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Marketing is the process of intentionally stimulating demand for and purchases of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; operation of
advertising campaign Advertising is a marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasi ...
s; attendance at
trade show A trade fair (trade show, trade exhibition, or trade exposition) is an exhibition organized so that companies A company, abbreviated as co., is a legal entity In law, a legal person is any person A person (plural people or persons) i ...
s and public events;
design A design is a plan or specification for the construction of an object or system or for the implementation of an activity or process, or the result of that plan or specification in the form of a prototype, product or process. The verb ''to design' ...

design
of products and
packaging Packaging is the science Science (from the Latin word ''scientia'', meaning "knowledge") is a systematic enterprise that Scientific method, builds and Taxonomy (general), organizes knowledge in the form of Testability, testable explanations ...

packaging
to be more attractive to buyers; selection of the terms of sale, such as
price A price is the (usually not negative) quantity Quantity is a property that can exist as a multitude or magnitude, which illustrate discontinuity and continuity. Quantities can be compared in terms of "more", "less", or "equal", or by ...

price
, discounts,
warranty In contract A contract is a legally binding agreement that defines and governs the rights and duties between or among its parties Image:'Hip, Hip, Hurrah! Artist Festival at Skagen', by Peder Severin Krøyer (1888) Demisted with DXO PhotoLa ...
, and return policy; product placement in media or with people believed to influence the buying habits of others; agreements with retailers, wholesale distributors, or resellers; and attempts to create
awareness of
awareness of
, loyalty to, and positive feelings about a brand. Marketing is typically conducted by the seller, typically a retailer or manufacturer. Sometimes tasks are contracted to a dedicated marketing firm or
advertising agency An advertising agency, often referred to as a creative agency or an ad agency, is a business dedicated to creating, planning, and handling advertising Advertising is a marketing Marketing is the process of intentionally stimulating dem ...
. More rarely, a
trade association A trade association, also known as an industry trade group, business association, sector association or industry body, is an organization founded and funded by businesses that operate in a specific . An industry trade association participates in ...
or government agency (such as the
Agricultural Marketing Service The Agricultural Marketing Service (AMS) is an agency within the United States Department of Agriculture The United States Department of Agriculture (USDA), also known as the Agriculture Department, is the federal executive department respons ...
) advertises on behalf of an entire industry or locality, often a specific type of food (e.g.
Got Milk? Got Milk? (stylized as got milk?) is an American advertising campaign encouraging the consumption of milk, which was created by the advertising agency Goodby Silverstein & Partners for the California Milk Processor Board in 1993, and was later li ...
), food from a specific area, or a city or region as a tourism destination. It is one of the primary components of
business management Business administration (also known as business management) is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising business operations. From the point of view of management Management (or man ...
and
commerce Commerce is the exchange of goods and services, especially on a large scale. Etymology The English-language word ''commerce'' has been derived from the Latin word ''commercium'', from ''com'' ("together") and ''merx'' ("merchandise"). History ...

commerce
. Marketers can direct their product to other businesses ( B2B marketing) or directly to consumers (B2C marketing). Regardless of who is being marketed to, several factors apply, including the perspective the marketers will use. Known as market orientations, they determine how marketers will approach the planning stage of marketing. The marketing mix, which outlines the specifics of the product and how it will be sold, is affected by the environment surrounding the product, the results of
marketing research Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and ser ...
and
market research Market research is an organized effort to gather information about target markets A target market is a group of customers within a business Business is the activity of making one's living or making money by producing or buying and selling Pr ...

market research
,Market Research is a subset of Marketing Research and the characteristics of the product's target market. Once these factors are determined, marketers must then decide what methods will be used to promote the product, including use of coupons and other price inducements. The term marketing, what is commonly known as attracting customers, incorporates knowledge gained by studying the
management Management (or managing) is the administration of an organization An organization, or organisation (Commonwealth English The use of the English language English is a West Germanic languages, West Germanic language first spok ...

management
of
exchange Exchange may refer to: Places United States * Exchange, Indiana Exchange is an Unincorporated area, unincorporated community in Green Township, Morgan County, Indiana, Green Township, Morgan County, Indiana, Morgan County, in the U.S. state of In ...
relationships and is the
business process A business process, business method or business function is a collection of related, structured activities or Task (project management), tasks by people or equipment in which a specific sequence produces a service or product (serves a particular ...
of identifying, anticipating and satisfying customers' needs and wants.


