Download Marketing - WordPress.com

What is Marketing? Marketing definitions.
Marketing definitions
There are many marketing definitions. The better definitions are focused upon market orientation and
the satisfaction of customer needs.
Marketing is the social process by which individuals and
organizations obtain what they need and want through creating and
exchanging value with others.
Kotler and Armstrong (2010).
The definiton is based upon an a basic marketing exchange process, and recognises the importance
of value to the customer.
The process by which companies create value for customers and build
strong customer relationships in order to capture value from
customers in return.
Kotler and Armstrong (2010).
Kotler and Armstrong develop their orginal definition to recognise the importance of the longer-term
relationship with the customer. This is achieved by relationship marketing and Customer
Relationship Management (CRM).
Marketing is the management process for identifying, anticipating and
satisfying customer requirements profitably.
The Chartered Institute of Marketing (CIM). Accessed 2012.
The CIM definition looks not only at identifying customer needs, but also satisfying them (shortterm) and anticipating them in the future (long-term retention). The definition also states the
importance of a process of marketing, with marketing objectives and outcomes. CIM is recognised as
being one of the most influential marketing
bodies in the world. It is the professional body for marketing in the United Kingdom.
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.
(Approved October 2007)
American Marketing Association Board of Directors. Accessed 2012.
Again, in common with Kotler and Armstrong above, the AMA focuses its definition on value
creation and delivery, and the longer-term retained customer.
The enigma of marketing is that it is one of man’s oldest activities and
yet it is regarded as the most recent of business disciplines.
Baker (1976).
Baker introduces the elephant in the room. Marketing has always been part of business, and it is a
myth that it is purely a contemporary idea.
Philosophy and Theory of Marketing
Marketing has many definitions, too many to considered here. Gibson et al (1993) found over 100
definitions and argued that no single definition of marketing should be aimed for since it might limit
the future development of marketing as an academic discipline.
What matters is the state of mind of the producer/seller – their
philosophy of business. If this philosophy includes a concern
for customers’ needs and wants, an appreciation of the benefits and
satisfactions which are looked for, a genuine effort to establish
dialogue and build a long term relationship then this is a marketing
philosophy irrespective of whether or not the organisation possesses
any personnel or function designated as ‘marketing.’
Baker (2000 p19)
The nature of marketing theory, or whether marketing theory is actually possible, has been the topic
of debate for more than 40 years (Saren 2000 ). Initially a scientific approach, along the lines of the
social sciences underpinned the aforementioned debate (Bartels 1951, Alderson and Cox 1948). This
was based largely on empiricism, and tended to ignore the human nature of marketing as marketing
managers crafted it. So conversely, the marketing management school viewed marketing from a
manager’s perspective and took an opposing view that rejected the positivist notion and its empirical
roots. Ramond (1962) contrasted the wisdom of the manager with scientific knowledge, since
business acumen recognizes the low probability that given combinations of phenomena can or will be
repeated. In other words, a scientific approach to marketing sought a generic structure, which it is
argued is not possible since no two situations are ever the same. Any test of theory would not see a
simple unambiguous question posed, with findings that are replicable since by their very nature
markets are diverse and not all competitors have access to the same information, and even if they did
managers are unlikely to create identical marketing plans. The scientific school cannot verify a
generic approach to marketing.
A relativist approach that saw no agreement or common ground between the opposing views was put
forward by Anderson (1983). The relativist approach saw no meeting of the mind between scientists
with different worldviews and persuasions (Kuhn 1962). According to Saren (2000), eventually Hunt
moved to a realist position, that saw pure empiricism counterbalanced by an acceptance that
perceptions may be illusions, and that some perceptions were more accurate than others. Hunt (1971)
concluded that no single philosophy dominates marketing
The academic discipline of marketing has core schools of thought, where marketing is seen as either
a philosophy or as a function. Where marketing is considered a philosophy, the marketing concept is
embedded in management thought. With the alternative view, where marketing is a function within a
business, marketing is seen as a department, in the same way as accounting or personnel.
The History of Marketing
The history of marketing can be divided into three stages when considering the development of the
marketing concept namely the emergence of the mass market ca 1850, the articulation of the modern
marketing concept ca 1960, and the transition from the emphasis upon the transaction to the
relationship ca 1990 (Baker 2000 p10-11).
Marketing planning has its roots in the marketing management school of the 1950’s. Here, marketing
managers followed a largely structured, formalised, positivist approach to marketing planning.
However in summary the marketing management school was developed largely by American
academics, and was based upon an analytical approach that tended to include analysis, objectives,
strategies and control. It has no single dominating visionary, but is based upon contributions from
Kotler (1967), McCarthy (1960), Borden (1964), and others. Marion (1993) is critical of the
marketing management school and argues that there has been nothing new since the 1960’s or even
well before. Other opinion leaders, considering marketing from a European perspective, echo his
view. Gummesson (1993) strongly opposed the American perspective and reasoned that textbooks
are based upon limited real world data and are prescribed approaches for consumer goods businesses.
Most companies do not market consumer goods. Gronroos (1994) was critical of the view presented
by largely American textbooks that marketing was founded in the 1960’s and was based largely upon
the 4P’s/marketing mix. Kent (1986) regarded process considerations more important than the
structure offered by the marketing management school. The usefulness of the 4P’s/marketing mix
was criticised by some European academics (Gronroos 1989,1990,1994, and Dixon and Blois 1983).
Physical Evidence – Marketing Mix
Are you looking for physical marketing?
Physical evidence as part of the marketing mix
Services as we know are largely intangible when marketing. However customers tend to rely on
physical cues to help them evaluate the productbefore they buy it. Therefore marketers develop what
we call physical evidence to replace these physical cues in a service. The role of the marketer is to
design and implement such tangible evidence. Physical evidence is the material part of a service.
Physical Environment
The physical environment is the space by which you are surrounded when you consume the service.
So for a meal this is the restaurant and for a journey it is the aircraft that you travel inside. The
physical environment is made up from its ambient conditions; spatial layout and functionality; and
signs, symbols, and artefacts (Zeithaml 2000).
Ambience
The ambient conditions include temperature, colour, smell and sound, music and noise. The
ambience is a package of these elements which consciously or subconsciously help you to experience
the service. Ambience can be diverse. The ambience of a health spa is relaxing and calm, and the
music and smells underpin this experience. The ambience of a nightclub will be loud noise and bright
lights which enhance this customer experience, obviously in a different way. The marketer needs to
match the ambience to the service that is being delivered.
Spatial Layout
The spatial layout and functionality are the way in which furniture is set up or machinery spaced out.
Think about the spatial layout of your local cinema, or a church or temple that you have visited and
how this affects your experience of the service. Functionality is more about how well suited the
environment is to actually accomplish your needs. For example is the seat in the cinema comfortable,
or can you reach your life jacket when on an aircraft?
Corporate branding (signs, symbols and artefacts)
Finally corporate image and identity are supported by signs, symbols and artefacts of the business
itself. Examples of this would be the signage in Starbucks which reassures the consumer through
branding. When you visit an airport there are signs which guide you around the facility smoothly, as
well as statues and logos displayed throughout the complex. This is all important to the physical
evidence as a fundamental element of the services marketing mix.
There are many examples of physical evidence, including some of the following:







