Marketing is the study and management of exchange relationships.

[1][2] Marketing is used to create,

keep and satisfy the customer. With the customer as the focus of its activities, it can be concluded
that Marketing is one of the premier components of Business Management - the other being
Innovation.[3]

Contents
Marketing is defined by the American Marketing Association 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."[4] The term developed from the original meaning
which referred literally to going to market with goods for sale. From a sales process
engineering perspective, marketing is "a set of processes that are interconnected and
interdependent with other functions" of a business aimed at achieving customer interest and
satisfaction.[5]
Philip kotler defines marketing as :-marketing is about Satisfying needs and wants through an
exchange process.
The Chartered Institute of Marketing defines marketing as "the management process responsible for
identifying, anticipating and satisfying customer requirements profitably."[6] A similar concept is
the value-based marketing which states the role of marketing to contribute to increasing shareholder
value.[7] In this context, marketing can be defined as "the management process that seeks to
maximise returns to shareholders by developing relationships with valued customers and creating a
competitive advantage."[7]
Marketing practice tended to be seen as a creative industry in the past, which
included advertising, distribution and selling. However, because the academic study of marketing
makes extensive use of social
sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the
profession is now widely recognized as a science,[8][not in citation given]allowing numerous universities to offer
Master-of-Science (MSc) programs.[9][not in citation given]
The process of marketing is that of bringing a product to market in which includes these steps: broad
market research; market targeting and market segmentation; determining distribution, pricing and
promotion strategies; developing a communications strategy; budgeting; and visioning long-term
market development goals.[10]Many parts of the marketing process (e.g. product design, art
director, brand management, advertising, copywriting etc.) involve use of the creative arts.

Concept[edit]
The 'marketing concept' proposes that in order to satisfy the organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy these more effectively
than competitors. This concept originated from Adam Smith's book The Wealth of Nations, but would
not become widely used until nearly 200 years later.[11] Marketing and Marketing Concepts are
directly related.
Given the centrality of customer needs and wants in marketing, a rich understanding of these
concepts is essential:[12]
Needs: Something necessary for people to live a healthy, stable and safe life. When needs
remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be
objective and physical, such as the need for food, water and shelter; or subjective and
psychological, such as the need to belong to a family or social group and the need for self-
esteem.
Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic
survival and are often shaped by culture or peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have the potential to
become economic demands.
Marketing research, conducted for the purpose of new product development or product
improvement, is often concerned with identifying the consumer's unmet
needs.[13] Customer needs are central to market segmentation which is concerned with
dividing markets into distinct groups of buyers on the basis of "distinct needs,
characteristics, or behaviors who might require separate products or marketing
mixes." [14] Needs-based segmentation (also known as benefit segmentation) "places the
customers' desires at the forefront of how a company designs and markets products or
services." [15] Although needs-based segmentation is difficult to do in practice, has been
proved to be one of the most effective ways to segment a market. [16] In addition, a great
deal of advertising and promotion is designed to show how a given product's benefits
meet the customer's needs, wants or expectations in a unique way.[17]

Orientations[edit]
Main article: History of marketing § Orientations or philosophies that inform marketing
practice
A marketing orientation has been defined as a "philosophy of business
management." [18] or "a corporate state of mind" [19] or as an "organisation[al]
culture" [20]Although scholars continue to debate the precise nature of specific
orientations that inform marketing practice, the most commonly cited orientations are as
follows: [21]

Product[edit]
A firm employing a product orientation is mainly concerned with the quality of its own
product. A product orientation is based on the assumption that, all things being equal,
consumers will purchase products of a superior quality. The approach is most effective
when the firm has deep insights into customers and their needs and desires derived
from research or intuition and understands consumers' quality expectations and
reservation prices. For example, Sony Walkman or Apple iPod were innovative product
designs that addressed consumers unmet needs. Although the product orientation has
largely been supplanted by the marketing orientation, firms practising a product
orientation can still be found in haute couture and in arts marketing. [22]

