Bartels, Robert (1976) The History of Marketing Thought, 2 ed., pp.1!!, 12!2"!

, #hapters
1,2,!,",9,1$,11,12,1!,1".
Chapter 1: The Meaning of Marketing
The esta%&ish'ent of a 'arket e(ono'y )rought 'arked changes in the social and economic structure.
* new attitude toward business re+o&utioni,ed the e(ono'y of the (ountry and that re+o&utionary e&e'ent
)as identified %y the ter' -marketing.. Histori(a& a((ounts of trade &ead one to (on(&ude that marketing
has always existed. /as the origina& use of the ter' 'arketing 'ere&y an app&i(ation of a ne) na'e to an
o&d pra(ti(e0
1ne theory is that language is an inention of 'an, an adorn'ent. The other e2p&anation of the origin of
language is that it is inseparable from reason. *((ording&y, 'an.s &anguage has de+e&oped as his
thoughts ha+e de+e&oped.
3y 'arketing )as first 'eant that combination of factors )hi(h had to %e taken into (onsideration prior
to the undertaking of (er6tain se&&ing or pro'otiona& a(ti+ities. The essen(e of 'arketing )as the
(o'%ination of fa(tors. 3&indness to and ignorance of that (o'%ination of fa(tors is the reason for the
absence of terms e!uialent to marketing in other &anguages. Marketing 'ust %e regarded not 'ere&y
as a %usiness pra(ti(e, %ut as a social institution. Marketing is essentia&&y a 'eans of meeting and
satisfying certain needs of people. 4t is a highly deeloped and refined syste' of thought and pra(ti(e
(hara(teristi( of a period in the de+e&op'ent of 'arket e(ono'y. * &atent presu'ption in the pra(ti(e of
'arketing has %een that 'arketing gi+es to so(iety 'ore than so(iety gi+es to it. The fa(t is that 'arketing
is %ut one of seeral means of accomplishing a social ob"ectie. 5o&yani e2p&ains that this o%6e(ti+e is
a((o'p&ished %y so(ieties in different )ays7
re(ipro(ity
redistri%ution
e(ono'y
trade, and
the 'arket.
Reciprocity is a so(ia& syste' )herein material needs are met through exchange (arried on %et)een
indi+idua&s and groups in the for' of giftgi+ing. Redistribution is a so(ia& syste' in+o&+ing the
assembling of goods at a point fro' )hi(h they are redistri%uted %y a du&y (onstituted authority.
#ouseholding, or oecomomia is a so(ia& syste' a((o'p&ishing )hat 'arketing does in our so(iety. 4t
in+o&+es production for use, not for exchange8 9e&fsuffi(ien(y of trade. Trade is a for' of e2(hange
)hi(h 'ay %e carried on in the absence of markets. 4t in+o&+ed pri(es, in the for' of e:ui+a&en(ies,
deter'ined %y treaty or ad'inistrati+e de(ision and not %y %eha+ior in a 'arket p&a(e. The market is the
fifth type of social system supplying society$s material needs. 1rigina&&y, the 'arket )as a &o(a&
institution. 4t )as entire&y separate fro' the trade (arried on outside the (ountry. The market supplied
the common people with daily proisions.
;ro' the start, the para'ount importance of consumption has %een fundamental to marketing thought .
Moreo+er, throughout the history of 'arketing during this (entury, and the de+e&op'ent of 'arketing
thought, interest not only in consumption but in consumers has continually increased. *((ording to
e(ono'i( deter'inis', there are e2p&anations of the e+o&ution of so(ia& and e(ono'i( order7
1. The %io&ogi(a&,
2. The te(hno&ogi(a&,
!. The astro&ogi(a&
<o 'en 'ake the ti'es in )hi(h su(h an e+ent o((urs, or ha+e the ti'es 'ade the 'en. 4s 'arketing a
funda'enta& pheno'enon, or a passing one, in the su' of hu'an kno)&edge0
Chapter %: &arlier Theories Releant to Marketing Thought
The de+e&op'ent of 'arketing thought %egan early in the twentieth century )ith the (on(eption of
'arketing. =ar&y students of marketing )ere a(tua&&y educated as economists. *&though they brought
forth diergent theories, students of 'arketing e+o&+ed a body of thought that %y its nature, s(ope and
app&i(ation, set them apart fro' the usua& economists.
TH= M*>?=T
3y 19$$, it )as %eing found that demand (onsisted of more than simple purchasing power. 4t ref&e(ted
desire as )e&& as ability to purchase, and ne) e2perien(es )ith ad+ertising and sa&es'anship )ere
pro+ing that desire could be increased and molded by fa(tors other than the 'ere e2isten(e of supply.
*nother (on(ept of the 'arket (on(erned its (apa(ity to ad"ust itself auto'ati(a&&y to a har'onious
e!uilibrium. 4t had &ong %een he&d that competitie forces )ou&d nor'a&&y, in the &ong run, dissipate
tenden(ies of dis'e!uilibrium, %ut as (o'petition di'inished in so'e industries and trades, the
assumptions found in traditiona& e(ono'i( theory became increasingly inalid.
* third idea )as that cost was the principal determinant of price, at &east in the &ong run. #on(epts of
the elasticity of demand )ere sti&& another inf&uen(e upon the thinking of ear&y students of 'arketing.
*&fred Marsha&&.s (on(ept of e&asti(ity of de'and has &ong %een used %y 'arketing )riters as a theoretical
basis for selling, adertising and the promotional work of 'arketing in genera&.
TH= M=*@4@A 1; B*CD=.
(alue theory )as another area of e(ono'i( thought re&e+ant to ear&y studies of 'arketing. =(ono'ists
&eaned hea+i&y upon input factors, deter'ining their re&ati+e :uantities and pri(es. *da' 9'ith he&d a&so,
against 'ost (o''on&y he&d %e&iefs, that distributie actiities (ontri%uted to +a&ue, %ut on&y indirectly.
They extended the market, there%y 'aking opportunities for in(reased produ(tion and for greater
spe(ia&i,ation of &a%or in produ(tion. =(ono'ists a&so distinguished in their +a&ue theories alue'in'use
and alue'in'exchange.
