What is Marketing? The Big ‘M’ Explained

Since its beginnings as a discipline in the early twentieth century, marketing has generated widely varying definitions and a large degree of confusion, even among marketing professionals. As businesses and technologies have evolved, so too the role and scope of marketing has shifted. So what does it mean today? And can we simply forget about any marketing that isn’t digital since we’re now in the twenty-first century?

VARIOUS ARTISTS

When I first began my marketing career, it was as a “communications assistant” or a “marketing & communications officer”. Meanwhile, acquaintances working in larger organisations held positions such as content writer, brand ambassador, digital strategist, community engagement coordinator, PR officer, and campaign manager…ad infinitum. It’s no wonder confusion abounds! In fact, as McDonald (2009) points out, the multiplicity of definitions and interpretations of marketing and its role often dictate how it is regarded (or not regarded) within an organisation – and the wider world.

How often have you been interrupted with requests to, “chuck something on Facebook” or “do a poster for such and such”, while Sales Manager Sheila tells you it’s not your job to plan, “just get on with it”? This is the kind of misunderstanding and misinterpretation of marketing that makes us all out to be glorified cutters and stickers.

No doubt there are academics spending many a sleepless night mulling over the perfect definition of marketing. But until then, the best we can do is to familiarise ourselves with the scope of marketing, its positive impact on the organisation as a while, and the kaleidoscope of forms it can take.

More than sales and advertising

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

THE CHARTERED INSTITUTE OF MARKETING (CIM).

For me, the CIM definition highlights three key elements needed for successful marketing:

  1. It should be seen as a process
  2. It requires a keen awareness of costs and returns
  3. It is about delivering value to the customer and the business

Unfortunately, one or more of these elements is usually overlooked at the expense of other areas of the business. In fact, in many organisations, the customer’s needs are overlooked entirely. There are three types of organisation that I frequently encounter: sales-oriented, production/process-oriented, and product-oriented.

Sales-orientated organisations

These organisations are usually led by financial goals, with short-term profits used as a key metric. Marketing’s primary objective is considered as generating sales and arranging advertising as required. It is also very much seen as a cost, and often takes the brunt of any budget cuts. As an agency, we were recently summoned to a meeting with a company’s finance manager to discuss our ongoing digital marketing work. The individual had no idea what we did, didn’t ask, and simply told us that she “had to make cuts somewhere”. This reaction is typical of a sales-oriented company. 

Production-orientated organisations

In these types of company, manufacturing and operations are the key departments. Emphasis is on turning out high volumes of products and services at the least cost to the company, often at the risk of compromising value for customers. Many businesses of this ilk focus on developing products based on what they are good at or enjoy producing, regardless of how it is received by customers.

Product-orientated organisations

Here, the focus is on innovation and design. Organisations with this orientation often create products and then find a market to buy them, rather than developing products to meet customer needs. Having worked in a company with this culture, it was genuinely frustrating to be told that a new product, “would make millions” with no data to back up the claim. There was no desire to make or price products to suit customer needs and marketing’s function was to “educate” customers into making a purchase. 

Now, many companies have no doubt proved successful in spite of these cultures. However, there is an alternative, and this is where true marketing can make a real difference.

Marketing Orientation – the secret ingredient in successful organisations

Marketing orientation is about long-term strategy over short-term, “quick wins”, placing the customer at the heart of the organisation’s culture. It depends upon communication and coordination across departments, with all employees committed to putting the customer first. By doing so, it meets and exceeds customer needs and thereby creates more profit through increased satisfaction and loyalty: a win-win scenario!

Market Orientation is… “a culture which encourages behaviour that creates value for the customer leading to superior performance for the business.”

Narver and Slater, 1990

Adopting a marketing orientation is more than just collecting and collating customer feedback. It depends upon responding to stated and unstated customer needs and improving products and services, even before the customer has realised the need. 

The benefits to the organisation of adopting a marketing orientation include:

  • clear strategic focus and vision
  • more effective coordination of marketing and sales activities
  • more consistent product/service delivery
  • happier and more motivated employees
  • increased overall performance (and bigger profits)

Although the concept is far from new, it still seems foreign to many business leaders. It also depends upon marketers (in whatever form) having a firm grasp on the organisation and the environment in which it operates while encouraging open communication across disciplines. That’s a lot more responsibility than just making a pretty sales brochure.

Digital or traditional Marketing? What’s the difference?

Although I now primarily deal with digital marketing, this was by no means always the case. In fact, there remains a lot of value in traditional, or offline, methods of marketing and I fell it’s important not to overlook these in favour of swanky online methods. 

Choosing the right tactics depends on the industry and the growth stage of your organisation. For example, a start-up owner needing to raise brand awareness may benefit from pay-per-click advertising and social media advertising, but would also make headway joining local networking groups, and having a clear word of mouth or customer referral strategy. A more established business in a competitive market may need to grow its market share through increased search engine traffic, but could also benefit from increased PR activity in trade publications. Tactics such as networking, offline PR, word of mouth and exhibitions are still lucrative for many companies, particularly if your custom depends on building trust and rapport with customers.

When considering which to focus on, it is also important to consider which data is important for making business decisions. The availability and proliferation of digital data has been a real game-changer for marketers, but it can mask ugly truths. If your shop footfall is dropping or sales are sliding, is an increase in Facebook engagement really worth anything? Digital marketing is fantastic, but don’t forget what really matters.

Successful marketing is about considering all your options to form a sustainable relationship with customers and generate profit. What’s more, it isn’t just the responsibility of the marketing team. Whatever your role or level of involvement, if you’re trying to understand the marketplace and how you can engage people with the right products, prices and channels then guess what? You’re marketing!

Bedtime Reading

  • Chartered Institute of Marketing (2015). A brief summary of marketing and how it works – https://www.cim.co.uk/media/4772/7ps.pdf
  • McDonald, M. (2009). The future of marketing: Brightest star in the firmament, or a fading meteor? Some hypotheses and a research agenda. Journal of Marketing Management, 25(5/6), 431-450
  • Liu, R (2017). A Reappraisal of Marketing Definition and Theory. Journal of Eastern European and Central Asian Research. Vol 4, No 2.
  • Kohli, A & Jaworski, B. (1990) Market Orientation: The Construct, Research Propositions, and Managerial Implications