# Understanding Marketing in Business: Key Strategies and Types

![Marketing](https://www.investopedia.com/thmb/RPWROSmYFssYV0VJAD3TEavQ-K4=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Marketing-recirc-blue-77cc4c488cf14d4686691e82219f80cf.jpg)

*— Investopedia / Lara Antal*

## What Is Marketing?

Marketing encompasses all the activities that a company undertakes to promote and facilitate the buying or selling of its products or services. This critical business function involves advertising and other promotional strategies aimed at reaching consumers, other businesses, and organizations. In a company, marketing professionals focus on capturing the attention of target audiences through a variety of methods, including celebrity endorsements, engaging slogans, eye-catching designs, and expansive media coverage. Their ultimate goal is to connect a company's products with its intended market, ensuring both business growth and customer satisfaction.

### Key Takeaways

*   Marketing is crucial for companies to promote their products or services to potential customers and build lasting relationships.
*   The Four Ps of marketing—product, price, place, and promotion—form the essential framework for any marketing strategy.
*   Traditional marketing strategies have evolved with technology, giving rise to new digital marketing avenues such as social media and email marketing.
*   Effective marketing not only attracts and retains customers, but also shapes a company's brand image and enhances customer experience.
*   Despite its many benefits, marketing can be costly and poses challenges in choosing the right strategy to yield profitability.

## The Basics of Marketing and Customer Engagement 

Marketing encompasses all the activities that a company undertakes to promote and facilitate the buying or selling of its products or services. This critical business function involves advertising and other promotional strategies aimed at reaching consumers, other businesses, and organizations. In a company, marketing professionals focus on capturing the attention of target audiences through a variety of methods, including celebrity endorsements, engaging slogans, eye-catching designs, and expansive media coverage. Their ultimate goal is to connect a company's products with its intended market, ensuring both business growth and customer satisfaction.

> **Formal 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. "—Official definition from the American Marketing Association, approved 2017.

## Exploring the 4 Ps: Product, Price, Place, and Promotion 

Product, price, place, and promotion are [the Four Ps](https://www.investopedia.com/terms/f/four-ps.asp) of marketing. The Four Ps collectively make up the essential mix a company needs to market a product or service. Neil Borden popularized the idea of the [marketing mix](https://www.investopedia.com/terms/m/marketing-mix.asp) and the concept of the Four Ps in the 1950s.

![Image](https://www.investopedia.com/thmb/zgZ4Cmqd0PWaQdachBfJwpf9e8M=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/dotdash_Final_Marketing_May_2020-01-c00e2c89f8aa489597448921d1c5fec6.jpg)

**

### Product

Product refers to an item or items the business plans to offer to customers. The product should seek to fulfill an absence in the market or fulfill consumer demand for a greater amount of a product already available. Marketers must understand what they are selling, how it differs from competitors, if it pairs with other products, and if substitutes exist in the market before starting a campaign.

### Price

Price is the amount a company charges for a product. Companies should consider unit costs, marketing, distribution, and competitor prices to ensure their price is competitive and reasonable for consumers.

### Place

Place refers to the distribution of the product. Key considerations include whether the company will sell the product through a physical storefront, online, or through both distribution channels. In physical stores, how is the product placed? Online, how is the digital placement managed?

### Promotion

Promotion, the fourth P, is the integrated marketing communications campaign. Promotion includes a variety of [activities such as advertising](https://www.investopedia.com/ask/answers/081616/can-i-make-money-advertising-my-car-or-it-scam.asp), selling, sales promotions, public relations, direct marketing, sponsorship, and [guerrilla marketing](https://www.investopedia.com/terms/g/guerrilla-marketing.asp).

Promotions change with the product's life cycle stage. Marketers know consumers link price and distribution to quality, which they consider in their strategy.

> **Important**
>
> Marketing refers to any activities undertaken by a company to promote the buying or selling of a service. If there is a limited quantity of a product, a company may market itself in an attempt to be better positioned as one of the few who get to buy something.

## Comprehensive Overview of Marketing Strategies

Marketing is comprised of an incredibly broad and diverse set of strategies. The industry continues to evolve, and the strategies below may be better suited for some companies over others.