Sales[edit]
Further information: History of marketing § Selling orientation
A firm using a sales orientation focuses primarily on the selling/promotion of the firm's
existing products, rather than determining new or unmet consumer needs or desires.
Consequently, this entails simply selling existing products, using promotion and direct
sales techniques to attain the highest sales possible.[23] The sales orientation "is typically
practised with unsought goods." [24] One study found that industrial companies are more
likely to hold a sales orientation than consumer goods companies. [25] The approach may
also suit scenarios in which a firm holds dead stock, or otherwise sells a product that is
in high demand, with little likelihood of changes in consumer tastes diminishing demand.

Production[edit]
Further information: History of marketing § Production orientation
A firm focusing on a production orientation specializes in producing as much as possible
of a given product or service in order to achieve economies of scale or economies of
scope. A production orientation may be deployed when a high demand for a product or
 service exists, coupled with certainty that consumer tastes and preferences remain
relatively constant (similar to the sales orientation). The so-called production era is
thought to have dominated marketing practice from the 1860s to the 1930s, but other
theorists argue that evidence of the production orientation can still be found in some
companies or industries. Specifically Kotler and Armstrong note that the production
philosophy is "one of the oldest philosophies that guides sellers... [and] is still useful in
some situations." [26]

Marketing[edit]
Further information: Market orientation
The marketing orientation is perhaps the most common orientation used in
contemporary marketing. It is a customer-centric approach that involves a firm basing its
marketing program around products that suit new consumer tastes. Firms adopting a
marketing orientation typically engage in extensive market research to gauge consumer
desires, use R&D to develop a product attuned to the revealed information, and then
utilize promotion techniques to ensure consumers are aware of the product's existence
and the benefits it can deliver. [27] Scales designed to measure a firm's overall market
orientation have been developed and found to be relatively robust in a variety of
contexts. [28]
The marketing orientation often has three prime facets, which are:
Customer orientation: A firm in the market economy can survive by producing goods that
persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for
a firm's future viability and even existence as a going concern.
Organizational orientation: In this sense, a firm's marketing department is often seen as of
prime importance within the functional level of an organization. Information from an
organization's marketing department would be used to guide the actions of other
department's within the firm. As an example, a marketing department could ascertain (via
marketing research) that consumers desired a new type of product, or a new usage for an
existing product. With this in mind, the marketing department would inform the R&D
department to create a prototype of a product/service based on consumers' new desires.
The production department would then start to manufacture the product, while the marketing
department would focus on the promotion, distribution, pricing, etc. of the product.
Additionally, a firm's finance department would be consulted, with respect to securing
appropriate funding for the development, production and promotion of the product. Inter-
departmental conflicts may occur, should a firm adhere to the marketing orientation.
Production may oppose the installation, support and servicing of new capital stock, which
may be needed to manufacture a new product. Finance may oppose the required capital
expenditure, since it could undermine a healthy cash flow for the organization.
Mutually beneficial exchange: In a transaction in the market economy, a firm gains revenue,
which thus leads to more profits/market share/sales. A consumer on the other hand gains the
satisfaction of a need/want, utility, reliability and value for money from the purchase of a
product or service. As no-one has to buy goods from any one supplier in the market
economy, firms must entice consumers to buy goods with contemporary marketing ideals.
Societal marketing[edit]
Main article: Societal marketing
A number of scholars and practitioners have argued that marketers
have a greater social responsibility than simply satisfying customers
and providing them with superior value. Instead, marketing activities
should strive to benefit society's overall well-being. Marketing
organisations that have embraced the societal marketing concept
typically identify key stakeholder groups such as employees,
customers, and local communities. They should consider the impact of
their activities on all stakeholders. Companies that adopt a societal
marketing perspective typically practice triple bottom line reporting
whereby they publish social impact and environmental impact reports
alongside financial performance reports. Sustainable marketing
or green marketing is an extension of societal marketing. [29]

The marketing mix (the 4 Ps)[edit]

Main article: Marketing mix
The four Ps, often referred to as the marketing mix or the marketing
program,[30] represent the basic tools which marketers can use to bring
their products or services to market. They are the foundation of
managerial marketing and the marketing plan typically devotes a
section to each of these Ps.

