Learn It and Write It

There are many definitions of marketing however, the most appropriate and effective definitions are more focus upon the customer’s orientation and their needs and wants satisfaction. 

Here are some marketing definition developed bounding with the customer orientation and their needs and wants. 

1. Philip Kotler & Armstrong (2010) 

    1.1. Marketing is the social process by which individuals or organisations obtains what they needs and wants through creating and exchanging value with each other. (Kotler & Armstrong 2010). 

===> This definition is based upon a basic marketing exchange process and recognition the importance of the value to customers. 

     1.2. The process by which companies create values for customers and build strong relationship in order to capture value from customers in return. (Kotler & Armstrong 2010). 

===> In this definition, Kotler and Armstrong developed the original recognition to define the importance of the long term relationship with customers achieved by the relationship marketing (CRM) 

2. The Chartered Institute of Marketing (CIM) 

Marketing is the management process of defining, anticipating and satisfying customers requirements profitably. 

===> CIM’s marketing definition is not only at identifying the customers needs or requirements but also satisfying them (in short term) and anticipating them in the future (long term retention). This is highlighted the necessary of a marketing process with marketing objectives and outcomes. 

(CIM is recognised as being one of the most influential marketing bodies in the world which is the professional body of marketing in United Kingdom). 

3- American Marketing Association (AMA) 

Marketing is the activity, set of institutions and process of creating, communicating and delivering and exchanging offerings that have value for customers, clients, partners, and society at larger (approved by October 2007). 

===> This definition is in common with Kotler & Armstrong (2010) one. The AMA’s definition is concentrated on value creation and delivery and the long term retained customers. 

4- Baker 1976 

The enigma of marketing is that it is one of man’s oldest activities and yet it is regarded as the most recent of business disciplines (Baker, 1976). 

===> This definition identified that marketing has always been a part of business and it is a myth of a purely contemporary idea. 

Explanation and evaluation each definition  

1. Kotler & Armstrong 2010

1.1. There are some important term defined as

Social: Marketers are looking at people, the community and the interactions between people. As aforementioned the better marketing definition is focused on customers orientation and satisfaction of the customers needs and wants. 

Process: the process mentioned here is not about the process of manufacturing a products, in which the customer relationship is considered to be enhanced. It is about moving consumers from point A to B, C, D and so on and investigating for their decisions and behaviours. 

Terms of needs and wants: there are different here between needs and wants. We needs air to breath, foods and water to survive (Physical Needs or Basic Needs in Maslow’s Hierarchy of Needs). However, for example when we look at a brand products as Apple’s Iphone :

- Do we need to communicate?

- Do we want to communicate? 

- Do we need to take picture? 

- Do we want to take picture? 

Thus, somehow needs and wants have certain differences and when examined under a brand like Apple Iphone and you may appreciate that what perhaps was a want or a requirement but not a fundamental needs. For instance, we need a small phone to communicate with our friends and relatives, or more higher needs of downloading the apps to manage the daily diaries or schedules. 

Needs and wants are varied and interchangeable in the marketing perspectives under different circumstances and customers segmentation.  

Exchange process: actions of exchanging goods or services for other goods and services or using the means of exchange as money, debit, credit cards and so on 

Value: this is vital because adding value is often term of management. However, value to organisations and customers are two different aspects which values they are willing to pay for to attain. 

For instance, a pair of jeans may costs around £8 to manufacture. This will be very cheap to be sold in hypermarket or supermarket which they probably cost around £20.  

However, many customer are going or wiling to buy a Diesel jeans or the highly brand value products, they may pay £100 up to £150 for the same product range as a pair of jeans. 

This is because in there, with the good brand value products, its presumed that value not only the good quality, and materials but also a prestigious brand associated with their self-esteem needs as to be respected, recognised, admired, ect.... (Maslow’s Hierarchy of Needs)  

1.2. Key terms: 

Process: mentioned above in 1.1 part 

Value: mentioned above in 1.1 part

Building and retaining relationships: This is fundamental to modern marketing with the term of relationship management. Definitely, long term relationships with customers will be huge profitable and beneficial to any organisations when maintaining the existing relationships is always more efficient and cost and time-effective than building new relationships. 

For example: we all have relationships with our family, partners, relatives and friends, and those relationships are tended to be evolved and enhanced to be better and closer over time. This perspective is also similar to a company in which, the existing customers relationship will be improved over time by effective CRM process to capture the loyal customers who brings world of values for company in term of their profiles, social relationships, interactions and responses. 

2- The Chartered Institute of Marketing (CIM) 

Process: mentioned above in 1.1 part

Needs/requirements: mentioned above in 1.1 part 

Identifying: classified what customers needs and wants 

Anticipating : it is about improving the longer term relationship with customers by anticipating their needs and wants may be in the future. Anticipation is indispensable in the CRM process. 

Satisfying: fulfil customers needs and wants through the products, services and solutions to their problems. 

For example: In case of Apple’s Iphone

- Identifying:  what are customer needs? 

They need a phone to communicate 

They want a modern smart phone with more apps for entertainments and management functions. 

