Is AI the New SEO King? Experts Weigh In

Is AI the New SEO King? Experts Weigh In

ZeroClicks

Is AI the New SEO King? Experts Weigh In

In the rapidly evolving digital landscape, Artificial Intelligence (AI) has emerged as a pivotal force, potentially reshaping various sectors, including Search Engine Optimization (SEO). The question of whether AI can claim the throne as the new king of SEO is gaining traction among professionals and enthusiasts alike. Experts in the field are increasingly weighing in on this topic, their opinions reflecting a spectrum of perspectives and insights.

The integration of AI into SEO isnt just a theoretical discussion; its happening at a remarkable pace.

Governance

  • Internal
  • Panels
  • Voice
  • Evolution
  • Policies
  • Generation
  • Mentions
  • LLMs
  • Disambiguation
  • Ontology
AI technologies like machine learning, natural language processing, and automation are transforming how SEO specialists work, making processes more efficient and insights more accurate. But does this mean AI is set to become the new SEO king?

The proponents of AI in SEO argue that AIs ability to analyze large datasets quickly and with high precision is a game-changer.

Governance

  1. Personalization
  2. Queries
  3. AI
  4. Depth
  5. Metadata
  6. Summarization
  7. Extraction
  8. Semantics
  9. Optimization
  10. Engines
  11. Vectors
  12. Accuracy
  13. Reasoning
  14. Contextuality
  15. Linking
For example, AI can effortlessly sift through pages of content and evaluate the relevance and quality of the information based on search engine algorithms. Testing This capability not only enhances keyword research but also optimizes content strategy, making SEO efforts more targeted and effective.

Jeffrey Baxter, a seasoned SEO strategist, points out, AI helps us understand patterns and user behavior like never before. We can now predict trends and adjust strategies in real-time, something that was unimaginable a decade ago.

Citations

  • Conciseness
  • Overviews
  • Usefulness
  • Expertise
  • Personalization
  • Queries
  • AI
  • Depth
  • Metadata
  • Summarization
  • Extraction
  • Semantics
Internal Governance Crawling Indeed, the predictive analytics of AI allows for a proactive approach to SEO, potentially boosting a website's visibility and ranking.

However, not everyone is ready to crown AI as the reigning king of SEO. undefined undefined undefined. Critics argue that AI, despite its advanced capabilities, cannot fully replace the human touch that is critical in content creation and strategy.

Voice

  • Voice
  • Evolution
  • Policies
  • Generation
  • Mentions
  • LLMs
  • Disambiguation
  • Ontology
  • Schema
  • Search
They believe that AI can assist and enhance the SEO process but not lead it entirely. Sarah Lin, a digital marketing consultant, emphasizes, AI is an excellent tool, but it lacks the emotional intelligence and the creative instinct that human SEO experts bring to the table. Citations Inference Understanding cultural nuances and crafting compelling content that resonates with humans is something AI is yet to master.

Moreover, there is a concern about the over-reliance on AI leading to homogenization in content. When everyone uses similar AI tools, theres a risk that content across different sites might become too similar, losing unique voices and diminishing the user experience.

Ethical considerations also play a significant role in this debate. With AIs growing influence, issues like data privacy, surveillance, and algorithmic biases need to be addressed more rigorously.

Inference

  1. Optimization
  2. Engines
  3. Vectors
  4. Accuracy
  5. Reasoning
  6. Contextuality
  7. Linking
  8. NLP
  9. Readability
  10. Formatting
The opacity of some AI systems can make it difficult for SEO professionals to understand how exactly decisions are made, which can affect their ability to strategize effectively.

Internal

  • ZeroClicks
  • Monitoring
  • Crawling
  • Answers
  • Signals
  • Testing
  • Pages
  • Inference
  • Governance
  • Citations
  • Internal
  • Panels

In conclusion, while AI is undoubtedly transforming SEO and offers impressive advantages in data processing and analytics, calling it the new king of SEO might be premature.

Voice

  • Disambiguation
  • Ontology
  • Schema
  • Search
  • Graphs
  • Prediction
  • Assistants
  • Sources
  • Embeddings
  • Localization
  • Verification
  • Visibility
The field of SEO still requires human ingenuity and emotional intelligence, which AI cannot replicate.

Internal

  1. NLP
  2. Readability
  3. Formatting
  4. Grounding
  5. Topicality
  6. Relevance
  7. Competitors
  8. Carousels
  9. Impressions
  10. Multimodal
Perhaps, a more fitting description would be that AI is an influential ally to SEO specialists, rather than an absolute monarch. Only time will tell how this dynamic will evolve, but the combination of human expertise and AI capabilities will likely be the winning formula for the future of SEO!

What an exciting time to be in the field of digital marketing!

SearchBeyond

Read more here also:

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Citations and other links

 

Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) primarily through paid advertising.[1] SEM may incorporate search engine optimization (SEO), which adjusts or rewrites website content and site architecture to achieve a higher ranking in search engine results pages to enhance pay-per-click (PPC) listings and increase the call to action (CTA) on the website.[2]

Market

[edit]

In 2007, U.S. advertisers spent US $24.6 billion on search engine marketing.[3] In Q2 2015, Google (73.7%) and the Yahoo/Bing (26.3%) partnership accounted for almost 100% of U.S. search engine spend.[4] As of 2006, SEM was growing much faster than traditional advertising and even other channels of online marketing.[5] Managing search campaigns is either done directly with the SEM vendor or through an SEM tool provider. It may also be self-serve or through an advertising agency.