Origins[edit]
During the 1940s, the discipline of marketing was in transition. Interest
in the functional school of thought, which was primarily concerned with
mapping the functions of marketing was waning while the managerial
school of thought, which focussed on the problems and challenges
confronting marketers was gaining ground. [31] The concept of marketers
as "mixers of ingredients," was first introduced by James Culliton, a
Professor at Harvard Business School. [32] At this time theorists began
to develop checklists of the elements that made up the marketing mix,
however, there was little agreement as to what should be included in
the list. Many scholars and practitioners relied on lengthy classifications
of factors that needed to be considered to understand consumer
responses.[33] Neil Borden developed a complicated model in the late
1940s, based upon at least twelve different factors.[34]
\Inspired by the idea of marketers as mixers of ingredients, Neil
Borden one of Culliton's colleagues at Harvard, coined the phrase
the marketing mix and used it wherever possible. According to Borden's
own account, he used the term, 'marketing mix' consistently from the
late 1940s. [35] For instance, he is on record as having used the term,
'marketing mix,' in his presidential address given to the American
Marketing Association in 1953. [36] In the mid-1960s, Borden published a
retrospective article detailing the early history of the marketing mix in
which he claims that he was inspired by Culliton's idea of 'mixers', and
credits himself with coining the term, 'marketing mix'.[37] Borden's
continued and consistent use of the phrase, "marketing mix,"
contributed to the process of popularising the concept throughout the
1940s and 50s.
The "marketing mix" gained widespread acceptance with the
publication, in 1960, of E. Jerome McCarthy's text, Basic Marketing: A
Managerial Approach which outlined the ingredients in the mix as the
memorable 4 Ps, namely product, price, place and promotion. [38] The
marketing mix is based upon four controllable variables that a company
manages in its effort to satisfy the corporation's objectives as well as
the needs and wants of a target market.[34] Once there is understanding
 of the target market's interests, marketers develop tactics, using the
4Ps, to encourage buyers to purchase product. The successful use of
the model is predicated upon the degree to which the target market's
needs and wants have been understood, and the extent to which
marketers have developed and correctly deployed the tactics. Today,
the marketing mix or marketing program is understood to refer to the
"set of marketing tools that the firm uses to pursue its marketing
objectives in the target market".[39]

