Forget Brands: Focus On The Guest!

The American Marketing Association has changed its definition of marketing.

No major changes have been made in years, but in that time so much has happened in the world of marketing, including the advent of the Internet that it has literally forced those in the marketing business to re-visit what marketing is all about and to re-write it. This is not a small or academic thing. It is a new acceptance of the spirit and intent of marketing being about increasing customer value. It confirms for all to see the move away from clever branding and marketer-centered tactics to a proper alignment surrounding the customer. It places much needed emphasis on the power of building customer relationships, something many of us have been yelling about from the rooftops for a quarter century.

When they began interviewing a young upstart Internet entrepreneur, Jeff Bezos, who had founded a new firm to sell books online, he stressed over and over again that he was more interested in building what he called a customer-centric company, than worrying about whether or not he made an immediate profit each quarter. That was the single driving force behind the moves he made on behalf of his book selling firm called Amazon.

We see the results today. He knew that customer value is what drives the marketplace. He could see that the Internet would finally make the customer King and Queen. With so many different choices and only so much money to go around, the customer now has the power to make or break any company that doesn't meet her needs. This has never been truer than with restaurants.

The AMA definition of marketing, in place since 1985, was:" marketing is the process of planning and executing conception, pricing, promotion and distribution of goods, ideas and services to create exchanges that satisfy individual and organizational goals."

What about the customer?

The new definition of marketing is: "Marketing is an organization 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."

Take note of the difference here. The philosophy has changed from what marketers do – performing marketing tasks – to the marketers' new job, creating and delivering value to the customer; and then continuing to build and sustain positive customer relationships over time.

The implications are clear here. If you deliver value to the customer and maintain a great relationship with him over the long run, you will benefit and so will your stakeholders.

The new definition is no longer centered on the 'transactions only' side of marketing or the brand itself. Marketing seemed to get a little brand-crazy these last few years. Practitioners got all caught up in the value of the brand, and what they had to do to build the brand.

One can plan, create and communicate a brand all they want, but if you don't deliver value to the person who is buying the product, idea or service, the value of the brand is irrelevant.

The power in the sales equation has shifted from the sellers to the buyers. Marketers now must be asking themselves first: what are my customers thinking about my product or service? Are they getting what they perceive to be value for their money? If they do believe they are receiving value, will they come back and purchase again? If not, what do I have to do to ensure that they will return?

It's not that these kinds of questions were never asked in the past. They were, but maybe not up front, first, as the premier concern. Getting the brand right and the other facets of the marketing plan in order were seemingly more important.

Now, with this new definition and the restaurant industry moving toward the customer as King – and constantly managing customer relationships – we should see some real hot-stepping in the marketplace. Experts say we will also see greater allocations of marketing dollars towards relevant interactions that provide value to the consumer. Many have said that this definition change is a reflection of what is occurring naturally.

We can only hope so.