Search engine marketing is also a method of business analytics, which is mainly aimed at providing useful information for organizations to find business opportunities and generate profits. SEM can help organizations optimize their marketing and gather more audience and create more customers.[6]

Google's market dominance

[edit]

As of October 2016, Google leads the global search engine market with a market share of 89.3%. Bing comes second with a market share of 4.36%, Yahoo comes third with a market share of 3.3%, and Chinese search engine Baidu is fourth globally with a share of about 0.68%.[7]

In August 2024, Google's search engine was declared by a court to be a monopoly over the market.[8] During the trial, the US Department of Justice argued "Google hasn’t just illegally cornered the market in search — it’s squeezed online publishers and advertisers with a “trifecta” of monopolies that have harmed virtually the entire World Wide Web"[9]

History

[edit]

As the number of sites on the Web increased in the mid-to-late 1990s, search engines started appearing to help people find information quickly. Search engines developed business models to finance their services, such as pay per click programs offered by Open Text[10] in 1996 and then Goto.com[11] in 1998. Goto.com later changed its name[12] to Overture in 2001, was purchased by Yahoo! in 2003, and now offers paid search opportunities for advertisers through Yahoo! Search Marketing. Google also began to offer advertisements on search results pages in 2000 through the Google AdWords program. By 2007, pay-per-click programs proved to be primary moneymakers[13] for search engines. In a market dominated by Google, in 2009 Yahoo! and Microsoft announced the intention to forge an alliance. The Yahoo! & Microsoft Search Alliance eventually received approval from regulators in the US and Europe in February 2010.[14]

Search engine optimization consultants expanded their offerings to help businesses learn about and use the advertising opportunities offered by search engines, and new agencies focusing primarily upon marketing and advertising through search engines emerged. The term "search engine marketing" was popularized by Danny Sullivan in 2001[15] to cover the spectrum of activities involved in performing SEO, managing paid listings at the search engines, submitting sites to directories, and developing online marketing strategies for businesses, organizations, and individuals.

Methods and metrics

[edit]

Search engine marketing uses at least five methods and metrics to optimize websites.[16]

  1. Keyword research and analysis involve three "steps": ensuring the site can be indexed in the search engines, finding the most relevant and popular keywords for the site and its products, and using those keywords on the site in a way that will generate and convert traffic. A follow-on effect of keyword analysis and research is the search perception impact. Search perception impact describes the identified impact of a brand's search results on consumer perception, including title and meta tags, site indexing, and keyword focus. As online searching is often the first step for potential consumers/customers, the search perception impact shapes the brand impression for each individual.
  2. Website saturation and popularity, or how much presence a website has on search engines, can be analyzed through the number of pages of the site that are indexed by search engines (saturation) and how many backlinks the site has (popularity). It requires pages to contain keywords people are looking for and ensure that they rank high enough in search engine rankings. Most search engines include some form of link popularity in their ranking algorithms. The following are major tools measuring various aspects of saturation and link popularity: Link Popularity, Top 10 Google Analysis, and Marketleap's Link Popularity and Search Engine Saturation.
  3. Back end tools, including Web analytic tools and HTML validators, provide data on a website and its visitors and allow the success of a website to be measured. They range from simple traffic counters to tools that work with log files and to more sophisticated tools that are based on page tagging (putting JavaScript or an image on a page to track actions). These tools can deliver conversion-related information. Validators check the invisible parts of websites, highlighting potential problems and many usability issues and ensuring websites meet W3C code standards. Try to use more than one HTML validator or spider simulator because each one tests, highlights, and reports on slightly different aspects of your website.
  4. Whois tools reveal the owners of various websites and can provide valuable information relating to copyright and trademark issues.
  5. Google Mobile-Friendly Website Checker: This test will analyze a URL and report if the page has a mobile-friendly design.[17]

Search engine marketing is a way to create and edit a website so that search engines rank it higher than other pages. It should be also focused on keyword marketing or pay-per-click advertising (PPC). The technology enables advertisers to bid on specific keywords or phrases and ensures ads appear with the results of search engines.

With the development of this system, the price is growing under a high level of competition. Many advertisers prefer to expand their activities, including increasing search engines and adding more keywords. The more advertisers are willing to pay for clicks, the higher the ranking for advertising, which leads to higher traffic.[18] PPC comes at a cost. The higher position is likely to cost $5 for a given keyword, and $4.50 for a third location. A third advertiser earns 10% less than the top advertiser while reducing traffic by 50%.[18]

Investors must consider their return on investment when engaging in PPC campaigns. Buying traffic via PPC will deliver a positive ROI when the total cost-per-click for a single conversion remains below the profit margin. That way the amount of money spent to generate revenue is below the actual revenue generated.

There are many reasons explaining why advertisers choose the SEM strategy. First, creating a SEM account is easy and can build traffic quickly based on the degree of competition. The shopper who uses the search engine to find information tends to trust and focus on the links showed in the results pages. However, a large number of online sellers do not buy search engine optimization to obtain higher ranking lists of search results but prefer paid links. A growing number of online publishers are allowing search engines such as Google to crawl content on their pages and place relevant ads on it.[19] From an online seller's point of view, this is an extension of the payment settlement and an additional incentive to invest in paid advertising projects. Therefore, it is virtually impossible for advertisers with limited budgets to maintain the highest rankings in the increasingly competitive search market.

Google's search engine marketing is one of the western world's marketing leaders, while its search engine marketing is its biggest source of profit.[20] Google's search engine providers are clearly ahead of the Yahoo and Bing network. The display of unknown search results is free, while advertisers are willing to pay for each click of the ad in the sponsored search results.

[edit]

Paid inclusion involves a search engine company charging fees for the inclusion of a website in their results pages. Also known as sponsored listings, paid inclusion products are provided by most search engine companies either in the main results area or as a separately identified advertising area.

The fee structure is both a filter against superfluous submissions and a revenue generator. Typically, the fee covers an annual subscription for one webpage, which will automatically be catalogued on a regular basis. However, some companies are experimenting with non-subscription based fee structures where purchased listings are displayed permanently. A per-click fee may also apply. Each search engine is different. Some sites allow only paid inclusion, although these have had little success. More frequently, many search engines, like Yahoo!,[21] mix paid inclusion (per-page and per-click fee) with results from web crawling. Others, like Google (and as of 2006, Ask.com[22][23]), do not let webmasters pay to be in their search engine listing (advertisements are shown separately and labeled as such).

