Marketing is defined by the American Marketing Association 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."[4] The term developed from the original meaning
which referred literally to going to market with goods for sale. From a Sales process
engineering perspective, marketing is "a set of processes that are interconnected and
interdependent with other functions" of a business aimed at achieving customer interest and
satisfaction.[5]
The Chartered Institute of Marketing defines marketing as "the management process responsible for
identifying, anticipating and satisfying customer requirements profitably."[6] A similar concept is
the value-based marketing which states the role of marketing to contribute to increasing shareholder
value.[7] In this context, marketing can be defined as "the management process that seeks to
maximise returns to shareholders by developing relationships with valued customers and creating a
competitive advantage."[7]
The process of marketing is that of bringing a product to market. As such, the steps include, broad
market research; market targeting and market segmentation; determining distribution, pricing and
promotion strategies; developing a communications strategy; budgeting; and visioning long-term
market development goals.[10] Many parts of the marketing process (e.g. product design, Art
direction, Brand management, advertising, Copywriting etc.) involve use of the creative arts.

https://blog.hubspot.com/blog/tabid/6307/bid/31278/the-history-of-marketing-an-exhaustive-timeline-
infographic.aspx
It is hard for many to believe, but when compared to economics, production and operations, accounting
and other business areas, marketing is a relatively young discipline having emerged in the early 1900s.
Prior to this time most issues that are now commonly associated with marketing were either assumed to
fall within basic concepts of economics (e.g., price setting was viewed as a simple supply/demand issue),
advertising (well developed by 1900), or in most cases, simply not yet explored (e.g., customer purchase
behavior, importance of distribution partners).
Led by marketing scholars from several major universities, the development of marketing was in large
part motivated by the need to dissect in greater detail relationships and behaviors that existed between
sellers and buyers. In particular, the study of marketing led sellers to recognize that adopting certain
strategies and tactics could significantly benefit the seller/buyer relationship. In the old days of marketing
(before the 1950s) this often meant identifying strategies and tactics for simply selling more products and
services with little regard for what customers really wanted. Often this meant companies embraced a
“sell-as-much-as-we-can” philosophy with little concern for building relationships for the long term.
But starting in the 1950s, companies began to see that old ways of selling were wearing thin with
customers. As competition grew stiffer across most industries, organizations looked to the buyer side of
the transaction for ways to improve. What they found was an emerging philosophy suggesting that the
key factor in successful marketing is understanding the needs of customers. This now famous Marketing
Concept suggests marketing decisions should flow from FIRST knowing the customer and what they
want. Only then should an organization initiate the process of developing and marketing products and
services.
The marketing concept continues to be at the root of most marketing efforts, though the concept does
have its own problems (e.g., doesn’t help much with marketing new technologies) a discussion of which is
beyond the scope of this tutorial. But overall, marketers have learned they can no longer limit their
marketing effort to just getting customers to purchase more. They must have an in-depth understanding
of who their customers are and what they want.
Advertising is an audio or visual form of marketing communication that employs an openly
sponsored, non-personal message to promote or sell a product, service or idea.[1]:465Sponsors of
advertising are often businesses wishing to promote their products or services. Advertising is
differentiated from public relations in that an advertiser pays for and has control over the message. It
differs from personal selling in that the message is non-personal, i.e., not directed to a particular
individual.[1]:661,672 Advertising is communicated through various mass media,[2] including traditional
media such as newspapers, magazines, television, radio, outdoor advertising or direct mail; and new
media such as search results, blogs, social media, websites or text messages. The actual
presentation of the message in a medium is referred to as an advertisement or "ad" for short.
Commercial ads often seek to generate increased consumption of their products or services through
"branding", which associates a product name or image with certain qualities in the minds of
consumers. On the other hand, ads that intend to elicit an immediate sale are known as direct-
response advertising. Non-commercial entities that advertise more than consumer products or
services include political parties, interest groups, religious organizations and governmental agencies.
Non-profit organizations may use free modes of persuasion, such as a public service
announcement. Advertising may also be used to reassure employees or shareholders that a
company is viable or successful.

n 1477 William Caxton printed what could be described as Britain’s first advert, for a
book called The Pyes of Salisbury. But advertising goes back much earlier than
Caxton’s days; almost certainly it emerged alongside trading. From simply displaying
ones wares outside, to painting murals to entice customers, the roots of advertising run
deep.
Actual examples have been found preserved in volcanic ash amongst Pompeii’s ruins.
As advertising runs parallel with consumer society it isn’t really surprising that the
industrial revolution, late in the 18th century, marked an expansion in advertising.