Definition

Marketing is currently defined by the
American Marketing Association The American Marketing Association (AMA) is a professional association A professional association (also called a professional body, professional organization, or professional society) seeks to advocacy, further a particular profession, the inter ...
(AMA) 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".American Marketing Association
Definitions of Marketing
approved 2017, accessed 24 January 2021
However, the definition of marketing has evolved over the years. The AMA reviews this definition and its definition for "marketing research" every three years. The interests of "society at large" were added into the definition in 2008. The development of the definition may be seen by comparing the 2008 definition with the AMA's 1935 version: "Marketing is the performance of business activities that direct the flow of goods, and services from producers to consumers". The newer definition highlights the increased prominence of other stakeholders in the new conception of marketing. Recent definitions of marketing place more emphasis on the consumer relationship, as opposed to a pure exchange process. For instance, prolific marketing author and educator,
Philip Kotler Philip Kotler (born May 27, 1931) is an American marketing author, consultant, and professor; the S. C. Johnson & Son Distinguished Professor of International marketing, International Marketing at the Kellogg School of Management at Northwestern U ...
has evolved his definition of marketing. In 1980, he defined marketing as "satisfying needs and wants through an exchange process", and in 2018 defined it as "the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return". A related definition, from the
sales process engineering Sales process engineering is the engineering Engineering is the use of scientific method, scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The di ...
perspective, defines marketing as "a set of processes that are interconnected and interdependent with other functions of a business aimed at achieving customer interest and satisfaction". Besides, customers some definitions of marketing highlight marketing's ability to produce value to shareholders of the firm as well. 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". For instance, the
Chartered Institute of Marketing Founded in 1911, The Chartered Institute of Marketing (CIM) is a professional marketing body. It has over 30,000 members, including more than 3,000 registered Chartered Marketers. CIM offers 130 study centres in 36 countries, and exam centres in ...
defines marketing from a customer-centric perspective, focusing on "the management process responsible for identifying, anticipating and satisfying customer requirements profitably". In the past, marketing practice tended to be seen as a creative industry, which included
advertising Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.William J. Stanton. ''Fundamentals of Marketing''. McGraw-Hill (1984). Sponsors of advertising are ...

advertising
,
distributionDistribution may refer to: Mathematics *Distribution (mathematics) Distributions, also known as Schwartz distributions or generalized functions, are objects that generalize the classical notion of functions in mathematical analysis. Distr ...
and
selling Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. The seller, or the provider of the Goods and services, goods or services, co ...

selling
, and even today many parts of the marketing process (e.g.
product design Product design as a verb is to create a new product to be sold by a business to its customers. A very broad coefficient and effective generation and development of ideas through a process that leads to new products. Thus, it is a major aspect of n ...
,
art director Art director is the title for a variety of similar job functions in theater Theatre or theater is a collaborative form of performing art that uses live performers, usually actor, actors or actresses, to present the experience of a real or im ...
,
brand management In marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; ope ...
,
advertising Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.William J. Stanton. ''Fundamentals of Marketing''. McGraw-Hill (1984). Sponsors of advertising are ...

advertising
, inbound marketing,
copywriting Copywriting is the act or occupation of writing text for the purpose of advertising or other forms of marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and services; potentially including select ...
etc.) involve the use of the creative arts. However, because marketing makes extensive use of
social sciences Social science is the branch The branches and leaves of a tree. A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant life and a branch of biol ...

social sciences
,
psychology Psychology is the scientific Science () is a systematic enterprise that builds and organizes knowledge Knowledge is a familiarity or awareness, of someone or something, such as facts A fact is an occurrence in the real world. ...

psychology
,
sociology Sociology is a social science Social science is the branch The branches and leaves of a tree. A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the scie ...
,
mathematics Mathematics (from Greek: ) includes the study of such topics as numbers (arithmetic and number theory), formulas and related structures (algebra), shapes and spaces in which they are contained (geometry), and quantities and their changes (cal ...
,
economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant life and a bran ...

economics
,
anthropology Anthropology is the scientific study of human Humans (''Homo sapiens'') are the most abundant and widespread species In biology Biology is the natural science that studies life and living organisms, including their anatomy, ...
and
neuroscience Neuroscience is the of the . It is a science that combines , , , , , and to understand the fundamental and emergent properties of s, and s. The understanding of the biological basis of , , , , and has been described by as the "epic chal ...

neuroscience
, the profession is now widely recognized as a science. Marketing science has developed a concrete process that can be followed to create a
marketing plan A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan so that goals may be achieved. While a marketing plan contains a list of actions, without a sound strategic found ...
.