Some detractors of paid inclusion allege that it causes searches to return results based more on the economic standing of the interests of a web site, and less on the relevancy of that site to end-users.

Often the line between pay per click advertising and paid inclusion is debatable. Some have lobbied for any paid listings to be labeled as an advertisement, while defenders insist they are not actually ads since the webmasters do not control the content of the listing, its ranking, or even whether it is shown to any users. Another advantage of paid inclusion is that it allows site owners to specify particular schedules for crawling pages. In the general case, one has no control as to when their page will be crawled or added to a search engine index. Paid inclusion proves to be particularly useful for cases where pages are dynamically generated and frequently modified.

Paid inclusion is a search engine marketing method in itself, but also a tool of search engine optimization since experts and firms can test out different approaches to improving ranking and see the results often within a couple of days, instead of waiting weeks or months. Knowledge gained this way can be used to optimize other web pages, without paying the search engine company.

Comparison with SEO

[edit]

SEM is the wider discipline that incorporates SEO. SEM includes both paid search results (using tools like Google AdWords or Bing Ads, formerly known as Microsoft adCenter) and organic search results (SEO). SEM uses paid advertising with AdWords or Bing Ads, pay per click (particularly beneficial for local providers as it enables potential consumers to contact a company directly with one click), article submissions, advertising and making sure SEO has been done. A keyword analysis is performed for both SEO and SEM, but not necessarily at the same time. SEM and SEO both need to be monitored and updated frequently to reflect evolving best practices.

In some contexts, the term SEM is used exclusively to mean pay per click advertising,[2] particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting.

Creating the link between SEO and PPC represents an integral part of the SEM concept. Sometimes, especially when separate teams work on SEO and PPC and the efforts are not synced, positive results of aligning their strategies can be lost. The aim of both SEO and PPC is maximizing the visibility in search and thus, their actions to achieve it should be centrally coordinated. Both teams can benefit from setting shared goals and combined metrics, evaluating data together to determine future strategy or discuss which of the tools works better to get the traffic for selected keywords in the national and local search results. Thanks to this, the search visibility can be increased along with optimizing both conversions and costs.[24]

Another part of SEM is social media marketing (SMM). SMM is a type of marketing that involves exploiting social media to influence consumers that one company’s products and/or services are valuable.[25] Some of the latest theoretical advances include search engine marketing management (SEMM). SEMM relates to activities including SEO but focuses on return on investment (ROI) management instead of relevant traffic building (as is the case of mainstream SEO). SEMM also integrates organic SEO, trying to achieve top ranking without using paid means to achieve it, and pay per click SEO. For example, some of the attention is placed on the web page layout design and how content and information is displayed to the website visitor. SEO & SEM are two pillars of one marketing job and they both run side by side to produce much better results than focusing on only one pillar.

Ethical questions

[edit]

Paid search advertising has not been without controversy and the issue of how search engines present advertising on their search result pages has been the target of a series of studies and reports[26][27][28] by Consumer Reports WebWatch. The Federal Trade Commission (FTC) also issued a letter[29] in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader.

Another ethical controversy associated with search marketing has been the issue of trademark infringement. The debate as to whether third parties should have the right to bid on their competitors' brand names has been underway for years. In 2009 Google changed their policy, which formerly prohibited these tactics, allowing 3rd parties to bid on branded terms as long as their landing page in fact provides information on the trademarked term.[30] Though the policy has been changed this continues to be a source of heated debate.[31]

On April 24, 2012, many started to see that Google has started to penalize companies that are buying links for the purpose of passing off the rank. The Google Update was called Penguin. Since then, there have been several different Penguin/Panda updates rolled out by Google. SEM has, however, nothing to do with link buying and focuses on organic SEO and PPC management. As of October 20, 2014, Google had released three official revisions of their Penguin Update.

In 2013, the Tenth Circuit Court of Appeals held in Lens.com, Inc. v. 1-800 Contacts, Inc. that online contact lens seller Lens.com did not commit trademark infringement when it purchased search advertisements using competitor 1-800 Contacts' federally registered 1800 CONTACTS trademark as a keyword. In August 2016, the Federal Trade Commission filed an administrative complaint against 1-800 Contacts alleging, among other things, that its trademark enforcement practices in the search engine marketing space have unreasonably restrained competition in violation of the FTC Act. 1-800 Contacts has denied all wrongdoing and appeared before an FTC administrative law judge in April 2017.[32]

Examples

[edit]

Google Ads is recognized as a web-based advertising utensil since it adopts keywords that can deliver adverts explicitly to web users looking for information in respect to a certain product or service. It is flexible and provides customizable options like Ad Extensions, access to non-search sites, leveraging the display network to help increase brand awareness. The project hinges on cost per click (CPC) pricing where the maximum cost per day for the campaign can be chosen, thus the payment of the service only applies if the advert has been clicked. SEM companies have embarked on Google Ads projects as a way to publicize their SEM and SEO services. One of the most successful approaches to the strategy of this project was to focus on making sure that PPC advertising funds were prudently invested. Moreover, SEM companies have described Google Ads as a practical tool for increasing a consumer’s investment earnings on Internet advertising. The use of conversion tracking and Google Analytics tools was deemed to be practical for presenting to clients the performance of their canvas from click to conversion. Google Ads project has enabled SEM companies to train their clients on the utensil and delivers better performance to the canvass. The assistance of Google Ads canvass could contribute to the growth of web traffic for a number of its consumer’s websites, by as much as 250% in only nine months.[33]

Another way search engine marketing is managed is by contextual advertising. Here marketers place ads on other sites or portals that carry information relevant to their products so that the ads jump into the circle of vision of browsers who are seeking information from those sites. A successful SEM plan is the approach to capture the relationships amongst information searchers, businesses, and search engines. Search engines were not important to some industries in the past, but over the past years the use of search engines for accessing information has become vital to increase business opportunities.[34] The use of SEM strategic tools for businesses such as tourism can attract potential consumers to view their products, but it could also pose various challenges.[35] These challenges could be the competition that companies face amongst their industry and other sources of information that could draw the attention of online consumers.[34] To assist the combat of challenges, the main objective for businesses applying SEM is to improve and maintain their ranking as high as possible on SERPs so that they can gain visibility. Therefore, search engines are adjusting and developing algorithms and the shifting criteria by which web pages are ranked sequentially to combat against search engine misuse and spamming, and to supply the most relevant information to searchers.[34] This could enhance the relationship amongst information searchers, businesses, and search engines by understanding the strategies of marketing to attract business.

