According to the American Marketing Association, what does marketing encompass?

The correct answer highlights that marketing is a broad discipline that encompasses a set of institutions involved in creating and exchanging value. This definition reflects a more holistic understanding of marketing beyond just the act of selling products.

Marketing involves various activities, including research, product design, pricing strategies, promotions, distribution, and customer service, all focused on meeting consumer needs and generating value. By emphasizing the creation and exchange of value, this perspective captures the essence of what marketing aims to achieve: satisfying customer demands while also benefiting the business.

The other options are too narrow in focus. One suggests that marketing is solely about sales transactions, which overlooks crucial components like market research, advertising, and relationship building. Another option confines marketing to research and product design, ignoring essential elements like distribution and sales strategies. Lastly, framing marketing exclusively as financial management neglects the creative and strategic aspects critical to successful marketing efforts. Thus, the selected answer correctly encompasses the full scope of marketing as defined by the American Marketing Association.