What is Marketing? From Definition and Philosophy to Action

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Barbara Mettle-Olympio

October 31, 2024

Marketing is often misunderstood and undervalued, even by those who acknowledge its importance. It’s frequently reduced to a "cost centre" or narrowly perceived as a function limited to advertising and promotions, disconnected from key business areas such as finance or strategy. This limited view undermines marketing’s true potential and its role in driving organisational success.

This article examines the essence of marketing, from its definition to foundational principles, and how its integration across an organisation can deliver competitive advantage, mitigate risks, and foster sustainable growth.

Defining Marketing

Marketing is essentially creating and delivering value. The American Marketing Association (AMA) defines it as "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 Chartered Institute of Marketing (CIM) frames it as "the management process responsible for identifying, anticipating, and satisfying customer requirements profitably." Similarly, the French Marketing Association (AFM) highlights marketing as a methodical and customer-focused practice that blends science and art to meet organisational and consumer needs.

These definitions underscore marketing's central role in aligning customer needs with organisational goals. Far beyond just selling products or services, marketing acts as a bridge between an organisation and its customers, fostering collaboration across all departments. By integrating insights, strategies, and operations, effective marketing delivers enduring value to both customers and the organisation.

In this context, the term "customer(s)" encompasses the various stakeholders essential to an organisation's success. Marketing involves communicating and delivering the value an organisation offers—not only to customers but also to employees, prospective employees, potential customers, investors, shareholders, suppliers, trade associations, and others. These customers collectively contribute to the organisation’s growth, reputation, and long-term value. By adopting this broader perspective on customers, we acknowledge the interconnected relationships that drive organisational performance and resilience.

The Marketing Concept

From these definitions comes the marketing concept—a strategic philosophy that positions marketing as a guiding principle for the entire organisation. The marketing concept emphasises understanding and fulfilling customer needs, echoing Adam Smith’s timeless insight that "consumption is the sole end and purpose of all production”, which essentially states that a business has little reason to exist without customers.

The marketing concept ensures that all aspects of the organisation including product, strategy, operations, and people—are aligned to deliver genuine value to customers. This contrasts with earlier philosophies like the production concept, which prioritises affordability and availability, and the sales concept, which relies on aggressive sales and promotional tactics. Adopting the marketing concept, however, requires more than a strategic shift; it demands a cultural transformation. Every person in every department within the organisation must embrace a customer-first mindset to ensure that all decisions and touchpoints contribute to value creation, focusing on long-term relationships rather than short-term gains.

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The Marketing Function: From Definition and Philosophy to Action

For the marketing concept to deliver real results, it has to be executed through the marketing function—a structured set of activities and processes designed to align the organisation with customer needs. Key steps in this process include:

Defining markets

Defining markets requires a comprehensive understanding of the broader market landscape through robust market research. This includes conducting SWOT and PESTLE analyses to assess internal and external factors influencing the market. Additionally, it involves identifying specific customer segments and gaining detailed insights into their needs, preferences, behaviours, and purchasing patterns. These insights enable organisations to target their efforts with precision, ensuring relevance, optimised resource allocation, and a strategic advantage in meeting market demands.

Quantifying the needs of customer groups

Quantifying the needs of customer groups involves analysing and measuring the specific requirements of identified segments through comprehensive data collection. This includes understanding customer preferences, demand patterns, purchasing behaviours, and pain points, as well as evaluating factors such as price sensitivity, decision-making processes, and brand perceptions. These insights enable the organisation to develop tailored products or services that align with customer expectations and optimise offerings to maximise value and competitiveness.

Determining value propositions to meet these needs

This step involves identifying the unique benefits or solutions that set an organisation’s products or services apart from competitors. This requires a deep understanding of the target segments, including their specific needs, aspirations, and challenges. The value propositions must be crafted to address these demands and be delivered consistently, ensuring the organisation fulfils its promises. By aligning offerings with customer expectations and reliably delivering on commitments, the organisation can build trust, foster loyalty, and establish a compelling reason for customers to choose its brand.

Communicating and delivering value propositions

Communicating and delivering value propositions effectively means crafting clear, compelling narratives that highlight the unique benefits of the organisation’s offerings, delivered through targeted and relevant channels to reach customers. Externally, messages must be consistent, engaging, and trustworthy to build loyalty, while internally, it is vital to ensure employees are aligned with the organisation's objectives and fully understand the value they contribute. While this often includes oversight of promotional activities, it may also extend to supporting product delivery, quality assurance, or customer service initiatives. Marketing acts as a facilitator, ensuring that every aspect of the customer experience aligns with the promises made, fostering trust and reinforcing the organisation’s value proposition.

So What is Marketing?

In summary, marketing is the process of creating and delivering value. However, truly understanding and adopting marketing within a business requires a holistic, organisation-wide commitment to aligning all operations with the needs and expectations of customers.

By embracing marketing as a central belief, businesses move beyond short-term gains and focus on creating meaningful, long-term relationships with their customers. This shift transforms marketing from a perceived cost centre into a powerful value driver, ensuring every interaction, product, and service reinforces the organisation’s commitment to excellence. Ultimately, adopting this approach equips businesses to remain competitive, adapt to evolving markets, and secure a foundation for enduring success.

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