Concept

The "marketing concept" proposes that to complete its organizational objectives, an organization should anticipate the needs and wants of potential consumers and satisfy them more effectively than its competitors. This concept originated from Adam Smith's book ''The Wealth of Nations'' but would not become widely used until nearly 200 years later. 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: : ''
Needs A need is something that is necessary Necessary or necessity may refer to: * Need ** An action somebody may feel they must do ** An important task or essential thing to do at a particular time or by a particular moment * Necessary and sufficient ...

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 The idea of want can be examined from many perspectives. In secular societies want might be considered similar to the emotion desire Desire is the emotion Emotions are biological states associated with all of the nerve systems brought on b ...
:'' 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. : ''
Demand In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant ...

Demand
s:'' When needs and wants are backed by the ability to pay, they have the potential to become economic demands.
Marketing research Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing Marketing is the process of intentionally stimulating demand for and purchases of goods and ser ...
, conducted for the purpose of new product development or product improvement, is often concerned with identifying the consumer's ''unmet needs.'' 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." 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." Although needs-based segmentation is difficult to do in practice, it has been proved to be one of the most effective ways to segment a market. 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.


B2B and B2C Marketing

The two major segments of marketing are business-to-business (B2B) marketing and business-to-consumer (B2C) marketing.


B2B marketing

B2B (business-to-business) marketing refers to any marketing strategy or content that is geared towards a business or organization. Any company that sells products or services to other businesses or organizations (vs. consumers) typically uses B2B marketing strategies. Examples of products sold through B2B marketing include: * Major equipment * Accessory equipment * Raw materials * Component parts * Processed materials * Supplies * Business services The four major categories of B2B product purchasers are: * Producers- use products sold by B2B marketing to make their own goods (e.g.: Mattel buying plastics to make toys) * Resellers- buy B2B products to sell through retail or wholesale establishments (e.g.: Walmart buying vacuums to sell in stores) * Governments- buy B2B products for use in government projects (e.g.: purchasing contractor services to repair infrastructure) * Institutions- use B2B products to continue operation (e.g.: schools buying printers for office use)


B2C marketing

Business-to-consumer marketing, or B2C marketing, refers to the tactics and strategies in which a company promotes its products and services to individual people. Traditionally, this could refer to individuals shopping for personal products in a broad sense. More recently the term B2C refers to the online selling of consumer products.


C2B marketing

Consumer-to-business marketing or C2B marketing is a business model where the end consumers create products and services which are consumed by businesses and organizations. It is diametrically opposed to the popular concept of B2C or Business- to- Consumer where the companies make goods and services available to the end consumers.


C2C marketing

Customer to customer marketing or C2C marketing represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction. C2C companies are a new type of model that has emerged with e-commerce technology and the sharing economy.


Differences in B2B and B2C marketing

The different goals of B2B and B2C marketing lead to differences in the B2B and B2C markets. The main differences in these markets are demand, purchasing volume, number of customers, customer concentration, distribution, buying nature, buying influences, negotiations, reciprocity, leasing and promotional methods. *Demand: B2B demand is derived because businesses buy products based on how much demand there is for the final consumer product. Businesses buy products based on customer's wants and needs. B2C demand is primarily because customers buy products based on their own wants and needs. *Purchasing volume: Businesses buy products in large volumes to distribute to consumers. Consumers buy products in smaller volumes suitable for personal use. *Number of customers: There are relatively fewer businesses to market to than direct consumers. *Customer concentration: Businesses that specialize in a particular market tend to be geographically concentrated while customers that buy products from these businesses are not concentrated. *Distribution: B2B products pass directly from the producer of the product to the business while B2C products must additionally go through a wholesaler or retailer. *Buying nature: B2B purchasing is a formal process done by professional buyers and sellers, while B2C purchasing is informal. *Buying influences: B2B purchasing is influenced by multiple people in various departments such as quality control, accounting, and logistics while B2C marketing is only influenced by the person making the purchase and possibly a few others. *Negotiations: In B2B marketing, negotiating for lower prices or added benefits is commonly accepted while in B2C marketing (particularly in Western cultures) prices are fixed. *Reciprocity: Businesses tend to buy from businesses they sell to. For example, a business that sells printer ink is more likely to buy office chairs from a supplier that buys the business's printer ink. In B2C marketing, this does not occur because consumers are not also selling products. *Leasing: Businesses tend to lease expensive items while consumers tend to save up to buy expensive items. *Promotional methods: In B2B marketing, the most common promotional method is personal selling. B2C marketing mostly uses sales promotion, public relations, advertising, and social media.


