What
is Marketing?
Go ahead. Ask 100 people, "What is
marketing?" If you do, I bet you'll get 100 different answers. Here is a
sampling of the answers you might get:
·
Advertising on TV, on the
radio, or in magazines
·
Creating a brand for a
company, including its logo and a catchy slogan
·
Creating a brand for a
product, including the name of the product and the design of its package
·
Selling/Sales
·
Conducting focus groups to
find out what people think of your product or your company
All of these are valid answers. Anyone who does
one of these jobs could legitimately say they work in marketing. But these
answers still don't give us a good definition of marketing.
The way I define marketing is anything you do to
get or keep a customer. Is that broad? Yes! Too broad? No.
Did you know that it costs 2-10 times as much to
sell to new customers vs. existing customers? Because of this, we must focus on
keeping customers as well as getting customers if we are to run a successful
business!
Marketing is composed of three distinct elements.
·
Research: Understanding
what customers (or potential customers) want
·
Product Development:
Creating products, services and experiences that satisfy those desires
·
Communication: Letting
customers know that your products and services will satisfy their desires
When answering the question, "What is
marketing?" most people focus on just the communication element. That's
why they think of advertising and sales.
Peter Drucker said, "The aim of marketing
is to know and understand the customer so well the product or service fits him
and sells itself." That perfectly describes what should be happening in
the Research and Product Development stages.
Let's talk about the word "anything"
from my definition. I literally mean anything at all that a business does to
get or keep a customer. Here's a simple example.
What is Marketing - A Simple Example
In this example, you own a clothing store that
sells business clothing to overweight women. The first thing you must do is
understand your customer. Most women would prefer to be thin. For your
customer, being overweight is a source of stress and low self-esteem. She wants
clothing that fits, looks good, and gives her confidence in her body image.
Understanding these things about your customer,
you develop products and services to satisfy her desires. First, you focus on
the shopping experience itself. You leave lots of space between the clothing
displays so she can move around easily. Nobody likes a cramped store, and the
problem is only heightened when all of your customers are overweight.
Next, you name your store something that sounds
classy - something a professional woman would be proud to say out loud when a
friend asks her where she bought the pant suit she is wearing. Would she rather
say she bought it at "Hoochie Mama's Haberdashery" or at "Ashley
Emerson?" I think we both know the answer to that.
Finally, you do something ingenious. You change
the sizes of your clothing. All the labels of your clothes reflect a size that
is two sizes smaller than reality. Imagine your customer telling her coworker
confidently, "Usually I wear a size 16, but the clothes at Ashley Emerson
are designed for larger women. At Ashley Emerson, I wear a size 12."
Your customer is beaming with pride as she tells
her coworker about your store. She's a raving fan - the best kind of
advertising you can get! Most people don't think of changing labels in clothing
as "marketing". That's what I mean when I say marketing is anything
you do to get or keep a customer.
Is that lying? No! You are free to size your
clothes however you like. It's your business, and a savvy business person will
give the customer what she wants. In this case, you are not just selling
clothing. You are selling self-esteem and confidence. Do you see the difference?
What is Marketing - Summary
So, what is marketing? It's...
·
Understanding what your
customer really wants (hint: think beyond the obvious)
·
Creating products, services
and experiences that satisfy those desires
·
Communicating with your
customer to let them know you have a solution to their problem
Dave Smith is CEO of
Functioan Marketing and is amarketing
strategy consultan for small
businesses and entrepreneurs. He specializes in strategy, business joint
ventures, systems/processes and information analysis. He sometimes accepts
payment in product, which is why he jokingly says he "will work for
food." Visit his website to learn more about his 100% risk-free marketing
services.
