The first step toward understanding marketing’s role in your business it to get a handle on exactly what marketing is. When most Infopreneurs think of marketing, they are generally thinking about promotion — either advertising or sales. These are two elements of marketing, but there is more to it than just promotion.
The simplest definition of marketing for the Infopreneur is “everything you do in your business that puts money in your pocket.”
That’s a pretty broad definition. But true, nonetheless.
Yet this definition, while it makes a good point, doesn’t help us really understand what marketing is.
I prefer to define marketing this way:
Marketing is the business activity of creating value, communicating value, and exchanging value to satisfy the needs of businesses and individuals.
This definition covers the entire scope of the marketing function. In your business you create value through products or services, and then you tell people about the value you have created, and then you deliver that value in exchange for something you value: that green energy that fuels your dreams.
Let’s take it apart to make sure we understand the definition.
Satisfy the needs of businesses and individuals
Any effective definition of marketing must be built around satisfying the needs of businesses and individuals. Without the need, there can be no value created or exchanged.
You will notice that the definition includes “businesses *and* individuals.” Really? Marketing *always* must serve the needs of *both* businesses *and* individuals? Yes, at least so far in my experience. I have yet to see the business that can be truly successful by taking an ‘either or’ approach to the market. Markets are made up of both businesses AND individuals, no matter what business you are in.
Now, you might say “my business is very successful and I focus exclusively on satisfying the needs of my customers. I sell directly to those customers online, I don’t need to focus on the needs of other businesses. If I stay focused exclusively on satisfying the needs of my customers (individuals) then I’ll continue to be successful.”
And I would say “True. You are very successful, and your priorities are certainly right, but look for opportunities to partner with other businesses. Look to tap into their potential to become affiliates, strategic allies, distributors, content contributors, etc. You see, marketing is always more powerful when it also meets the needs of *both* individuals and businesses.
Create Value
Marketing is about creating value to satisfy the needs of your market through products or services. The need comes first, and then you create value (products or services) to meet that need.
Get it backwards (create a product and go looking for a need) and you are missing a huge part of the marketing process.
You know, not too long ago, college marketing courses were actually talking about “creating a need” through advertising. It’s always been much more profitable to discover needs and create value to satisfy those needs, but some academics are a bit slow when it comes to understanding effective marketing 
.
Communicate Value
Now we get into familiar territory: advertising and messaging. Certainly a large part of marketing is about effective communication. This is where you inform those businesses and individuals about the great value you have created.
This is also what most people think of when they think of marketing, but marketing communications is really only a small part of the role of marketing.
Exchange Value
Finally, we come to the part where money changes hands. You exchange the value you have created (your products) for something that you value (money).
This is one part of the definition that is deceptive. It seems obvious, but this part of the marketing definition is critical and often overlooked. There is a lot packed in to this piece — the value you have created, how much you will charge for that value, how the money changes hands, how the product is delivered and supported — these are all big issues. In fact, when you consider that *most* of your profit will come from repeat customers, a high level of satisfaction here is absolutely critical.
But Isn’t That Everything My Business Does?
Aha! Now you have taken the first step to a major shift in thinking that will change the way you look at your business and will significantly improve your profitability.
In order to really be successful as an Infopreneur, you need to start thinking of your business as a marketing machine. You might be a fitness expert, but your business is the marketing of fitness information. You might be a software engineer, but your business is the marketing of software. You might be a personal development coach, but your business is the marketing of coaching services.
Don’t take my word for it.
This is what Peter Drucker, who in 1997, Business Week called “the most enduring management thinker of our time.” says about it: “Because of the nature of business, it has just two functions, and only two; marketing and innovation. Marketing and innovation make money. Everything else is a cost.”
Now that you have a workable definition that doesn’t leave any critical element out of the mix, you can start to make sense of what this means to your business.
If you are in business today, you are a marketer. Your job is to facilitate the exchange of value between your company and an eager market. To really succeed in the marketplace, your entire business must be focused on the business activity of creating value, communicating value, and exchanging value to satisfy the needs of businesses and individuals.
