Marketing according to American Marketing Association is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stakeholders. Marketing efforts are focused on providing products and services causing satisfaction of customers. Understanding what customers need is the most important task of company managers. Marketing always begins and ends with customer.
Marketing may be defined in several ways, depending on its role in relation to the strategic position on competitive market. Philip Kotler is recognized as the originator of the most recent developments in the field of marketing. He defines marketing as the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services. It is also the means by which an organization communicates to, connects with, and engages with its customers to convey the value of and ultimately sell its products and services.
Major functions of marketing
Marketing is a managerial and social process by which company create, offer and sell products of value for its customers. Basic functions of marketing are:
- exchange functions – all companies are buying and selling to market their merchandise. It includes buying – selecting suppliers, obtaining raw materials to make products and knowing how much merchandise to keep on hand. In addition, selling – it creates possession utility by transferring the title of a product from seller to customer.
- facilitating functions – help the other functions take place. It consists of financing – helps at all stages of marketing. To buy raw materials, manufacturers often receive credit from suppliers or borrow from banks. Retailers provide financing to customers. Standardizing – sets uniform specifications for products or services, grading – it classifies product by size and quality, usually it is connected with sorting process, risk taking, and gathering market information – is needed for making all marketing decisions.
- physical distribution functions – they involve the flow of goods from producers to customers. Transportation and storage provide time and place utility and require very careful management of inventory. It is connected with transporting – involves selecting a mode of transport that provides an acceptable deliver schedule at an acceptable price. What is more, storing goods is often necessary to sell them at the best selling time.
Marketing involves other related activities as well. All mentioned functions are essential if marketing process is to be effective.
Fundamentals of marketing approach to management
- market orientation,
- fulfilling customer expectations and perceptions,
- effective internal organization,
- high competences of personnel.
Examples of Marketing
- Advertising: Advertising is a form of marketing communication used to promote or sell products, services, or brands. It is used to inform consumers about products, services, and brands, and to persuade them to purchase them. Examples of advertising include television commercials, radio commercials, print ads, online ads, and outdoor ads.
- Public Relations: Public relations (PR) is the practice of managing the flow of information between a company and its publics. It involves creating and maintaining relationships with various publics, such as customers, government officials, media outlets, and other stakeholders. Examples of PR include press releases, press conferences, crisis management, and media relations.
- Content Marketing: Content marketing is a form of marketing that focuses on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience, and ultimately to drive profitable customer action. Examples of content marketing include blog posts, podcasts, videos, infographics, eBooks, and webinars.
- Social Media Marketing: Social media marketing is the process of using social media platforms to promote and market a product or service. Examples of social media marketing include creating and managing social media campaigns, posting content on social media accounts, running social media ads, and engaging with followers on social media.
Advantages of Marketing
The advantages of marketing include:
- Increased visibility: Marketing helps a business increase its visibility by increasing its presence in the market. It helps businesses gain recognition in the industry and make their presence known to potential customers.
- Brand recognition: With successful marketing campaigns, businesses can create a brand that stands out from the competition and reinforces their commitment to quality and customer service.
- Increased sales: By targeting the right market and creating the right message, businesses can use marketing to increase their sales. This can be done through advertising, promotions, and other methods.
- Improved customer loyalty: Building relationships with customers through marketing can help businesses to create a loyal customer base that will keep coming back for more.
- Improved customer service: By understanding what customers want and need, businesses can improve their customer service and create a better customer experience. This can lead to higher customer satisfaction and more sales.
Limitations of Marketing
In the field of marketing, there are several limitations that need to be considered when utilizing strategies and tactics. These limitations include:
- Cost constraints: Companies are often limited by the amount of resources available for marketing efforts. This means that marketers must be strategic about how they allocate their budget and focus their efforts on the most effective tactics.
- Time constraints: The speed with which marketing messages are delivered and received by customers is of utmost importance. Marketers must make sure that they are able to quickly adapt to changes in the market and respond to customer needs in a timely manner.
- Accessibility: Depending on the target audience, marketers may face challenges in reaching their customers. For example, certain segments of the population may not have access to certain technologies or channels of communication.
- Competition: Marketers must be aware of the competition in their industry and strive to differentiate their products and services from those of their competitors.
- Legal restrictions: Marketers must be aware of the laws and regulations that govern their industry and make sure to comply with them.
- Ethical considerations: Marketers must be mindful of the ethical implications of their actions, such as the use of deceptive or manipulative tactics.
The following are some of the other approaches related to Marketing:
- Social Media Marketing: Social media marketing involves the use of social media platforms to promote a product or service. This is done by sharing content such as videos, images, and text that is related to the product or service. It also involves engaging with customers and responding to their comments and queries.
- Content Marketing: Content marketing is a strategic approach focused on creating and distributing valuable content to a specific target audience. It is done to build relationships with customers and prospects and to generate leads and sales.
- Brand Management: Brand management is focused on building a strong and recognizable brand. This is done by creating a unique brand identity and developing campaigns to promote the brand and its products or services.
- Influencer Marketing: Influencer marketing is a form of marketing where brands collaborate with influencers to promote their products and services. Influencers are people with a large following on social media and are known for their expertise in certain areas.
- Email Marketing: Email marketing is a form of digital marketing that involves sending promotional emails to customers. This is done to build relationships with customers, generate leads, and increase sales.
In summary, other approaches related to marketing include Social Media Marketing, Content Marketing, Brand Management, Influencer Marketing, and Email Marketing. Each of these approaches has different objectives and strategies, but all focus on promoting a product or service to customers and prospects.
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Author: Maja Pająk