The Role of Marketing: How it Affects Business and How to Market the Right Way - Digital Marketing Blog (2022)

Definition of Sales and Marketing

Let’s set the scene: you’re on the couch, relaxing and watching television. Your mom is there watching as well—a commercial comes on that is funny and you both laugh. Your mother then says, “That was some good marketing.”

Now many questions arise: is an entertaining commercial really “marketing”? Is there a lot more that goes into it than just a funny idea? This seems like sales, what’s the difference between sales and marketing? What’s the definition of sales and marketing? What is inbound marketing? What is marketing research? Are there different distribution channels in marketing? The answers to these questions will be answered when we discuss the role of marketing and explain how everything works in this complex world.

Defining sales is pretty easy, as it states, “any of a number of activities designed to promote customer purchase of a product or service. Sales can be done in person or over the phone, through e-mail or other communication media. The process generally includes stages such as assessing customer needs, presenting product features and benefits to address those needs and negotiation on price, delivery and other elements.” (per American Marketing Association).

However, the term “marketing” can yield many different results, and many people may not know what the term truly means. So what does marketing mean? Marketing is defined as “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.” (per American Marketing Association).

This definition seems a little too simple, right? Especially with the buildup I gave you coming in—well it is correct, but it only covers the general term. There are many different aspects of marketing, such as inbound marketing, the difference between sales and marketing, how to do market research and the different functions of marketing. Now, let’s work on giving a more expanded definition of marketing and helping to understand that there’s a lot more than just creating “offerings that have value for customers.”

Introduction –What is the Purpose of Marketing?

Marketing has many different areas—one of which is inbound marketing, but we’ll get to that later. We’ll then analyze the difference between sales and marketing; then answer the question “what is inbound marketing”, which will include some inbound marketing examples. Finally, we’ll discuss the importance of marketing in business and wrap up what we’ve learned. First, we’re going to list the functions of marketing. In the marketing world there are seven functions of marketing and they are as follows: distribution, financing, market research, pricing, product and service management, promotion and selling.

7 Functions of Marketing

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  1. Distribution—Distribution Strategy in Marketing

Distribution strategy in marketing entails how a company is going to deliver its products or services to a customer. This strategy can vary depending on what service or good you’re offering, as there are different distribution channels in marketing. You’re not going to start a digital marketing agency in the middle of a wheat field in Kansas—you probably want to be in an urban area where there’s plenty of businesses around. Distribution strategy in marketing needs to be considered when developing any idea.

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  1. Financing—The Role of Marketing in Business

If you want to have a successful marketing campaign, it’s going to take some money. You don’t want to throw all your eggs in one basket, but you still want to create a smart financial plan that allocates some ability to spend, but not so much that you don’t see a profit.

  1. Market Research—Importance of Market Research

Market research is arguably the most crucial of the seven functions. What is marketing research? It revolves around researching your target demographic so you can build a sound marketing strategy. Effective market research requires using tools to find out who you should be targeting based on what you’re selling. If you’re a tech company that came up with a new social media platform, are you going to target octogenarians? Didn’t think so. If you want a more in-depth look at how to do market research, this article is a good starting point.

  1. Pricing—Again, the Importance of Market Research

Once you know how to do market research, you’ll find that market research also can help with pricing. Make sure you’re not losing any profits by selling too low. However, you don’t want to overcharge and then not see any kind of return because customers found a cheaper alternative.

  1. Product and Service Management—Measuring Advertising Effectiveness

In order to prevent falling behind with your customers, you must constantly make improvements to the product or service you offer. By staying on top of customer feedback and online reviews, you can see what’s working and what isn’t. Additionally, employing marketing performance metrics is a smart way to keep up with service management. Interested in learning more about marketing performance metrics? Check out this article

  1. Promotion—What Is Promotion in Marketing?

Promotion involves confirming your advertisements are seen in the right places by the right people. You’ll want to make sure there’s plenty of advertising from your brand’s end, as well as to keep up with which advertising strategies are trending. Advertising on Facebook is certainly a great place to focus your promotion efforts.

  1. Selling—What Is the Difference Between Sales and Marketing?

Selling is NOT marketing. But does provide an essential foundation for marketing. The selling process begins once you’ve completed market research and determined what your prospects want and need.

Speaking of selling, it’s time to discuss another major point: the difference between sales and marketing.

The Difference Between Sales and Marketing

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Some people think there’s no difference between sales and marketing. But when it comes to distinguishing between the two, there’s actually a big difference between sales and marketing. Understanding the complexities that separate them isn’t so simple, as they’re more complementary than similar. So you’re probably wondering, “What’s the difference between sales and marketing?”