5>1<D#T41@.
4n the eighteenth (entury, productiity )as he&d %y the physi(o(rats to %e the production of a surplus
oer costs. #on(epts of produ(tion in(&uded7
di'inishing returns
'argina& produ(ti+ity
opportunity (osts, and
the representati+e fir'
Ho)e+er, in 19$$, there )as no (&ear (on(ept of the "ustification of marketing as a productie actiity
or as a contribution to economic production) 1n the (ontrary, the popu&ar i'pression )as that the
middleman added cost instead of alue.
*da' 9'ith (on(ei+ed 'an as -the economic man. %ent upon a constant effort to better his condition.
Thus there )as a natural basis for competition, and a((ording to natura& 'oti+ations they would effect
perfect competition. >i(ardo foresa) the uncertainties of an e2panding e(ono'y. He +ie)ed a gro)ing
disparity of interests in the rising fa(tory syste'. *&fred Marsha&& per(ei+ed %asi( co'operation a'ong
a&& parties through the syste' of 'arkets. His +ie)point, insofar as he e'phasi,ed the short run, tended to
(oin(ide )ith the interests of %usiness'en.
TH= #1@9DM=>.
@ot unti& the &atter part of the nineteenth (entury, )ith the )ritings of the *ustrians did rea& consideration
of the consumer 'ake its )ay into e(ono'i( theory.
=@C*>A=M=@T 1; TH= M*>?=T.
The classical economist has assumed markets to be local )herein de'anders and supp&iers kne) of each
others presence and this kno)&edge resulted in perfect competition.
/ith the +ndustrial Reolution, ne) i'portan(e )as atta(hed to information, promotion, and the !uest
for satisfactory products. &xtended markets ga+e the opportunity for produ(tion on a s(a&e &arger than
had e+er %efore %een undertaken. The rapid transition fro' an agri(u&tura& e(ono'y to an industria&
e(ono'y at the end of the (entury poured into the 'arket such !uantities of products as to )arrant the
(on(&usion that a buyers market was replacing a sellers market. 4t had &ong %een a presu'ption of
e(ono'i( theorists that produ(tion )as %asi( that the alue created by production constituted the extent
of demand in the 'arket, %ut the *'eri(an 'arket )as anything %ut stati(.
Chapter ,: Beginnings of Marketing Thought.
=ar&y (ourses at the 1hio state Dni+ersity are (ited.
19$E 9pring -istribution of .roducts.
19$9.191$ Commercial Credit.
19161917 /alesmanship )as added.
1921 The (urri(u&u' (onsisted of the fo&&o)ing (ourses7
3usiness (o''uni(ations
Marketing
Marketing 5ro%&e's
/ho&esa&ing
>etai&ing
#redits and (o&&e(tions
9a&es'anship
*d+ertising
*d+ertising 5ra(ti(e
=2porting and 4'porting
>esear(h in Marketing.
192E /ales Management )as (o'%ined )ith /alesmanship.
1927 Marketing .roblems )as o'itted.
19"$ Business Research and Market Research %e(a'e t)o (ourses. >e(ognition that the su%6e(t
'arketing %e(a'e a((epted in %oth (ourse and %ook tit&es, as indi(ated %y the fo&&o)ing.
19$E Dni+ersity of 5ennsy&+ania offered a (ourse entit&ed The Marketing of .roducts.
191$ Dni+ersity of /is(onsin offered a (ourse entit&ed Marketing Methods.
1917 3ut&er pu%&ished Marketing Methods.
<=B=C15M=@T*C 9T*A=9 1; M*>?=T4@A TH1DAHT.
The de+e&op'ent of 'arketing thought 'ay %e (&assified as fo&&o)s7
1011'1011 .eriod of -iscoery. 4nitia& teachers of marketing sought facts about the distributie
trades. Theory )as %orro)ed for' e(ono'i(s re&ating to distri%ution, )or&d trade, and (o''odity
'arkets. The (on(eption of 'arketing o((urred and a na'e )as gi+en to it.
1011'10%1 .eriod of Conceptuali2ation. Many marketing concepts were initially deeloped. #on(epts
)ere (&assified, and ter's )ere defined.
10%1)10,1 .eriod of +ntegration. .rinciples of marketing were postulated, and the genera& %ody of
thought )as integrated for the first ti'e.
10,1'1031 .eriod of -eelopment. /peciali2ed areas of marketing (ontinued to %e de+e&oped,
hypotheti(a& assu'ptions )ere +erified and :uantified, and so'e new approaches to the e2p&anation of
'arketing )!ere undertaken.
1031'1041 .eriod of Reappraisal. The (on(ept and traditional explanation of marketing was re'
appraised in ter's of ne) needs for 'arketing kno)&edge. The s(ientifi( aspe(ts of the su%6e(t )ere
(onsidered.

1041'1051 .eriod of Reconception. Traditiona& approa(hes to the study of 'arketing )ere supp&e'ented
%y in(reasing emphasis upon managerial decision making, the societal aspects of marketing, and
!uantitatie marketing analysis. Many new concepts, so'e %orro)ed fro' the fie&d of 'anage'ent and
fro' other so(ia& s(ien(es, )ere introdu(ed into 'arketing.
1051'1061 .eriod of -ifferentiation. *s 'arketing thought %e(a'e e2panded, new concepts took on
su%stantia& identity as signifi(ant (o'ponents of the tota& stru(ture of thought. *'ong the' )ere su(h
e&e'ents as managerialism, holism, enironmentalism, systems, and internationalism.
1061 .eriod of /ociali2ation. 9o(ia& issues and 'arketing %e(a'e 'u(h 'ore i'portant, as the influence
not of so(iety upon 'arketing, %ut of marketing upon society %e(a'e a fo(us of interest.
<4M=@941@9 1; M*>?=T4@A TH1DAHT.
The %ody of 'arketing thought is (o'prised of (ertain 'ateria&s. 4t has (o'ponents8 it has foundation and
superstru(ture. The di'ensions, of 'arketing thought are at &east, structural, intellectual, temporal,
spatial, interdisciplinary, and personal.
