The American Marketing Association’s Definition of Marketing ExplainedProbably the best definition of marketing to consider is the one that is published by the American Marketing Association. Although many textbooks will have their own variation of the definition of marketing, the American Marketing Association is really the peak body for marketing practitioners, and therefore reflects current perceptions and understanding. The American Marketing Association also reviews their definitions every few years, ensuring that the definition is kept up-to-date. Show
AMA’s Definition of MarketingTheir most current marketing definition is:
Link to AMA At first glance, this definition may appear to be a little bit cumbersome, especially compared to some of the more pithy text book definitions of marketing. However, let’s dissect this definition to gain a better understanding of the broad concept of what marketing is all about. The first group of words in the definition are “… the activity, set of institutions, and processes…”. These are interrelated words which essentially communicate similar points. Firstly, we should note that marketing is an activity, rather than an outcome. Essentially, it is the things that we do for an organization that are designed to achieve overall corporate goals. The term “set of institutions” refers to various tools, practices, approaches and mechanisms that we would use in a marketing role. Therefore, as you can see, the words “activity” and “set of institutions” and “processes” are essentially similar – and highlight that marketing is all about doing certain tasks in order to achieve certain goals. This leads into the concept of goals – and as highlighted in the definition above, typically our goals are “creating, communicating, delivering and exchanging offerings that have value”. This part of the definition highlights the key outcomes of marketing. It is quite similar to our 4P’s marketing mix model that we tend to know well. For example, “creating value” essentially refers to creating and/or developing suitable products that provide benefits and solutions to the marketplace. The word “communicating” obviously refers to our promotional mix, and the word “delivering” refers to our channels or our place mix. “Exchanging” refers to actually achieving some form of sale in the marketplace – where we typically exchange a product for a financial return, that is, a price. The final part of the definition refers to “customers, clients, partners and society at large“. The definition says we want to provide value to these various stakeholders. Customers are a key part of most businesses and organizations and quite obviously belongs in this definition. “Clients” is a broader term which suggests a non-profit focus. This is important because marketing activities extend beyond simply profit motivated firms. Many non-government organisations, not-for-profit firms and even government institutions, and locations and events and ideas, and so on – are marketed. Therefore the word “clients” reflects a broader perspective beyond just customers. “Partners” refers to the array of supporting businesses and relationships that are critical in achieving commercial success. Partners would include suppliers, wholesalers, retailers, as well as consultants, legal advisers, strategic partners, and so on. “Society at large” reflects the current trend towards firms providing overall value to the broader community, rather than being simply focused upon their own profitability. It is a reflection of the shift to the societal marketing concept. Therefore, if we take all the above points into consideration – the American Marketing Association’s definition of marketing simply states – marketing is the tasks undertaken to deliver value in the marketplace. It is presented in its formal definition in little more complex manner simply to ensure that a broader view of marketing is understood. When most people want to research the word “marketing,” they visit the “What Is Marketing?” page on the American Marketing Association website. It’s the definitive page for the whole industry. Yet, as complete as that page is, we’d like to expand on it. As the largest AMA chapter in North America, we meet a lot of people who are
interested in our offerings and events, yet still don’t think of themselves as “marketers.” But they are! The definition of “marketer”The AMA defines “marketing” as:
So, we’d like to establish our definition of “marketer” as:
In other words, you might just be a marketer if you:
In fact, current AMA Chicago members list 329 different job titles for themselves. You can call yourself a lot of different things and still be a marketer. Questions about marketing and marketersOne definition, of course, can’t even begin to answer all the questions about marketing and marketers. That’s why we ask our members a new question on the topic every month. This month’s question: What is the best part of marketing? Let us know! Every month, we ask a new question of the Chicagoland marketing community in an effort to better define "marketer" in an ever-changing field. Submit your answer below and you may appear on this page! This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Read more. ACCEPT What is a set of processes for creating communicating and delivering value to customers according to the American Marketing Association?Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
How does the American Marketing Association define marketing How can marketers deliver value to their customers over the long term?Marketers can deliver value to their customers over the long term by filling customers needs in ways that exceed their expectations so that as a result you get sales today and sales tomorrow and sales the next day, which can translate into long-term profitability.
What is marketing defined by American Marketing Association?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.
What are the 4 major components of marketing as defined by the American Marketing Association?Marketing is composed of four activities centered on customer value: creating, communicating, delivering, and exchanging value.
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