See also

[edit]

References

[edit]
  1. ^ "The State of Search Engine Marketing 2006". Search Engine Land. February 8, 2007. Archived from the original on 2007-02-10. Retrieved 2007-06-07.
  2. ^ a b "Does SEM = SEO + CPC Still Add Up?". searchengineland.com. 2010-03-04. Retrieved 2010-03-05.
  3. ^ "IAB: Search Was 50% Of US Digital Ad Spend In 2014, Desktop Still Bigger Than Mobile". searchengineland.com. 22 April 2015. Retrieved 15 March 2018.
  4. ^ "CMO by Adobe |" (PDF). www.cmo.com. Retrieved 2025-01-11.
  5. ^ Elliott, Stuart (March 14, 2006). "More Agencies Investing in Marketing With a Click". New York Times. Retrieved 2007-06-07.
  6. ^ Rialp, Alex; Rialp, Josep (2006), International Marketing Research: Opportunities and Challenges in the 21st Century, Advances in International Marketing, vol. 17, Bingley: Emerald (MCB UP ), pp. 1–13, doi:10.1016/s1474-7979(06)17019-2, ISBN 0-7623-1369-2
  7. ^ "Top 5 Desktop Tables and Console Search Engine Market Share". statcounter.com. October 2016. Retrieved November 23, 2016.
  8. ^ "A court says Google is a monopolist. Now what?". The Economist. ISSN 0013-0613. Retrieved 2024-11-18.
  9. ^ Fung, Brian (2024-09-09). "Google's search business was declared to be a monopoly. Now its ad business is on trial". CNN. Retrieved 2024-11-18.
  10. ^ "Engine sells results, draws fire". news.cnet.com. June 21, 1996. Retrieved 2007-06-09.
  11. ^ "GoTo Sells Positions". searchenginewatch.com. March 3, 1998. Archived from the original on October 11, 2007. Retrieved 2007-06-09.
  12. ^ "GoTo gambles with new name". news.cnet.com. September 10, 2001. Retrieved 2007-06-09.
  13. ^ Jansen, B. J. (May 2007). "The Comparative Effectiveness of Sponsored and Nonsponsored Links for Web E-commerce Queries" (PDF). ACM Transactions on the Web. Archived from the original (PDF) on 2008-12-30. Retrieved 2007-06-09.
  14. ^ "Microsoft-Yahoo Deal Gets Green Light". informationweek.com. February 18, 2010. Retrieved 2010-07-15.
  15. ^ "Does SEM = SEO + CPC Still Add Up?". search engine land.com. March 4, 2010. Retrieved 2013-10-06.
  16. ^ King, Andrew B. (2008). Website Optimization. "O'Reilly Media, Inc.". ISBN 978-0-596-51508-9.
  17. ^ "Mobile-Friendly Test - Google Search Console". www.google.com. Retrieved 15 March 2018.
  18. ^ a b Boughton, S. B. (2005). Search engine marketing. Perspectives in business, 20(4), 195-202.
  19. ^ Sen, R. (2005). Optimal search engine marketing strategy. International Journal of Electronic Commerce, 10(1), 9-25.
  20. ^ Skiera, B., Eckert, J., & Hinz, O. (2010). An analysis of the importance of the long tail in search engine marketing. Electronic Commerce Research and Applications, 9(6), 488-494.
  21. ^ Zawodny, Jeremy (2004-03-01). "Defending Paid Inclusions".
  22. ^ Ulbrich, Chris (2004-07-06). "Paid Inclusion Losing Charm?". Wired News.
  23. ^ "FAQ #18: How do I register my site/URL with Ask so that it will be indexed?". Ask.com. Archived from the original on 2012-07-07. Retrieved 2008-12-19.
  24. ^ Julian Connors (2016-10-06). "PPC + SEO = match made in marketing heaven". Retrieved 2017-04-26.
  25. ^ Susan Ward (2011). "Social Media Marketing". About.com. Archived from the original on 2015-03-25. Retrieved 2011-04-22.
  26. ^ "False Oracles: Consumer Reaction to Learning the Truth About How Search Engines Work (Abstract)". consumerwebwatch.org. June 30, 2003. Archived from the original on December 10, 2005. Retrieved 2007-06-09.
  27. ^ "Searching for Disclosure: How Search Engines Alert Consumers to the Presence of Advertising in Search Results". consumerwebwatch.org. November 8, 2004. Archived from the original on December 26, 2005. Retrieved 2007-06-09.
  28. ^ "Still in Search of Disclosure: Re-evaluating How Search Engines Explain the Presence of Advertising in Search Results". consumerwebwatch.org. June 9, 2005. Archived from the original on November 24, 2005. Retrieved 2007-06-09.
  29. ^ "Re: Complaint Requesting Investigation of Various Internet Search Engine Companies for Paid Placement or (Pay per click)". ftc.gov. June 22, 2002. Archived from the original on July 23, 2013. Retrieved 2007-06-09.
  30. ^ "Update to U.S. ad text trademark policy". adwords.blogspot.com. May 14, 2009. Retrieved 2010-07-15.
  31. ^ Rosso, Mark; Jansen, Bernard (Jim) (August 2010), "Brand Names as Keywords in Sponsored Search Advertising", Communications of the Association for Information Systems, 27 (1): 81–98, doi:10.17705/1CAIS.02706
  32. ^ David O. Klein & Joshua R. Wueller, Trademark Enforcement and Internet Search Advertising: A Regulatory Risk for Brand Owners, IP Litigator, Nov./Dec. 2016.
  33. ^ Google Inc (2007). "Google Adwords Case Study" (PDF). AccuraCast. Archived from the original (PDF) on 11 January 2017. Retrieved 2011-03-30. cite web: |author= has generic name (help)
  34. ^ a b c Zheng Xiang; Bing Pan; Rob Law & Daniel R. Fesenmaier (June 7, 2010). "Assessing the Visibility of Destination Marketing Organizations in Google: A Case Study of Convention and Visitor Bureau Websites in the United States" (PDF). Journal of Travel & Tourism Marketing. Retrieved 2011-04-22.
  35. ^ Bing Pan, Zheng Xiang, Rob Law and Daniel R. Fesenmaier (June 7, 2010). "The Dynamics of Search Engine Marketing for Tourist Destinations". Journal of Travel Research. 50 (4): 365–377. doi:10.1177/0047287510369558. S2CID 14193592.cite journal: CS1 maint: multiple names: authors list (link)

