The Definition and Scope of Marketing - Essay Example

In addition, the scope of the definition of marketing identifies a dual approach to information transfer between an entity and its stakeholders (Taylor 2010, p. 152).

Many definitions however exist for marketing. CIM, for example, defined marketing as follows.

Marketing is ‘the management process of anticipating, identifying, and satisfying customer requirements profitably.’

This definition is valid because it identifies with the American Marketing Association’s (AMA’s) definition. The CIM’s definition of marketing focuses on customers’ utility and organizations’ profitability. Even though the AMA’s definition does not focus on profit motive for an organization’s engagement in marketing, this is trivial from the scope of corporate ventures that profit motive drives. Such a scope validates CIM’s definition of marketing as a strategy to profit optimization by a business organization and is consistent with organizations’ initiatives for efficiencies and effectiveness that can result in low production costs for higher profit margins and economies of scale advantage. CIM also identifies customer utility as a driver to marketing initiative and this is reflexive of the definition of marketing according to AMA. According to AMA, the focus of marketing is to meet customers’ needs, at individual and societal levels. The CIM’s definition of marketing also identifies, though not directly, associated activities with marketing that AMA outlines. Anticipating and identifying customers’ needs, for example, involves exploration of background information into customers’ needs for the creation of information or commodities while satisfying such needs relates to communication and transfer of utilities for customers’ satisfaction. CIM’s definition is further consistent with AMA’s previous definitions of marketing that identified focus on business undertakings and development of values for customers. With the reliability of AMA as an information source on marketing, the CIM’s definition is valid and reliable because it corresponds with AMA’s key features of the concept and meaning of marketing (Taylor 2010, p. 152).

Two aspects of the CIM’s definition of marketing explain the possible roles of marketing in helping businesses to create demand for products and services. Identification of customers’ needs is one of the ways and may occur through strategies such as market research or sensitivity to customers’ needs. Identifying non-necessity needs such as increased level of comfort in a car model, availing products and services for satisfying the needs, and communicating the presence and features of the products or services is an example of the role of marketing in creating demand. Ensuring that customers derive a satisfactory level of utility is another strategy through which businesses can create demand. Developing a smartphone with more features is an example and improves utility and not only retains customers but also attracts more customers towards higher demand.

Marketing refers to the set of organizations and activities that aim at satisfying consumers and ensuring profit optimization for organizations. CIM’s definition identifies these objectives and activities for achieving objectives and is, therefore, a valid definition for marketing. Identifying and satisfying customers’ needs are some of how businesses can create demand for their products and services.