1. /tructural -imension. Marketing thought is diided topically7 ad+ertising, sa&es'anship,
sa&es 'anage'ent, (redit, 'arket resear(h, )ho&esa&ing, retai&ing, genera& 'arketing, and a
'is(e&&any of un(&assified su%6e(ts.
2. +ntellectual -imension. The e2tent to )hi(h 'arketing thought embraces the elements of a
scientific discipline. >ising from factual and conceptual %ases to higher &e+e&s of
generali2ation and integration. Aenera&i,ations dedu(ed fro' (on(epts ha+e +arious&y %een
(a&&ed e&e'ent and prin(ip&es. They ha+e ranged fro' si'p&e ru&es of a(tion to interpretati+e
genera&i,ations of the 'arketing institution.
!. Temporal -imension. The te'pora& di'ension of 'arketing thought has %een dis(ussed
pre+ious&y as its deelopment. /ith (hanges in our (on(ept of 'arketing, the future ho&ds
further e+o&ution for the %ody of 'arketing thought a((ording to this di'ension.
". The /patial -imension. This comparatie or cultural dimension of 'arketing thought has
te'pered our presu'ptions that 'arketing is a uni+ersa& %usiness syste' rather than a (u&tura&
so(ia& syste'.
E. The +nterdisciplinary dimension. The e2tent to )hi(h 'arketing thought e'%ra(es ideas
drawn form other social disciplines.
6. The .ersonal -imension. The e2tent to )hi(h the (hara(ter of 'arketing thought has %een
deter'ined not on&y %y e2terna& pro%&e's in(iting study %ut %y the su%6e(ti+e factors that
ha+e influenced the iewpoints of men.
Chapter 3) *dertising.
9o'e of the earliest deelopments of 'arketing thought o((urred in )ritings on ad+ertising. *fter 19$!,
the &iterature of ad+ertising gre) rapid&y and passed through se+era& stages signifi(ant to 'arketing
thought. More than one hundred and thirty books on the su%6e(t )ere pu%&ished %efore 19E$, indi(ating
the popu&arity of ad+ertising. These )ere di+ided %et)een trade %ooks and te2t%ooks, the &atter %eing 'u(h
'ore nu'erous. The 'ost often dis(ussed su%6e(ts )ere adertising copy, layout, campaigns, principles
and practices, economics, and psychology.
Chapter 0) Marketing Research
9i'u&taneous&y )ith )ritings ana&y,ing 'arketing pra(ti(e (a'e a&so a &iterature pertaining to the
methodology employed in ascertaining the facts about marketing. The pra(ti(e of marketing research
was begun about 1011. The e'ergen(e and e+o&ution of resear(h thought )ere the resu&t of a gro)ing
demand for accurate knowledge of marketing and of an increasing application of the 'ethods of
s(ien(e to 'arketing 'anage'ent.
/hen in 1911, #har&es #oo&idge .arlin undertook to gather infor'ation usefu& to %usiness'en,
%usiness'en )ere unski&&ed in interpreting the'. 5ar&in (a&&ed his proposed operation Commercial
Research. His first study of the agri(u&tura& i'p&e'ent industry resu&ted in a "6$ page report, )hi(h is
credited with being the first marketing research study.
4n 1912, 5ar&in +isited a&& (ities o+er E$,$$$ popu&ation to esti'ate the +o&u'e of %usiness done in
depart'ent stores, )ho&esa&e dry goods esta%&ish'ents, and prin(ipa& 'er(hant tai&oring operations. That
resu&ted in a se(ond report entit&ed <epart'ent 9tore Cines. He stated in that study that 7the consumer
is king8 )hi(h %e(a'e a s&ogan throughout the period of the (onsu'er 'o+e'ent.
5ar&in.s third study )as, in a sense, the first (ensus of distri%ution. 4n 191", he pu%&ished sti&& another
study, 7*utomobiles,8 pointing out possi%&e su((essfu& &ines and pri(es. The studies undertaken %y 5ar&in
made commercial fact finding a profession.
1011'10%1. The gro)ing si,e of %usiness esta%&ish'ents, parti(u&ar&y in the distri%uti+e trades, focused
interest on measures of internal actiity and en(ouraged resear(h in operating statistics and other
interna& data.
10%1'10,1. 9ocus of attention on markets, resu&ting for' the introdu(tion of new products, gro)th of
ne) types of 'arketing esta%&ish'ents, and their uncertainty of consumer buying habits.
10,1'1031. 4nterest in resear(h turned to statistical methodology. Fuantitati+e rather than :ua&itati+e
infor'ation )as e'phasi,ed, parti(u&ar&y for use in ana&ysis of fa(tors affe(ting sa&es and in the setting of
sa&es :uotas.
1031'1041) The refinement of statistical techni!ues and )ith the gro)ing interest in resear(h
'ethodo&ogy dra)n fro' other so(ia& s(ien(es. *ttention )as gi+en to sampling theory and to
'u&ti+ariate and (orre&ation 'ethods.
1041'1051. ='phasis p&a(ed upon managerial decision making in marketing analyses of consumer
motiation and use of (on(epts de+e&oped in re&ated %eha+iora& s(ien(es.
*./) /haw )as one of the first to dea& )ith 'arket ana&ysis. He regarded markets as 'ade up of strata
or as haing segments distinguished %y territoria& distri%ution of (usto'er, 'enta& attitudes, (&i'ate, ra(ia&
(hara(teristi(s, density of popu&ation, and the &ike. #arson 9. -uncan, another ear&y )riter 'ade a strong
(ase for his %e&ief that %usiness pro%&e's (ou&d %e so&+ed %y the use of fa(ts. He fe&t that the pro%&e's of
%usiness enterprise are %asi(a&&y 'arket pro%&e's, he recommended the application of scientific methods
to the so&ution of the'. His (o''er(ia& resear(h and %ooks 'ade se+era& (ontri%utions to thought.
M=*9D>*34C4TG 1; M*>?=T9.
