organic tissue, this kind of connection-or relationship-is always growing or dying. It can
rever be in a steady state. And like tissue paper, this kind of connection is fragile. Cus-
tomer relationships, even long-standing ones, are contingent on the last trung that happened.
Tracing the evolution of the various definitions of marketing proposed during the last
thirty years reveals two trends: 1) expansion of the application of marketing to non-profit
and non-business institutions ; e.g., charities, education, or health care; and 2) expansion of
the responsibili'jes of marketing beyond the personal survival of the individual firm , to include the betterment of society as a whole . These two factors are reflected in the official American Marketing Association definition published in 1988 .
"Marketing is the process of planning and executing the conception. pricing, promo-
tion, and distribution of ideas, goods, and services to create exchanges that satisfy
individual (customer) and organiwtional objectives.'"
While this definition can help us better comprehend the parameters of marketing, it
does not provide a full picture. Definitions of marketing cannot flesh out specific transac-
tions and other relationships among these elements. The following propositions are offered
to supplement this definition and better position marketing within the firm:
1. The overall directive for any organization is the mission statement or some equiv-
alent statement of organizational goals. It reflects the inherent
philoso-
phy of the organization.
2. Every organization has a set of functional areas (e.g., accounting, production,
finance, data processing, marketing) in which tasks t;lat are necessary for the suc-
cess of the
are performed. These functional areas must be managed
if they are to achieve maximum performance.
3. Every functional area is guided by a philosophy (derived from the mission state-
ment or company goals) that governs its approach toward its ultimate set of tasks.
4. Marketing
from the other functional areas in that its primary concern is
with exchanges that take place in markets, outside the organization (called a
transaction).
5. Marketing is most successful when the philosophy, tasks, and manner of imple-
menting available Lechnology are coordinated and complementary.
Perhaps an example will clarify these propositions: L.L. Bean is an extremely suc-
cessful mail order company. The organization bases much of its success on its longstand-
ing and straightforward mission statement: "Customer Satisfaction: An L.L. Bean
Tradition" (Proposition 1). The philosophy permeates every level of the organization and
is reflected in high quality products, fair pricing, convenience, a 100%
policy
and-above all-dedication to customer service (Proposition 2). This philosophy has neces-
sitated a very high standard of production, efficient billing systems, extensive and respon-
sive communication networks, computerization, innovative cost controls, and so forth .
Moreover, it has meant that all of these functional areas have to be in constant communi-
cation, must be totally coordinated, and must exhibit a level of harmony and mutual respect
that creates a positive environment in order t o reach shared goals (Proposition 3). The L.L.
Bean marketing philosophy is in close harmony with its mission statement. Everything the
marketing department does must reinforce and make real the abstract concept of "consumer
satisfaction" (Proposition 4). The price-product-quality relationship must be fair. The product must advertise in media that reflects trus high quality. Consequently, L.L. Bean adver-
MARKETING: DEFINITION AND JUSTIFICATION
5
Pr t
Our
AD 1.1
The website for L.L. Bean represents the newest form of marketing communication,
tises through its direct-mail catalogue and through print ads in prestigious magazines (e.g. ,
National Geographic). It also has one of the most highly regarded websites (Ad 1. 1). Product selec:ion and design are based upon extensive research indicating the preferences of
their customers Since product delivery and possible product return is critical, marketing
must be absolutely sure that both these tasks are performed in accordance with customers '
wishes (Proposition 5). While one might argue that the marketing function must be the most
important function at L.L. Bean, this is r.ot the case. L.L. Bean is just as likely to lose a
customer because of incorrect billing (an accounting function) or a flawed hunting boot (a
product function) as it is from a misleading ad (a marketing function).
Admitted:y, marketing is often a critical part of a firm's success. Nevertheless, the
importance of marketing must be kept in perspective. For many large manufacturers such
as Proctor & Gamble, Microsoft, Toyota, and Sanyo, marketing represents a major expen-
diture, and these businesses depend on the effectiveness of their marketing effort. Conversely,
for regulated industries (such as utilities, social services, or medical care or small businesses providing a one-of-a-kind product) marketing may be little more than a few informative
brochures. There are literally thousands of examples of businesses-many quite small-
that have neither the resources nor the inclination to support an elaborate marketing organ-
ization and strategy. These businesses rely less on research than on common sense. In all
these
the marketing program is worth the costs only if it fits the organization and
facilitates its ability to reach its goals.
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