Advertising started to become a serious business and it wasn’t long before people
started to offer themselves as specialists in advertising - the earliest known record of an
advertising agency dates back to 1786.
Newspapers rapidly became a dominant advertising medium during the first half of the
19th century, a position that would remain virtually unchallenged until the emergence of
television in the 20th century.
 A game-changer: Granada TV, one of the UK's earliest commercial television
companies. [Image: Suburbanslice under CC-BY-NC-ND licence]
The first UK television advert was broadcast in 1955 on the newly born ITV: a one
minute advert for Gibbs SR Toothpaste.
The 1970s was to became a ‘golden age’ for British commercials attracting large
audiences, and equally large advertising budgets.
In the 1980s, favourites such as The Smash Martians and the PG Tips Chimps showed
the value of entertainment in capturing the audience's attention.
With the fragmentation of the commercial television industry this ‘golden age’ may be
over but television is no longer the be all and end all of today’s advertising world.
With the opportunities that digital communications offer only beginning to be realised it
looks like there will be plenty of changes still to come.
There has been a long tradition of advertising in India since the first newspapers published
in India in the 19th Century carried advertising. The first advertising agency was established
in 1905, B. Datram and Company, followed by The India-Advertising Company in 1907, the
Calcutta Advertising agency in 1909, S.H.Bensen in 1928, J. Walter Thompson Associates
through its Indian associate, Hindustan Thompson Associates in 1929, Lintas (Lever
international Advertising Services) in 1939 and McCann Erikson in 1956. Advertising
expenditure in the 1950s was estimated at $US 300,000. Under the more socialist political
environment of the 1960s and 1970s there was little incentive for companies to advertise
because advertising was not tax deductible. In the 1970s there was a 58% growth in the
number of registered agencies from 106 in 1969 to 168 in 1979, and this included a growth
in Indian agencies. The first advertising appeared on state television in 1976.

With the opening of the economy in the 1980s there was a growth in the number of
alliances with multinational agencies and an expansion in advertising though foreign
network participation in agency ownership was limited. In 1987 Hindustan Thompson was
affiliated to J. Walter Thompson. Lintas, the 2nd ranking agency, held only 4% of its
subsidiary, as did Ogilvie and Mather. Saatchi and Saatchi/Compton had minority interests
in Compton as did Lintas. A study done in 1984 of the largest companies in India found that
the ratio of advertising expenditure to sales had risen from .64 in 1976, to .71 in 1980 to
.74 in 1984. Foreign controlled corporations had the dominant share of total advertising
expenditure, and 80% of these were in the consumer goods sectors. Advertising was very
concentrated with the top 50 advertisers accounting for 80% of the advertising spending
and the top 10 advertisers made up 40% of that figure, 32% of the total. The largest
advertiser throughout the period was Hindustan Lever which was nearly 10% of the
advertising budget of the corporate sector companies.Pharmaceutical companies were also
significant advertisers at this time.

Legal implication

While marketing has existed since the start of commercial trading, it has
become more and more of a grey area for businesses in recent times.
Questions that have been raised include: the blurred line between data
collection and the invasion of privacy as well as the grey area between
attracting consumers and deceptive advertisement. Businesses must be
careful to tread on the right side of the line between legal and illegal. This
article will outline some of the common ethical and legal issues in marketing.

Data Collection and the Invasion of Privacy

Data collection is often considered the first, and most significant, stage of
marketing. Extensive data allows businesses to choose the most optimal
marketing techniques for their consumer base. In fact, companies such as
Google and Facebook primarily rely on tracking a user’s web history to
generate returns.

However, while law makers are yet to decide on a legal position, individuals
are pushing for tougher privacy laws. For example, in a recent survey of
11,000 people almost 70% said they would gladly use a “do not track” feature
on search engines if available.
(http://www.infoworld.com/article/2612865/internet-privacy/ovum--big-data-
collection-colliding-with-privacy-concerns.html). Companies such as Facebook
have also received backlash over privacy issues. As such, businesses need to
become more conscious of the privacy of consumers when collecting data.