*pp&i(a%i&ity of s(ientifi( pertinen(e to 'arketing )as introdu(ed through the (on(ept of 'easura%i&ity of
'arkets. 5er(i+a& /hite )as one of the ear&iest to de+e&op this su%6e(t in his Market Analysis: Its
Principles and Methods. The 'ethodo&ogy %y )hi(h he proposed 'aking this ana&ysis (onsisted 'ain&y of
securing data by interiew and !uestionnaire.
M*>?=T 9D>B=G9.
* nu'%er of (ontri%utions to thought )ere 'ade in the de+e&op'ent of sur+ey resear(h. /i&&ia' H. >ei&&y
added to the kno)&edge of sur+ey resear(h in his Marketing Investigations. 4n 1929, he dea&t at &ength
)ith problems of interiewing and use of the !uestionnaire. 5er(i+a& /hite in 19!1 pu%&ished a 'anua&
for fie&d )orkers entit&ed Marketing Research Techniques. He added ana&ysis of personal interiewing,
telephone interiewing, group interiewing, and field tests. He de+e&oped at &ength the pre'interiew
work re:uired in fie&d resear(h, in(&uding the writing of instructions, local situation sureys,
classification of respondents, information about respondent, memori2ing the !uestionnaire, !uotas,
and rules of conduct.
9T*T49T4#*C >=9=*>#H.
?no)&edge of statisti(a& 'ethodo&ogy has a&)ays %een of i'portan(e to 'arket resear(hers. * )ork
de+oted to statisti(a& 'arket resear(h is that %y >o%ert ;er%er, Statistical Techniques in Market Research.
4n the 19E$.s there )ere an in(reasing nu'%er of 'arketing pro%&e's that )ere not %eing so&+ed
satisfa(tori&y %y the 'ethods of resear(h then e'p&oyed. The defi(ien(ies of pre+ai&ing 'ethods for
'arketing resear(h )ere stated %y >o%ert ;er%er and Hugh A. /a&es to %e as fo&&o)s7
1. &xcessie dependence upon accumulated experience of business itse&f, upon the re(ords )hi(h
%usiness has kept of its o)n a(ti+ities. @ot on&y are su(h %ases of resear(h stati( and ta2dire(ted,
they do not ref&e(t the 'any (o'p&e2 'arketing situations )hi(h (annot %e redu(ed to statisti(a&
ter's.
2. The time lag in gathering data e2terna& to the %usiness )hi(h 'akes the' a+ai&a%&e on&y after
(hange in the 'arket p&a(e has a&tered the (onditions )hi(h they are intended to depi(t. This is
true of %oth trade and go+ern'ent reports.
!. Dn(ons(ious %ut signifi(ant distortion of the "udgement of depart'ent heads, e'p&oyees, and
others )hose opinions are sought in sur+ey resear(h.
". The limited usefulness of information gathered by means of !uestionnaires in (onne(tion )ith
a rando' sa'p&e, %e(ause of public excitement (on(erning an issue, releance of findings to
pe(u&iar &o(a& (ir(u'stan(es, and the unforeseen introdu(tion of new ariables into a situation.
1ne approa(h to i'pro+e resear(h )as %y de+e&op'ent of 6udg'ent ski&&s in the use of resear(h. *
(ontrasting trend 'anifested in in(reasing incorporation in marketing research of methods and
techni!ues borrowed from related social sciences. This represented a popu&ari,ed (on(ept of :estalt
psychoanalysis. ;ro' the fie&ds of psy(ho&ogy and so(io&ogy )ere dra)n a nu'%er of (on(epts and
te(hni:ues. *'ong the' )ere the fo&&o)ing 7
/ord asso(iation
senten(e (o'p&etion
>ors(ha(h tests
the'ati( apper(eption tests
ro&e p&aying
situationa& 'ethods
(hain inter+ie)s
sy'%o&is'
pro6e(ti+e te(hni:ues
depth inter+ie)s
fo(used group inter+ie)ing
error (hoi(e te(hni:ues
(artoon and pi(ture de+i(es
pi(ture frustration
*nother +ariation )as represented %y publications of readings or the re'publication of articles on a )ide
+ariety of resear(h su%6e(ts. * third trend e+iden(ed the increasing reliance upon mathematics and
models for the so&ution of 'arketing pro%&e's. ='p&oy'ent of 'athe'ati(a& (on(epts in 'arketing
pro%&e's appeared first in 6ourna&s of e(ono'i(s, statisti(s, and 'athe'ati(s. * nu'%er of the' )ere
repu%&ished in a %ook edited %y ;rank M. 3ass et a&, entit&ed Mathematical Models and Methods in
Marketing.
3ooks pu%&ished after 196$ )ere genera&&y di+isi%&e into two groups, those intended for decision makers
)ho )ou&d use the infor'ation o%tained fro' resear(h, and those intended for the researchers the'se&+es.
@o sharp &ine (an %e dra)n %et)een )ritings of interest pri'ari&y for their (ontent of 'arketing pra(ti(e
and pro%&e's and those of interest for their e2position and a'p&ifi(ation of 'ethodo&ogy and te(hni:ues.
Chapter 11 :eneral Marketing:
The de+e&op'ent of 'arketing thought in the genera& &iterature has %een an e+o&ution of a %ody of
+ie)points, (on(epts, and prin(ip&es. 3et)een 19$$ and 196$, one hundred books dea&ing )ith general
marketing )ere pu%&ished. More than eighty indi+idua&s (ontri%uted to those )orks. The fifty years
during )hi(h this %ody of &iterature and thought has taken shape 'ay %e di+ided into six decades.
1011'1011) The period of -iscoery. The de(ade %eginning in 19$$ )itnessed the in(eption of 'arketing
thought. 4t )as a period reawakening to a recognition of problems in distribution. The order&y
gathering of 'arket infor'ation %egan. Concepts were borrowed from established disciplines, su(h as
e(ono'i(s, psy(ho&ogy, so(io&ogy, and s(ientifi( 'anage'ent, for the i'pro+e'ent of trade pra(ti(e and
'anage'ent.
1011'10%1 The .eriod of Conceptuali2ation. 4n the se(ond de(ade, 'any of the %asi( (on(epts of
'arketing )ere (rysta&&i,ed.
