| For the first time in nearly
20 years, the American Marketing Association has
finally updated its definition of marketing to
put stronger emphasis on the power of building
strong customer relationships. The AMA is a respected
organization of 38,000 members that has been around
for more than six decades. Many in the industry
see it as setting the standards of marketing practices
and education.
"I think this change should have happened
10 years ago," notes one marketing professional.
"New marketing levels aren't cutting it to
sustain levels of profitability. This definition
change acknowledges that consumer value drives
the marketplace."
The previous AMA definition of marketing, active
since 1985, was based more upon traditional definitions:
"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."
The new definition, unveiled in August:
"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."
Jack Hollfelder, Senior Director of Publishing
for AMA, describes the definition change as moving
from a transaction orientation to one that focuses
on the customer. "Technology and marketing
have been changing quite rapidly over the last
five to 10 years. The 1985 definition was not
encompassing enough. The new definition more clearly
infuses the customer into marketing."
"This new definition of marketing is appropriate
for most companies and brands, in that marketing
should be customer-centric, and not brand-centric,"
notes Brian Everett, TMCA Executive Director and
Senior Partner of MindShare Strategies. "With
the new definition placing more emphasis on the
customer, which successful brands have been doing
anyway for years, it puts more emphasis on the
group with the real power in the sales equation
- those who buy products or services, rather than
those who sell them." TMCA accepts this new
definition as part of its ongoing member and industry
educational efforts.
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