Marketing Definitions ama Deep Dive into Evolution, Key Terms, and Concepts
Marketing is one of the most dynamic and essential components of any successful business. It not only facilitates the introduction of products and services to the public but also plays a pivotal role in building lasting customer relationships. Over time, marketing has transformed and evolved in response to shifts in consumer behavior, technological advancements, and global market trends. One of the leading authorities in shaping the marketing landscape is the American Marketing Association (AMA). The marketing definitions ama has undergone several updates, each reflecting the changing nature of the industry.
Table of Contents
We will delve into the various definitions of marketing put forth by the AMA, from its 1985 definition to its more recent updates. We will also explore key terms in the AMA’s definition, including the central concept of value, and how these definitions influence marketing practices today. Whether you’re a business owner, marketer, or student, understanding the evolution of the AMA’s marketing definitions is essential for grasping modern marketing strategies.
What is the Marketing Definitions ama?
The AMA’s definition of marketing is often cited as one of the most comprehensive descriptions of marketing available today. According to the latest 2017 definition, 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.”
This definition highlights several key components of marketing:
- Activity, institutions, and processes: Marketing involves a series of activities that help a business achieve its objectives. These processes are carried out by institutions such as marketing firms, agencies, and businesses themselves.
- Creating, communicating, delivering, and exchanging offerings: This emphasizes the broad scope of marketing. It goes beyond the creation of products or services, including the steps of communicating their value, delivering them to the market, and facilitating the exchange between businesses and consumers.
- Value for customers, clients, partners, and society: The central theme of this definition is value. Marketing is no longer just about pushing products; it’s about ensuring that the product or service provides real value to the consumer. This includes both tangible and intangible aspects, such as customer service, emotional connections, and brand loyalty.
What is the AMA 1985 Definition of Marketing?
The 1985 definition of marketing was more focused on traditional transactional relationships. It was stated as:
“Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”
This earlier definition was very product-centric and emphasized the transactional exchange between businesses and customers. It highlighted the primary components of the marketing mix, often referred to as the “4 Ps”:
- Product – The goods or services a business offers.
- Price – The cost of the product to the consumer.
- Promotion – The strategies used to inform potential customers about the product.
- Place – The distribution channels that make the product available to consumers.
The focus of this definition was on facilitating exchanges—creating an equilibrium where both businesses and consumers benefit from the transaction. However, it did not address the ongoing relationship-building and the evolving role of marketing in customer engagement.
What is the Definition of Marketing Adopted by AMA in 2017?
In 2017, the AMA updated its definition of marketing to reflect the growing complexity of the marketing landscape. With the rise of digital marketing, social media, and content marketing, it became clear that marketing was no longer simply about making a one-time sale. The revised definition reflects a more holistic, customer-centric view:
“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.”
Key changes from the 1985 definition include:
- Focus on continuous processes: Unlike the earlier transactional approach, the 2017 definition views marketing as an ongoing activity that continuously creates and delivers value.
- Customer-centric approach: This update places greater emphasis on customer value. Instead of simply promoting a product, modern marketing is about meeting the needs and desires of consumers while fostering long-term relationships.
- Broad involvement of stakeholders: The updated definition recognizes that marketing’s impact extends beyond customers to include partners, clients, and society as a whole. This reflects the interconnected nature of modern business practices.
- Emphasis on societal value: In today’s world, businesses are increasingly expected to contribute to social good, whether it’s through sustainable practices, corporate social responsibility (CSR), or ethical marketing. This definition aligns marketing with broader societal objectives.
What is the Key Term in AMA’s Definition of Marketing?
The central term in AMA’s current definition is value. Marketing today is not just about selling products; it is about creating, communicating, and delivering value to customers and other stakeholders. Value is defined as the benefit derived from a product or service in relation to its cost. It includes tangible benefits, such as the quality or features of a product, and intangible benefits, such as customer service, brand trust, and the emotional connection customers have with a brand.
In practical terms, value can take many forms:
- Functional value: Does the product or service solve a problem or fulfill a need effectively?
- Emotional value: Does the product evoke positive feelings or align with the customer’s lifestyle?
- Social value: Does the product or service enhance the customer’s social standing or contribute to a greater social good?
By focusing on delivering value, businesses can build customer loyalty, improve brand equity, and differentiate themselves in a competitive marketplace. This focus on value aligns marketing with long-term relationship-building rather than just transactional success.
How the Evolution of Marketing Impacts Modern Practices?
The evolution of the AMA’s definition of marketing reveals how the practice has evolved from focusing on product exchange to embracing customer relationships, long-term engagement, and societal value. Marketing today involves much more than just advertising. It requires businesses to develop a deep understanding of their customers, personalize their offerings, and continuously engage with them across various platforms.
Some notable trends that reflect the shift in marketing include:
1. Digital Marketing and Social Media
The rise of the internet and social media platforms has drastically changed how businesses communicate with consumers. Social media marketing, content marketing, and influencer marketing have become core strategies for engaging audiences and building brand loyalty.
2. Data-Driven Decision Making
With access to vast amounts of customer data, businesses can tailor their marketing strategies more precisely. Analytics tools enable marketers to understand consumer behavior, predict trends, and optimize campaigns for better ROI. The rise of artificial intelligence and machine learning has further empowered marketers to create more personalized experiences.
3. Content Marketing and Customer Education
Rather than just pushing a product, content marketing is about educating customers and providing valuable resources that help them make informed decisions. This can include blog posts, videos, podcasts, and other formats that contribute to the customer’s journey.
4. Customer Relationship Management (CRM)
Modern marketing is deeply embedded in CRM systems that allow businesses to track interactions with customers and personalize marketing efforts. Building long-term relationships with customers is at the heart of most successful marketing strategies today.
5. Ethical and Sustainable Marketing
As consumers become more socially conscious, there is a growing demand for businesses to adopt ethical marketing practices. Sustainability, fairness, and corporate social responsibility have become significant elements in a brand’s identity.
Future of Marketing definitions ama
The AMA’s evolving definitions of marketing highlight the dynamic nature of the field. From its transactional roots in 1985 to a customer-centric, value-driven approach in 2017, marketing has adapted to reflect the changes in technology, consumer behavior, and societal expectations.
Understanding the role of value, relationships, and continuous engagement in marketing is essential for businesses to thrive in today’s competitive landscape. As marketing continues to evolve, businesses must embrace new technologies, adopt ethical practices, and, above all, focus on delivering value to their customers.
FAQ’s for Marketing Definitions ama
What is the definition of marketing according to AMA?
The AMA defines marketing as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
What is the AMA 1985 definition of marketing?
The AMA’s 1985 definition of marketing emphasized planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.
What is the definition of marketing adopted by AMA in 2017?
In 2017, the AMA defined marketing as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society.
What is the key term in AMA’s definition of marketing?
The key term in AMA’s definition is “value.” This term highlights the importance of creating and delivering offerings that benefit customers, clients, partners, and society.
By incorporating these concepts into their marketing strategies, businesses can build stronger connections with their audiences and position themselves for sustained success in an ever-changing market.