Marketing is defined as the process of developing a reciprocal exchange, including the development of information and promotional materials that stimulate demand.
Marketing has an association attached to it called the AMA, or the American Marketing Association. In their view, marketing encompasses a lot of processes and activities that are involved in delivering and exchanging offerings that have value--to you, to me, and to society at large.
In that same time period, Samsung went from spending $2 billion a year in 2009 to over $4.5 billion. As you can see from the amount of money that companies invest in marketing, it's clearly important to them.
Now, marketing can be a product, a service, or an idea. Marketing is involved with profit businesses and non-profit organizations alike.
EXAMPLEFor example, marketing can involve a product, like Coca-Cola, or a service like tax help from H&R Block, which is designed to help save you money or deal with an audit. Marketing also involves ideas such as anti-drug PSAs, which are designed to help keep kids away from drugs or encourage them not to start.
Value is the corresponding usefulness, practicality, or significance. To put it another way, value equals benefit divided by the cost. What am I getting out of it for how much I'm going to pay for it?
What are the values and benefits of marketing? Marketing can create value for customers. It can inform customers about the benefits associated with a product that they may not already know about. It can describe benefits that are both tangible and intangible.
EXAMPLEMarketing can tout the benefits of tangible things like the breathability of cotton shirts, or intangible things like the coolness or the fit or being able to fit in with your peers when you wear the shirts. An intangible benefit could also be the style and elegance that go along with owning a Rolls Royce automobile. Many times, intangibles are associated specifically with brands, especially high-end brands--like Gucci, Omega, Mercedes, and Rolls Royce.
Next, we'll take a look at utility and the types of utility, such as things like time or the hours of operation. Utility refers to the answers to these types of questions:
The types of utility include:
|Type of Utility||Description||Example|
|Time||When can the consumer buy?||24 hours a day or a business that is operated on the internet provides utility for consumers.|
|Place||Where can the consumer buy?||Fifteen choices in a movie theater or a mall containing a lot of different things in one place provides utility for consumers.|
|Ownership||What benefits does the consumer gain from buying?||Buying a 5.1 stereo system, making movie-watching on a television sound like the theater, provides utility for consumers.|
|Form||What styles can the consumer buy?||A vehicle that has heated leather seats or a coffee shop with free wifi provides utility for consumers.|
Therefore, utility relates to a lot of different things within marketing as a whole. It helps define that benefit: what am I getting out of this particular product or service or idea?
What's the difference between marketing, advertising, and public relations?
EXAMPLEA company might sponsor or host an event or a charity, utilizing their company logo. They may pay for it, or simply provide a space to do it. In doing so, though, they are now associating their product name and company name with that particular charity or event, to build goodwill with the public.
Source: adapted from sophia instructor james howard