 

 

Steve Jobs's marketing skills have been credited for reviving Apple Inc. and turning it into one of the most valuable brands.[1][2]

Marketing is the act of acquiring, satisfying and retaining customers.[3][4] It is one of the primary components of business management and commerce.[5]

Marketing is usually conducted by the seller, typically a retailer or manufacturer. Products can be marketed to other businesses (B2B) or directly to consumers (B2C).[6] Sometimes tasks are contracted to dedicated marketing firms, like a media, market research, or advertising agency. Sometimes, a trade association or government agency (such as the Agricultural Marketing Service) advertises on behalf of an entire industry or locality, often a specific type of food (e.g. Got Milk?), food from a specific area, or a city or region as a tourism destination.

Market orientations are philosophies concerning the factors that should go into market planning.[7] The marketing mix, which outlines the specifics of the product and how it will be sold, including the channels that will be used to advertise the product,[8][9] is affected by the environment surrounding the product,[10] the results of marketing research and market research,[11][12] and the characteristics of the product's target market.[13] Once these factors are determined, marketers must then decide what methods of promoting the product,[6] including use of coupons and other price inducements.[14]

Definition

[edit]

Marketing is currently defined by the American Marketing Association (AMA) 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".[15] However, the definition of marketing has evolved over the years. The AMA reviews this definition and its definition for "marketing research" every three years.[15] The interests of "society at large" were added into the definition in 2008.[16] The development of the definition may be seen by comparing the 2008 definition with the AMA's 1935 version: "Marketing is the performance of business activities that direct the flow of goods, and services from producers to consumers".[17] The newer definition highlights the increased prominence of other stakeholders in the new conception of marketing.

The 18th century retail entrepreneur Josiah Wedgwood, who devised a number of sales methods for his tableware, is "credited with inventing modern marketing" according to the Adam Smith Institute.[18]

Recent definitions of marketing place more emphasis on the consumer relationship, as opposed to a pure exchange process. For instance, prolific marketing author and educator, Philip Kotler has evolved his definition of marketing. In 1980, he defined marketing as "satisfying needs and wants through an exchange process",[3] and in 2018 defined it as "the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return".[19] A related definition, from the sales process engineering perspective, defines marketing as "a set of processes that are interconnected and interdependent with other functions of a business aimed at achieving customer interest and satisfaction".[20]

Some definitions of marketing highlight marketing's ability to produce value to shareholders of the firm as well. 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".[21] For instance, the Chartered Institute of Marketing defines marketing from a customer-centric perspective, focusing on "the management process responsible for identifying, anticipating and satisfying customer requirements profitably".[22]

In the past, marketing practice tended to be seen as a creative industry, which included advertising, distribution and selling, and even today many parts of the marketing process (e.g. product design, art director, brand management, advertising, inbound marketing, copywriting etc.) involve the use of the creative arts.[23] However, because marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized as a science.[24] Marketing science has developed a concrete process that can be followed to create a marketing plan.[25]

Concept

[edit]

The "marketing concept" proposes that to complete its organizational objectives, an organization should anticipate the needs and wants of potential consumers and satisfy them more effectively than its competitors. This concept originated from Adam Smith's book The Wealth of Nations but would not become widely used until nearly 200 years later.[26] Marketing and Marketing Concepts are directly related.

Given the centrality of customer needs, and wants in marketing, a rich understanding of these concepts is essential:[27]

Needs: Something necessary for people to live a healthy, stable and safe life. When needs remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs can be objective and physical, such as the need for food, water, and shelter; or subjective and psychological, such as the need to belong to a family or social group and the need for self-esteem.
Wants: Something that is desired, wished for or aspired to. Wants are not essential for basic survival and are often shaped by culture or peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have the potential to become economic demands.

Marketing research, conducted for the purpose of new product development or product improvement, is often concerned with identifying the consumer's unmet needs.[28] Customer needs are central to market segmentation which is concerned with dividing markets into distinct groups of buyers on the basis of "distinct needs, characteristics, or behaviors who might require separate products or marketing mixes."[29] Needs-based segmentation (also known as benefit segmentation) "places the customers' desires at the forefront of how a company designs and markets products or services."[30] Although needs-based segmentation is difficult to do in practice, it has been proved to be one of the most effective ways to segment a market.[31][28] In addition, a great deal of advertising and promotion is designed to show how a given product's benefits meet the customer's needs, wants or expectations in a unique way.[32]

B2B and B2C marketing

[edit]

The two major segments of marketing are business-to-business (B2B) marketing and business-to-consumer (B2C) marketing.[6]

B2B marketing

[edit]

B2B (business-to-business) marketing refers to any marketing strategy or content that is geared towards a business or organization.[33] Any company that sells products or services to other businesses or organizations (vs. consumers) typically uses B2B marketing strategies. The 7 P's of B2B marketing are: product, price, place, promotion, people, process, and physical evidence.[33] Some of the trends in B2B marketing include content such as podcasts, videos, and social media marketing campaigns.[33]

Examples of products sold through B2B marketing include:

  • Major equipment
  • Accessory equipment
  • Raw materials
  • Component parts
  • Processed materials
  • Supplies
  • Venues
  • Business services[6]

The four major categories of B2B product purchasers are:

  • Producers - use products sold by B2B marketing to make their own goods (e.g.: Mattel buying plastics to make toys)
  • Resellers - buy B2B products to sell through retail or wholesale establishments (e.g.: Walmart buying vacuums to sell in stores)
  • Governments - buy B2B products for use in government projects (e.g.: purchasing weather monitoring equipment for a wastewater treatment plant)
  • Institutions - use B2B products to continue operation (e.g.: schools buying printers for office use)[6]

B2C marketing

[edit]

Business-to-consumer marketing, or B2C marketing, refers to the tactics and strategies in which a company promotes its products and services to individual people.

