The Scope of Marketing
To prepare to be a marketer, you need to understand what marketing is, how it works, who does it,
and what is marketed.
What Is Marketing?
Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “meeting needs profitably.” When eBay recognized that people were unable to locate some of the items they desired most, it created an online auction clearinghouse. When IKEA noticed that people wanted good furnishings at substantially lower prices, it created knockdown furniture. These two firms demonstrated marketing savvy and turned a private or social need into a profitable business opportunity.
The American Marketing Association offers the following formal definition: 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. 7 Coping with these exchange processes calls for a considerable amount of work and skill.Marketing managementtakes place when at least one party to a potential exchange thinks about the means ofachieving desired responses from other parties. Thus we see marketing management as the art and science of choosing target markets and getting,keeping,and growing customers through creating,delivering,and communicating superior customer value.
We can distinguish between a social and a managerial definition of marketing. A social definition shows the role marketing plays in society; for example,one marketer has said that marketing’ srole is to “deliver a higher standard of living.” Here is a social definition that serves our purpose: Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
Managers sometimes think of marketing as “the art of selling products,” but many people are surprised when they hear that selling is not the most important part of marketing! Selling is only the tip of the marketing iceberg. Peter Drucker, a leading management theorist, puts it this way:
There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the cus-tomer 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 then is to make the product or service available.
When Nintendo designed its Wii game system, when Canon launched its ELPH digital cam-era line, and when Toyota introduced its Prius hybrid automobile, these manufacturerswere swamped with orders because they had designed the right product, based on doing carefulmarketing homework
What Is Marketed?
Marketers market 10 main types of entities: goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. Let’s take a quick look at these categories.
GOODS Physical goods constitute the bulk of most countries’production and marketing efforts. Each year, U.S. companies market billions of fresh, canned, bagged, and frozen food products and millions of cars, refrigerators, televisions, machines, and other mainstays of a modern economy.
SERVICES As economies advance, a growing proportion of their activities focuses on the production of services. The U.S. economy today produces a 70–30 services-to-goods mix. Services include the work of airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, and accountants, bankers, lawyers, engineers, doctors, software programmers, and management consultants. Many market offerings mix goods and services, such as a fast-food meal.
EVENTS Marketers promote time-based events, such as major trade shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics and the World Cup are promoted aggressively to both companies and fans
and what is marketed.
What Is Marketing?
Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “meeting needs profitably.” When eBay recognized that people were unable to locate some of the items they desired most, it created an online auction clearinghouse. When IKEA noticed that people wanted good furnishings at substantially lower prices, it created knockdown furniture. These two firms demonstrated marketing savvy and turned a private or social need into a profitable business opportunity.
The American Marketing Association offers the following formal definition: 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. 7 Coping with these exchange processes calls for a considerable amount of work and skill.Marketing managementtakes place when at least one party to a potential exchange thinks about the means ofachieving desired responses from other parties. Thus we see marketing management as the art and science of choosing target markets and getting,keeping,and growing customers through creating,delivering,and communicating superior customer value.
We can distinguish between a social and a managerial definition of marketing. A social definition shows the role marketing plays in society; for example,one marketer has said that marketing’ srole is to “deliver a higher standard of living.” Here is a social definition that serves our purpose: Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.
Managers sometimes think of marketing as “the art of selling products,” but many people are surprised when they hear that selling is not the most important part of marketing! Selling is only the tip of the marketing iceberg. Peter Drucker, a leading management theorist, puts it this way:
There will always, one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the cus-tomer 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 then is to make the product or service available.
When Nintendo designed its Wii game system, when Canon launched its ELPH digital cam-era line, and when Toyota introduced its Prius hybrid automobile, these manufacturerswere swamped with orders because they had designed the right product, based on doing carefulmarketing homework
What Is Marketed?
Marketers market 10 main types of entities: goods, services, events, experiences, persons, places, properties, organizations, information, and ideas. Let’s take a quick look at these categories.
GOODS Physical goods constitute the bulk of most countries’production and marketing efforts. Each year, U.S. companies market billions of fresh, canned, bagged, and frozen food products and millions of cars, refrigerators, televisions, machines, and other mainstays of a modern economy.
SERVICES As economies advance, a growing proportion of their activities focuses on the production of services. The U.S. economy today produces a 70–30 services-to-goods mix. Services include the work of airlines, hotels, car rental firms, barbers and beauticians, maintenance and repair people, and accountants, bankers, lawyers, engineers, doctors, software programmers, and management consultants. Many market offerings mix goods and services, such as a fast-food meal.
EVENTS Marketers promote time-based events, such as major trade shows, artistic performances, and company anniversaries. Global sporting events such as the Olympics and the World Cup are promoted aggressively to both companies and fans
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