Definitions and purpose of Marketing

Consider youself to be a founder of an Energy Drink Company. You have put in a lot of Research and Development into the product and now wants to launch the product into the market. You would do some research about the competitors, target audience, product size, pricing, market and what not before launching the product in the market to increase the chances of success of the product. Whatever actions that you have performed including some more adds to the Marketing of the product. Lets discuss more about what is marketing and the definitions of marketing.

Definitions of Marketing

American Marketing Association(AMA)

The American Marketing Association (AMA), one of the most authoritative bodies in the field of marketing, defines marketing as:

“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.”

The definition emphasizes marketing as a comprehensive process involving multiple stakeholders. It highlights the creation and delivery of value as central components of marketing activities

The Chartered Institute of Marketing(CIM)

The Chartered Institute of Marketing (CIM), a leading professional body for marketers, defines marketing as:

“Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.”

The definition stresses the importance of not only meeting but anticipating customer needs. Secondly, the stress is on the Profitability i.e marketing should contribute towards the financial health of the organization.

Philip Kotler

Philip Kotler, widely regarded as the father of modern marketing, provides a definition that underscores the strategic aspect of marketing. According to Kotler

“Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.”

Kotler’s definition introduces the idea of marketing as both a science and an art, emphasizing the importance of understanding customer needs, creating value, and achieving profitability. His view stresses that marketing is not just about selling products but about creating a value-driven relationship with the target market.

Jerome McCarthy

Jerome McCarthy, known for his development of the 4 Ps of marketing (Product, Price, Place, Promotion), defines marketing as:

“Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers or users”

Purpose of Marketing

The primary purpose of marketing is to generate consumer interest in products or services, create value for both the customer and the company, and build long-term relationships with customers. Effective marketing helps companies:

Identify Customer Needs: Conducting market research to understand consumer behavior and preferences.
Create Value: Developing products or services that meet customer needs and offer superior value.
Communicate Value: Promoting products or services to inform and persuade potential customers.
Deliver Value: Ensuring that products are available to customers at the right place and time.
Exchange Value: Facilitating transactions that provide mutual benefits for both the company and the customer.

Difference between Selling and Marketing

A lot of people confuses selling with marketing and uses interchangeably most often however there is stark difference between selling and marketing. The differences are highlighted below: