Often times it’s difficult for business owners to distinguish the difference between these two terms.
Each serves an important role in building your business, but understanding the difference between them, and using each correctly, can result is massive growth potential.
Textbook definitions of each are as follows:
Advertising: The paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers.
Marketing: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products. The American Marketing Association (AMA) states, “Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.”
Based on these definitions it’s easy to see why some people find it challenging to separate the two in their minds when considering how to increase sales.
Picture your company’s overall marketing strategy as a pie.
Advertising is an individual element within the overall marketing process. Essentially it’s a piece of the pie. The goal in advertising is to introduce your product or service in a strategic manner with most of your research targeted at venue, ad frequency, placement, etc.
When planning to advertise, many platforms are available including industry magazines and trade journals, newspapers, direct mail, television, radio, email campaigns, Internet banners / ads, and more.
Between production and placement fees, advertising costs are usually the largest portion of a company’s marketing budget. Though an intelligent advertising campaign can yield profitable results, it often is not considered in relation to an overall strategy to yield lasting results.
Other pieces of the pie would include online presence development & management, market research, public relations, sales strategy, client relations and support, media planning and social networking. All of these elements must not only work independently, but they also must work together towards the bigger goal.
Marketing is a process that takes time and can involve a great deal of research for a well thought out marketing plan to be effective. Think of marketing as everything that your organization does to facilitate an exchange, or relationship, between your company and your clients. With a strong marketing strategy, and proper implementation, your company can benefit in the short and long term, but take the time to invest in the process and allow your efforts to take hold.
Also, when working your marketing plan, be acutely aware of the results you are getting and make the minor course adjustments needed to keep your plan on track. You will enjoy better market penetration, increased brand identity and more qualified leads generating sales in no time.
I am willing to bet that many people would have to scratch their heads if someone asked them: “What is your overall goal?” Myself included. Other than “More Business” it is hard to define what I want to achieve specifically.
Great point Lawrence, I’m sure others would agree with you.
The beginning to any successful venture is knowing your outcome. The big picture may be “more business” but what does that mean to you?
As you challenge yourself to list the goals you want to reach, be as specific as possible. You may start broad, but for each goal try to describe it clearly.
Once you have a list, look for what the goals have in common. Odds are you will see a pattern, and from that you can start to prioritize your missions.
Even if you engage a consultant such as myself, these exercises are crucial and will help you define your goals.
Picture it in your mind and you have a dream, but if you get it on paper it becomes a plan.