What is Marketing?
In the digital world, the word marketing is increasingly being used. We hear terms such as digital marketing, affiliate marketing, influencer marketing and many more. But before looking at the different forms that marketing can take, what is its actual definition?
Marketing Definition
The Chartered Institute of Marketing defines marketing as:
“The management process responsible for identifying, anticipating and satisfying customer requirements profitably.”
In more simple terms, marketing ensures producers of goods and services can interpret consumer desires and match, or exceed them. Through marketing, the value of a product or service is communicated to the right audience, through the right channel and at the right time. Typically, the exchange is presented as a solution to the client or consumer’s problem.
For example, a new energy drink has been made. Marketing can be used to identify who would want this drink (the target market) and communicate the value of this drink to them (provides energy/combats tiredness). To take this a step further, marketing reaches this target market by recognizing which channels of communication they are most receptive to, such as through social media adverts.
Why is Marketing Important?
Without a detailed marketing strategy, even the best products or services will be unsuccessful. Marketing is paramount in bridging together what is being provided with those who will want them. However, the power of marketing goes beyond just sales. Marketing draws heavily upon psychology to build emotional associations with and responses to brands. Such effects are vital, not just for the initial sales process, but more importantly, customer retention.
Two Types of Marketing
Marketing can be broadly separated into two types. The first type of marketing is known as traditional marketing. This is what people most commonly assume marketing to include: TV adverts, billboards, events and so on. Due to its technological limitations, traditional marketing is a lot less targeted, tailored and trackable.
The second type of marketing, and the one that is becoming more ubiquitous in the business world, is modern marketing. By utilising technological advancements, modern marketing targets specific consumer groups who would purchase a product or service. The most common form of modern marketing is digital marketing, which simply uses the technological methods of reaching consumers. Examples include search engine marketing (SEM), social media marketing (SMM) and email marketing. A key strength of modern marketing is its ability to predict trends and measure performance. Data is a marketer’s best friend. Through analysing data, marketers can identify trends, helping predict and direct their marketing efforts. Marketing data can also be used to analyse in great detail how well marketing activity performed. We can now identify almost every stage of the consumer life-cycle, from the initial brand awareness stage to the purchase of a product or service.
So, marketing is the process of promoting and selling a business and its products or services through identifying customer needs, and communicating value to these potential customers to attract and retain them. For a more detailed breakdown of each form of marketing, different marketing strategies and other marketing-related information, more articles will be published soon.
