American marketing association adopts new definition of marketing
A significant development!
In 2020, the American Marketing Association (AMA) adopted a new definition of marketing, which is:
"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."
This new definition is a significant departure from the previous one, which was:
"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives."
The new definition is broader and more inclusive, recognizing that marketing is not just about selling products or services, but also about creating value for all stakeholders, including customers, clients, partners, and society as a whole.
The AMA's new definition emphasizes the following key aspects of marketing:
- Value creation: Marketing is about creating offerings that have value for customers and other stakeholders.
- Communication: Marketing involves communicating the value of these offerings to the target audience.
- Delivery: Marketing involves delivering the offerings to the target audience.
- Exchange: Marketing involves exchanging value with customers, clients, partners, and society at large.
- Societal impact: Marketing has a broader impact on society, and marketers have a responsibility to consider this impact in their decision-making.
The new definition is intended to reflect the evolving nature of marketing, which is increasingly focused on creating value, building relationships, and driving social and environmental impact.