### Traditional Marketing Strategies

Before technology and the Internet, traditional marketing was the primary way companies would market their goods to customers. The main types of traditional marketing strategies include:

*   **Outdoor Marketing:** This entails public displays of advertising external to a consumer's house. This includes billboards, printed advertisements on benches, sticker wraps on vehicles, or advertisements on public transit.
*   **Print Marketing:** This entails small, easily printed content that is easy to replicate. Traditionally, companies often mass-produced printed materials, as the printed content was the same for all customers. Today, more flexibility in printing processes means that materials can be differentiated.
*   **[Direct Marketing](https://www.investopedia.com/terms/d/direct-marketing.asp):** This entails specific content delivered to potential customers. Some print marketing content could be mailed. Otherwise, direct marketing mediums could include coupons, vouchers for free goods, or pamphlets.
*   **Electronic Marketing:** This entails the use of TV and radio for advertising. Through short bursts of digital content, a company can convey information to a customer through visual or auditory media that may grab a viewer's attention better than a printed form.
*   **Event Marketing:** This entails attempting to gather potential customers at a specific location for the opportunity to speak with them about products or demonstrate products. This includes conferences, trade shows, seminars, [roadshows](https://www.investopedia.com/terms/r/roadshow.asp), or private events.

### Digital Marketing

The marketing industry has been forever changed with the introduction of digital marketing. From the early days of pop-up ads to targeted placements based on viewing history, there are now innovative ways companies can reach [customers through digital marketing](https://www.investopedia.com/digital-marketing-and-business-success-8711955).

*   **Search Engine Marketing:** This entails companies attempting to increase search traffic through two ways. First, companies can pay search engines for placement on result pages. Second, companies can emphasize search engine optimization (SEO) techniques to organically place high on search results.
*   **E-mail Marketing:** This entails companies obtaining customer or potential customer e-mail addresses and distributing messages or newsletters. These messages can include coupons, discount opportunities, or advance notice of upcoming sales.
*   **Social Media Marketing:** This entails [building an online presence](https://www.investopedia.com/use-social-media-to-grow-business-8391642) on specific social media platforms. Like search engine marketing, companies can place paid advertisements to bypass algorithms and obtain a higher chance of being seen by viewers. Otherwise, a company can attempt to organically grow by posting content, interacting with followers, or uploading media like photos and videos.
*   **Affiliate Marketing:** This entails using third-party advertising to drive customer interest. Often, an affiliate that will get a [commission](https://www.investopedia.com/terms/c/commission.asp) from a sale will do affiliate marketing as the third party is incentivized to drive a sale for a good that is not their own original product.
*   **Content Marketing:** This entails creating content, whether eBooks, infographics, video seminars, or other downloadable content. The goal is to create a product (often free) to share information about a product, obtain customer information, and encourage customers to continue with the company beyond the content.  
    

> **Fast Fact**
>
> In 1978, Gary Thuerk sent a message to roughly 400 people using ARPANET, the first public packet-switched computer network. With that message, the first ever recorded spam e-mail message had been sent.

## Unpacking the Benefits of Effective Marketing

Well-defined marketing strategies can benefit a company in several ways. It may be challenging to develop the right strategy or execute the plan; when done well, marketing can yield the following results:

*   **Audience Generation.** Marketing allows a company to target specific people it believes will benefit from its product or service. Sometimes, people know they have the need. Other times, they don't realize it. Marketing enables a company to connect with a cohort of people that fit the demographic of whom the company aims to serve.
*   **Inward Education.** Marketing is useful for collecting information to be processed internally to drive success. For example, consider [market research](https://www.investopedia.com/terms/m/market-research.asp) that finds a certain product is primarily purchased by women aged 18 to 34 years old. By collecting this information, a company can better understand how to cater to this demographic, drive sales, and be more efficient with resources.
*   **Outward Education.** Marketing can also be used to communicate with the world what your company does, what products you sell, and how your company can enrich the lives of others. Campaigns can be educational, informing those outside of your company why they need your product. In addition, marketing campaigns let a company introduce itself, its history, its owners, and its motivation for being the company it is.
*   **Brand Creation.** Marketing allows for a company to take an offensive approach to creating a brand. Instead of a customer shaping their opinion of a company based on their interactions, a company can preemptively engage a customer with specific content or media to drive certain emotions or reactions. This allows a company to shape its image before the customer has ever interacted with its products.
*   **Long-lasting.** Marketing campaigns done right can have a long-lasting impact on customers. Consider Poppin' Fresh, also known as the Pillsbury Doughboy. First appearing in 1965, the mascot has helped create a long-lasting, warm, friendly brand for Pillsbury.
*   **Financial Performance.** The ultimate goal and benefit of marketing are to drive sales. When relationships with customers are stronger, well-defined, and positive, customers are more likely to engage in sales. When marketing is done right, customers turn to your company, and you gain a [competitive advantage](https://www.investopedia.com/terms/c/competitive_advantage.asp) over your competitors. Even if both products are exactly the same, marketing can create that competitive advantage for why a client picks you over someone else.

> **Fast Fact**
>
> According to MarTech, a digital marketing provider, the world will spend $4.7 trillion on marketing by 2025. This estimate includes an increase of $1.1 trillion from 2021 to 2025.

