Marketing Definition

Marketing as a definition has evolved over the years with the changing analysis and conceptualization of marketing. Marketing has been defined with respect to its function and its activities. The definitions of Marketing according to American Marketing Association (AMA) has changed as follows:

1948 :“Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers or user”

This definition focuses on the distribution part of marketing and in this definition the term consumer appeared for the first time.  

1985 :”Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives”.

In this definition, we can see the management part of marketing present in the words “planning and executing”, but the controlling, leading and organizing parts of management are missing from this definition.

AMA – 2004: “Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”

In this definition the focus is on the stakeholders and organization on the whole. The phrase “set of processes” is good in that it covers the idea that marketing is not a single event but rather a combination of many activities

AMA – 2007: “Marketing is 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.” 

In this definition the marketing is defined as an activity, where it surpasses the organizational frame, including the role marketing plays within society at large, or as a broader activity than the previous one did,  in addition to the phrase “set of institutions, and processes” ,  where it includes the managerial part of the definition

Other important definitions:

Fred E. Clark – 1925 :“those efforts which effects transfer in the ownership of goods.”  

This definition illustrates the concept of marketing at that time, not involving customers’ needs, value or satisfaction

Levitt – 1960: “Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the consumer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it”

This definition shows the evolution in this era where the marketing concept starts, as it talks about satisfying consumer needs instead of the producer needs, segmentation, targeting and positioning presented by the word “creating”, also product, price and place were presented by  the word “delivering”.

During and post Industrial Revolution the standard of living of the people improved. This led to the increase in the demand of products. Since the production was less, the availability of products to the consumers was considered as the success of the business. Gradually when the availability was not a concern, the quality was the main focus. Later when quality and availability were not the key elements of business survival convincing consumers to buy the product came into picture. Marketing today implies that the consumer is satisfied.