers. This is a product-oriented definition of marketing. The process of marketing began after the process of production. The producers concentrated on what they could produce and sell. The needs of the customers were not taken into consideration. The product-oriented definition is based on the assumption that whatever is produced is bound to be sold.
Consumer-Orientation is the modern concept of marketing. It analyses the needs of the customers and then produce goods that strive to meet their needs. According to J.F. PYLE, “Marketing is that phase of business activity through which human wants are satisfied by the exchange of goods and services.” This definition takes into consideration the satisfaction of human wants. It emphasises the determination and the satisfaction of the requirements of potential customers which take precedence over production.
The customer oriented marketing involves ‘selling of satisfaction’ rather than ‘selling a product’.
Business must produce what the consumers want, in the quantity and quality they desire, at a price they are willing to pay, at the time they need and through the channels most convenient to them.
“Marketing is a total system of interacting business activities designed to plan, price, promote and distribute wants satisfying products and services to present and potential customers.” —STANTON
Definitions of Marketing – According to American Marketing Association, Harry Hansen and William Stanton
The word marketing has been defined by many people and in many ways. Paul Mazur defined marketing as “the delivery of a standard of living to society.” Professor McNair of Harvard added an important concept when he amended Mazur’s definition to read that “marketing is the creation and delivery of a standard of living to society.”
The American Marketing Association gives us a factual or descriptive definition when it says – “Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.” The legislative definition would be as follows – “Marketing includes all activities which are connected with the transfer of ownership and possession of goods and services.”
According to Harry Hansen, “Marketing involves the design of the products acceptable to the consumers and the conduct of those activities which facilitate the transfer of ownership between seller and buyer.” This, definition no doubt, attempts to combine the modern marketing concept with the traditional view of marketing, but it is not truly a managerial definition.
In the words of William Stanton, “Marketing is a total system of interacting business activities- designed to plan, price, promote, and distribute want-satisfying products and services to present and potential customers.”
This definition has several important implications.
First, it is a managerial definition rather than legalistic or economic one.
Second, the entire system of business action should be market oriented or customer oriented. Customers’ wants must be recognized and satisfied effectively.
Third, the definition suggests that marketing is a dynamic business process. Marketing is not any one activity, nor is it exactly the sum of several – rather, it is the result of the interaction of many activities.
Fourth, the marketing programme starts with the product and does not end until the customer’s wants are completely satisfied, which may be some time after the sale is made.
Finally, market programming should be done with a maximum of effectiveness and a minimum of cost; and marketing must maximize profitable sales over the long run.
Above all the customers must be satisfied in order for a company to get the repeat business which ordinarily is so vital to success.
Definitions of Marketing – Definitions by Philip Kotler
In the organization of a business unit, marketing occupies an important position, from the traditional concept of marketing as the efforts effecting transfer in ownership of goods and care for their physical distribution, marketing in its modern concept means,”………..the creation of a customer”. Customer-creation is the identification of consumer needs and organizing the business to meet these needs.
We are giving farewell to the twentieth century and stepping in the threshold of the twenty-first century with profound changes in the economic environment of the world.
In the global market, the emergence of the Far East, the development of a European Common Market, the political reforms in Eastern Europe and South Africa, the manifestation of weaknesses of state-controlled economy – all these world phenomena have impact on marketing and its management. Marketing is such a wide connotation that any event – social, political and economic in any part of the globe – has to be reckoned with while discussing marketing.
A perceptible change in the trend of marketing has set in. Fragmentation of mass markets, adoption of single channel distribution system, buying direct through catalogues, the gradual ineffectiveness of conventional advertising etc., are the features that have become the concern of the marketing management today.
Marketing management does not confine its activity to increasing the volume of sales only; rather, today’s marketing management is more concerned with customer relationships based on delivering quality, service and value.
In today’s competitive world, market-oriented thinking is a necessity. In the current global marketing environment, there is an abundance of goods for which customers are not many in number. These global gluts in several products, at least, have made it a trying job for the marketing management.