=*>CG #1@#=5T9 1; M*>?=T4@A
*%out 191$ the ter' 'arketing )as added to the fa'i&iar ter's distri%ution, trade, and (o''er(e. T)o of
the 'en instru'enta& in initia&&y stating this (on(ept7 >a&ph 9tarr 3ut&er and *r(h /. 9ha)) To Butler,
marketing was a 6o% of co'ordination, of planning the binding force in marketing, of management of
the complicated relations a'ong the +arious fa(tors in trade that 'ust %e (onsidered first %y the
distri%utor )ho )ishes to %ui&d his (a'paign )ith (are. 9ha).s (on(eption of 'arketing )as (o'para%&e)
/haw distinguished three basic operations in business production, distribution, and facilitating
fun(tions or ad'inistration. 4n (onne(tion )ith that, he re(a&&ed a (on(ept (redited to 3oh'3a)erk, that
business is concerned with motion of one sort or anotherspe(ifi(a&&y, 'otion (hanging for' (a&&ed
produ(tion, or 'otion (hanging p&a(e and o)nership, (a&&ed distri%ution. The 'otion of ad'inistration
in(&uded finan(ing, (redits and (o&&e(tions, pur(hasing, e'p&oy'ent, and a((ounting. Aenera&i,ing this
(on(ept, /haw conceied marketing as matter in motion.
10%1'10,1'The .eriod of +ntegration. <uring the ten years fo&&o)ing 192$ the .rinciples of Marketing
were first presented in book form, %uii&t upon foundations &aid pre+ious&y, integration of scattered
concepts and tentatie generali2ations, and in(orporating an a%undan(e of ne) 'ateria&. 5au& /. 4+ey
)as the first to use the tit&e Principles of Marketing. 1f greatest inf&uen(e upon the integration of genera&
'arketing thought )ere 5au& <. #on+erse, ;red =. #&ark, Haro&d H. Maynard, /a&ter #. /eid&er, and
Theodore @. 3e(k'an, a&& of )ho' )rote 5rin(ip&e te2ts during the 192$.s. 4n his Marketing Methods
and Policies, 5au& <. #on+erse distinguished %et)een functions of middlemen, or the 'arketing a(ti+ities
re&ated to the indi+idua& fir' and marketing functions or the a%stra(t, genera&i,ed a(ti+ities that per+ade
'arketing in genera&.
;red =. Clark defined marketing as those efforts )hi(h effe(t transfer in the o)nership of goods. The
fo&&o)ing (on(epts i&&ustrate so'ething of the su%stan(e of his thought and the status of 'arketing at that
ti'e.
* market7 a point of (on(entration.
The need for markets7 an outgro)th of di+ision of &a%or.
The market structure7 %ui&t around t)o pro(essestransfer of tit&e and transfer of goods.
Channel7 The (ourse taken in transfer of tit&e.
Types of middlemen7 'er(hant, fun(tiona& (in(&uding ad+ertising agen(ies, in(&uding %anks and
)arehouses).
Classification of middlemen7 %ased upon (on(entration and dispersion.
Classes of :oods7 persona& goods, produ(tion goods, and e:uip'ent for use in produ(tion and
distri%ution.
Marketing efficiency7 a 6udg'ent fro' t)o +ie)points I pri+ate, appraising operating effi(ien(y8
pu%&i(, appraising so(ia& signifi(an(e.
* typical generali2aiton7 Midd&e'en )i&& (ontinue so &ong ass they perfor' usefu& fun(tions.
10,1'1031) The .eriod of -eelopment. The ne2t ten years )ere (hara(teri,ed %y reision and
enlargement of thought. * tenden(y e+ident in spe(ia&i,ed 'arketing &iteratures (hara(teri,ed a&so the
genera& )ritings, na'e&y, the simplification of a su%stantia& %ody of thought for e&e'entary a(ade'i(
purposes. Throughout the19!$.s, a fe) efforts were made to duplicate or to better the genera& treaties
on 'arketing (ontained in the prin(ip&es te2ts %y #on+erse, #&ark and Maynard and no significantly new
ideas threatening (hange in the (on(ept of 'arketing see'ed (apa%&e of assi'i&ation into the traditiona&
%ody of thought )ithout a&tering it 'ore than )as a((epta%&e. The sing&e e2(eption )as #har&es ;. 5hi&&ips,
)hose Marketing )as pu%&ished in 19!J. 4ts distin(ti+e (hara(teristi(s )ere the light in which he held
the consumer)
1031'1041) The .eriod of Reappraisal. *n in(reasing nu'%er of ideas, concepts and approaches at
+arian(e )ith the traditiona& e2p&anation of 'arketing found expression and acceptance. 4deas gi+en
utteran(e %y su(h 'en as Moriarity,, 3aughan, 3reyer, ?i&&ough, and others during the pre(eding t)enty
years, )ere taking form with new meaning. @e) emphasis )as gi+en to the management of marketing
as (onsisting of more than the application of simple rules or principles. More of the consumer
iewpoint and of economic analysis )ere introdu(ed. *&though these approa(hes did not disp&a(e others
of inf&uen(e (hanges in the standard presentations, they )ere signifi(ant expressions of dissatisfaction
with the inade:ua(y of the fun(tiona& institutiona& (o''odity analysis of marketing.
1041'1051 .eriod of Reconception. The concept of marketing was being reformulated. The gro)ing
interest in theoreti(a& aspe(ts of 'arketing, for e2a'p&e, )ere sho)n in the se&e(tion %y #o2 and *&derson
of the tit&e7 Theory in Marketing. *'ong the (on(epts that *&derson infused into 'arketing thought )ere
the fo&&o)ing7
Marketing syste's as input'output systems.
The normality of heterogeneity in the 'arket.
=+ery fir' o((upying a position that is so'e)hat uni!ue, and thus (o'peting fro' a standpoint
of differential adantage.
;egotiation as the 'eans %y )hi(h 'arketing syste's esta%&ished e(ono'i( +a&ues and balance
power)
&xchange as essentia&&y the a(t of improing assortments he&d %y t)o parties.
The domain of marketing as the process of sorting as a 'eans of a((o'p&ishing effe(ti+e
'at(hing.
His ideas inf&uen(ed the &ogi( and ter'ino&ogy of )riters in su%se:uent years.