The building itself (such as prestigious offices or scenic headquarters). This includes the design of
the building itself, signage around the building, and parking at the building, how the building is
landscaped and the environment that surrounds the building. This is part of what is known as the
servicescape.
The interior of any service environment is important. This includes the interior design of the facility,
how well it is equipped, internal signage, how well the internal environment is laid out, and aspects
such as temperature and air conditioning. This is also part of the servicescape.
Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets and dispatch notes).
Brochures.
Furnishings.





Signage (such as those on aircraft and vehicles).
Uniforms and employee dress.
Business cards.
Mailboxes.
Many others . . .
A sporting event is packed full of physical evidence. Your tickets have your team’s logos printed on
them, and players are wearing uniforms (i.e. the team colors/colours and clothing). The stadium itself
could be impressive and have an electrifying atmosphere. You travelled there and parked quickly
nearby, and your seats are comfortable and close to restrooms and store. All you need now is for your
team to win!
Some organizations depend heavily upon physical evidence as a means of marketing
communications, for example tourism attractions and resorts (e.g. Disney World), parcel and mail
services (e.g. UPS Courier Services), and large banks and insurance companies (e.g. Lloyds of
London). This is important to their corporate image. Of course there are other examples with a
slightly more tangible offering such as Rolls-Royce motor cars and P&O cruises.