10-minute guide on What is Marketing

10-minute guide on
What is Marketing
General Marketing
“Marketing is the
management process
responsible for
identifying,
anticipating and
satisfying customer
requirements
profitably”
Marketing is a term that is familiar to most people but few understand. Sales, advertising and PR are often associated with marketing; however, they only represent elements of marketing as opposed to the broader concept of marketing. This 10 minute guide provides you with a basic overview of what marketing entails. It serves as an introduction to the other 10 minute guides in the general marketing section which will explain what the core concepts of marketing are and why it is so important for both small and big businesses. Definition: The UK Chartered Institute of Marketing defines marketing as “the management process responsible for identifying, anticipating and satisfying customer requirements profitably”. This emphasises what can be read in every book you come across about marketing: customers, or human and social needs, form the core around which marketing is based. Although the customer should be your central focus in all your marketing activities and you want your customer audience to be as wide as possible, you simply cannot serve every customer out there. Ingredients for Success To succeed in business you have to: • Offer your product • To a specific target group of customers • At a price that these customers are willing to pay • Based on their perception of the value • But at the same time at a cost that allows you to profit from it This is not a simple task but takes some time and effort. The following helps you to increase your chance at being successful. You need to: • Undertake research (know your environment) • Define a strategy (a vision) • Make a plan (‘how’ you will do it, high‐level steps) • Identify the tactics (‘how’ you will do it, concrete activities) • Measure your results (understand what works) 10-minute guide on
What is Marketing
General Marketing
Conclusion: marketing is more than sales Many people think that sales and marketing are basically the same, however, these two concepts are different in many aspects. Hopefully, the above information took away the common misconception that marketing is the same as sales. Actually, marketing is more than just sales. This will become clear after reading some more of the 10 minute guides on specific marketing topics. To clarify the difference between sales and marketing; Marketing covers advertising, promotions, public relations, and sales. It is the process of introducing and promoting the product or service into the market and encourages sales from the buying public. Sales refer to the act of buying or the actual transaction of customers purchasing the product or service. In essence, marketing creates the demand for sales. Sales vs. Marketing Sales Marketing Starts with the product Starts with the customer Inward orientated Outward orientated Focus on short‐term revenue Focus on long‐term profitability Focus on one aspect of the organisation Considers all aspects of the organisation The following mnemonic can help to understand the different elements marketing consists of: Maintain quality/price relationship Always listen to customers Remember to offer them what they need; those are the needs your business is trying to satisfy (talk about needs instead of wants) Know who you target to be your customer Explain benefits not features Talk to your customers on how (through which channels) you will service them Indicate what makes your business different from your competitors Never let them lose trust in your capabilities or intentions Grow your market share – profitably Ask your Account Executive for more info on the Spotlight Programme. Further readings 10 minute guide on The Marketing Mix 10 minute guide on What Marketing can do for your Brokerage 10 minute guide on Marketing Research Reference Ashridge Marketing Pocket Guide