1051'1061'.eriod of -ifferentiation. 3eginning in the 19E$.s e'phasis turned toward speciali2ation
and away form generali2ation in 'arketing thought. The e2p&osion of knowledge expanded the entire
%ody of thought. This e2pansion ho)e+er, had the (hara(ter of en&arge'ent rather than a((retion. This
)as a pro(ess of differentiation. 4t (hara(teri,ed the 196$.s. -ifferentiation (onsisted of the e'ergen(e of
new conceptual and methodological perspecties in ter's of )hi(h the 'arketing pro(ess )as to +ie).
*'ong the ne) +ie)points )ere the fo&&o)ing7
'anage'ent de(ision 'aking
so(ia& and %eha+iora& patterns
:uantitati+e ana&ysis
syste's stru(ture and %eha+ior
en+iron'enta& (onstraints
(o'parati+e ana&ysis
internationa& 'arkets
physi(a& distri%ution.
4n(orporation of the new ideas into the general literature was gradual, for no en(o'passing (on(ept of
'arketing e'erged to in(&ude the' a&& in genera& theory. <ifferen(es %et)een traditiona& &iterature and
+ariants produ(ed during the 196$.s )ere 'ain&y attri%uta%&e to the in(&usion of (on(epts popu&ari,ed
during that de(ade. Cundiff and /till for e2a'p&e, o+er&aid an ana&ysis of the 3 .$s of 'arketing )ith the
(on(ept that 'arketing is a su%syste' of %usiness. 9(ott and Marks e'phasi,ed change in the en+iron'ent
and the adapti+ity of the 'arketing stru(ture. Ko%er in 1971, yet tit&ing his %ook Principles of Marketing
distinguished the traditiona& and ne)&y adopted e&e'ents as fo&&o)s.
Traditional &lements7 history of 'arketing, de'ographi( aspe(ts of 'arkets, e(ono'i( aspe(ts
of 'arkets, retai&ing and )ho&esa&ing stru(tures, ne) retai&ing de+e&op'ents, industria& 'arketing,
agri(u&tura& 'arketing fun(tions, 'arketing M49.
;ewer elements7 'ode&s of (o'petition si'u&ation, 'arket seg'entation 'ode&s, (ontro&&a%&e
and un(ontro&&a%&e aspe(ts of (onsu'er %eha+ior, foreign 'arketing, e(ono'i( 'ode&s app&ied to
retai&ing si,e fi store, &oss &eaders, 'u&tip&e produ(ts, profit 'a2i'i,ation pri(ing, theory of
assort'ent, physi(a& distri%ution, internationa& 'arketing.
1061 The .eriod of /ociali2ation. *s so(ia& (on(epts )ere introdu(ed in se+era& )ays, and as the
ter'ino&ogy )as not origina&&y se&fe2p&anatory, the fo&&o)ing g&ossary 'ay indi(ate the 'anner, if not the
degree, to )hi(h 'arketing thought %e(a'e so(ia&i,ed.
/ocial behaior I %eha+ior of parti(ipants in the 'arketing pro(ess )as interpreted as ro&e
fu&fi&&'ent in group intera(tion.
/ocietal enironment I the so(ia& (onte2t of a(tion and intera(tion in 'arketing pro(esses
in(&udes not on&y 'arket ro&e re&ations %ut a&so p&ura&isti( ro&e identifi(ation in a&& 'a6or
institutions of the so(ieta& stru(ture.
/ocial responsibility I o%&igation to (onfor' to the ro&e e2pe(tations san(tioned %y so(iety.
Marketing and so(iety I There is an interfa(e %et)een 'arketing 'anage'ent and so(iety in
genera&, as the (o''unity.
/ocial Marketing *pp&i(ation of 'arketing prin(ip&es to pro'oting and fa(i&itating the
e2(hange of +a&ues, none(ono'i(, and nonprofit so(ia& organi,ations.
=2pressing %oth the so(ia& (hara(ter of 'arketing and its 'anage'ent aspe(ts are these )ords of
M(#arthy7 Marketing is the performance of business actiities that direct the flow of goods and
serice form producers to consumer or user in order to satisfy consumers and accomplish the firms
ob"ecties)
Chapter 11' Marketing Management.
;ro' the 'id 19E$.s the su%6e(t of marketing management gre) rapid&y. @ot)ithstanding its usefu&ness
to those )ho 'anage, 'arketing pre(epts e'phasi,ed the 'arketing e&e'ent in 'anage'ent, and not the
'anage'ent e&e'ent in 'arketing. Marketing 'anage'ent i'p&ied integration of 'arketing a(ti+ities and
a do)n)ard de&egation of authority. The fo&&o)ing aspe(ts )ere e+iden(e of the trend of thought at that
ti'e7
1) * decision oriented rather than resear(h oriented point of +ie).
%) +ncorporation of re(ent de+e&op'ents in the behaioral sciences, 'ain&y e(ono'i(s,
psy(ho&ogy, and so(io&ogy.
,) -istinction %et)een controllable elements of the %usiness and the uncontrollable
enironment)
3) *daptation, as a prin(ipa& task of e2e(uti+es.
4) <ncertainty (a%out %uyers and (o'petitors) and pro%a%i&ity as aspe(ts of de(ision 'aking.
The arti(&es in Manageria& Marketing (onstituted (o&&e(ti+e&y a 'anageria& approa(h %y emphasi2ing
problem soling and decision making, %y e2pressing interdisciplinary concepts, and %y fo(using on
'anage'ent concern with surial in a dyna'i( e(ono'y. >e&ated de+e&op'ents in 'arketing thought
)ere e+ident in the fo&&o)ing (on(epts7
the 'arketing (on(ept
the 'arketing 'i2
produ(t differentiation
'arket seg'entation
physi(a& distri%ution
+a&ue added
app&i(a%i&ity of 'athe'ati(a& 'ethods to pro%&e's in 'arketing resear(h and ad+ertising
phi&osophi( approa(h to 'arketing thought.