When you truly get focused on these three elements of the marketing definition that is when you will see your sales and profit expand dramatically.
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{ 10 comments… read them below or add one }
This should be required reading for anyone who is a newbie to Internet marketing before they get swept up in the “crap out a new product every week, collect the money and run” mindset that some seem to hold. Value above all else is the most important! This was an excellent post.
Thanks Courtney. Value *is* king
Simple and spot on. Great post Doug!
Thanks Cynthia!
Hi Doug,
Excellent post, but for me “everything you do in your business that puts money in your pocket” is just too broad a definition for marketing.
Saving on costs can add more to your bottom line than selling products and services, at least in percentage terms. If your net profit margin is 25% (hah!), every $1 you take in sales revenue adds just 25 cents to your bottom line. But every $1 you save in costs adds $1 to your bottom line… a fact lost on most small and home-based entrepreneurs.
By that definition, saving on costs qualifies as marketing, because it “puts money in your pocket”. (And are we talking revenue or profit? If you’re a typical Internet marketer showing your “income”, it’s always gross revenue, because that’s far more impressive to inexperienced people who don’t realize that after costs — including JV commissions of 75%-100% — are deducted from that $750,000 launch “income”, the net profits can be very thin indeed. I’ve seen launches of that magnitude result in net profits to the individual concerned of less than $3,000.)
I find the most useful — and targeted — definition of marketing is one I formulated almost 20 years ago for my MBA marketing students: “turning your buyers into your most productive, profitable sellers.”
If you can achieve that, consistently, your grasp of marketing is pretty darned solid.
Best regards,
John
Hi John. I think you misunderstood my post. I wasn’t putting “everything you do in your business that puts money in your pocket” forth as my definition, but I do, in terms of an Infopreneur business, think it’s pretty true.
A focus on turning customers into sellers is, indeed, a productive focus, but I think it leaves a bit out in terms of a definition of “marketing.” I mean, you need some other elements in order to actually get the buyers in the first place, right?
Doug,
Sorry — the headline mentioned a new definition of marketing and I took that as being it.
I find focusing on the desired outcome of a process (the Oyster Principle — http://oysterprinciple.com) works very well as a definition. The other components of the process are implied — and would be articulated in a description of the marketing process. But a description is different from a definition, in much the same way that a vision statement is different from a mission statement.
In that sense, it’s no different to the classic, seriously-flawed definition of marketing as “identify a need and satisfy it”. It’s devoid of any implementation (and, in this case, of any emotional dimension) — but a definition usually is. Definitions (in terms of human performance) are usually simple statements of cause-and-effect — what to do and why to do it. Not how.
The implied components would include identifying a need, finding a solution, testing, pricing, distribution, targeting that market (needs define markets) with the most effective offers, using the most effective and affordable media mix, then ensuring that the Three Criteria of Fulfilment (safety, efficacy and value) are met so as to trigger the emotional fulfilment that impels your elated buyers to talk about you enthusiastically to others with the same need.
Hi Doug, thanks for the comments on marketing, particular the sections on identifying marketing need before you create a product and seeing all things in your business as marketing. See Seth Godin’s post on January 20 http://sethgodin.typepad.com/In between frames illustrates this second point perfectly.
I want to expand one section of your comments. We make a mistake if we think we add value. We need to discovered the customer’s value. In the end, it doesn’t make any different what value we see in our product or service. It’s uncovering the value the client sees in the product or service. This is another way of saying, some focusing on our products and start focusing on our customers. Hope this helps expand the discussion.
Hi Al. I really enjoyed Seth’s ‘between frames’ post (as usual with his stuff) but thanks for giving it more context for me.
Here, btw, is the full link for anyone who wants to read it:
http://sethgodin.typepad.com/seths_blog/2010/01/in-between-frames.html
“uncovering the value the client sees in the product”
Very well said.
This is surprisingly hard to do as well. It’s why people (self included) have such a hard time writing good sales copy for their own products. It’s very difficult to get out of your own perspective and into the perspective of customers.
Hi Doug,
Great post as usual and I love the definition. I’m inclined to agree with Courtney where the focus seems to be personal greed rather than providing value.