05. What is included in Marketing?

Some business people who don’t understand marketing think of marketing as ‘the art of selling products’, or simplistically equate it with advertising. Both of these are marketing tactics visible to the consumer.

Many people are surprised when they hear that selling is not the most important part of marketing and that not all companies have large advertising budgets. Selling and advertising are only the tip of the marketing iceberg.

Most of what occurs in marketing happens before the customer sees an advertisement (which is just the tangible representation of the marketing strategy), hears about a new product or service or meets a sales representative.

Just like an iceberg, over 80 or 90 per cent of marketing occurs out of the sight of the consumer. Advertising, sales and so on are the final rather than the beginning stages of marketing.

As Ralph A. Clevenger / Corbis puts it:

The main focus of marketing is on what occurs below the waterline rather than above it. These are all the decisions that marketers make before the product or service comes to the market, and afterwards to maintain its position in the market. Non-marketers are inclined to think that marketing is only what occurs above the line.

Peter Drucker, a leading management theorist, describes the process of marketing this way:

‘The aim of marketing is to know and understand the customer so well that the product or service fits him/her and sells itself.’ Ideally, marketing should result in a customer who is ready to buy. All that should be needed then is to make the product or service available.

When Sony designed its PlayStation 3 game system, when Apple launched its iPod, and when Toyota introduced its Prius hybrid car, these companies were swamped with orders because they had designed the ‘right’ product or service, based on executing and managing carefully designed and complete marketing programmes.

Toyota Prius Plugin Hybrid On The Charging Station Stock Photo - Download Image Now - iStock

Innocent drinks has successfully marketed a product to customers who are looking for a healthier diet. Eight years after launching Innocent drinks the company has a turnover of £75 million. It has captured a 71 per cent share of the £169 million UK smoothie market, with over 2 million smoothies sold per week. Innocent drinks is expanding into other European countries including Ireland, Holland, France, Denmark and Belgium. Innocent’s vision, in the words of co-founder Richard Reed, is ‘to be Europe’s favourite little juice company’.

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