While a few companies all over the world, today, are trying to expand the size of the market, quite a good number of companies are competing to enlarge their share of the existing market. “As a result, there are winners and losers. The losers are those who bring nothing special to the market. The winners are those who carefully analyze needs, identify opportunities and create value, laden offers for target customer groups that competitors can’t match”. (P. Kolter)
Definitions of Marketing – Marketing Definitions by Eminent Authors: W. Stanton, Cundiff and Still, Harry L. Hansen, Philip Kotler and a Few Others
“Marketing – which is frequently referred to as ‘distribution by businessmen’ – includes all the steps or activities necessary to plate tangible goods in the consumers’ hands, excluding only such activities as involve a significant change in the form of the goods. In other words, it does not include those activities of manufacture and agriculture which result in the tangible goods themselves” (Marketing Principles and Methods by Phillips and Duncan).
“……….. A philosophy of business which states that the customers’ want-satisfaction is the economic and social qualification for a firm’s existence” (Fundamentals of Marketing by W. Stanton).
“Marketing is the business process by which products are matched with the markets and through which transfers of ownership are effected” (Cundiff and Still).
“……….. A customer-oriented philosophy or business which focuses all corporate resources on the profitable production of customer satisfaction” (Eugene Kelley and Edward Kane).
“Marketing involves the design of the products acceptable to the, consumers and the conduct of those activities which facilitate the transfer of ownership between sellers and buyers” (Harry L. Hansen).
“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products of value with others” (P. Kotler).
“Marketing is the art of creating and satisfying customers at a profit”.
“Marketing is getting the right goods and services to the right people at the right places at the right time at the right price with the right communications and promotion” (P. Kotler).
“Marketing is the process by which an organization relates creatively, productively and profitably to the market place” (P. Kotler).
Production-oriented approach of the definition of marketing has now been replaced by consumer- oriented approach. It is not simply a physical process but it represents a philosophy of business.
Two things are significant in marketing – (1) The matching of an article of trade with markets i.e., customer needs, wants and desires; (2) The transfer of ownership and possession at every stage in the flow of goods from the primary producer to the ultimate customer.
Thus, the functions like product development, packaging, standardization, grading, marketing research, advertising, personal selling, public relations etc., all have a bearing on the present and potential demands of the product and services and are covered by the broad term “marketing”.
In short, marketing is a process or a system of business designed to plan, price, promote and distribute want-satisfying products and services to the present and potential customers i.e., industrial users or ultimate consumers.
Definitions of Marketing
In the most simple and not technical language marketing may be defined as a business function entrusted with the creation and satisfaction of customer to achieve the aims of business itself. According to Philip Kotler, “marketing is a human activity directing at satisfying needs and wants through exchange process.”
Business Aims at Profit:
1. To realize profit, a sale has to be made.
2. To make the sale, a customer has to be created.
3. To retain the customer, he has to be satisfied.
4. To satisfy the customer, his needs have to be met.
5. To meet his needs, the product should conform to the requirements of the customer.
The analysis exactly fits in to Drucker’s comment on the purpose of the business, i.e. to create a customer. This idea may be stretched a little further to structure the term marketing as one that is directly concerned with demand: its recognition, anticipation, creation, stimulation and finally satisfaction.
Thus marketing is, therefore, eyes and ears of the business. It is responsible for keeping the business in close contact with its environment and informed of events that can influence its operations. Because of changing emphasis it is no easy task to define the term marketing. However, it may be defined “as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”.
It is concerned with identifying consumer ‘needs’ and determining ways in which the organization is able to meet those needs in a profitable manner. In general, marketing activities are all those associated with identifying the particular wants and needs of a target market of customers, and then going about satisfying those customers better than the competitors? This involves doing market research on customers, analyzing their needs, and then making strategic decisions about product design, pricing, promotion and distribution.
Definitions of Marketing – According to Professor R.S. Dauar, Cundiff and Still, Kitler and Peter Drucker
According to the American Marketing Association – “Marketing Management” is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and service to create exchanges that satisfy individual and organisational objectives.
