Marketing

When starting to write this chapter, a Google search of the word marketing generated more than 565,000,000 hits. No wonder many think marketing is complicated, confusing, and challenging. This entry is designed to help readers understand the nature of marketing in turbulent economic times. It is written on the belief (1) that marketers have overly complicated the marketing process; (2) that marketing constantly evolves to meet changing needs, wants, and expectations of people and organizations; (3) that marketing is the change agent for any organization; and (4) that the reasoning behind the American Marketing Association's (AMA's) definition is right on target: “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” (AMA, n.d.). As Nancy Costopulos, chief marketing officer of the AMA said, “Marketing is presented as a broader activity…. Marketing is no longer a function—it is an educational process” (Maddox, 2008).

Marketing is known by many definitions, but basically, it is the driver for innovation and change in an organization. Conceptually, managers plan, organize staff, motivate, and control. They also compete. At its core, marketing is a competitive process designed to result in consumers selecting one brand over countless other competitive brands available to them. Therefore, the marketing goal of every organization should be to create top-of-mind awareness (TOMA)—that is, where its brand is positioned on a ladder in the minds of consumers. This conceptualization came from Al Ries and Jack Trout, in their classic 1981 book, Positioning: The Battle for Your Mind. Because we live in an over-communicated society, the cluttered mind has to organize information so that it makes sense and can readily be retrieved. Consumers form mental categorical ladders with all possibilities neatly organized on their respective rungs. To manage the explosion of brands, products, and services, people mentally categorize and rank each possibility. Each ladder represents a different product category: places to get your hair cut; retailer to find that new golf club; where the kids want to go to eat; a store where you can buy that latest electronic gadget; a family vacation destination. Each rung represents a brand name or possibility where consumers can go to fulfill that particular need or want.

Some mental ladders have several rungs. Others have few. Still others have one. The maximum number of rungs on a mind's ladder is generally thought to be seven; three is considered to be typical. Marketing expert Eloy Trevino, however, uses a “rule of two” (personal interview, 2012). He believes that, in any category, there is #1 and #2, then there is everyone else. Think of soft drinks where there is Coca-Cola and Pepsi, then everyone else. In discount stores, there is Walmart and Target, then everyone else. In ketchup, it is Heinz and [Page 537]Hunt's and everyone else. For the new golf club ladder, however, a consumer could go to the club's pro shop, Pro Golf Discount, The Golf Warehouse, Dick's Sporting Goods, and even the Internet. The question is, which alternative is on the top rung of the ladder? Which has TOMA? Where does each brand rank? Marketing is all about getting to the top rung.

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