Marketing Management Orientations

A marketing orientation has been defined as a "philosophy of business management."Mc Namara (1972) cited in Deshpande, R., ''Developing a Market Orientation'', Thousand Oaks, CA, Sage, 1999, p. 11 or "a corporate state of mind" or as an "organisation lculture" Although scholars continue to debate the precise nature of specific concepts that inform marketing practice, the most commonly cited orientations are as follows: * Product concept: mainly concerned with the quality of its product. It has largely been supplanted by the marketing orientation, except for haute couture and arts marketing. * Production concept: specializes in producing as much as possible of a given product or service in order to achieve
economies of scale 330px, As quantity of production increases from Q to Q2, the average cost of each unit decreases from C to C1. LRAC is the long-run average cost In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their sca ...

economies of scale
or
economies of scope Economies of scope are "efficiencies formed by variety, not volume" (the latter concept is "economies of scale 330px, As quantity of production increases from Q to Q2, the average cost of each unit decreases from C to C1. LRAC is the long-run a ...
. It dominated marketing practice from the 1860s to the 1930s, yet 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... is still useful in some situations." * Selling concept: focuses on the selling/promotion of the firm's existing products, rather than developing new products to satisfy unmet needs or wants primarily through promotion and direct sales techniques, largely for "unsought goods" in industrial companies. A 2011 meta analyses found that the factors with the greatest impact on sales performance are a salesperson's sales related knowledge (market segments, presentation skills, conflict resolution, and products), degree of adaptiveness, role clarity, cognitive aptitude, motivation and interest in a sales role). * Marketing concept: This is the most common concept used in contemporary marketing, and is a customer-centric approach based on products that suit new consumer tastes. These firm engage in extensive
market research Market research is an organized effort to gather information about target markets A target market is a group of customers within a business Business is the activity of making one's living or making money by producing or buying and selling Pr ...

market research
, use R&D (Research & Development), and then utilize promotion techniques. The marketing orientation includes: ** ''Customer orientation'': A firm in the
market economy A market economy is an economic system An economic system, or economic order, is a system A system is a group of interacting Interaction is a kind of action that occurs as two or more objects have an effect upon one another. The ide ...
can survive by producing
goods In economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant ...

goods
that people are willing and able to buy. Consequently, ascertaining
consumer demand In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
is vital for a
firm A company, abbreviated as co., is a legal entity In law, a legal person is any person A person (plural people or persons) is a being that has certain capacities or attributes such as reason, morality, consciousness or self-consciousness ...
's future viability and even existence as a
going concernA going concern is a business Business is the activity of making one's living or making money by producing or buying and selling Product (business), products (such as goods and services). Simply put, it is "any activity or enterprise entered int ...
. ** ''Organizational orientation'': The marketing department is of prime importance within the functional level of an organization. Information from the marketing department is used to guide the actions of a company's other departments. 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. The finance department may oppose required capital expenditures since it could undermine a healthy cash flow for the organization. * Societal marketing concept: Social responsibility that goes beyond satisfying customers and providing superior
value Value or values may refer to: * Value (ethics) In ethics Ethics or moral philosophy is a branch of philosophy Philosophy (from , ) is the study of general and fundamental questions, such as those about Metaphysics, existence, reason, E ...
embraces societal stakeholders such as employees, customers, and local communities. Companies that adopt this perspective typically practice
triple bottom line The triple bottom line (or otherwise noted as TBL or 3BL) is an accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as b ...
reporting and publish financial, social and environmental impact reports. Sustainable marketing or
green marketingGreen marketing is the marketing of products that are presumed to be environmentally safe. It incorporates a broad range of activities, including product modification, changes to the production process, sustainable packaging, as well as modifying adv ...
is an extension of societal marketing.