Distribution of Data
Delivery channels such as telemarketing, door to door sales and unsolicited
emails are some of the most controversial areas of marketing.

Sometimes the law in different countries specifies time frames in which

telemarketing and door to door sales are allowed. For instance, a sales
person may only approach you between 9 am to 6 pm on weekdays and 9am
to 5 pm on Saturdays. Further, “do not knock” stickers a “do not call” register
must be obeyed by marketers. While these protections are in place, legal and
ethical issues arise because the majority of consumers are either unaware of
such protections or cannot bothered to report petty offences. As a result,
marketers often get away with illegal and unethical behaviour.

More specifically in Australia, email Anti-Spam laws requires that a business

has the receiver’s consent, identifies the sender and contains an unsubscribe
facility. The grey area involves the definition of consent. For example, finding
a consumer or another business on a shared directory does not constitute
consent. Consent must be expressly stated or inferred from situations such as
an existing business relationship.

Misleading Claims

Misleading claims in advertising may involve claims about the quality of the
product, the availability of a service and any exclusions on a good. As
examples, marketing techniques such as pictures of planes for a road
transportation company or fine print that may contradict the overall message
of the advertisement misleading and illegal. Companies such as Harvey
Norman and Spec Savers have all been found liable for misleading claims in
the past.

However, problems arise because it is extremely difficult to claim for

misleading advertisement. For instance, that a product was “50% off from
before”, a consumer must have evidence of before and after prices to make a
claim.

he advertising industry operates within strict federal regulations and is monitored by the Federal Trade
Commission. Even with truth-in-advertising laws in place, advertisers have significant leeway to violate the
ethical standards of a wide range of consumers. Advertisers have to be especially careful to act ethically at all
times, taking extra care when advertising to children, advertising potentially harmful products and using
psychological tactics to stimulate demand. Having a list of ethical and legal issues at hand when creating
advertisements can help you to craft legal, responsible ad messages.
Truth in Advertising

The Federal Trade Commission Act set forth requirements for truth in advertising and created the FTC to
enforce the provisions of the act. The Bureau of Consumer Protection's Business Bureau notes that
advertisements in the U.S. must by truthful, not deceptive and not unfair. Advertisers must also have evidence
available to back up claims they make. The FTC defines deceitful statements as those that are likely to mislead
consumers who act reasonably under normal circumstances and that are likely to affect consumers' purchase
decisions. The FTC defines unfair advertisements as those that are likely to cause substantial, unavoidable
injury when using a product, unless the injury is outweighed by the provable benefits.

Advertising to Children

Although the FTC places special emphasis on truth-in-advertising laws when applied to children, the law
allows for a great deal of unethical behavior here. Former FTC commissioner Roscoe B. Starek states that
children are not likely to understand exaggerated statements or images, citing the example that children may
believe a toy helicopter to come fully assembled when in fact assembly is required. This interpretation of the
law completely ignores the unethical ramifications of purely legal advertising, such as building brand loyalty
in children before they even understand what a brand is, encouraging children to develop negative self images
or getting children hooked on products that can impede social development. The best way to act ethically in
this area is to advertise to parents, not children.

Advertising Harmful Products

Different countries look differently on the advertising of vice products and services, striking a balance between
placing personal responsibility on citizens and regulating what citizens are allowed to indulge in. The United
States highly regulates some forms of vice, prohibits others and gives still others a free hand. For example,
cigarette advertising is only permitted on specific media, excluding television and radio, while alcohol
advertising is allowed on all media. Companies have to take a good look at the true nature of their product
lines when deciding whether they are acting ethically as advertisers. Television ads for fast food hamburgers
are completely legal and effective at building demand, for example, but doctors in the 21st century are
beginning to find links between fast food and a national obesity epidemic. Pharmaceutical ads with lists of side
effects, as another example, are often followed 10 years later by attorneys' ads for class-action lawsuits against
the companies for wrongful injury.

Advertising Tactics

Advertising tactics present additional ethical challenges. Advertisers have a range of less-than-ethical yet legal
tools at their disposal, including subliminal advertising, emotional appeals, taking advantage of less educated
individuals, spreading propaganda for political campaigns, and other tactics ethical advertisers consistently
refrain from using. At the end of the day, consumers will be more attracted to companies that do not use
underhanded, psychologically manipulative tactics to gain their business.