Marketing — Definition and Concepts

Marketing Area

Fundamentals

Explanation

Marketing — Core Concepts

AMA Definition

'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.'

— American Marketing Association

Philip Kotler (Father of Modern Marketing)

'Marketing is meeting needs profitably.'

Core Concepts

Needs: Basic human requirements (e.g., food, shelter).
Wants: Specific forms needs take, shaped by culture and personality (e.g., rice vs. pizza).
Demands: Wants backed by the ability and willingness to pay.
Value: The benefits received relative to the costs incurred by the customer.
Exchange: The act of obtaining a desired object from someone by offering something in return.
Market: All actual and potential buyers for a product or service.

Marketing vs. Selling

Marketing	Selling
Customer-oriented	Product-oriented
Identifies needs	Focuses on moving existing products
Long-term	Short-term
Pull strategy	Push strategy