Brief outline[edit]
The traditional marketing mix refers to four broad levels of marketing
decision, namely: product, price, promotion, and place.[40][41]
Product
The product aspects of marketing deal with the specifications of the actual goods or services,
and how it relates to the end-user's needs and wants. The product element consists of
product design, new product innovation, branding, packaging, labelling. The scope of a
product generally includes supporting elements such as warranties, guarantees, and
support. Branding, a key aspect of the product management, refers to the various methods
of communicating a brand identity for the product, brand, or company.
Pricing
This refers to the process of setting a price for a product, including discounts. The price need
not be monetary; it can simply be what is exchanged for the product or services, e.g. time,
energy, or attention or any sacrifices consumers make in order to acquire a product or
service. The price is the cost that a consumer pays for a product--monetary or not. Methods
of setting prices are in the domain of pricing science.
Place (or distribution)
This refers to how the product gets to the customer; the distribution channels and
intermediaries such as wholesalers and retailers who enable customers to access products
or services in a convenient manner. This third P has also sometimes been called Place,
referring to the channel by which a product or service is sold (e.g. online vs. retail), which
geographic region or industry, to which segment (young adults, families, business people),
etc. also referring to how the environment in which the product is sold in can affect sales.
Promotion
This includes all aspects of marketing communications; advertising, sales promotion,
including promotional education, public relations, personal selling, product
placement, branded entertainment, event marketing, trade shows and exhibitions.
Criticisms[edit]
Morgan, in Riding the Waves of Change (Jossey-Bass,
1988), suggests that one of the greatest limitations of
the 4 Ps approach "is that it unconsciously emphasizes
the inside–out view (looking from the company
outwards), whereas the essence of marketing should
be the outside–in approach". An inside-out approach is
the traditional planning approach where the
organisation identifies its desired goals and objectives
which are often based around what has always been
done. Marketing's task then becomes one of "selling"
the organisation's products and messages to the
"outside" or external stakeholders.[42] In contrast,
 an outside-in approach first seeks to understand the
needs and wants of the consumer. [43]
From a model-building perspective, the 4 Ps has
attracted a number of criticisms. Well-designed models
should exhibit clearly defined categories that are
mutually exclusive, with no overlap. Yet, the 4 Ps
model has extensive overlapping problems. Some of
the Ps are only defined in vague terms. Several
authors stress the hybrid nature of the fourth P,
mentioning the presence of two important dimensions,
"communication" (general and informative
communications such as public relations and corporate
communications) and "promotion" (persuasive
communications such as advertising and direct selling).
Certain marketing activities, such as personal selling,
may be classified as either promotion or as part of the
place (i.e. distribution) element. [44] Some pricing tactics
such as promotional pricing can be classified as price
variables or promotional variables and therefore also
exhibit some overlap.
Other important criticisms include that the marketing
mix lacks a strategic framework and is therefore unfit to
be a planning instrument, particularly when
uncontrollable, external elements are an important
aspect of the marketing environment. [45]

Modifications and extensions[edit]

Expanded marketing mix for services

To overcome the deficiencies of the 4 P model, some

authors have suggested extensions or modifications to
the original model. Extensions of the four P's include
"people", "process", and "physical evidence" and are
often applied in the case of services marketing[46] Other
extensions have been found necessary in retail
marketing, industrial marketing and internet marketing:

 Industrial or B2B marketing needs to account for the long term contractual agreements
that are typical in supply chaintransactions. Relationship marketing attempts to do this by
looking at marketing from a long term relationship perspective rather than individual
transactions.[47]
 Services marketing needs to account for the unique characteristics of services (i.e.
intangibility, perishability, heterogeneity and the inseparability of production and
consumption). In order to recognize the special challenges involved in selling services,
as opposed to goods, some authors advocate extending the model to 7 Ps for service
industries by adding; Process - the way in which orders are handled, customers are
satisfied and the service is delivered; Physical Evidence - is tangible evidence with
which customers interact and with the potential to impact on the customer's service
experience; People -service personnel and other customers with whom customers
interact and form part of the overall service experience. [48]
 Expanded marketing mix for retail

 Retail marketing needs to account for the unique facets of retail stores. A number of
authors have argued for the inclusion of two new Ps,
namely, Personnel and Presentation since these contribute to the customer's unique
retail experience and are the principal basis for retail differentiation. Some scholars also
recommend adding Retail Format(i.e. retail formula) since it contributes to customer
expectations. [49] The modified retail marketing mix is often called the 6 Ps of
retailing. [50][51]
 Internet marketing presents both marketing practitioners and scholars with special
challenges including: customer empowerment, new communication modes, real-time
interactivity, access to global markets, high levels of market transparency and difficulty
maintaining competitive advantages. While some scholars argue for an expanded
marketing mix for internet marketing, most argue that entirely new models are
required. [52]
 Some authors cite a further P - Packaging - this is thought by many to be part
of Product, but in certain markets (Japan, China for example) and with certain products
(perfume, cosmetics) the packaging of a product has a greater importance - maybe even
than the product itself.