=otler$s concept of the 'anner in )hi(h management theory is combined with marketing theory is
suggested under four headings he arranged his +arious topi(s7
1. *naly2ing marketing opportunities (the 'arketing (on(ept, 'arkets, 'arket seg'entation,
%uyer %eha+ior.
2. >rgani2ing for marketing actiity (goa&s , p&anning, de(ision 'aking, resear(h, 'ode&s,
(reati+ity.
!. .lanning (theory of 'arketing progra''ing, produ(t de(isions, pri(e, (hanne&s, pro'otion)
". Controlling the Marketing effort ('arketing (ontro&, sa&es and (ost ana&ysis, the 'arketing
audit).
3y 197$ the di'ensions and (ontent of 'arketing 'anage'ent thought )ere genera&&y understood as basic
functional management (ana&y,ing, p&anning, organi,ing, and (ontro&&ing.)
Chapter 1% ? Concepts from related disciplines.
The %ody of 'arketing thought does not (onsist entire&y of 'arketing (on(epts. The re&ation of 'arketing
to other so(ia& s(ien(es through interdis(ip&ination gains signifi(an(e as one (onsiders the possi%i&ity that
the study of marketing may become a science. 4nterdis(ip&ination is for the enri(h'ent of the
understanding of so(iety and a&& its institutions and not 'ere&y for a te(hni(a& app&i(ation. Bie)ed in
%roader perspe(ti+e, marketing, a&ong )ith so(io&ogy, e(ono'i(s, psy(ho&ogy, and other studies, )ou&d %e
dis(ip&ines of so(ia& s(ien(e or a science of society.
=#1@1M4#9.
=(ono'i( theory has proided more concepts for the de+e&op'ent of 'arketing thought than has any
other social discipline. 3e(ause 'ost 'arketing )riters ha+e %een dedi(ated t the i'pro+e'ent of the
effi(ien(y of 'arketing through 'anage'ent of the indi+idua& fir', they hae employed liberally
economists$ concepts re&ating to the indi+idua& %usiness enterprise. They ha+e furnished the consumer
iewpoint, the "ustification of institutional speciali2ation, the concept of the productiity of
marketing, a theory of integration and speciali2ation in institutional management, a role of price in
theory and practice, the bases of competition, and a philosophy of the relation of goernment t
business.
59G#H1C1AG.
5sy(ho&ogy is a se(ond dis(ip&ine or %ran(h of so(ia& s(ien(e )hose (on(epts ha+e aided in deelopment
of marketing thought. #on(erned )ith the study of the mind in its +arious aspe(ts, )ith consciousness
and behaior, )ith the indi+idua& as a )ho&e, espe(ia&&y in re&ation to his physi(a& and so(ia& en+iron'ent.
The re&e+an(e of su(h kno)&edge to 'arketing is apparent. /ome earliest writers in the marketing field
were professional psychologists, su(h as 9(ott, Tipper, Ho&&ig)orth, 3rester and others. 4n the &iterature
of adertising and selling are found the 'a6or use of psy(ho&ogi(a& (on(epts, )ith e'phasis shifting from
structuralism and functionalism to behaiorism. They ha+e %een e'p&oyed a&so in &iterature on %uying
on 'arket resear(h and in the genera& 'arketing )ritings.
5sy(ho&ogi(a& (on(epts in(orporated in 'arketing thought 'ay %e (&assified into se+era& groups. #on(epts
re&ated to motiation and sales appeals. 9o'e ear&y 'arketing %ooks dis(ussed instincts, wants, and
urges as %ases of %uying. Moti+ation, it )as a&so he&d, )hen %ased upon inf&uen(es of &ong standing,
in+o&+ed beliefs and attitudes. * se(ond group of psy(ho&ogi(a& (on(epts re&ated to the mental functions
of communication and education) *n idea is admitted to consciousness through the faculty of
perception, insight, or intuition. 4t is de+e&oped or comprehended through the fa(u&ty of reasoning,
logic or association. 4t is retained through the memory of retention and is su%6e(t t o re(a&&. 4t is
applied through the fa(u&ty of "udgement.
*nother group of (on(epts re&ated to the pattern %y )hi(h 'arketing ideas (ou&d %e (o''uni(ated
effe(ti+e&y in(&uding attention, interest, desire, coniction, and action. @ot on&y (on(epts, %ut a&so
'ethodo&ogy ha+e %een adopted %y students of 'arketing fro' psy(ho&ogi(a& resear(h. Thus 'ethods of
obseration, experimentation, the use of !uestionnaires, depth interiewing and pro"ection ha+e (o'e
into 'arketing resear(h.
91#41C1AG.
9o(io&ogy is an area (on(erned )ith understanding human behaior in groups and social settings. 4t
pro+ided (on(epts in(reasing the effe(ti+eness of 'arketing 'anage'ent and i&&u'inating the institutiona&
interpretation of 'arketing. Man is seen to be conditioned not on&y %y fa(tors (onsidered %y
psy(ho&ogists %ut a&so by customs, moties, institutions, and alues produ(ed %y his so(iety and %y his
relation to other people in the social structure. 3e(ause 'arketing )as origina&&y dee'ed )ho&&y an
e(ono'i( a(ti+ity, e(ono'i( ana&ysis and theory )ere &i%era&&y used fro' the in(eption of its study.
Moreo+er, ear&y )ritings on ad+ertising and sa&es'anship dre) hea+i&y upon psy(ho&ogy, for pro'inent
)riters in those fie&ds )ere psy(ho&ogists. Cike)ise, 'arketing s(ho&ars and resear(hers fa'i&iar )ith
history, &iterature, &a), a((ounting, and so(io&ogy dre) a tri(k&e of (on(epts fro' those fie&ds into the
f&o)ing strea' of 'arketing thought.
Chapter 1,) ;ewer *reas of Marketing Thought
Thought de+e&op'ents )hi(h ha+e produ(ed a nu'%er of ne) )ritings 'ay %e (&assified as dea&ing )ith
the fo&&o)ing su%6e(ts
1. Fuantitati+e aspe(ts of 'arketing thought.
2. Marketing syste's.
!. =n+iron'enta&is'.