According to Professor R.S. Dauar – “Marketing Management is the process of ascertaining consumer needs, converting them into products or services and then moving the products or services to the final consumer or user to satisfy such needs and wants to specific customer segment or segment with emphasis and profitability ensuring the optimum use of the services available to the organisation”.
According to Cundiff and Still – “Marketing management as a branch of broad area of management, marketing management is concerned with direction of purposeful activities towards the attainment of marketing goals.”
There are three kinds of goals:
(i) Satisfaction of customer’s needs,
(ii) Increase in sales volume and
(iii) Increase in organisational profits. All these three goals are interrelated.
Thus, Marketing Management is a functional area of business management which has to deal with the consumers’ needs and wants in the first place, followed by promotion and pricing to create specific demand for the goods or services or idea in question, and then flow of goods or services or ideas to the customer and finally information from the customers about expected satisfaction.
Marketing is the process of planning and executing the conception, pricing promotion, and distribution of ideas, goods, and services to create exchange that satisfy individuals and organizational goals. It is about identifying and meeting human and social needs. The shortest definition of marketing is “meeting needs profitably”.
Marketing is a societal process by which individuals and group obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
The American Marketing Association defines marketing as “an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders”.
According to Kilter, “Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior value”.
According to Peter Drucker, “Exchange, a key concept in marketing is the process of obtaining a desired product from someone by offering something in return. When an agreement is reached in an exchange a transaction takes place”.
The key conditions for an exchange potential to exist are:
i. There must be at least two parties.
ii. Each party must have something of value for the other party.
iii. Each party must be capable of communication and delivery.
iv. They should be free to accept or reject the offer.
v. Each party should believe that it is appropriate to deal with the other party.
Definitions of Marketing – Most Important Definitions by Authors and Institutions
Marketing can be defined as a set of process that Companies use to create value, communicate value, distribute value to customers for a price in order to make a profit, keeping social and environmental concerns in mind.
There are many ways to define marketing. The better definitions focus on customer satisfaction, market orientation & Value addition.
“The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return”. – (Kotler and Armstrong)
“Human activities directed at satisfying needs and wants though exchange process” – (Kotler)
Regis McKenna’s bold statement exemplifies the school of thought that everything you do – not just your products, pricing, promotion, and distribution, but even your billing, how you answer the phone, your speed of handling problems -it all affects how your customer perceives your company, so everything is marketing.
“Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.” – (Peter Drucker)
The term ‘Marketing’ is not just limited only to needs, sale and purchase of goods and services. It involves entire process of satisfying the needs of consumers. It starts with the needs and wants of the consumers, and it continues till the wants are satisfied.
Marketing is therefore, the sum of all the activities and procedures including creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Some main definitions of marketing are given as under:
Cundiff and Still, define the term ‘Marketing’ as “Marketing is the business process by which products are matched with the market and through which the transfers of ownership are affected.”
William J. Stanton, states that “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want-satisfying products and services to the present and potential customers.”
Prof. Malcolm McNair, opines “Marketing is the creation and delivery of standard of living to the society.”
According to the latest definition given by American Marketing Association, “Marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders.”
Definitions of Marketing – By Various Authors: Gary Armstrong Wheately, Theodore Levitt, Harry L. Hansen, Mark Burgess, and Few Others
Since marketing is a very wide term, different experts have defined marketing from different viewpoints. One can get a complete picture of marketing only by understanding several such definitions.
