What is Marketing?
It does seem like everyone has a vague idea of what it means, usually involving 4 or more Ps.
Well, I personally feel a need to jump into the mix and drop in my own working definition so as to form a framework to build the rest of this blog upon. Of course, all the economics I knew I left behind after my A-levels so here goes .
In every market, there are at least 2 entities involved, lets call them the consumer and the corporation. They have different priorities.
The Customer wants maximum value and the corporation desires maximum profit. However, maximizing one would naturally mean minimizing the other. Hence the dilemma.
As we can see, both entities seek to maximize what they desire.
If the point where they meet is A, the customer is happy and has derived great value from the purchase however, the corporation, in all probability has lost money on the transaction and in keeping it up would eventually cease to function.
If they meet at point C, the corporation has made more profit but the consumer has been forced to compromise on value and in doing so, has not derived much satisfaction out of the transaction ensuring that there is no return business and not much in the way of sales.
The ideal in this situation is B then where they meet halfway, and both compromise the same amount . However, this point, is but a figment of an imagination because Demand, as we learn from school is unlimited and supply, is limited. therefore the battle rages on.
Point to note, in the absence of any other factors, price, becomes the main currency of value. the whole concept of VALUE is derived from either, how much did I spend OR, how much did I make.
Which is where marketing comes in.
Marketing in this case, is the great mediator.
We do not seek compromises, rather we seek to MAXIMIZE on both sides and give them what they desire.
Marketing done right helps deliver value to the consumer in all its varied forms, in price, in a perception of uniqueness, as a function of being involved in a tribe, in a sens of getting mroe than what was paid for, in really good customer service, in time saved and a million other factors that communicate value.
For the corporation, Marketing has the aim of course of increasing value. two of the greatest weapons in the arsenal are called, UP-SELL and CROSS-SELL. Both of these increase the bottom line but when done corrrectly, they are both tools that can be used to add value to the customer.
With marketing done right, everybody wins.
And there you have it , a working definition.