Loading the player...

What is 'Marketing'

Marketing refers to the activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure.

BREAKING DOWN 'Marketing'

Marketing is everything a company does to acquire customers and maintain a relationship with them. Even the small tasks like writing thank-you letters, playing golf with a prospective client, returning calls promptly and meeting with a past client for coffee can be thought of as marketing. The ultimate goal of marketing is to match a company's products and services to the people who need and want them, thereby ensuring profitability.

The Four P's of Marketing are Product, Place, Price and Promotion

Product refers to an item or items a business intends to sell. When examining a product, questions should be asked such as, what product is being sold? What differentiates the product from its competitors? Can the product be marketed with a secondary product? And are there substitute products in the market?

Price refers to how much the product is likely to cost. When establishing price, considerations need to be given to cost the unit cost price, marketing costs and distribution expenses.

Place refers to distribution of the product. Key considerations include whether the product is going to be sold through a physical store front, online or made available through both distribution channels?

Finally, promotion refers to the integrated marketing communications campaign. Promotional activities may include advertising, personal selling, sales promotions, public relations, direct marketing, sponsorship and guerrilla marketing. Promotions are likely to vary being dependent on what stage of product life cycle the product is currently in. Marketers must be aware that consumers associate a product’s price and distribution with its quality, and would be prudent to take this into account when devising the overall marketing strategy.

Online Marketing

As of 2015, approximately 70% of U.S. adults shop online at least monthly, and 33% are thought to shop online every week. Online sales in the United States are expected to increase from $335 billion in 2015 to $523 billion in 2020, a staggering rise of 56%. Taking these statistics into consideration, it is vital for marketers to utilize online tools such as social media and digital advertising, both on website and mobile device applications, as well as internet forums. Considering an appropriate distribution channel for products purchased online is also an important step in the process. Online marketing is a critical element of a complete marketing strategy.

RELATED TERMS
  1. Four Ps

    Often referred to as the marketing mix, the four Ps are the categories ...
  2. Promotion

    A promotion can refer to the advancement of an employee's position, ...
  3. Promoter

    A promoter is an individual or company that, for a fee, helps ...
  4. Product Differentiation

    Product differentiation is a marketing process that showcases ...
  5. Advertising Costs

    Advertising costs are a category in financial accounting that ...
  6. Click And Mortar

    Click and mortar is a type of business model that has both online ...
Related Articles
  1. Personal Finance

    Comparing Online And In-Store Prices

    While every retailer is different, there are several factors that affect where you'll get a better deal.
  2. Personal Finance

    Shopping Online: Convenience, Bargains And A Few Scams

    Shopping from the comfort of your couch has major benefits - and some unpleasant side effects.
  3. Personal Finance

    Four Online Shopping Alternatives To Amazon

    There are several alternatives when it comes to online shopping. The more you know about the reputation of the vendor and the quality of the product, the better your purchase experience will ...
  4. Investing

    "Online Sales Ratio" Key To Retail Success

    Some retailers are putting up some amazing numbers online, and it could point towards successful retail plays.
  5. Small Business

    7 Companies With Big Advertising Budgets

    Here's what the corporations with some of the biggest advertising budgets in the U.S. spend their money on.
  6. Small Business

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  7. Personal Finance

    5 Pitfalls Of Online Shopping

    There are definitely some advantages to shopping online. But are they enough to overlook these downfalls?
  8. Small Business

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  9. Small Business

    Implementing A Small Business Social Media Strategy

    As social media continues to change the way people communicate, it has become an increasingly important tool for small businesses.
  10. Tech

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against their brick-and-mortar peers. Find out what internet banks have to offer and where they fall short.
RELATED FAQS
  1. What are examples of key operating activities in a company?

    Discover the things that make up a company's operating activities, including examples of some the key operating activities ... Read Answer >>
  2. What is the difference between a direct and an indirect distribution channel?

    Learn about the primary differences between direct and indirect distribution channels, and under what circumstances a company ... Read Answer >>
  3. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  4. How does Twitter make money?

    Learn how Twitter earns revenue, including how the social media company uses three targeted advertising streams, data farming ... Read Answer >>
Hot Definitions
  1. Yield Curve

    A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but ...
  2. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  3. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  4. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
  5. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  6. Current Assets

    Current assets is a balance sheet item that represents the value of all assets that can reasonably expected to be converted ...
Trading Center