The following are the few definitions of marketing:
“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”. -Philip Kotler and Gary Armstrong
“Marketing is finding out what people need, helping to develop need satisfiers, informing and persuading, moving properly priced products and services to consumers and keeping consumers satisfied”. – Fox and Wheately
“Marketing is a business process by which products are matched with market and through which transfers of ownership are effected”. – Cundiff and Still
“Marketing is getting and keeping the customer”. – Theodore Levitt
“Marketing is a process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then, in turn expanding the demand”. – Harry L. Hansen
“Marketing includes all those activities having to do with effecting changes in ownership and possessions of goods and services. It is that part of economics which deals with the creation of time, place and possession utilities and that phase of business activity through which human wants are satisfied by the exchange of goods and services for some valuable considerations”. – American Marketing Association (Committee on Definitions)
“Marketing is the process by which a firm profitably translates customer needs into revenue”. – Mark Burgess
“Marketing is products that don’t come back and consumers that do”. – Steve Dawson
“Marketing is branding, naming, pricing, and the bridge between paid and earned media. It is NOT sales”. – Gini Dietrich
“Marketing is the process of exposing target customers to a product through appropriate tactics and channels, gauging their reaction and feedback, and ultimately facilitating their path to purchase”. – Dr. Augustine Fou
“Marketing is a way to connect what products and services you have to offer with customers who want and need such products and services. It is multi-faceted, starting with researching your target market and how best to deliver the message to coming up with a plan to execute your promotion via various marketing media. The goal is to develop a strategy to create, price and distribute your products and services for an exchange that will satisfy both your and your customers’ objectives. It is an ever evolving process-always evaluating that/ your message still meets the needs and wants of your market”. — Trish Green
“Marketing is discovering what the prospect wants and demands and delivering it more efficiently and effectively than the competition”. – Paul Kulavis
“Marketing is a total system of business activities designed to plan, price, promote & distribute want satisfying products to target markets in order to achieve organizational objectives.” — William Stanton.
“Marketing is a human activity directed at satisfying needs and wants through exchange / process.” – Philip Kotler.
Definitions of Marketing – Top 13 Definitions by Experts and Institutions
Since marketing is a very wide term, different experts have defined marketing from different viewpoints. One can get a complete picture of marketing only by understanding several such definitions.
The following are the few definitions of marketing:
“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”. -Philip Kotler and Gary Armstrong
“Marketing is finding out what people need, helping to develop need satisfiers, informing and persuading, moving properly priced products and services to consumers and keeping consumers satisfied”. – Fox and Wheately
“Marketing is a business process by which products are matched with market and through which transfers of ownership are effected”. – Cundiff and Still
“Marketing is getting and keeping the customer”. – Theodore Levitt
“Marketing is a process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products and services and then, in turn expanding the demand”. – Harry L. Hansen
“Marketing includes all those activities having to do with effecting changes in ownership and possessions of goods and services. It is that part of economics which deals with the creation of time, place and possession utilities and that phase of business activity through which human wants are satisfied by the exchange of goods and services for some valuable considerations”. – American Marketing Association (Committee on Definitions)
“Marketing is the process by which a firm profitably translates customer needs into revenue”. – Mark Burgess
“Marketing is products that don’t come back and consumers that do”. – Steve Dawson
“Marketing is branding, naming, pricing, and the bridge between paid and earned media. It is NOT sales”. – Gini Dietrich
“Marketing is the process of exposing target customers to a product through appropriate tactics and channels, gauging their reaction and feedback, and ultimately facilitating their path to purchase”. – Dr. Augustine Fou
“Marketing is a way to connect what products and services you have to offer with customers who want and need such products and services. It is multi-faceted, starting with researching your target market and how best to deliver the message to coming up with a plan to execute your promotion via various marketing media. The goal is to develop a strategy to create, price and distribute your products and services for an exchange that will satisfy both your and your customers’ objectives. It is an ever evolving process-always evaluating that/ your message still meets the needs and wants of your market”. — Trish Green
“Marketing is discovering what the prospect wants and demands and delivering it more efficiently and effectively than the competition”. – Paul Kulavis
“Marketing is a total system of business activities designed to plan, price, promote & distribute want satisfying products to target markets in order to achieve organizational objectives.” — William Stanton.
“Marketing is a human activity directed at satisfying needs and wants through exchange / process.” – Philip Kotler.
Definitions of Marketing – By R.S. Davar, William Stanton, Philip Kotler, American Marketing Association (With Key Elements)
Marketing management is ‘art and science of choosing target markets and getting and keeping and growing customers through creating delivering and communicating superior customer value.’ As such, marketing management performs various managerial functions in the area of marketing viz., Product Planning and Development, Advertising, Pricing Distribution and Market Research, with a view to satisfy consumer needs.
