Monday, November 08, 2004

The official new definition of marketing

The American Marketing Association has redefined "marketing", replacing an old definition that was all about the four P's with something that seems to parody the worst aspects of consultant-speak. Can this be a joke? Sadly, no it's not. Some consultants seem to love it's customer-relationship-centric implications. Real marketers must be cringing.

The old definition
Marketing is the process of planning and executing conception, pricing, promotion and distribution of goods, ideas and services to create exchanges that satisfy individual and organizational goals.
is replaced by this new definition
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.

I hate it. It’s all fluff and motherhood. It uses vague trendy-speak language that NO self-respecting marketer would use in describing their own products, services, or concepts. Imagine briefing an agency to put together a campaign to communicate this new-fangled marketing concept. Imagine trying to get agency creatives to understand what marketing is using the definition provided.

“Er, well it’s 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.”

“Yes, but what IS it? What does it look like? What does it DO?”

“Um. You’re the creative folks. You figure it out. We just do the marketing.”

1) It’s a lot less useful than the previous definition in that the vague description could apply to many functions in an organization. The definition does not talk about what marketing IS or DOES in any meaningful way, nor does it describe its goals in a way that would make sense to someone who had never heard of marketing before.

2) Marketing is not just an “organizational” function and set of processes. Marketing’s philosophy and disciplines (neither gets a mention) apply to many fields outside of the formal organization.

3) The new definition implies, by omission, that the job of marketing has no conceptual, perceptive, or persuasive role. Marketing does NOT start with “creating” but with seeking to understand your market and competitors, and conceptualizing products, services, or experiences that will meet the needs of those markets.

4) Is the role of marketing really to “manage customer relationships”? Perhaps, at a very abstract high level. But for this to be the case in reality, you’d have to have Customer Service, Production, Sales, and every other department that has any impact on customers reporting in to Marketing. For most real-world marketing professionals, that’s a dream that is never going to come true.

My thanks to Jennifer Rice's blog for pointing out this change that the American Marketing Association seems to have sneaked out rather than launching. Oh dear.

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