Marketing Vs Advertisement – A Quick Analysis

In general terms, many people think that Marketing is nothing but Advertising which is not completely wrong because ultimate aim of marketing is to drive sales by creating an awareness about the product or services to the customer. But for a marketer or a marketing professional there is huge difference between Marketing and Advertising. So if anyone somehow related to Marketing domain one must make his/her concept clear about Marketing and Advertising.

Advertising is a subset of Marketing. Marketing is an umbrella term which includes- Advertising, sales, Public Relation, Digital Marketing, CRM (Customer Relationship Management) etc.

As per the definition of American Marketing Association “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.”

Philip Kotler an American marketing author, consultant, professor and who is considered as the father of modern marketing described the term Marketing as – “It is an art and science of choosing target markets and getting, keeping, and growing customers through creating, communicating and delivering superior customer value.”

Marketing can also be defined in a very simple terms. “Marketing is nothing but meeting needs of the customer profitably.”

Now comes the Question What is Marketed and Who Markets?

Now a days everything is marketed. It can be – Goods, services, events, experience, ideas, information, properties and many more.

Coming to the second Question, Marketers and Prospect are the two who markets. Marketers are those who handles Marketing activities to drive sales by using various marketing techniques and Prospects are nothing but the potential customers.

Now let’s talk about Advertising, From the above definitions, I hope we are now clear about what is Marketing. Marketing can also be defined from another angle – “Marketing is the process of communicating the value of a product or service to customers, for the purpose of selling that product or service.” Here comes the concept of Advertising. Advertising is the process of creating an awareness about the product or services to the customers or prospects.

According to American Marketing Association “ADVERTISING is any paid form of non-personal presentation of ideas, goods and services by an identified sponsor.” The purpose of Advertisement is to persuade people and to influence their buying behavior and the result of Advertisement is to build/enhance corporate and brand equity.

7 Basic functions of Advertisement –

  • To differentiate products from their competitors.
  • To communicate product information.
  • To urge product use.
  • To expand product distribution
  • To increase brand preference and loyalty.
  • To reduce overall sales costs.
  • To build brand image

In another way we can justify the difference between Marketing and Advertising. Say an organization wants to launch a new product in the market so their Marketing strategy will begin with USP (Unique selling Proposition) – a compelling sentence that describe their business i.e what is unique about their product. Then it will define the STP i.e  Segmentation, Targeting and Positioning.

Segmentation: There are many different ways to segment your target markets. For example, you can use the following approaches:

  • Demographic – By personal attributes such as age, marital status, gender, ethnicity, sexuality, education, or occupation.
  • Geographic – By country, region, state, city, or neighborhood.
  • Psychographic – By personality, risk aversion, values, or lifestyle.
  • Behavioral – By how people use the product, how loyal they are, or the benefits that they are looking for.

Targeting: Based on the segmentation, they have to decide which segment to target i.e they have to analyze that which segment will be the best fit for their product. SWOT Analysis (Strength, weakness, Opportunity and Threat) and PEST Analysis (Political, Economical, Social and Technological factors) are the best model to Target a particular Segment.

Positioning: The last step is to position your product in the market i.e to create an image of the product in people’s mind. Here USP has to be re-analyzed – that why should people buy their product? and accordingly they have to create a promotional strategy which is nothing but one form of Advertisement. For example: In India we have seen the Ad “Thanda Matlab Cocacola” Here Coke positioned themselves in such a way that the people remembered the tag line and whenever they encounter with the word Thanda they think about coke.

Thus we can conclude this post by justifying that Marketing is an umbrella term and Advertising is a subset of Marketing.





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