Project 1: Researching Consumer Buying Behavior

Learning Topic

Marketing Definitions

One of the most important functional areas in business is marketing, as it

deals with customers more than any other function. Companies such as

Google, Swiss Bank, Deutsche Bank, Gucci, Airbus, Apple, McDonalds,

and Toyota have a passion for understanding their customers and

satisfying their needs in "well-defined target markets" (Kotler &

Armstrong, 2014, p. 4). Basically, marketing is a managerial and social

function through which companies and consumers create and exchange

value.

The American Marketing Association (AMA) defines marketing as "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" (AMA, 2013, para. 1).

Kotler and Armstrong (2014) define marketing as the "process by which

companies create value for customers and build strong customer

relationships in order to capture value from customers in return" (p. 5).

On the other hand, Kotler and Keller (2015) define marketing

management as the science and art of selecting target markets, and the

practice of acquiring, maintaining, and growing customers through the

creation, delivery, and communication of superior customer value—all

while maintaining profitability.

Remember, marketing is not selling; selling is

just a component of marketing!

The Marketing Process

Selecting a product or a service to develop is a demanding process that

requires cross-functional teams to research, select, develop, and launch

new products. In addition, the company needs to evaluate the

attractiveness of a new business. Sometimes the company may seek

external help to develop a new product, as it may lack the necessary

technical expertise, market knowledge, or resources, or may simply want

to spread the financial risk involved (i.e., open innovation, or innovation

using strategic alliances.)

The marketing process involves five steps (Kotler & Armstrong, 2014, p.

5):

1. understanding the marketplace and consumer needs and wants

2. designing a consumer-driven marketing strategy

3. constructing an integrated marketing program that delivers

superior value

4. building profitable relationships and creating consumer satisfaction

5. capturing value from customers to create profits and customer

equity

To effectively engage in the marketing process, a business needs to

understand the following elements:

1. consumers

2. how to acquire market knowledge (primary and secondary research)

3. how to turn that knowledge into products that are needed and

wanted by a group of consumers

4. how to create market offerings that not only create value for the

consumer but profitability for the organization

5. how to accomplish these tasks while being socially responsible and

engaging in ethical behavior

Furthermore, there are five major customer value themes (Kotler &

Armstrong, 2014, p. XVI):

1. creating value for the consumer in order to capture value from

them in return

2. creating and managing strong local and global value-creating

brands

3. capitalizing on new marketing technologies, such social media (i.e.,

digital marketing)

4. assessing and managing return on marketing investment

5. sustainable global marketing

References

AMA. (2013). Marketing definition. Retrieved from www.ama.org

Kotler, P. & Armstrong, G. (2014). Principles of marketing (15th ed.).

Upper Saddle River, NJ: Pearson.

Kotler, P., & Keller, K. (2015). Marketing management (15th ed.). Upper

Saddle River, NJ: Pearson.

Resources

What Is Marketing?

(https://leocontent.umgc.edu/content/umuc/tgs/mba/mba64

0/2212/learning-resourcelist/what-is-marketing.html?

ou=922430)

Crafting a Digital Marketing Strategy

(https://leocontent.umgc.edu/content/umuc/tgs/mba/mba64

0/2212/learning-resourcelist/crafting-a-

digitalmarketingstrategy.html?ou=922430)

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