- Satisfying: needs and wants are satisfied by a fabulous smart phone as Iphone. 

- Anticipating: investigating and forecasting what are customers expecting or requiring in the future? More apps, better IOS operating systems, more privacy and safety, more luxury in appearance and so on. By which, Apple upgrades and launches its new products each 6 months with always more modern and newer version which have solutions for the weakness and defections of the old one (Iphone 4, 4S, 5, 5S, 6, 6S,... etc) 

3- American Marketing Association (AMA)

This definition is comprised lots of Kotler & Armstrong (2010) term and also favourable of the CIM’s definition however AMA takes it more global and sociable perspective. 

Process: mentioned above in 1.1 part

Exchange offerings: mentioned above in 1.1 part

Values: mentioned above in 1.1 part

Customer, clients, partners, society: more global and sociable perspective in exchanging values, offerings and CRM process. 

Creating, communicating, delivering: create values, communicate and inform to customers and delivery the values to them.  

4- Baker 1976

Man’s oldest activities: marketing is not new or recent-talk topic. It was developed from long time ago in the history. In the past, simply, people exchange the goods to other in order to gain their needed products, no exchange means as money, cards, etc... involved but it is basically a from of marketing. Until now, the concept of marketing is more complex and has more perspectives or aspects to address. 

As a business owner, identifying the appropriate marketing strategies is committed to their success or failure. 

Known the suitable business strategies and researched about the competitors’ status, business, scope and strategies are also recommended. There are some common questions are underpinned: 

- Who set your price?

- Who determine your market share? 

- Who determine your profit level? 

- Who determine how far you go? 

- Who determine your future? 

All of those dimensions are close related to your competitors. Your competition in the market place somehow determines everything as your level of sales, the prices you charge and how much money you make. Therefore, it is very dangerous to ignore your rivals, how big they are and what are their strategies implementation. No strategies actually is well made in the business without clearly and carefully thinking about your competition as who are they? what do they do? why do people buy from them? how can I get customers to buy from me instead of rivals? How do they react if I get the customers?. That is all you need to define to deploy your competitors capacity and performance levels.   

An effective marketing strategies should not be independent with the competitors investigation and understanding. 

Thus, in complement with the competition study, here is four principles of marketing strategies 

1- Specialisation: products and services 

2- Differentiation: USP, competitive advantages

3- Segmentation: grouped customers 

4- Concentration: efforts & capacity put on targeted segments 

1- Specialisation: products, services, customer, market, or area of technology which you will focus. So, specialisation can be a product, service or a particular customer who you do want to serve or it also can be a particular market area that you want to work in. 

eg: McDonald who customers want to eat quickly and their expected efficiency in values, prices and pleasant. Thus, Mc Donald tends to offer all of their products to those busy customers who want to eat quickly and efficiently in other word those are McDonald targeted segment. 

2- Differentiation: competitive advantages and how your business can be different from your competitors? informing the customer why they should buy from you rather than the competitors? How, why , where, when are you different?

If you can identify and create your competitive advantage which cannot be modified by other competitors, the customers will be more attracted to your products or services offering. As a result, you can make more sales, more money in the year and also have longer customer lifecycle which you offer clear competitive advantage conveyed to your customers. 

Moreover, differentiation is also defined by your area of excellence and superiority which are the things you do better than anybody else. This is to answer the question that why your products is better? which could be quality service, professional staffs....how ever these are too general which also be claimed by any other competitors. In this term, you should be very clear about your ability, capacity and affordability to create the superiority which are aware and accepted by customers. For example, decades ago, Steven Jobs who looked at blackberry phones and brainstorm of why we do not create a phone with only one button. In that time, many people say it is impossible that any phone would be activated with one button. However, then it will be a true beside the story of can’t be done people. Moreover, after that, Apple generates world of Apps for their phone which instigate and evolve the customers habits and reactions toward the smart phone era. Until now, Apple still is on top of the smart phone and mobile industry which offer world of amazing apps to customers which their competitors find more barriers to entry and compete. 

USP is your Unique Selling Preposition which is the one thing that no competitors or any other manufactures in your industry can provide all over the world. This is unique and specific and cannot be modified such as each person is unique because there is only one of you in the entire world with your appearance personality and so on. Therefore, any business wants to gain their competition advantage, there is a must to create and obtain the USP which will be advertised, promoted, conveyed and informed to the target customers.  

eg: with the innovation of an Ipad which is not simply a big iphone but it has been considered as a small computer with around $500. This is not a small amount of money for a device if people does not like it. However, with the Ipad, it seems to be you can do everything on this portable tablet such as reading books, writing documents, prepare a presentation slide, answer the email, and so on which in this time, not many device can bring lot of value like that to customer which should be the USP and until not Apples still save, retain and upgrade its USP with the very capable and smart IOS operating system on their smart devices. Especially, with the supply of Ipad devices and ebooks components, the book industry in US recently is strongly compromised to their sales and revenues dropping. 