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Let’s start with an example. Say you’re a salesperson from 1995 and you have an amazing product you want to sell. It’s a cell phone, but it also can access the internet and send emails. It even has these amazing things called apps that you can use to play games and check the weather, among other exciting possibilities.

Now you’re probably thinking there obviously were no smartphones in 1995. But this is exactly the point—a salesperson can’t sell something that doesn’t exist. Sales focuses on what salespeople can control, which is selling a tangible, already created product. They don’t pitch ideas—marketers do.

This is the key difference between sales and marketing. Marketers are the ones who create the idea that a salesperson will sell. Then, marketers conduct research to find what customers’ needs are to determine what their needs are.

Another difference between sales and marketing is that marketers stay ahead of changes by anticipating where things are leading, keeping ahead of the competition, and coming up with big ideas. Then, those ideas become tangible and can be sold as products or services.

What Is Inbound Marketing?

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Inbound marketing does what it sounds like it does: it brings people in. Inbound marketing is the “new(ish) school” method of marketing; instead of outsourcing (or outbound marketing), inbound relies heavily on creating solid content that draws people into your company.

There are many ways to ensure you’ll get results—with all of Google’s advancements, companies can attract more attention by creating content that’s relevant to people’s needs and by using keywords that yield results.

Inbound Marketing Strategy Examples

Now that you know what inbound marketing is, let’s take a look at a few examples of inbound marketing strategy examples:

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Social Media—Marketing via Social Media

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One of the more recent inbound marketing strategy examples, social media is a great way to engage potential leads. Companies that take advantage of it are most likely to succeed because a whopping 78 percent of the U.S. population have a social profile of some sort—a number that has more than tripled since 2008. By employing social media strategies, you increase your chances of gaining organic leads.

Content Creation—Types of Content Marketing

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Need to come up with content that attracts attention? Create a blog! At inSegment, we have our own blog to comment on trending topics and promote the work we do. Any company can self-promote, and a blog is one of the best ways to do it. Also consider generating different types of content marketing, including videos, webinars, infographics, and whitepapers.

Email Marketing—Email as a Service

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Email as a Service (EaaS) is another great example of inbound marketing. Marketers can use email marketing to draw attention to solutions that companies or consumers need, and encourage them to learn more with intriguing copy and creative calls-to-action (CTAs). In fact, email marketing is frequently cited as the most important marketing tactic for companies:

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*per https://www.emailmonday.com/marketing-automation-statistics-overview/

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These inbound marketing strategy examples are foundational to successful companies everywhere. And if you take advantage of and implement these inbound marketing strategy examples, you can guarantee you’ll see improvements in your business, from increased traffic to better customer relations.

What About Marketing Performance Metrics?

If you want to see how your campaigns are performing, invest in marketing performance metrics, which are a key aspect of marketing and market research that can help your business reach its full potential. Websites such as Marketing Score give you detailed marketing performance metrics that you can analyze to see what you need to improve.

The Importance of Marketing in Business

Ultimately, the main reason for the importance of marketing in business is that companies need to market themselves in order to attract potential customers. If you aren’t reaching out and constantly learning what your target audiences want, it becomes much more difficult to succeed.

Once again, you can’t start to sell if you don’t have a product or service to promote in the first place. This is why the importance of marketing in business is key: regardless of the type of industry your business falls under, if you don’t successfully market yourself, you’ll fall behind the competition.

But taking advantage of tactics like social media and content creation can help enormously. By producing high-quality content that implements best SEO practices, you’ll be better off than where you started—this is why the importance of marketing in business can’t be ignored.

Now You Know the Difference Between Sales and Marketing!

After going over the role of marketing, the functions of marketing, the difference between sales and marketing, distribution strategies in marketing, and other topics, you should be equipped with a better understanding of marketing and its importance. Having a firm grasp on industry trends will benefit any company by increasing profits and keeping everyone happy, from executives and employees to customers.

In the end, the importance of marketing in business cannot be denied. Hopefully these explanations and definitions have shown how marketing helps businesses achieve success by staying ahead of the curve.

FAQs

What is the role of digital marketing for businesses? ›

The role of digital marketing is to help you garner new traffic, leads, and sales for your business by reaching people looking for your products and services. By itself, web marketing is the process of marketing your company online to prospective leads and high-value consumers.

How does digital marketing affect business? ›

This marketing assists your business in several ways, such as by providing: Measurable ways to track the performance of various strategies and channels. Actionable data for boosting the performance of strategies, such as an ad campaign. Cost-effective avenues for earning leads as well as sales.