Environment[edit]
Main article: Market environment
The term "marketing environment" relates to
all of the factors (whether internal, external,
direct or indirect) that affect a firm's marketing
decision-making/planning. A firm's marketing
environment consists of three main areas,
which are:

 The macro-environment, over which a firm

holds little control
 The micro-environment, over which a firm
holds a greater amount (though not
necessarily total) control
 The internal environment, which includes
the factors inside of the company itself [53]
Macro[edit]
Main article: Macromarketing
A firm's marketing macro-environment consists
of a variety of external factors that manifest on
a large (or macro) scale. These are typically
economic, social, political or technological
phenomena. A common method of assessing
a firm's macro-environment is via a PESTLE
(Political, Economic, Social, Technological,
Legal, Ecological) analysis. Within a PESTLE
analysis, a firm would analyze national political
issues, culture and climate,
key macroeconomic conditions, health and
indicators (such as economic
growth, inflation, unemployment, etc.), social
trends/attitudes, and the nature of technology's
impact on its society and the business
processes within the society.

Micro[edit]
A firm's micro-environment comprises factors
pertinent to the firm itself, or stakeholders
closely connected with the firm or company.
A firm's micro-environment typically spans:

 Customers/consumers
 Employees
 Suppliers
 The Media
By contrast to the macro-environment, an
organization holds a greater degree of control
over these factors.

Internal[edit]
A firms internal environment consists of factors
inside of the actual company. These are
factors controlled by the firm and they affect
the relationship that a firm has with its
customers. These include factors such as:

 Labor
 Inventory
 Company Policy
 Logistics
 Budget
 Capital Assets

Research[edit]
Main article: Marketing research
Marketing research is a systematic process of
analyzing data which involves conducting
research to support marketing activities, and
the statistical interpretation of data into
information. This information is then used by
managers to plan marketing activities, gauge
the nature of a firm's marketing environment
and to attain information from suppliers.
A distinction should be made
between marketing research
and market research. Market research
pertains to research in a given market. As an
example, a firm may conduct research in a
target market, after selecting a suitable market
segment. In contrast, marketing research
relates to all research conducted within
marketing. Market research is a subset of
marketing research.
Marketing researchers use statistical methods
(such as quantitative research, qualitative
research, hypothesis tests, Chi-square
tests, linear regression, correlation
coefficients, frequency
distributions, Poisson and binomial
distributions, etc.) to interpret their findings and
convert data into information.[54]

Research process[edit]
Marketing research spans a number of
stages,[55] including:

 Define the problem

 Develop a research plan
 Collect the data
 Interpret data into information
 Disseminate information formally in the
form of a report

Segmentation[edit]
Main article: Market segmentation
Market segmentation consists of taking the
total heterogeneous market for a product and
dividing it into several sub-markets or
segments, each of which tends to be
homogeneous in all significant aspects.[56]

Purposes[edit]
Market segmentation is conducted for two
main purposes, including:

 A better allocation of a firm's finite

resources
 To better serve the more diversified tastes
of contemporary consumers
A firm only possesses a certain amount of
resources. Accordingly, it must make choices
(and appreciate the related costs) in servicing
specific groups of consumers.
Moreover, with more diversity in the tastes of
modern consumers, firms are noting the
benefit of servicing a multiplicity of new
markets.

Overview[edit]
The steps of segmentation are Segment,
Target, Position (abbreviated STP).
Segment[edit]
Segmentation involves the initial splitting up of
consumers into persons of like
needs/wants/tastes.
Four commonly used criteria are used for
segmentation, which include:

 Geographical (a country, region, city,

town, etc.)
 Psychographic (e.g. personality traits or
lifestyle traits which influence consumer
behaviour)
 Demographic (e.g. age, gender, socio-
economic class, education, etc.)
 Behavioural (e.g. brand loyalty, usage
rate, etc.)
Target[edit]
Once a segment has been identified, a firm
must ascertain whether the segment is
beneficial for them to service.
The DAMP acronym (meaning Discernable,
Accessible, Measurable and Profitable) are
used as criteria to gauge the viability of a
target market. The elements of DAMP are:

