Business / Defining Marketing

Defining Marketing

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Autor:  anton  13 June 2011
Tags:  Defining,  Marketing
Words: 1069   |   Pages: 5
Views: 264

The first things that cross people minds when introduced to marketing are the advertising and selling functions of marketing. But that is just the popular belief. Marketing has a lot more functions in a company’s existence than to introduce and sell a new product. The American Marketing Association offers the following formal definition: Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.( Marketing academics @ AMA) I believe that marketing is the willingness of a company to find the right product that the customers needs, at the most convenient price for customer while still reaching the company’s goal on making profit. In his book “Marketing Management”, Philip Kotler stated that “marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others”.

Nowadays marketing is getting recognized as one of the most important activities in a company’s success. If the marketing does its research well and the promoted product reaches the right segment of the market then the company will register success. If the product is good but the marketing campaign does not reach the right target then a failure might be registered and the product may not survive on the market for a long time.

Marketing involves doing market research on customers, analyzing their needs, making strategic decisions about product design, pricing, promotion and product distribution. It is practically the heart of a business. When Andrea Jung was named as CEO for AVON Products Inc. she said that Avon products can be “as big in the women’s beauty business as Walt Disney Co. in entertainment”. She focused on changing the well known door-to-door selling. The new marketing plan was to make AVON “the source for anything and everything a woman wants to buy”, giving a choice to busy women on how they do their buying: through a representative, in a store, or online. In each mall there will be an AVON kiosk, which will try to target the young generation. Another change was the decision to create a separate line of products for sale at a store-within-a-store targeting such stores as Wal-Mart Inc. and Kmart Corp. We’ll see over the years if the new strategies work, but AVON’s stock is up since Jung’s arrival.

In a computer era we cannot talk about marketing success if we do not mention eBay Inc which is the first company that came on the market with a product that was well known on a regular market – Actions- and which became available on the new formed market represented by virtual market. eBay Inc explored the online opportunity on conducting actions online because of the big pool of customers from all over the world and it won. By using the Internet platforms the company grew its e-commerce adding new features such as payments and communications. The focus is on customers who are provided with a very well designed site, which is easy accessible from any computer, based on user name and password. The site is self-explanatory. The company provides many free services for its users. The revenues are coming in from listing, feature and final values fees paid by sellers and lead referral fees. Another way to get revenues is by serving as advertising medium for companies willing to enter on the new, virtual market with their products. eBay is still going strong but the future is questionable as long as more companies are willing to enter as competitors on virtual commerce.

Let us move now to the entertainment industry. The Walt Disney Company is one of the largest media and entertainment companies in the world. Founded in 1923 by Walt and Roy Disney. The company grew over the years adding more features to the starting company. Its theme parks are well known by kids around the globe. In 1992 Disney opened in Paris its second resort outside of the United States. The complex was not what the marketing department predicted. The Disney Co. did not consider social and cultural differences between France, a country geared toward a socialist way in conducting business and the American counterpart, which has a more relaxed approach to a business activity. Jean Can, a French journalist wrote in 1992 that Disney Park is a “horror made of cardboard, plastic, and appalling colors…idiotic folklore taken out of comic books written for obese Americans”.

It was hard to overcome such view of an American business but the company’s managers were able to do it. It took three years of effort and the results were showing. In 1995 the company registered profit for the first time. The changes were huge. The working conditions were changed to French standards. The spoken language for meetings was changed, not as was stated before to be only English. Some of the restrictions that are enforced on American soil were taken out. You would be surprised, but you can see people smoking or drinking alcoholic beverages inside the Euro Disney Park with no restriction. The food was adapted to French cuisine and workers’ benefits become regulated by the French government. Without some of the major changes, pertaining to a country’s culture is a challenge for any investor, and Disney Company could have failed its endeavor on France.

The lesson is that before going global, it is important to do your homework at home. If the marketing team would have done enough research before implementing the American rules on France, I am sure that far less problems would have been registered. Nobody should assume that the American way is the best way to do business. First look at who beneficiates from your business and then come up with the most appropriate offer.

Marketing is the process of attracting potential customers to use a company’s product or service, not to impose a product or service to a potential customer.

References:

Byrnes, Nanette - Avon’s New Calling – BusinessWeek – September 18,2008 – retrieved on

September 15, 2007 from http://www.businessweek.com/2000/00_38/b3699001.htm

Disneyland Resort Paris - retieved on September 16, 2007 from

http://en.wikipedia.org/wiki/Disneyland_Resort_Paris

Keller, Kevin L, and Kotler, Philip - Marketing Management (2006) – 12th ed –New Jersey –

Pearson Education, Inc.

AMA Adopts New Definition of Marketing – Marketing Academics @ AMA – retrieved on

September 15, 2007 from http://www.marketingpower.com/content24159.php

EBay Company - http://pages.ebay.com/aboutebay/thecompany/companyoverview.html



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