The Marketing Mix

A marketing mix is a foundational tool used to guide decision making in marketing. The marketing mix represents the basic tools that marketers can use to bring their products or services to the market. They are the foundation of managerial marketing and the
marketing plan A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan so that goals may be achieved. While a marketing plan contains a list of actions, without a sound strategic found ...
typically devotes a section to the marketing mix.


The 4Ps

The traditional marketing mix refers to four broad levels of marketing decision, namely: ''product'', ''price'', ''promotion'', and ''place''.


Outline

; Product : The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the
end-user In product development, an end user (sometimes end-user) is a person who ultimately uses or is intended to ultimately use a product. The end user stands in contrast to users who support or maintain the product, such as sysops, system administrator ...
's needs and wants. The product element consists of product design, new product innovation, branding, packaging, labeling. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
Brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business Business is the activity of making one's living or making mon ...

Brand
ing, a key aspect of the product management, refers to the various methods of communicating a brand identity for the product,
brand A brand is a name, term, design, symbol or any other feature that identifies one seller's good or service as distinct from those of other sellers. Brands are used in business Business is the activity of making one's living or making mon ...

brand
, or company. ;
Pricing Pricing is the Business process, process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at whi ...

Pricing
: This refers to the process of setting a
price A price is the (usually not negative) quantity Quantity is a property that can exist as a multitude or magnitude, which illustrate discontinuity and continuity. Quantities can be compared in terms of "more", "less", or "equal", or by ...

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
distributionDistribution may refer to: Mathematics *Distribution (mathematics) Distributions, also known as Schwartz distributions or generalized functions, are objects that generalize the classical notion of functions in mathematical analysis. Distr ...
): This refers to how the product gets to the customer; the distribution channels and intermediaries such as wholesalers and
retailer Retail is the sale of and to s, in contrast to , which is sale to business or institutional customers. A retailer purchases goods in large quantities from , directly or through a wholesaler, and then sells in smaller quantities to consumers f ...
s who enable customers to access products or services in a convenient manner. This third P has also sometimes been called ''Place'' or ''Placement'', 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 Promotion may refer to: Marketing * Promotion (marketing), one of the four marketing mix elements, comprising any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or i ...
:This includes all aspects of marketing communications:
advertising Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.William J. Stanton. ''Fundamentals of Marketing''. McGraw-Hill (1984). Sponsors of advertising are ...

advertising
,
sales promotion Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, sales, personal selling, direct marketing and publicity/public relations. Sales promotion uses both media and non-media mark ...

sales promotion
, including promotional education,
public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization An organization, or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British E ...
,
personal selling Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a sale. Many sales representatives rely on a sequential sales process that typically includes nine steps. Some sales representatives ...

personal selling
, product placement, branded entertainment, event marketing, trade shows, and
exhibitions An exhibition, in the most general sense, is an organized presentation and display of a selection of items. In practice, exhibitions usually occur within a cultural or educational setting such as a , , , , , or s. Exhibitions can include many t ...
. This fourth P is focused on providing a message to get a response from consumers. The message is designed to persuade or tell a story to create awareness.Borden, N., "The Concept of the Marketing Mix," ''Journal of Advertising Research,'' June 1964 pp. 2–7; van Waterschoot, W. and van den Bulte, C., "The 4P Classification of the Marketing Mix Revisited," ''Journal of Marketing,'' Vol. 56, No. 4, 1992, pp. 83–93


Criticisms

One of the limitations of the 4Ps approach is its emphasis on an inside-out view. 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 organization's products and messages to the "outside" or external stakeholders.Kerr, F., Patti, C. and Ichul, K., "An Inside-out Approach to Integrated Marketing Communications: An International Perspective," ''International Journal of Advertising,'' Vol. 27, No. 4, 2008, pp. 531–40 In contrast, an ''outside-in'' approach first seeks to understand the needs and wants of the consumer. 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. 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. 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.


Modifications and extensions

To overcome the deficiencies of the 4P model, some authors have suggested extensions or modifications to the original model. Extensions of the four P's are often included in cases such as services marketing where unique characteristics (i.e. intangibility, perishability, heterogeneity and the inseparability of production and consumption) warrant additional consideration factors. Other extensions have been found necessary for retail marketing, industrial marketing, and internet marketing include "people", "process", and "physical evidence" and are often applied in the case of
services marketing Services marketing is a specialized branch of marketing Marketing refers to activities a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, L ...
Other extensions have been found necessary in retail marketing, industrial marketing and internet marketing. * Physical- the environment customers are in when they are marketed to * People- service personnel and other customers with whom customers interact with. These people form part of the overall service experience. * Process- the way in which orders are handled, customers are satisfied and the service is delivered * Physical Evidence- the tangible examples of marketing that the customer has encountered before buying the advertised product * Productivity- the ability to provide consumers with quality product using as few resources as possible


The 4Cs

In response to environmental and technological changes in marketing, as well as criticisms towards the 4Ps approach, the 4Cs has emerged as a modern marketing mix model.


