Definitions of marketing
Since marketing is always evolving, its definition changes from time to time. My definition of marketing is that it is the process by which goods and services are advertised to the customers through various ways including the media and by word of mouth. This is done with the aim of creating awareness for the products or services of a company to the current and potential customers. Through marketing, consumers of certain goods and services can choose from a variety of producers and select the most suitable.
The American Marketing Association (AMA) provided a definition of the term marketing. The American Marketing Association [APA] (2012) defined it as “the activity, set of instructions, and processes required for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large” (p. 3). It is a process by which organizations provide value for the consumers of their products.
AMA’s previous definition of the same term was that it is “an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relations in ways that benefit the organization and its stakeholders” (American Marketing Association [APA], 2012, p. 7). It is through this process that strategies involving sales techniques, business development and business communication are generated.
Another definition of the term marketing was provided by Kotler. Kotler (1991) defined it as “the management process responsible for identifying, anticipating and satisfying customer requirements profitability” (p. 91).
Importance of marketing in organizational success
Any organization seeking to become successful must incorporate the concept of marketing in its businesses. This is because most aspects of its businesses would be dependent on the success of marketing. This would involve the incorporation of advertisement, public relations, conducting promotions and sales.
Before products and services can be sold successfully to the consumers, they must first be introduced and promoted to them. An organization may offer the best goods and services as compared to other similar organizations but without marketing, none of the potential customers would be aware of the goods and products. This is where marketing plays a big role since without it, sales may crash and lead to the closure of the business.
Marketing is a form of communication utilized by organizations to create service and product awareness. When awareness has been made to the potential customers, it increases the chances for the goods and services of that company being bought. Another indirect effect of marketing that is important for the organization is the fact that the new prospects will help ‘spread the gospel’. In the event that the goods and services offered are satisfactory, the customers will inform their friends and family members about the new products.
As this word spreads, the sales of that company will increase steadily. Marketing is also important in creating brand awareness. The success of an organization also depends on its reputation. It must build a solid reputation in order to maintain its customer base. With a great reputation, a company expands and its sales increase. A company can build its reputation through different ways.
One way is through actively participating in community programs. A company must also be involved in effective communication, both externally and internally. This is also ensured through the production of quality products and services. They are created and supported by marketing efforts.
Another importance of marketing is the fostering of an environment that ensures healthy competition. Since marketing passes information to the external environment, a lot of information including information on prices of the commodities is passed. However, this information does not reach only the customers but also the other companies. This makes the other companies aware of the organizations business activities.
Companies having monopoly on certain goods or services tend to sell their commodities expensively. However, marketing aids in keeping the prices at competitive levels in order for the company win over consumers. If a company does not work on winning the customers, other companies will and this would be detrimental to the other company.
Examples from the business world
An example of company that has successfully employed marketing in its businesses is the McDonald’s Company. It has successfully marketed its products and services and has become one of the most successful companies in the world. The company also conducts market research in order to know what the customers want. Another company that has successfully used marketing is Apple Inc. It has also used marketing to maintain a good reputation and maintain its customer base.
However, marketing may be detrimental if not carefully planned. An example of company that made one of the greatest marketing mistakes was the Coca-Cola Company. This is when it changed its formula in 1985. It turned out to be a disaster when its sales became very low.
The company received many letters and phone calls from customers as they expressed their anger towards the new changes. They all demanded for the old formula to be restored. Two months later, the company was forced to bring back the old formula. It was dubbed ‘Coca-Cola Classic’ (Majaro, 1993).
References
American Marketing Association [APA]. (2012). AMA definition of Marketing. Web.
Kotler, P. (1991). Marketing management. New Jersey: Prentice Hall.
Majaro, S. (1993). The essence of marketing. New York, NY: Prentice Hall.