What are the role of marketing in business? ›

The importance of marketing for your business is that it makes the customers aware of your products or services, engages them, and helps them make the buying decision. Furthermore, a marketing plan, a part of your business plan helps in creating and maintaining demand, relevance, reputation, competition, etc.

How does marketing affect a business? ›

A well-defined marketing strategy leads to an increase in the business sales and marketing. This directly impacts the revenue generated as the more you reach out to people, the more they reach out to your business or brand. Of course, the marketing of a business is directly related to the sales it generates.

Why digital marketing strategy is important? ›

It enables you to better understand your market share

Without a clear strategy, you could easily underestimate the demand for your digital services. Moreover, it's likely that you won't fully understand the dynamics of the online marketplace including customer behaviors, competitors, and customer profiles.

What are the 4 role of marketing? ›

They are product place, price, and promotion and all of the four play an important and valuable role in the marketing of that brand. While the marketing of a brand begins with its product, the other three elements too are equally important and getting them right is essential to make your marketing strategy win.

What are the 6 roles of marketing? ›

The six marketing functions are product/service management, marketing-information management, pricing, distribution, promotion, and selling. The functions must work together to get products from producers to consumers.

How can marketing help a business grow? ›

The purpose of marketing is to help businesses grow efficiently and reach their highest potential for ROI by promoting brands, products and services. Marketing promotions usually focus on boosting content engagement, increasing sales of products and services and growing brand awareness.

How can marketing improve business? ›

A marketing plan will allow you as a business owner to create a clear picture of your ideal customer, your advertising goals and a timeline for your business to enact your strategies. Allowing you to target your ideal customer with more ease which will reduce costs and increase your chance of turning leads into sales.

What are the benefits of marketing? ›

The Benefits of Marketing Your Business
  • Growing your sales. When you employ good marketing tactics, you will make more sales. ...
  • Using and managing your reputation. ...
  • Audience marketing benefits. ...
  • You earn trust. ...
  • Knowing what works. ...
  • Learning the marketplace.
21 Feb 2022

What is digital marketing in easy words? ›

Digital marketing, also called online marketing, is the promotion of brands to connect with potential customers using the internet and other forms of digital communication. This includes not only email, social media, and web-based advertising, but also text and multimedia messages as a marketing channel.

What is digital marketing strategy? ›

What is digital marketing strategy? A digital marketing strategy is a plan for establishing an internet presence through online channels such as organic search, social media, paid ads, and other web-based mediums such as your website.

What's an example of digital marketing? ›

Examples of digital marketing include: Social Media Marketing (SMM) Search Engine Optimisation (SEO) Search Engine Marketing (SEM)

What is the best digital marketing strategy? ›

5 Most Effective Digital Marketing Techniques
  • Paid Search Advertising. This could be anything from media buys to display ads. ...
  • Email Marketing. Email marketing is still considered one of the most powerful advertising media on the Internet. ...
  • Search Engine Optimization (SEO) ...
  • Social Media Marketing. ...
  • Video Marketing.

What are digital marketing channels? ›

Digital marketing channels are methods of delivery of digital marketing assets. If you need to get the word out about a new product, you might choose one or several channels to deliver the message. Some common digital marketing channels include social media, video marketing, and influencer marketing.

What is digital marketing career? ›

Unlike many technical professional fields, digital marketing provides an opportunity for many creative people. There are jobs in writing, designing and audio and video production. Plus, developing marketing strategies, solving problems and finding ways to engage audiences require creative solutions as well.

What are the 7 functions of marketing? ›

Such functions describe all things that form parts of the marketing practice. We're going to take a closer look at the seven major functions of marketing in this article. Marketing's seven functions are distribution, market research, pricing, finance, product management, promotional channels, and consumer matching.

What are the 5 roles of marketing? ›

5 key functions of marketing
  • Research. In the research stage, marketers uncover consumer behaviours and practices. ...
  • Product. This involves planning for new products and analysing existing ones to find out if there is still a market for them. ...
  • Distribution. ...
  • Management. ...
  • Sales promotion.
30 Nov 2021

What is the first and most important function of marketing? ›

Promotion is the most commonly known function of marketing. It includes the traditional and digital marketing activities most audiences would be aware of. Promotion involves activities designed to communicate with customers, inform them of the brand and products, and convince them to purchase goods or services.

What are the 9 functions of marketing? ›

Match
  • Product/Service Management. Assisting in the design and development of products and services that will meet the needs of prospective customers.
  • Marketing Information Management. ...
  • Financing. ...
  • Purchasing. ...
  • Pricing. ...
  • Distribution (Channel Management. ...
  • Promotion. ...
  • Selling.