Marketing has been defined in various ways as under:
‘Human activity directed at satisfying needs and wants though exchange process.’ – (Kotler)
‘Process of ascertaining consumer needs – Converting them into products or services and Moving the product/services to final consumer of user………’ – (R.S. Davar)
‘Performance of business activities that direct flow of goods and services from producers or suppliers to consumers or end-users.’- (American Marketing Association).
“A total system of interacting business activities designed to plan, price, promote and distribute want satisfying products and services to present and potential customers.” – (William Stanton)
‘Meeting Needs Profitably’-shortest definition – (Kotler)
The key elements of marketing are:
1. Needs and wants
2. Products/services
3. Exchange process
4. Customer satisfaction.
Thus, first needs and wants are identified, then products/services are produced, next they are exchanged to provide customer satisfaction.
Definitions of Marketing – Top 8 Definitions: By Clark, Pyle, Mitchell, E.F.L Brech and the Chartered Institute of Marketing
In the most simple and non-technical language, marketing may be explained as a business function entrusted with the creation and satisfaction of customers to achieve the aims of business itself.
Thus, the term may be logically broken down as follows:
i. Business aims at profit.
ii. To realize profit, a sale has to be made.
iii. To make the sale, a customer has to be identified.
iv. To retain the customer, he has to be satisfied.
v. To satisfy the customer, his needs have to be met.
vi. To meet his needs, the product should conform to his requirements.
This leads us to the conclusion that the process of marketing begins with the conceiving of a business idea itself or sometimes even earlier than that.
Following are some of the definitions given by different authors:
According to Clark and Clark, market is, “an area in which the forces leading to exchange of title to a particular product operate, and towards which and from which the actual goods tend or travel”.
In the words of Pyle, “Market includes both place and region in which buyers and sellers are in free competition with one another”.
According to Mitchell, “Market, for most commodities, may be thought of not as a geographical meeting place but as getting together of buyers and sellers in person, by mail, telephone, telegraph or any other means of communication.”
More definitions have emerged for the term marketing.
Few of the best and important definitions have been listed below:
The official definition for the term marketing by the American Marketing Association (AMA) is as follows – “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.”
According to E.F.L. Brech, “Marketing is the process of determining consumer demand for a product or service, motivating its sales, and distributing it to the ultimate consumer at a profit.”
A more precise statement is the one given by Philip Kotler—”Marketing is specifically concerned with how transactions are created, stimulated, facilitated and valued.”
The Chartered Institute of Marketing defines marketing – “Marketing is the management process for identifying, anticipating and satisfying customer requirements profitably.”
In Peter Drucker’s (1973) words, “Marketing is so basic that it cannot be considered as a separate function on par with others such as manufacturing and personnel. It is first a central dimension of the entire business. It is the whole business seen from the point of view of its final results, that is, from the customers’ point of view.”
One can assume that there will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim is to know and understand the customers well so 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 then is to make the product or service available.
Definitions of Marketing – 7 Simple Definitions by Eminent Authors and Institutions
Marketing is admittedly an elusive, all-embracing, and often confusing term. It has been described variously as a group of business activities, a trade phenomenon, a structure of institutions, and a frame of mind.
Marketing has been defined by the Committee on Definitions of the American Marketing Association as “the performance of business activities that direct the flow of goods and services from producer to consumer.” This definition has been improved by McCarthy- “Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user in order to best satisfy customers and accomplish the firm’s objectives.”
In a market there are two participants, namely supplier/marketer and buyer/consumer. Companies such as P&G and Dabur play the role of marketers and supply their various products such as Tide detergent or Dabur Vatika hair oil to their customers. Therefore, marketing is a process that links a supplier of products and services with customers who want and need them.
Marketing requires analysis, planning, and control of a variety of activities that include researching market needs, planning and developing products, and monitoring and controlling efforts.
American Marketing Association (AMA) 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”. American Marketing Association, defines marketing as “the performance of business activities that directs the flow of goods and services from producer to consumer or user”.