Outline

Consumer (or Client) The consumer refers to the person or group that will acquire the product. This aspect of the model focuses on fulfilling the wants or needs of the consumer. Cost Cost refers to what is exchanged in return for the product. Cost mainly consists of the monetary value of the product. Cost also refers to anything else the consumer must sacrifice to attain the product, such as time or money spent on transportation to acquire the product. Convenience Like "Place" in the 4Ps model, convenience refers to where the product will be sold. This, however, not only refers to physical stores but also whether the product is available in person or online. The convenience aspect emphasizes making it as easy as possible for the consumer to attain the product, thus making them more likely to do so. Communication Like "Promotion" in the 4Ps model, communication refers to how consumers find out about a product. Unlike promotion, communication not only refers to the one-way communication of advertising, but also the two-way communication available through social media.


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 ( Macromarketing), over which a firm holds little control, consists of a variety of external factors that manifest on a large (or macro) scale. These include: economic, social, political and technological factors. 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 Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), producti ...
conditions, health and indicators (such as economic growth,
inflation In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a r ...

inflation
,
unemployment Unemployment, according to the OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de Coopération et de Développement Économiques, OCDE) is an intergovernmental economic organisation with 38&nbs ...
, etc.),
social trendsSocial Trends was a major British annual social and economic survey. History In 1967, Muriel Nissel and Claus Moser started work on "a national survey analysing trends in social welfare", that was to become ''Social Trends'', first published in 1970 ...
/attitudes, and the nature of technology's impact on its society and the business processes within the society. * The micro-environment, over which a firm holds a greater amount (though not necessarily total) control, typically includes: Customers/
consumer A consumer is a person or a group who intends to order, orders, or uses purchased goods, products, or Service (economics), services primarily for personal, social, family, household and similar needs, not directly related to entrepreneurial or bu ...
s,
Employees Employment is a relationship between two parties, usually based on contract A contract is a legally binding document between at least two parties that defines and governs the rights and duties of the parties to an agreement. A contract is le ...

Employees
,
Suppliers In commerce, a supply chain is a system of organizations, people, activities, information, and resources involved in supplying a product (business), product or service (business), service to a consumer. Supply chain activities involve the transfor ...
and the
Media Media may refer to: Physical means Communication * Media (communication), tools used to deliver information or data ** Advertising media, various media, content, buying and placement for advertising ** Broadcast media, communications deliv ...
. In contrast to the macro-environment, an organization holds a greater (though not complete) degree of control over these factors. * The internal environment, which includes the factors inside of the company itself A firm's internal environment consists of: Labor, Inventory, Company Policy, Logistics, Budget, and Capital Assets.


Research

Marketing research is a systematic process of analyzing data that 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 involves gathering information about a particular target 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. (Avoiding the word consumer, which shows up in both, market research is about distribution, while marketing research encompasses distribution, advertising effectiveness, and salesforce effectiveness). Marketing researchers use statistical methods (such as
quantitative research Quantitative research is a research strategy that focuses on quantifying the collection and analysis of data. It is formed from a Deductive reasoning, deductive approach where emphasis is placed on the testing of theory, shaped by Empiricism, e ...

quantitative research
,
qualitative research Qualitative research relies on data obtained by the researcher from first-hand observation, interviews, questionnaires (on which participants write descriptively), focus groups, participant-observation, recordings made in natural settings, docum ...
, hypothesis tests, Chi-square tests,
linear regression In statistics, linear regression is a Linearity, linear approach for modelling the relationship between a Scalar (mathematics), scalar response and one or more explanatory variables (also known as dependent and independent variables). The case of ...

linear regression
,
correlation coefficient A correlation coefficient is a numerical measure of some type of correlation and dependence, correlation, meaning a statistical relationship between two variable (mathematics), variables. The variables may be two column (database), columns of a give ...

correlation coefficient
s,
frequency distributionIn statistics Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industrial, or social problem, it is conventional to begin with a ...

