I was in my first month at university when “Marketing Management: Analysis, Planning, and Control” by Phillip Kotler landed in my hands and changed my life. So let’s start from there. As per Mr. Kotler’s definition, marketing is:
“The science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit.”
Simple and to the point. Add a couple of “digital” in there and you have, for instance:
“The science and art of exploring, creating, and delivering value to satisfy the needs of a target digital market at a profit.”
Well, maybe a bit too simple. It doesn’t mention anything about that value being obtained by customers who must be converted from eyeballs to actual paying customers, or the struggle to retain those same customers, let alone the role of influencers in our lives.
The Three-Piece Puzzle of Marketing
For the past few years, I have been thinking about marketing as a three-piece puzzle. On the left side, we have acquisition, and on the right side, we have retention, reactivation, and value increase. In the middle, we have a controversial area called conversion, which is that space where a visitor has signed up on your website but has not yet spent any money on you, meaning they are not a customer yet. This area is usually either disputed by Acquisition and CRM teams or then are like the one person that when playing hide and seek nobody seeks out and therefore nobody wants to have the responsibility.
It is, of course, an oversimplification, but it provides a framework for where your marketing actions should be heading. In the acquisition phase, we find tools such as SEO, PPC, and display advertising. This can become more complex by adding brand awareness measurements, sales teams, or even sentiment analysis.
- Where Does Social Media Fit?
What is the real purpose of social media? Is it for acquisition or retention? Most of the time, it aims to serve both by increasing brand awareness. But how do you measure brand awareness effectively? Do you purchase an expensive report from an agency? Check Google Trends? Or simply attribute new traffic from search engines to your brand awareness efforts? The answer is likely a combination of all these, depending on your industry, company size, and available resources—not only for extracting KPI data but also for interpreting it and taking action.
- The Grey Area: Conversion
The middle section, where users visit a website but have yet to make a purchase, is where conversion tactics come into play. This includes analyzing registration forms, setting up automated customer onboarding cycles for those who signed up but haven’t purchased, running retargeting campaigns, and crafting effective welcome offers.
- Retention and Customer Value
On the right side of the puzzle, we focus on customer retention. This is where CRM systems and strategies designed to keep existing customers engaged come into play—through loyalty programs, personalized promotions, and bonus offers. It’s also where reactivation strategies come in, bringing back past customers to revisit and purchase again. Have I mentioned enough times that this is an oversimplification?
- Digital vs. Offline Commerce
Being digital essentially means that customers don’t walk into a store at their local mall to buy a product. Or does it? Perhaps it just means that marketing takes place in a digital environment, while the actual purchase happens offline. There are no strict rules here—common sense dictates that most of the customer journey will take place online.
- Can a Non-Buyer Generate Profit?
If someone doesn’t buy anything, can they still generate profit? Technically, they are not a customer, but platforms like Google AdSense allow content creators, such as bloggers or podcasters, to generate revenue through ad placements. Theoretically, an influencer can build a business without their audience ever spending a single cent—so long as advertisers are willing to pay for those eyeballs.
However, if AdSense banners don’t get clicks and fail to generate leads or conversions, someone somewhere is losing money. That means, ultimately, marketing must always be about turning potential customers into actual paying ones. Otherwise, it’s just a very expensive way to generate traffic.
Marketing, at its core, is about balance—balancing acquisition, conversion, and retention strategies to maximize long-term profitability.