Traditionally, this could refer to individuals shopping for personal products in a broad sense. More recently the term B2C refers to the online selling of consumer products.

C2B marketing

[edit]

Consumer-to-business marketing or C2B marketing is a business model where the end consumers create products and services which are consumed by businesses and organizations. It is diametrically opposed to the popular concept of B2C or business-to-consumer where the companies make goods and services available to the end consumers. In this type of business model, businesses profit from consumers' willingness to name their own price or contribute data or marketing to the company, while consumers benefit from flexibility, direct payment, or free or reduced-price products and services. One of the major benefit of this type of business model is that it offers a company a competitive advantage in the market.[34]

C2C marketing

[edit]

Customer to customer marketing or C2C marketing represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction. C2C companies are a new type of model that has emerged with e-commerce technology and the sharing economy.[35]

Differences in B2B and B2C marketing

[edit]

The different goals of B2B and B2C marketing lead to differences in the B2B and B2C markets. The main differences in these markets are demand, purchasing volume, number of customers, customer concentration, distribution, buying nature, buying influences, negotiations, reciprocity, leasing and promotional methods.[6]

  • Demand: B2B demand is derived because businesses buy products based on how much demand there is for the final consumer product. Businesses buy products based on customer's wants and needs. B2C demand is primarily because customers buy products based on their own wants and needs.[6]
  • Purchasing volume: Businesses buy products in large volumes to distribute to consumers. Consumers buy products in smaller volumes suitable for personal use.[6]
  • Number of customers: There are relatively fewer businesses to market to than direct consumers.[6]
  • Customer concentration: Businesses that specialize in a particular market tend to be geographically concentrated while customers that buy products from these businesses are not concentrated.[6]
  • Distribution: B2B products pass directly from the producer of the product to the business while B2C products may additionally go through a wholesaler or retailer.[6]
  • Buying nature: B2B purchasing is a formal process done by professional buyers and sellers, while B2C purchasing is informal.[6]
  • Buying influences: B2B purchasing is influenced by multiple people in various departments such as quality control, accounting, and logistics while B2C marketing is only influenced by the person making the purchase and possibly a few others.[6]
  • Negotiations: In B2B marketing, negotiating for lower prices or added benefits is commonly accepted while in B2C marketing (particularly in Western cultures) prices are fixed.[6]
  • Reciprocity: Businesses tend to buy from businesses they sell to. For example, a business that sells printer ink is more likely to buy office chairs from a supplier that buys the business's printer ink. In B2C marketing, this does not occur because consumers are not also selling products.[6]
  • Leasing: Businesses tend to lease expensive items while consumers tend to save up to buy expensive items.[6]
  • Promotional methods: In B2B marketing, the most common promotional method is personal selling. B2C marketing mostly uses sales promotion, public relations, advertising, and social media.[6]

Marketing management orientations

[edit]

A marketing orientation has been defined as a "philosophy of business management."[7] or "a corporate state of mind"[36] or as an "organizational culture."[37] Although scholars continue to debate the precise nature of specific concepts that inform marketing practice, the most commonly cited orientations are as follows:[38]

  • Product concept: mainly concerned with the quality of its product. It has largely been supplanted by the marketing orientation, except for haute couture and arts marketing.[39][40]
  • Production concept: specializes in producing as much as possible of a given product or service in order to achieve economies of scale or economies of scope. It dominated marketing practice from the 1860s to the 1930s, yet can still be found in some companies or industries. Specifically, Kotler and Armstrong note that the production philosophy is "one of the oldest philosophies that guides sellers... [and] is still useful in some situations."[41]
  • Selling concept: focuses on the selling/promotion of the firm's existing products, rather than developing new products to satisfy unmet needs or wants primarily through promotion and direct sales techniques,[42] largely for "unsought goods"[43] in industrial companies.[44] A 2011 meta analyses[45] found that the factors with the greatest impact on sales performance are a salesperson's sales related knowledge (market segments, presentation skills, conflict resolution, and products), degree of adaptiveness, role clarity, cognitive aptitude, motivation and interest in a sales role).
  • Marketing concept: This is the most common concept used in contemporary marketing, and is a customer-centric approach based on products that suit new consumer tastes. These firms engage in extensive market research, use R&D (Research & Development), and then use promotion techniques.[46][47] The marketing orientation includes:
    • Customer orientation: A firm in the market economy can survive by producing goods that people are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern.
    • Organizational orientation: The marketing department is of prime importance within the functional level of an organization. Information from the marketing department is used to guide the actions of a company's other departments. A marketing department could ascertain (via marketing research) that consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing department would inform the R&D department to create a prototype of a product/service based on consumers' new desires. The production department would then start to manufacture the product. The finance department may oppose required capital expenditures since it could undermine a healthy cash flow for the organization.
  • Societal marketing concept: Social responsibility that goes beyond satisfying customers and providing superior value embraces societal stakeholders such as employees, customers, and local communities. Companies that adopt this perspective typically practice triple bottom line reporting and publish financial, social and environmental impact reports. Sustainable marketing or green marketing is an extension of societal marketing.[48]

Marketing plan

[edit]

The area of marketing planning involves forging a plan for a firm's marketing activities. A marketing plan can also pertain to a specific product, the introduction of a new product, the revision of current marketing strategies for existing products, as well as an organisation's overall marketing strategy. The plan is created to accomplish specific marketing objectives, outlining a company's advertising and marketing efforts for a given period, describing the current marketing position of a business, and discussing the target market and marketing mix to be used to achieve marketing goals.