What happened to your USP creation if you provide the same products and services profiles to customers in comparison with the whole industry such as a real estate agent. In this case, you will have very same possessions, houses, buildings in each locations around 100 miles area with your competitors. So your USP should focus on your personality (yourself) which is preparation, functionality, warm, phone call, management, follow-up, notes, customers services, contact, ....which bounds with superior quality to build the close relationship between home buyers and home sellers in the industry so customers will not shift to any other real estate agency because you are good at what you do and high level of customer care. You do not to provide them discount but the good care, customers will eagerly come back to you. 

A great question in differentiation is that: “where are you or could you be the best?” Any people or any business could be in the best in one field or something. The solution is to finger out which is your best to maintain and improve it over time. For example, Lady Gaga, she is amazing singer with the very unique dress style, appearance, strong voices and mysterious music performance which classifying and differing herself to any other singer in the world. When she was 25 years old, she was on the top of 10 young singer with the highest income (60m dollar) and awards. 

3- Segmentation: who are the specific customers in the market? who values my area of differentiation? who will pay more for my area of specialisation than any body else? 

Thus, segmentation is segmenting and identifying those customers who most likely to buy from you. Who are those customers who most appropriate your area of superiority? What are their demographics? What are their psychographics? How would you describe your perfect customers? 

- Demographics: age, gender, education, income, position, occupation, location, family status. Thus, if you change your demographics, you may also change the entire target customers and segments to search for the better appropriate demographic targeted groups.  

eg: IBM’s first target customer is the president of the company who needs to make the strategic decision and required to put everything or documents on their computers rather than using duplicated papers. Moreover, they also need to make presentation to the senior executive of the company for the better project outcomes, so computers will  be more and more familiar to them as PC, desktops then laptops and so on. After that, IBM recognised that the decision marketing is shifting to the purchasing managers of the large company, so the whole marketing scope of IBM changes to the purchasing managers. IBM researched about how purchasing manager thoughts, decisions, and behaviours, communicate, income, demographic, .... which will be targeted. As a result, IBM in the past be the biggest percent of sale company in the computer industry in the world because they know their customers. However, up to now, IBM market share has dropped quickly due to high levels of competitors and other influence factors.    

- Psychographics: needs, wants, motivations, goals, ambitions, hopes, dreams, aspirations, fears, doubts, worries, problem to be solved? (PTBS). Eg: What they want to be in the future and how your products help them to get there and so on? How can you solve the customer problems when they use your products or services? such as: pain relief stickers after exercises 

All of your advertising, promotions and business activities should be around customers scope, need and wants. 

For example, a restaurant put the very simple bill board as Hungry! turn right here! This is very simple but directly punch to the customers need and problems solving if they feel hungry, they will have very positive response. This is direct and straight forward problem solving case as “Want foods, turn now!”. 

4- Concentration: focusing on the target segment which do you very well to serve them which you will focus all of your energy on them. 

This is where you focus your time, money and resources toward your targeted segment: 

- What are the best possible ways to contact your ideal customers? 

- What are the best possible media to reach them? 

- What are the most powerful appeals? 

In marketing, the word customer and consumer are almost used interchangeable. However, there are some different between two term customer and consumer. To be more specific, a customer is a person or company who purchases goods and services. Then a customer will become a consumer when he or she uses or consumes the goods and services. 

Customers can be categorised as B2C, B2B, C2B, or C2C 

- B2C stands for Business-to-Customer. For instance, when a customer who buys clothes from a shop which specified as a individual customers who buy products from a business provider as shopper. 

- B2B stands for Business-to-Business. For instance, a shopkeeper who use the services of an accountant agency to write his tax return. 

- C2B stands for Customer-to-Business. For example, an individual sells his or her guitar to a music store. 

- C2C stands for Customer-to-Customer where customers sell goods to each other such as eBay where consumers sell goods to other consumers. 

A Marketing Oriented Approach  

A marketing orientation underpins marketers focus on the customer or consumer and their needs and wants. The market orientation occurs as a results of all of the people from within the business from the managing director to the receptionist making the satisfaction of customer needs and wants their whole reason for being. 

The benefits of a marketing orientation centre on the fact that customers can be grouped into different segments and each segment can deliver profits to the organisation. Beside that, customers also need information about products and services and how to use them. 

As a result, we can define a consumer as an individual who (buys and) uses a product and service. Thus, a consumer could be the customer that goes into a shop to buy the sweets. However, the final consumer may not always be the customer. For example, a parent goes into the sweet shop and buys some sweets however, he or she does not eat them and so they are not the consumer. Consequently, their children would eat the sweets and be the consumer, although he or she did not buy the sweets and so they are not the initial consumer. 

Marketer should know the difference between a consumer and a customer to design communications and understand the consumer behaviour of the person that instigates and influences a buying decision as well as the final consumer. As aforementioned, the child will impact the mother’s decision on which sweets to buy. However, it can be much more subtle, when a wife might influence the clothing choices of her husband, or a child might influence their family’s choice of a holiday destination.  

Customer needs and wants 

Obviously, the terms customer and consumer are often interchanged. Therefore, with the definition of marketing, marketer will aim to anticipate the needs and wants of consumers or customers. Needs and wants may differ under cases.