## Understanding the Challenges and Limitations in Marketing

Though there are many reasons a company embarks on marketing campaigns, there are several limitations to the industry.

*   **Oversaturation.** Every company wants customers to buy its product and not its competitors. Therefore, marketing channels can be competitive as companies strive to garner more positive attention and recognition. If too many companies are competing, a customer's attention may be strongly diluted, resulting in any form of advertising not being effective.
*   **Devaluation.** When a company promotes a price discount or sale, the public may psychologically eventually see that product as worth less in the future. If a campaign is so strong, customers may even wait to purchase a good knowing or remembering what the sale price was from before. For example, some may intentionally hold off buying goods if [Black Friday](https://www.investopedia.com/terms/b/blackfriday.asp) is approaching.
*   **No Guaranteed Success.** Marketing campaigns may incur upfront expenses that hold no promise of future success. This is also true of market research studies, where time, effort, and resources are poured into a study that may yield no usable or helpful results.
*   **Customer Bias.** Loyal, long-time customers need no enticing to buy a company's brand or product. However, newer, uninitiated customers may. Marketing naturally is biased towards non-loyal patrons as those who already support the company would be better served by further investment in product improvement.
*   **Cost.** Marketing campaigns may be expensive. Digital marketing campaigns may be labor-intensive to set up and costly to maintain the scheduling, implementation, and execution of the plan. Don't forget about the headlines that promote Super Bowl commercial expenses in the millions.
*   **Economy-Dependent.** Marketing is most successful when people have capital to spend. Though marketing can create non-financial benefits such as brand loyalty and product recognition, the ultimate goal is to drive sales. During unfavorable [macroeconomic](https://www.investopedia.com/terms/m/macroeconomics.asp) conditions when unemployment is high or recession concerns are elevated, consumers may be less likely to spend no matter how great a marketing campaign may be.

## What Is Marketing?

Marketing is a division of a company, product line, individual, or entity that promotes its service. Marketing attempts to encourage market participants to buy their product and [commit loyalty to a specific company](https://www.investopedia.com/terms/r/rfm-recency-frequency-monetary-value.asp).

## Why Is Marketing So Important?

Marketing is important for a few reasons. First, marketing campaigns may be the first time a customer interacts or is exposed to a company's product. A company has the opportunity to educate, promote, and encourage potential buyers.

Marketing also helps shape the brand image a company wants to convey. For example, an outdoor camping gear company that wants to be known for its rugged, tough goods can embark on specific campaigns that embody these traits and make these emotions memorable to prospective customers.

## What Is the Purpose of Marketing?

An important goal of marketing is propelling a company’s growth. This can be seen through attracting and retaining new customers. 

Companies may apply many different marketing strategies to achieve these goals. For instance, matching products with customers' needs could involve personalization, prediction, and essentially knowing the right problem to solve. 

Another strategy is creating value through the customer experience. This is demonstrated through efforts to elevate customer satisfaction and remove any difficulties with the product or service.

## What Are the 4 Ps of Marketing?

A commonly used concept in the marketing field, the Four Ps of marketing looks at four key elements of a marketing strategy. The Four Ps consist of product, price, place, and promotion. 

## What Are the Types of Marketing?

There are dozens of types of marketing, and the types have proliferated with the introduction and rise of social media, mobile platforms, and technological advancements. Before technology, marketing might have been geared towards mail campaigns, word-of-mouth campaigns, billboards, delivery of sample products, TV commercials, or telemarketing. Now, marketing encompasses social media, targeted ads, e-mail marketing, inbound marketing to attract web traffic, and more.

## The Bottom Line

Marketing is an essential part of any business. It allows for a business's products or services to be known to consumers and it helps entice consumers to buy its product over a competitor's. Though marketing costs a significant amount of money, companies create marketing budgets as a part of expenses in the hope that sales and profits will outweigh the marketing costs.  

> **Article Sources**
>
> 1.  American Marketing Association. "[What Is Marketing?](https://www.ama.org/the-definition-of-marketing-what-is-marketing/)"
>     
> 2.  World Economic Forum. "[40 Years On From the First Spam E-mail, What Have We Learned?](https://www.weforum.org/agenda/2018/05/its-40-years-since-the-first-spam-email-was-sent-here-are-6-things-you-didnt/)"
>     
> 3.  Pillsbury. "[How Well Do You Know the Pillsbury Doughboy?](https://www.pillsbury.com/doughboy)"
>     
> 4.  MarTech. "[Worldwide Spend on Marketing to Hit $4.7 Trillion By 2025](https://martech.org/worldwide-spend-on-marketing-to-hit-4-7-trillion-by-2025/)."