An organization's marketing planning process is derived from its overall business strategy. Marketing plans start by identifying customer needs through market research and how the business can satisfy these needs. The marketing plan also shows what actions will be taken and what resources will be used to achieve the planned objectives.

Marketing objectives are typically broad-based in nature, and pertain to the general vision of the firm in the short, medium or long-term. As an example, if one pictures a group of companies (or a conglomerate), the objective might be to increase the group's sales by 25% over a ten-year period.

The marketing mix

[edit]

A marketing mix is a foundational tool used to guide decision making in marketing. The marketing mix represents the basic tools that marketers can use to bring their products or services to the market. They are the foundation of managerial marketing and the marketing plan typically devotes a section to the marketing mix.

The 4Ps

[edit]

The 4Ps refers to four broad categories of marketing decisions, namely: product, price, promotion, and place.[8][49] The origins of the 4 Ps can be traced to the late 1940s.[50][51] The first known mention has been attributed to a Professor of Marketing at Harvard University, James Culliton.[52]

The 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy; who presented them within a managerial approach that covered analysis, consumer behavior, market research, market segmentation, and planning.[53][54] Phillip Kotler, popularised this approach and helped spread the 4 Ps model.[55][56] McCarthy's 4 Ps have been widely adopted by both marketing academics and practitioners.[57][58][59]

The 4Ps of the marketing mix stand for product, price, place and promotion
One version of the marketing mix is the 4Ps method.

Outline

[edit]
Product
The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The product element consists of product design, new product innovation, branding, packaging, and labeling. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. Branding, a key aspect of the product management, refers to the various methods of communicating a brand identity for the product, brand, or company.[60]
Pricing
This refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or services, e.g. time, energy, or attention or any sacrifices consumers make in order to acquire a product or service. The price is the cost that a consumer pays for a product—monetary or not. Methods of setting prices are in the domain of pricing science.[61]
Place (or distribution)
This refers to how the product gets to the customer; the distribution channels and intermediaries such as wholesalers and retailers who enable customers to access products or services in a convenient manner. This third P has also sometimes been called Place or Placement, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales.[61]
Promotion
This includes all aspects of marketing communications: advertising, sales promotion, including promotional education, public relations, personal selling, product placement, branded entertainment, event marketing, trade shows, and exhibitions.[6] Common examples of advertising media include: TV, Radio, Magazines, Online, Billboards, Event sponsorship, Advertising mail (direct mail), Transit ads. Social media is used to facilitate two-way communication between companies and their customers. Outlets such as Facebook, Instagram, Twitter, Reddit, Pinterest, Snapchat, TikTok. LinkedIn and YouTube allow brands to start a conversation with regular and prospective customers. Viral marketing can be facilitated by social media.[62]This fourth P is focused on providing a message to get a response from consumers. The message is designed to persuade or tell a story to create awareness.[61][63]

Criticisms

[edit]

One of the limitations of the 4Ps approach is its emphasis on an inside-out view.[64] An inside-out approach is the traditional planning approach where the organization identifies its desired goals and objectives, which are often based around what has always been done. Marketing's task then becomes one of "selling" the organization's products and messages to the "outside" or external stakeholders.[60] In contrast, an outside-in approach first seeks to understand the needs and wants of the consumer.[65]

From a model-building perspective, the 4 Ps has attracted a number of criticisms. Well-designed models should exhibit clearly defined categories that are mutually exclusive, with no overlap. Yet, the 4 Ps model has extensive overlapping problems. Several authors stress the hybrid nature of the fourth P, mentioning the presence of two important dimensions, "communication" (general and informative communications such as public relations and corporate communications) and "promotion" (persuasive communications such as advertising and direct selling). Certain marketing activities, such as personal selling, may be classified as either promotion or as part of the place (i.e., distribution) element.[66] Some pricing tactics, such as promotional pricing, can be classified as price variables or promotional variables and, therefore, also exhibit some overlap.

Other important criticisms include that the marketing mix lacks a strategic framework and is, therefore, unfit to be a planning instrument, particularly when uncontrollable, external elements are an important aspect of the marketing environment.[67]

Modifications and extensions

[edit]

To overcome the deficiencies of the 4P model, some authors have suggested extensions or modifications to the original model. Extensions of the four P's are often included in cases such as services marketing where unique characteristics (i.e. intangibility, perishability, heterogeneity and the inseparability of production and consumption) warrant additional consideration factors. Other extensions include "people", "process", and "physical evidence" and are often applied in the case of services marketing.[68] Other extensions have been found necessary in retail marketing, industrial marketing and internet marketing.

The 4Cs

[edit]

In response to environmental and technological changes in marketing, as well as criticisms towards the 4Ps approach, the 4Cs has emerged as a modern marketing mix model. Robert F. Lauterborn proposed a 4 Cs classification in 1990.[69] His classification is a more consumer-orientated version of the 4 Ps[70][71] that attempts to better fit the movement from mass marketing to niche marketing.[69][72][73]

Outline

[edit]

Consumer (or client)

The consumer refers to the person or group that will acquire the product. This aspect of the model focuses on fulfilling the wants or needs of the consumer.[9]

Cost

Cost refers to what is exchanged in return for the product. Cost mainly consists of the monetary value of the product. Cost also refers to anything else the consumer must sacrifice to attain the product, such as time or money spent on transportation to acquire the product.[9]

Convenience

Like "Place" in the 4Ps model, convenience refers to where the product will be sold. This, however, not only refers to physical stores but also whether the product is available in person or online. The convenience aspect emphasizes making it as easy as possible for the consumer to attain the product, thus making them more likely to do so.[9]