 Discernable - how a segment can be

differentiated from other segments.
 Accessible - how a segment can be
accessed via Marketing Communications
produced by a firm
 Measurable - can the segment be
quantified and its size determined?
 Profitable - can a sufficient return on
investment be attained from a segment's
servicing?
The next step in the targeting process is the
level of differentiation involved in a segment
serving. Three modes of differentiation exist,
which are commonly applied by firms. These
are:
 Undifferentiated - where a company
produces a like product for all of a market
segment
 Differentiated - in which a firm produced
slight modifications of a product within a
segment
 Niche - in which an organisation forges a
product to satisfy a specialised target
market
Position[edit]
Positioning concerns how to position a product
in the minds of consumers and inform what
attributes differentiate it from the competitor's
products.
A firm often performs this by producing a
perceptual map, which denotes similar
products produced in the same industry
according to how consumers perceive their
price and quality. From a product's placing on
the map, a firm would tailor its marketing
communications to suit meld with the product's
perception among consumers, and its position
among competitors' offering.

Communications[edit]
See also: Integrated marketing
communications, Marketing communications
planning framework, and Promotion
(marketing)
Marketing communications is an audience-
centered activity designed to engage
audiences and promote responses. It is
defined by actions a firm takes to
communicate with end-users, consumers, and
external parties.
Marketing communications encompass four
distinct subsets, which are:

Personal sales[edit]
Main article: Personal selling

Female beer sellers warn the photographer that

he also has to buy some, Tireli market, Mali
1989

Oral presentation given by a salesperson who

approaches individuals or a group of potential
customers:
 Live, interactive relationship
 Personal interest
 Attention and response
 Interesting presentation
 Clear and thorough.
Sales promotion[edit]
Main article: Sales promotion
Short-term incentives to encourage buying of
products:

 Instant appeal
 Anxiety to sell
An example is coupons or a sale. People are
given an incentive to buy, but this does not
build customer loyalty or encourage future
repeat buys. A major drawback of sales
promotion is that it is easily copied by
competition. It cannot be used as a
sustainable source of differentiation.

Public relations[edit]
Public relations (or PR, as an acronym) is the
use of media tools by a firm in order to
promote goodwill from an organization to a
target market segment, or other consumers of
a firm's good/service. PR stems from the fact
that a firm cannot seek to antagonize or
inflame its market base, due to incurring a
lessened demand for its good/service.
Organizations undertake PR in order to assure
consumers, and to forestall negative
perceptions towards it.
PR can span:

 Interviews
 Speeches/Presentations
 Corporate literature, such as financial
statements, brochures, etc.
Publicity[edit]
Publicity involves attaining space in media,
without having to pay directly for such
coverage. As an example, an organization
may have the launch of a new product covered
by a newspaper or TV news segment. This
benefits the firm in question since it is making
consumers aware of its product, without
necessarily paying a newspaper or television
station to cover the event.
Advertising[edit]
Main article: Advertising management
Advertising occurs when a firm directly pays a
media channel to publicize its product.
Common examples of this include TV and
radio adverts, billboards, branding,
sponsorship, etc.

Mix[edit]
Main article: Promotional mix
Marketing communications mix is used to
reach, engage, provoke audience-centered
conversations. It consists of 5 tools, which are
1)Advertising, 2)Sales & Promotion, 3)Public
Relations, 4)Direct Marketing and 5)Personal
Selling. The types of messages that are
enhanced can be 1)Informational, 2)Emotional,
3)User-generated, or/and 4)Brand content.
The last main component of MC mix is Media,
which corresponds to the channel used to
send the message. Media is divided into 3
categories, and these are media by 1)Form,
2)Source and 3)Functionality.