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Autor: anton 25 June 2011
Words: 1118 | Pages: 5
What is marketing? Marketing can have different definitions based upon the source or person giving the definition. Marketing is an essential component of any business, and understanding the exactly what marketing means to a company can mean the difference between success and failure especially for new companies. This paper will define the term marketing using definitions from two different sources and a personal source. This paper will also further explore the importance of marketing in organizational success based on these definitions.
A personal definition of marketing is all the activities a company performs to capture the market share for their product. Anything a company does to ensure the sell of goods or services can be considered a part of marketing. Marketing includes the producing a product, promoting the product, correctly pricing the product, and placement of the product. Each of these categories contains numerous tasks that need and should be accomplished to ensure a successful marketing plan.
According to Boone & Kurtz (1998), Ð²Ð‚ÑšMarketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectivesÐ²Ð‚Ñœ (para. 5). This definition of marketing attempts to encompass the vast and complicated field of marketing. The definition shows that marketing is much more than just advertising and other aspects do exist.
However, definitions do vary between sources. Another definition of marketing is Ð²Ð‚ÑšThe act or process of buying and selling in a market or the commercial functions involved in transferring goods from producer to consumerÐ²Ð‚Ñš(Marketing, 2000, para 1). Although this definition captures the overview of marketing, the definition does not give a complete picture of marketing.
Marketing is often mistaken for just advertising or any of the components that define marketing. Many fail to recognize or understand the vastness of the marketing field, and the intricacies that are involved with producing a successful marketing plan.
Importance of Marketing
The importance of marketing is easily summed up by Regis McKenna, (2003), Ð²Ð‚ÑšMarketing is everything, and everything is marketingÐ²Ð‚Ñœ (para 3). Marketing is an essential part of any company, and the importance is often hidden. A companyÐ²Ð‚â„¢s main priority is to turn a profit. To accomplish this task, the company must create a demand for their product through marketing efforts. Companies often fail to accomplish the research into the development of new products to ensure a demand will exist for the product. In 1985, Coca-Cola was losing the cola battle to Pepsi, and decided to change the flavor of Coca-Cola (Ross, 2005). Blind tastes test performed by the company showed that the New Coke was preferred over the original recipe. However, the company failed to take into consideration public emotion. The company failed to ask Ð²Ð‚ÑšDo you want a new Coke?Ð²Ð‚Ñœ (Ross, 2005, para 8). According to Keough, Coca-Cola president the company Ð²Ð‚ÑšÐ²Ð‚Â¦did not understand the deep emotionsÐ²Ð‚Â¦Ð²Ð‚Ñœ of the customers (Ross, 2005. para 6). Had Coca-Cola performed more extensive marketing research for the new product, then the product may not have been introduced or the marketing department could have found a different angle to use to make the product profitable.
The importance of marketing is also seen in the release of the iPhone. The company did an excellent job in promoting the product through advertising, however, failed in two other areas of marketing: pricing and placement. Apple created a strong hype over the release of the iPhone, but only released limited quantities. Ð²Ð‚ÑšOnce the hype has washed off, theyÐ²Ð‚â„¢ll [Customers] just decided itÐ²Ð‚â„¢s not worth the moneyÐ²Ð‚Ñœ (Observing Polarity, 2007, para 33). Apple left this market wide open for competitors to release similar products at a cheaper price. If Apple had produced more iPhones for the original release more people would have been able to purchase the phone at the current price tag, thus making more profit for Apple. Now that the hype has died down, people are now less excited about purchasing an iPhone at the current price tag especially when other companyÐ²Ð‚â„¢s will soon be releasing other products that will be able to compete with the iPhone. AppleÐ²Ð‚â„¢s advertising and promotion of the product were above par; however, the company failed in the placement of the product, which will ultimately affect their profits.
The importance of marketing is not just limited to new products but also well-know established products. In 2000, Firestone tires allegedly were the cause of 62 deaths and 80 injuries (McCuen, 2000). Both Ford and Firestone had been aware of the problems with the tires and had replaced the faulty tires in other companies. However, the companies failed to react quickly in the United States. This marketing blunder caused stocks to drop for both companies. If both companies had reacted quicker to this safety issue, public confidence in the product would have not faltered as much such as the case with Tylenol. In 1982, Tylenol caplets were had been laced with cyanide. The company choose to react quickly and recalled the Tylenol. This incident cost the company $100 million and 27% of the market share (Hogue, 2001). Johnson and JohnsonÐ²Ð‚â„¢s quick reactions and marketing efforts after the scare allowed consumers to see that their best interest was a concern for the company, which allowed the company to regain the lost market share. Due to the poor reaction time of Firestone, many consumers will stay away from the product, remembering the faulty tires. However, the quick reaction time by Johnson and Johnson instill confidence in the public and most people do not even give the scare a second thought. The difference between these two companies in this case was a good marketing campaign which stresses the importance of marketing.
Companies can have good marketing campaigns, but failure in just one area can lead to disaster. The importance of marketing is easily seen in the short-comings and failures of companies. People often fail to realize the importance of safety or hygiene until one gets hurt or sick. This is the same with marketing. Learning from the unwise marketing choices of other companies and having a good marketing plan can help companies succeed in todayÐ²Ð‚â„¢s economy.
Boone, L. E., & Kurtz, D. L. (1998). Contemporary Marketing . Orlando, Florida: Dryden Press.
Hogue, J. (2001, Apri 19). Johnson & JohnsonÐ²Ð‚â„¢s Tylenol scare. University of Florida. Retrieved July 28, 2007, from http://iml.jou.ufl.edu
Marketing. (2000). In American Heritage Dictionary of the English Language, 4 ed.. Houghton Mifflin Company. Retrieved July28,2007, from http://education.yahoo.com
McCuen, B. (2000, June 15) Is firestone acting quickly enough to replace faulty tires. Speakout. Retrieved July 28, 2007, from http://www.speakout.com
McKenna R., (2003). Regis McKenna. Regis McKenna. Retrieved July 28, 2007, from http://www.regis.com
Observing Polarity. (2007). iPhone equals igreedy marketing blunder. Retrieved July 28, 2007, from http://www.observingpolarity.com
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