Chartered Institute of Marketing (CIM) defines marketing as ‘the management process of anticipating, identifying, and satisfying customer requirements profitably’.
Kotler et al. defined marketing as ‘a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with each other’.
Marketing, more than any other business function, deals with customers. Creating customer value and satisfaction are the heart of modern marketing thinking and practice. Marketing is the delivery of customer satisfaction at a profit. The two fold goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction.
Marketing has been defined by the American Marketing Association as – “Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user”.
In the words of Cundiff and Still – “Marketing is the term used to describe collectively those business functions most directly concerned with the demand stimulating and demand-fulfilling activities of the business enterprise”
Philip Kotler’s definition of Marketing is – “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with other”. Kotler defines it as “a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”
Marketing is the process of finding the needs of the customers and then to prepare the particular product or service, which can fulfill the customer’s satisfaction while keeping in consideration the benefits of the organization also, i.e., satisfaction to the customer and profit to the organization.
Definitions of Marketing – Definitions by Peter Drucker, Ray Corey, Sam Watton and the Charted Institute of Marketing
Marketing is now defined in terms of satisfying the needs of customers, whereas at one time there was more of a concentration on technical excellence, costs and prices. This was a product orientated view of marketing in which companies thought that if they produced in excellent product at an affordable prices, it would sell.
This worked well when competition was limited, when the product was well known to customers and they wanted it. At that time, marketing was hardly recognized as a separate function to production in these circumstances, because the focus was on producing a commodity for which there was an obvious demand.
As the range of manufactured products increased and competition both for a share of people’s expenditure and between similar products became an important feature of the economy, a sales-orientation became more important. This was based on the need to interest potential customers in existing products and in particular examples of these products.
Today, although quality and sales play an important part in the process, a customer-orientation has taken over in terms of marketing based on determining the needs of customers and satisfying them.
Marketing is the whole business seen from the point of view of its final results, that is from the customer point of view – Peter Ducker
Marketing consists of all activities by which a company adopts itself to its environment – creativity and profitability – Ray Corey
Marketing’s job is to convert societal needs into profitable opportunities – Anonymous
This shift of orientation has been combined with the much greater importance marketing has assumed in companies, from a situation where it was barely recognized as a separate activity, to becoming a second- tier activity below finance and production, to being the integrating force represented at the top of organizational structures.
Some organizations are very market-oriented with the market function at the centre of their structures integrating the work of all the other functions. Other organization treats marketing as a less important function. Perhaps as a part of the sales department. This partly related to the industry that the organization is in, its position is this industry and to its leadership and management style.
An innovative company with a product that ‘sells itself’ will have little need of marketing, while a company in a highly competitive situation will tend to place marketing at the centre of its structure if it is to survive. Companies may move from a situation where marketing is not very important when they are new and innovative to a situation where marketing becomes essential because of the growth of competition.
Marketing is the management process responsible for identifying, anticipating and satisfying customer’s requirements profitability – The Charted Institute of Marketing.
Our goal as a company (wal-mart) is to have customer services that is not just best, but legendary -Sam Watton
The importance of the customer is emphasized is this definition and it amplifies. Ducker’s definition in recognizing the customer wants are not only identified in marketing but also anticipated and satisfied. In fact there are few organizations that are able to ignore the needs of their ‘customer’. Even in the public section and the non-profit sector, particularly in recent years, many organizations have developed a marketing function in order to improve their effectiveness.
Marketing is far more than just selling, although higher sales are obviously the ultimate aim. Rather, marketing is a whole collection of activities including advertising, selling and sales promotion, distribution and after sales service.
One approach to marketing is to regard it as the process of finding customers for goods which the firm has already decided to supply. In this case there is much emphasis on face-to-face customer contact, price cutting, heavy advertising and sales promotions.
It might be assumed the customers will always want to purchase well-constructed items that are made available to them at low cost that all a firm needs to do is offer for sales high quality, sound-value products with many attractive features, provide effective after-sales service, and their the goods will ‘sell themselves’.