frequency distribution
s, Poisson and
binomial distribution In probability theory Probability theory is the branch of concerned with . Although there are several different , probability theory treats the concept in a rigorous mathematical manner by expressing it through a set of . Typically thes ...

binomial distribution
s, etc.) to interpret their findings and convert data into information. The stages of research include: * Define the problem * Plan research * Research * Interpret data * Implement findings


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. The process is conducted for two main purposes: better allocation of a firm's finite resources and to better serve the more diversified tastes of contemporary consumers. A firm only possesses a certain amount of resources. Thus, 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. Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target, and Position. Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes. Commonly used criteria include: * Geographic (such as a country, region, city, town) * Psychographic (e.g. personality traits or lifestyle traits which influence consumer behaviour) * Demographic (e.g. age, gender, socio-economic class, education) *Gender *Income *Life-Cycle (e.g. Baby Boomer, Generation X, Millennial, Generation Z) *Lifestyle (e.g. tech savvy, active) *Behavioural (e.g. brand loyalty, usage rate) Once a segment has been identified to target, a firm must ascertain whether the segment is beneficial for them to service. The ''DAMP'' acronym is 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 Differentiation may refer to: Business * Differentiation (economics), the process of making a product different from other similar products * Product differentiation, in marketing * Differentiated service, a service that varies with the identity o ...
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 Niche may refer to: Science *Developmental niche{{third-party, date=October 2020 The developmental niche is a theoretical framework for understanding and analyzing how culture Culture () is an umbrella term which encompasses the social behav ...
– in which an organization forges a product to satisfy a specialized target market '' 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 meld with the product's perception among consumers and its position among competitors' offering.


Promotional Mix

The promotional mix outlines how a company will market its product. It consists of five tools: personal selling, sales promotion, public relations, advertising and social media *
Personal selling Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a sale. Many sales representatives rely on a sequential sales process that typically includes nine steps. Some sales representatives ...
involves a presentation given by a salesperson to an individual or a group of potential customers. It enables two-way communication and relationship building, and is most commonly seen in business-to-business marketing but can also be found in business-to-consumer marketing (e.g.: selling cars at a dealership). *
Sales promotion Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, sales, personal selling, direct marketing and publicity/public relations. Sales promotion uses both media and non-media mark ...

Sales promotion
involves short-term incentives to encourage the buying of products. Examples of these incentives include free samples, contests, premiums, trade shows, giveaways, coupons, sweepstakes and games. Depending on the incentive, one or more of the other elements of the promotional mix may be used in conjunction with sales promotion to inform customers of the incentives. *
Public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization An organization, or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British E ...
is the use of media tools to promote and monitor for a positive view of a company or product in the public's eye. The goal is to either sustain a positive opinion or lessen or change a negative opinion. It can include interviews, speeches/presentations, corporate literature, social media, news releases and special events. *
Advertising Advertising is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.William J. Stanton. ''Fundamentals of Marketing''. McGraw-Hill (1984). Sponsors of advertising are ...

Advertising
occurs when a firm directly pays a media channel, directly via an in-house agency or via an advertising agency or media buying service, to publicize its product, service or message. Common examples of advertising media include: *
Social media Social media are interactive technologies that facilitate the creation Creation may refer to: Religion * Creation ''ex nihilo'', the concept that matter was created by God out of nothing * Creation myth A creation myth (or cosmogonic myth) ...
is used to facilitate two-way communication between companies and their customers. Outlets such as
Facebook Facebook is an American online social media and social networking service owned by Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, an ...

Facebook
,
Twitter Twitter is an American microblogging Microblogging is an online Broadcasting, broadcast medium that exists as a specific form of blogging. A micro-blog differs from a traditional blog in that its content is typically smaller in both actu ...

Twitter
,
Tumblr Tumblr (stylized as tumblr and pronounced "tumbler") is an American microblogging Microblogging is an online Broadcasting, broadcast medium that exists as a specific form of blogging. A micro-blog differs from a traditional blog in that its con ...

Tumblr
,
Pinterest Pinterest is an American image sharing and social media service designed to enable saving and discovery of information (specifically "ideas") on the internet using images and, on a smaller scale, animated GIFs and videos, in the form of Bulletin ...

