Who Does Marketing?

For-Profit Companies
The obvious answer to the question, “Who does marketing?” is for-profit companies
like McDonald’s, Procter & Gamble (the makers of Tide detergent and Crest
toothpaste), and Walmart. For example, McDonald’s creates a new breakfast
chicken sandwich for $1.99 (the offering), launches a television campaign
(communicating), makes the sandwiches available on certain dates (delivering), and
then sells them in its stores (exchanging). When Procter & Gamble (or P&G for
short) creates a new Crest tartar control toothpaste, it launches a direct mail
campaign in which it sends information and samples to dentists to offer to their
patients. P&G then sells the toothpaste through retailers like Walmart, which has a
panel of consumers sample the product and provide feedback through an online
community. These are all examples of marketing activities.
For-profit companies can be defined by the nature of their customers. A B2C
(business-to-consumer) company like P&G sells products to be used by consumers
like you, while a B2B (business-to-business) company sells products to be used
within another company’s operations, as well as by government agencies and
entities. To be sure, P&G sells toothpaste to other companies like Walmart (and
probably to the army, prisons, and other government agencies), but the end user is
an individual person.
Other ways to categorize companies that engage in marketing is by the functions
they fulfill. P&G is a manufacturer, Walmart is a retailer, and Grocery Supply
Company is a wholesaler of grocery items and
buys from companies like P&G in order to sell to small convenience store chains.
Though they have different functions, all these types of for-profit companies
engage in marketing activities. Walmart, for example, advertises to consumers. Grocery Supply Company salespeople will call on convenience store owners and
take orders, as well as build in-store displays. P&G might help Walmart or Grocery
Supply Company with templates for advertising or special cartons to use in an instore
display, but all the companies are using marketing to help sell P&G’s
toothpaste.
Similarly, all the companies engage in dialogues with their customers in order to
understand what to sell. For Walmart and Grocery Supply, the dialogue may result
in changing what they buy and sell; for P&G, such customer feedback may yield a
new product or a change in pricing strategy.

Nonprofit Organizations
Nonprofit organizations also engage in marketing. When the American Heart
Association (AHA) created a heart-healthy diet for people with high blood pressure,
it bound the diet into a small book, along with access to a special Web site that
people can use to plan their meals and record their health-related activities. The
AHA then sent copies of the diet to doctors to give to patients. When does an
exchange take place, you might be wondering? And what does the AHA get out of
the transaction?
From a monetary standpoint, the AHA does not directly benefit. Nonetheless, the
organization is meeting its mission, or purpose, of getting people to live hearthealthy
lives and considers the campaign a success when doctors give the books to
their patients. The point is that the AHA is engaged in the marketing activities of
creating, communicating, delivering, and exchanging. This won’t involve the same
kind of exchange as a for-profit company, but it is marketing. When a nonprofit
organization engages in marketing activities, this is called nonprofit marketing.
Some schools offer specific courses in nonprofit marketing, and many marketing
majors begin their careers with nonprofit organizations.
Government entities also engage in marketing activities. For example, when the
U.S. Army advertises to parents of prospective recruits, sends brochures to high
schools, or brings a Bradley Fighting Vehicle to a state fair, the army is engaging in
marketing. The U.S. Army also listens to its constituencies, as evidenced by recent
research aimed at understanding how to serve military families more effectively.
One result was advertising aimed at parents and improving their response to their
children’s interest in joining the army; another was a program aimed at
encouraging spouses of military personnel to access counseling services when their
spouse is serving overseas. Similarly, the Environmental Protection Agency (EPA) runs a number of advertising
campaigns designed to promote environmentally friendly activities. One such
campaign promoted the responsible disposal of motor oil instead of simply pouring
it on the ground or into a storm sewer.
There is a difference between these two types of activities. When the army is
promoting the benefits of enlisting, it hopes young men and women will join the
army. By contrast, when the EPA runs commercials about how to properly dispose
of motor oil, it hopes to change people’s attitudes and behaviors so that social
change occurs. Marketing conducted in an effort to achieve certain social objectives
can be done by government agencies, nonprofit institutions, religious
organizations, and others and is called social marketing. Convincing people that
global warming is a real threat via advertisements and commercials is social
marketing, as is the example regarding the EPA’s campaign to promote responsible
disposal of motor oil.

Individuals
If you create a résumé, are you using marketing to communicate the value you have
to offer prospective employers? If you sell yourself in an interview, is that
marketing? When you work for a wage, you are delivering value in exchange for
pay. Is this marketing, too?
Some people argue that these are not marketing activities and that individuals do
not necessarily engage in marketing. (Some people also argue that social marketing
really isn’t marketing either.) Can individuals market themselves and their ideas?
In some respects, the question is a rhetorical one, designed for academics to argue
about in class. Our point is that in the end, it may not matter. If, as a result of
completing this book, you can learn how to more effectively create value,
communicate and deliver that value to the receiver, and receive something in
exchange, then we’ve achieved our purpose.