What are the 8 functions of marketing? ›

8 Main Functions of Marketing | Marketing Management
  • Selling: It is core of marketing. ...
  • Buying and Assembling: It involves what to buy, of what quality, how much from whom, when and at what price. ...
  • Transportation: ...
  • Storage: ...
  • Standardization and Grading: ...
  • Financing: ...
  • Risk Taking: ...
  • Market Information:

What is the role of marketing in our life? ›

Marketing is much more than just selling and advertising, it plays an essential role in providing consumers with need/satisfying goods and services. Marketing allows us to be influence as consumers by showing us a standard of living that can be achieved or provide opportunities to live a certain way.

Why is value important in marketing? ›

One of the main reasons why market value is important is because it provides a concrete method that eliminates ambiguity or uncertainty for determining what an asset is worth. In the marketplace, customers and sellers often have different perceptions of the value of a product.

What is the role of marketing select one? ›

Marketing is the process of repeatedly getting, serving, and keeping customers at a profit. Marketing is composed of four activities centered on customer value: creating, communicating, delivering, and exchanging value.

What are the 7 functions of marketing? ›

Such functions describe all things that form parts of the marketing practice. We're going to take a closer look at the seven major functions of marketing in this article. Marketing's seven functions are distribution, market research, pricing, finance, product management, promotional channels, and consumer matching.

Is marketing the most important function in a business? ›

Marketing is one of the most important things a business can do. Not only does marketing build brand awareness but it can also increase sales, grow businesses and engage customers. There are so many core business functions that stem from a good marketing plan that any SMB would be silly not to give it a shot.

What are the roles of potential market in the success of business? ›

Potential markets allow you to: Ensure the future of your business by identifying new customers. Think proactively about ways for your business to grow and change. Show the potential of your business to investors or collaborators.

What are the 8 functions of marketing? ›

8 Main Functions of Marketing | Marketing Management
  • Selling: It is core of marketing. ...
  • Buying and Assembling: It involves what to buy, of what quality, how much from whom, when and at what price. ...
  • Transportation: ...
  • Storage: ...
  • Standardization and Grading: ...
  • Financing: ...
  • Risk Taking: ...
  • Market Information:

What is the most important function of marketing? ›

Promotion is the most commonly known function of marketing. It includes the traditional and digital marketing activities most audiences would be aware of. Promotion involves activities designed to communicate with customers, inform them of the brand and products, and convince them to purchase goods or services.

What are the main concepts of marketing? ›

The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.

Why is value important in marketing? ›

One of the main reasons why market value is important is because it provides a concrete method that eliminates ambiguity or uncertainty for determining what an asset is worth. In the marketplace, customers and sellers often have different perceptions of the value of a product.

What are the benefits of marketing? ›

The Benefits of Marketing Your Business
  • Growing your sales. When you employ good marketing tactics, you will make more sales. ...
  • Using and managing your reputation. ...
  • Audience marketing benefits. ...
  • You earn trust. ...
  • Knowing what works. ...
  • Learning the marketplace.
21 Feb 2022

What are the advantages of marketing? ›

Some of the major advantages of marketing are as follows: (i) Importance to business organization (ii) Beneficial to consumers (iii) Contributes to economic development (iv) Necessary and worthwhile for service firms and non-profit organizations (v) Offers career opportunities.

How can marketing help a business grow? ›

The purpose of marketing is to help businesses grow efficiently and reach their highest potential for ROI by promoting brands, products and services. Marketing promotions usually focus on boosting content engagement, increasing sales of products and services and growing brand awareness.

What is the role of consumer analysis in developing marketing strategies? ›

Consumer research analysis helps marketing research professionals determine the wants and needs of their consumers. Once these desires are known, companies can develop marketing strategies to meet the consumer's wants and needs.

Why is marketing analysis needed in a business plan? ›

The market analysis section of your plan provides evidence that there is a niche in the market that your company can exploit. This analysis also provides the foundation on which your marketing and sales plan will rest.

How important is market opportunity analysis and consumer analysis in the business? ›

Market opportunity analysis helps identify the needs of the customers and accordingly plan, design, and deliver the products or services to derive customer satisfaction. 2. It helps the company to stay ahead of the competition due to the introduction of customer-oriented products. 3.

What are the types of market? ›

Types of the market:
  • Monopoly: A monopolistic market is a market formation with the qualities of a pure market. ...
  • Oligopoly: ...
  • Perfect competition: ...
  • Monopolistic competition: ...
  • Monopsony: ...
  • Oligopsony: ...
  • Natural monopoly:

What is the marketing process? ›

A marketing process is: “A series of steps that allow organizations to identify customer problems, analyze market opportunities, and create marketing materials to reach the desired audience.”

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