One of the questions I frequently get asked is "What is the difference between marketing and advertising?" It's a good question, and it's an understandable one too, because the two terms are often used interchangeably – though I think most people know there is some kind of difference between the two. And there is. People just can't put the ol' finger on it. Let me try and explain...
Advertising is actually a sub-set of marketing. Advertising refers to ads placed in magazines, newspapers, on TV and radio, etc.
Marketing, however, is a much broader approach. It includes advertising, but actually encompasses anything and everything that creates public awareness for a brand.
A web site, while it may include "ads," is really marketing, because it is (or it should be, anyway) about establishing a permanent presence in the marketplace and in the minds of consumers. A web site, in a way, is actually the ultimate in marketing, because unlike nearly every other form of marketing (radio and TV spots, print and online ads, etc.), it is not etherial. It "sticks."
And hopefully, if the web masters and copy writers and graphic artists did their jobs right, it makes a long-lasting impression that causes you to come back for more. In that sense, it "sticks and re-sticks." In fact, if they got you to sign up for their mailing list, they've really done their jobs right. Lists are what really makes web sites "the ultimate marketing tool," because they are targeted specifically at those who are already interested in the product or service at hand, and remind them to return and buy again!
So, advertising refers to a specific "piece" (to use some industry lingo) or campaign that is primarily intended to sell, whereas marketing encompasses advertising and everything else you do to reach the consumer, be it surveys, polls, promotional give-aways, consumer education, charity and event sponsorship, etc., etc., etc. I hope that helps.