CONCEPT OVERVIEW and job-seeking process, or just become a savvy consumer who understands how marketing impacts what and how you buy.

What is Marketing? According to the American Marketing Association, the leading professional association in the field of marketing, the definition of marketing is as follows:

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.

In layman’s terms, marketing is the process of developing a product concept (good, service, idea, cause or organization), determining the ideal price point for it, selecting distribution outlets to make it available to customers, and communicating with target audiences to make them aware and interested in it. This process revolves around understanding who is most apt to buy the product and building a long-term relationship with that customer base, which may be either a consumer who uses the product or a business who either uses or resells the product.

At a very basic level, marketing revolves around an exchange between two people or entities. One person/organization supplies something of value, in exchange for something of value from the other person/organization. The exchange may occur between:

• A business and a consumer (B2C), such as a consumer purchasing an airline ticket for an upcoming vacation

• A business and another business (B2B), such as a grocery store purchasing paper towels in bulk from a major manufacturer

Introduction to Marketing

The Importance of Marketing Marketing is one of the few areas of business that affects everyday life and everyday people. Every person is a consumer, and as such, is affected by marketing each time he or she makes a purchase. In addition, marketing messages are entrenched in our environment. We are exposed to these messages not only through the media we choose to consume, such as television, radio and the Internet, but also through the non-traditional mediums we encounter while outside our homes and while shopping. Nowadays, marketing messages are just as likely to be found in our email inbox, within the mobile apps we use, at the gas station pumps, on transportation vehicles, and even in bathrooms! Marketing is truly all around us.

Marketing is also an integral part of any organization, whether it is for profit or not-for-profit. Entrepreneurs build businesses based on marketing strategies designed to develop the right product, at the right price, and to make it accessible and communicate its availability to potential customers. In fact, every organization utilizes marketing as it brings a good, service, cause, or idea to life. At the most fundamental level, every person markets his or her own personal brand – brand YOU – in to build an image in the public eye, get a date, or gain employment!

Marketing may be one of the most impactful and practical subjects you will ever study. You have something to gain by learning about marketing: whether your goal in life is to work in the marketing department of an existing organization, start your own business, successfully go through the interviewing

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• A consumer and another consumer (C2C), such as an individual using Craigslist to find a piece of used furniture for sale from another person

The exchange process is a simple and pragmatic concept, however executing the right strategies to ensure a successful exchange is much more complex.

The Value Proposition for the Target Market At the center of every marketing strategy is the target market. A target market is the individual or business that is most likely to need or want your product. These customers may be identified based on where they are physically located, demographic characteristics, their level of usage or loyalty, and many other factors. From the product conception to the messages and media channels used to build the brand, every strategy and tactic developed and executed by marketers must take into consideration the target market in to be successful.

Brands must deliver value to the target market in to develop a relationship with the customer and solidify the brand’s presence in the market. Although there are many precise definitions of value, the basic premise of value is whether or not the product was worth it. If customers believe that what they gave up (money, time, effort, opportunity costs) was more than the value of what they received in exchange for their purchase, they will not continue to buy the product. Without repeat purchases, or customer loyalty, a brand will eventually be unable to sustain itself (particularly if these customers tell others about their less-than-positive experience). For this reason, a marketer’s goal should be to deliver value to each target customer by providing a quality product, at a reasonable price, in a convenient manner, and letting them know about it through meaningful communication and customer-centric promotional efforts.

The Marketing Mix Traditionally, marketers blend four ingredients into the marketing planning process: product, price, place and promotion. Each of these elements are instrumental in a successful product launch and product life. If there are problems with any of the four P’s, a product will ultimately fail. For example, the best invention will not succeed if the price is not right or if customers are not aware that it exists. Similarly, a poor product will not last long on the market, even if the price is competitive, it is available in the best stores, and the advertising is compelling.

The core elements of the marketing mix must work together to create a successful marketing program. These core components are:

• Product: a tangible good or intangible service created to satisfy a need or a want

• Price: what a customer gives in exchange for what they get; the quantity of payment or compensation given by one party to another in return for one unit of goods or services

• Place: the distribution channel, or the route, through which goods move from the manufacturer to the final user; the ultimate location where the product is made available to the customer for purchase and/or consumption

• Promotion: communication via advertising, public relations, sales promotions, direct marketing, online marketing and/ or professional selling that is used to inform, persuade or remind the target market of the benefits and value of a product

Marketing managers control the elements of the marketing mix and can modify strategies as needed to fit uncontrollable situational factors, such as changes in the economy, technology and the competition. Being aware of the environment in which the marketing mix for a particular product will operate, is the first step in making sure that the marketing mix is relevant and timely for the target market. As changes in the external environments occur, marketing managers are able to be flexible and alter elements of the mix to better fit new trends in the marketplace.

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Financial Aspects of Marketing By planning and executing sound marketing strategies, businesses encourage their target market(s) to purchase and/ or repurchase their products. These sales generate revenue, or income, to the business that will enable it to sustain itself and grow.

Consider this analogy: In your own household, someone likely has a job that brings home a paycheck. This income covers the costs of living, such as food, rent, gas, utilities, etc. Without that income, the household cannot survive, because it will not be able to afford the basic necessities to operate the home and sustain the family.

To relate it back to the world of business, a company needs to sell its products in to generate an income, pay for the expenses related to operating the business, and to remain in business. Some marketing activities generate revenue, like personal selling. Some marketing activities are expenses that use up financial resources, such as the costs for advertising and promotion.

Just like in your household, the expenses are ideally never higher than the income. The goal is for a business to pay for all of its expenses and still have money left over to do other things, such as save or reinvest in the company. This difference between the amount earned and the amount spent is called profit. The profit a company generates allows it to grow by expanding its product line, building new locations, hiring employees to help the business operate more efficiently, and so much more.

As you are beginning to see, marketing can truly be characterized as the lifeline of any company!

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Key Terms

• Marketing: 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.

• Target Market: A particular market segment at which a marketing campaign is focused.

• Marketing Mix: A planned mix of the controllable elements of a product’s marketing plan, commonly termed as the 4Ps: product, price, place (or distribution), and promotion.

• Value: a fair return or equivalent in goods, services, or money for something exchanged.