Communication

Like "Promotion" in the 4Ps model, communication refers to how consumers find out about a product. Unlike promotion, communication not only refers to the one-way communication of advertising, but also the two-way communication available through social media.[9]

Environment

[edit]

The term "marketing environment" relates to all of the factors (whether internal, external, direct or indirect) that affect a firm's marketing decision-making/planning. A firm's marketing environment consists of three main areas, which are:

  • The macro-environment (Macromarketing), over which a firm holds little control, consists of a variety of external factors that manifest on a large (or macro) scale. These include: economic, social, political and technological factors. A common method of assessing a firm's macro-environment is via a PESTLE (Political, Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society.[10]
  • The micro-environment, over which a firm holds a greater amount (though not necessarily total) control, typically includes: Customers/consumers, Employees, Suppliers and the Media. In contrast to the macro-environment, an organization holds a greater (though not complete) degree of control over these factors.[10]
  • The internal environment, which includes the factors inside of the company itself.[10] A firm's internal environment consists of: Labor, Inventory, Company Policy, Logistics, Budget, and Capital Assets.[10]

Research

[edit]

Marketing research is a systematic process of analyzing data that involves conducting research to support marketing activities and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge the nature of a firm's marketing environment and to attain information from suppliers. A distinction should be made between marketing research and market research. Market research involves gathering information about a particular target market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Market research is a subset of marketing research.[11] (Avoiding the word consumer, which shows up in both,[74] market research is about distribution, while marketing research encompasses distribution, advertising effectiveness, and salesforce effectiveness).[75]

The stages of research include:

  • Define the problem
  • Plan research
  • Research
  • Interpret data
  • Implement findings[12]

Well-known academic journals in the field of marketing with the best rating in VHB-Jourqual and Academic Journal Guide, an impact factor of more than 5 in the Social Sciences Citation Index and an h-index of more than 130 in the SCImago Journal Rank are

These are also designated as Premier AMA Journals by the American Marketing Association.

Segmentation

[edit]

Market segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects.[13] The process is conducted for two main purposes: better allocation of a firm's finite resources and to better serve the more diversified tastes of contemporary consumers. A firm only possesses a certain amount of resources. Thus, it must make choices (and appreciate the related costs) in servicing specific groups of consumers. Moreover, with more diversity in the tastes of modern consumers, firms are noting the benefit of servicing a multiplicity of new markets.

Market segmentation can be defined in terms of the STP acronym, meaning Segmentation, Targeting, and Positioning.

Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes. Commonly used criteria include:

  • Geographic (such as a country, region, city, town)
  • Psychographic (e.g. personality traits or lifestyle traits which influence consumer behaviour)
  • Demographic (e.g. age, gender, socio-economic class, education)
  • Gender
  • Income
  • Life-Cycle (e.g. Baby Boomer, Generation X, Millennial, Generation Z)
  • Lifestyle (e.g. tech savvy, active)
  • Behavioral (e.g. brand loyalty, usage rate)[76]

Once a segment has been identified to target, a firm must ascertain whether the segment is beneficial for them to service. The DAMP acronym is used as criteria to gauge the viability of a target market. The elements of DAMP are:

  • Discernable – how a segment can be differentiated from other segments.
  • Accessible – how a segment can be accessed via Marketing Communications produced by a firm
  • Measurable – can the segment be quantified and its size determined?
  • Profitable – can a sufficient return on investment be attained from a segment's servicing?

The next step in the targeting process is the level of differentiation involved in a segment serving. Three modes of differentiation exist, which are commonly applied by firms. These are:

  • Undifferentiated – where a company produces a like product for all of a market segment
  • Differentiated – in which a firm produced slight modifications of a product within a segment
  • Niche – in which an organization forges a product to satisfy a specialized target market

Positioning concerns how to position a product in the minds of consumers and inform what attributes differentiate it from the competitor's products. A firm often performs this by producing a perceptual map, which denotes similar products produced in the same industry according to how consumers perceive their price and quality. From a product's placing on the map, a firm would tailor its marketing communications to meld with the product's perception among consumers and its position among competitors' offering.[77]

Product life cycle

[edit]
Product lifecycle, with the assumption of four major phases: introduction, growth, maturity, and decline. Curve of sales as a function of the time of the product on the market. After a plateau in sales at product maturity, a steep decline can follow.

The product life cycle (PLC) is a tool used by marketing managers to gauge the progress of a product, especially relating to sales or revenue accrued over time. The PLC is based on a few key assumptions, including:

  • A given product would possess introduction, growth, maturity, and decline stage
  • No product lasts perpetually on the market
  • A firm must employ differing strategies, according to where a product is on the PLC

In the introduction stage, a product is launched onto the market. To stimulate the growth of sales/revenue, use of advertising may be high, in order to heighten awareness of the product in question.

During the growth stage, the product's sales/revenue is increasing, which may stimulate more marketing communications to sustain sales. More entrants enter into the market, to reap the apparent high profits that the industry is producing.

When the product hits maturity, its starts to level off, and an increasing number of entrants to a market produce price falls for the product. Firms may use sales promotions to raise sales.

During decline, demand for a good begins to taper off, and the firm may opt to discontinue the manufacture of the product. This is so, if revenue for the product comes from efficiency savings in production, over actual sales of a good/service. However, if a product services a niche market, or is complementary to another product, it may continue the manufacture of the product, despite a low level of sales/revenue being accrued.[6]

Ethics

[edit]

Marketing ethics is an area of applied ethics that deals with the moral principles behind the operation and regulation of marketing. Some areas of marketing ethics such as the ethics of advertising and promotion overlap with media and public relations ethics.

See also

[edit]

Types of marketing

[edit]

Marketing orientations or philosophies

[edit]

References

[edit]
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Bibliography

[edit]
[edit]
  • Media related to Marketing at Wikimedia Commons
  • The dictionary definition of marketing at Wiktionary
  • Quotations related to marketing at Wikiquote
  • Marketing at Wikibooks

 

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