58. Marketing

Several definitions have been proposed for the term marketing. Each tends to emphasize different issues. Memorizing a definition is unlikely to be useful; ultimately, it makes more sense to thinking of ways to benefit from creating customer value in the most effective way, subject to ethical and other constraints that one may have.

The 2006 and 2007 definitions offered by the American Marketing Association are relatively similar, with the 2007 appearing a bit more concise. Note that the definitions make several points: A main objective of marketing is to create customer value. Marketing usually involves an exchange between buyers and sellers or between other parties. Marketing has an impact on the firm, its suppliers, its customers, and others affected by the firm’s choices.

Marketing frequently involves enduring relationships between buyers, sellers, and other parties. Processes involved include “creating, communicating, delivering, and exchanging offerings.” The central idea behind marketing is the idea that a firm or other entity will create something of value to one or more customers who, in turn, are willing to pay enough (or contribute other forms of value) to make the venture worthwhile considering opportunity costs.

Value can be created in a number of different ways. Some firms manufacture basic products (e.g., bricks) but provide relatively little value above that. Other firms make products whose tangible value is supplemented by services (e.g., a computer manufacturer provides a computer loaded with software and provides a warranty, technical support, and software updates).