Pinterest
,
Snapchat Snapchat is an American multimedia Multimedia is a form of communication that combines different content forms such as text Text may refer to: Written word * Text (literary theory) Text may refer t ...
and
YouTube YouTube is an American online video sharing and social media platform Social media are interactive technologies that allow the Content creation, creation or information sharing, sharing/exchange of information, ideas, career interests, an ...

YouTube
allow brands to start a conversation with regular and prospective customers. Viral marketing can be greatly facilitated by social media and if successful, allows key marketing messages and content in reaching a large number of target audiences within a short time frame. These platforms can also house advertising and public relations content.


The Marketing Plan

The area of marketing planning involves forging a plan for a firm's marketing activities. A marketing plan can also pertain to a specific product, as well as to an organization's overall marketing strategy. An organization's marketing planning process is derived from its overall business strategy. Thus, when top management is devising the firm's strategic direction/mission, the intended marketing activities are incorporated into this plan.


Outline of The Marketing Plan

Within the overall strategic marketing plan, the stages of the process are listed as thus: * Executive Summary *Current marketing situation *Threats and opportunities analysis *Objectives and issues *
Marketing Strategy Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage In business, a competitive advantage is the attrib ...
*Action programs *Budgets *Control


Levels of marketing objectives within an organization

As stated previously, the senior management of a firm would formulate a general business strategy for a firm. However, this general business strategy would be interpreted and implemented in different contexts throughout the firm. At the corporate level, marketing objectives are typically broad-based in nature, and pertain to the general vision of the firm in the short, medium or long-term. As an example, if one pictures a group of companies (or a
conglomerate Conglomerate or conglomeration may refer to: * Conglomerate (company) * Conglomerate (geology) * Conglomerate (mathematics) In popular culture: * The Conglomerate (American group), a production crew and musical group founded by Busta Rhymes ** Con ...
), top management may state that sales for the group should increase by 25% over a ten-year period. A strategic business unit (SBU) is a subsidiary within a firm, which participates within a given market/industry. The SBU would embrace the corporate strategy, and attune it to its own particular industry. For instance, an SBU may partake in the sports goods industry. It thus would ascertain how it would attain additional sales of sports goods, in order to satisfy the overall business strategy. The functional level relates to departments within the SBUs, such as marketing, finance, HR, production, etc. The functional level would adopt the SBU's strategy and determine how to accomplish the SBU's own objectives in its market. To use the example of the sports goods industry again, the marketing department would draw up marketing plans, strategies and communications to help the SBU achieve its marketing aims.


Product life cycle

The product lifecycle, product life cycle (PLC) is a tool used by marketing managers to gauge the progress of a product, especially relating to sales or revenue accrued over time. The PLC is based on a few key assumptions, including: * A given product would possess introduction, growth, maturity, and decline stage * No product lasts perpetually on the market * A firm must employ differing strategies, according to where a product is on the PLC In the introduction stage, a product is launched onto the market. To stimulate the growth of sales/revenue, use of advertising may be high, in order to heighten awareness of the product in question. During the growth stage, the product's sales/revenue is increasing, which may stimulate more marketing communications to sustain sales. More entrants enter into the market, to reap the apparent high profits that the industry is producing. When the product hits maturity, its starts to level off, and an increasing number of entrants to a market produce price falls for the product. Firms may use sales promotions to raise sales. During decline, demand for a good begins to taper off, and the firm may opt to discontinue the manufacture of the product. This is so, if revenue for the product comes from efficiency savings in production, over actual sales of a good/service. However, if a product services a niche market, or is complementary to another product, it may continue the manufacture of the product, despite a low level of sales/revenue being accrued.


See also


Types of marketing


Marketing orientations or philosophies


References


Bibliography

* Bartels, Robert, ''The History of Marketing Thought,'' Columbus, Ohio, Grid, (1976) 198
online
* * Church, Roy and Godley, Andrew (eds), ''The Emergence of Modern Marketing,'' London, Frank Cass, 200
online edition
* Hollander, Stanley C., Rassuli, Kathleen M.; Jones, D.G. Brian; Dix and Farlow, L., "Periodization in Marketing History," ''Journal of Macromarketing,'' Vol 25, no.1, 2005, pp. 32–41
online
* Tedlow, Richard S., and Jones, Geoffrey G. (eds), ''The Rise and Fall of Mass Marketing,'' Routledge, 2014 * Weitz, Barton A. and Robin Wensley (eds). ''Handbook of Marketing,'' 2002


External links

* * * {{Authority control Business process Marketing, Promotion and marketing communications