". #o'parati+e 'arketing
E. 4nternationa& 'arketing
6. Cogisti(s, and
7. Marketing and so(iety
FD*@T4T*T4B= *95=#T9 1; M*>?=T4@A TH1DAHT
5rior to the 19E$.s &itt&e app&i(ation )as 'ade of for'a& ru&es of &ogi(. 9u(h )as the state of resear(h and
'arketing theory unti& the 'o+e'ent for :uantifi(ation gained 'o'entu'. Turning to more complex
!uantitatie means a language in the form of mathematics and a syntax in the form of model building
)hi(h gae new strength to the structure of marketing thought. The de+e&op'ent of e2pertise in the
use of 'athe'ati(s, ho)e+er, )as not an auto'ati( pro(ess.
/riting in 196", 3u,,e&& e2p&ained at so'e &ength, the reason for the in(reasing use of 'arketing 'ode&s,
per(ei+ed need for for'a& ana&ysis in 'arketing, dissatisfa(tion )ith (on+entiona& approa(hes to de(ision
'aking in 'arketing, in(reased stature of 'arketing resear(h in (o'panies, the rise of 'arketing theory,
the presu'ed (o'petiti+e +a&ue of 'ode&s, and prestige asso(iated )ith use of 'ode&s. Through su(h uses
of :uantitati+e 'ethods the fo&&o)ing (ontri%utions to 'arketing thought ha+e %een 'ade7
1. Areater pre(ision in the differentiation and definition of 'arketing (on(epts,
2. ;a(i&itation of a%stra(t ana&ysis %y sy'%o&is' of su%stanti+e (on(epts,
!. 4nterpretation of 'arketing pheno'ena +aria%&e (orre&ates,
". 4dentifi(ation and 'easure'ent of re&ationships a'ong nu'%ers of +aria%&es.
M*>?=T4@A 9G9T=M9.
The (on(eptua&i,ation of the marketing process as flows and of the 'arketing stru(ture as syste's gre)
out of a per(eption that the marketing mechanism functioned as a whole, not as an assortment of
unrelated parts. 5reponderan(e of e(ono'i( syste's ana&ysis, and the introdu(tion of %eha+iora&
(on(epts &ed to the study of 'arketing as so(ia& syste's.
The (on(ept of (hanne&s has %een so inherent in 'arketing thought as to %e regarded %y so'e as the on&y
(on(ept in 'arketing not %orro)ed fro' another dis(ip&ine. Bucklin perceied the history of the channel
(on(ept and he defined the (hanne& in the fo&&o)ing )ays7
as a mechanism thorough )hi(h the in+isi%&e hand of the pri+ate enterprise 'arketp&a(e operates
as a (reature of competitie pressures and spe(ia&i,ation of &a%or
as a de+e&oped %y diision of the marketing task
as a cooperatie +enture (on(erned )ith 'utua& ad6ust'ent
as a 'eans %y )hi(h demand for goods and serices are transmitted
as a 'eans of directed resources.
The de+e&op'ent of %eha+iora& (on(epts, app&ied first to understanding (onsu'er %eha+ior and ne2t to
'anage'ent %eha+ior, turned the attention of syste's ana&ysts fro' e(ono'i( to so(ia& aspe(ts of
(hanne&s. Mo+ing fro' e(ono'i( to so(ia& interpretation the points genera&&y in(orporated in 'arketing
syste's theory, na'e&y that7
The marketing process consists of a ariety of flows7 physi(a& produ(ts, tit&e, orders, infor'ation,
(redit, pay'ent, risk, post sa&e ser+i(e.
Market flows moe through channels, ter'ed syste's, (onstituting e(ono'i( spe(ia&i,ation in the
'arketing pro(ess and so(ia& intera(tion a'ong its 'e'%ers.
Marketing systems operate )ithin the constraints of their respectie enironments, )hi(h 'ay
(onsist of the fir' , the distri%uti+e group, or so(iety at &arge.
*chieement of efficiency and effectieness is gained through continual ad"ustment effe(ted %y
'anage'ent strategy and e2terna& (onstraint.
9yste's theory interpreted the 'arketing 'e(hanis' different&y and (ontri%uted to ne) 'arketing theory.
=@B4>1@M=@T*C49M.
The inf&uen(e of en+iron'ent upon the de+e&op'ent of syste's or organis's in 'arketing it is understood
parti(u&ar&y to refer to the relationship between enironment and the practice and deelopment of
marketing. /hat is en+iron'ent0 *nd )hat is 'arketing0 *s e(ono'i( interpretations of 'arketing )ere
%eginning to %e (o'p&e'ented %y so(ia& interpretations, it )as natura& that so(ia& en+iron'ent shou&d %e
added to the (on(ept of physi(a& and e(ono'i( en+iron'ent. *((ording&y, en+iron'ent )as identified %y
the fo&&o)ing di'ensions7
(u&tura& or nationa&
so(ia&
e(ono'i(
'arket
'arketing e(ono'i( and %eha+iora&
'anageria&
#1M5*>*T4B= M*>?=T4@A
The initia& tenden(y )hen foreign enironments )ere seen in contrast to that of the <nited /tates )as
to e'phasi,e their differen(es. #o'parati+e ana&ysis o%ser+ed the degree, or extent, to which
enironments differed in their (o''on respe(ts, and therefore interpreted 'arketing syste' differen(es
as 'atters of degree. The prin(ipa& (ontri%ution of (o'parati+e ana&ysis to 'arketing thought is a se(ond
di'ension of +aria%&es )hi(h it pro+ides for understanding 'arketing. 9yste's and perfor'an(e are
interpreted pri'ari&y in ter's of en+iron'enta& fa(tors, %ut, )hen differen(es %et)een en+iron'ents as
)e&& as %et)een syste's are redu(ed to (o''on sets of re&ationships, similarity and uniersality appear
where before there had been difference and uni!ueness. 3y the prospe(t of su(h genera&i,ations the
progress of 'arketing though is (arried for)ard.
4@T=>@*T41@*C M*>?=T4@A
9tudy of internationa& 'arketing e'erged fro' the sa'e (ir(u'stan(es )hi(h e+oked (o'parati+e studies,
'ain&y, increased familiarity with and inolement in marketing within different countries and
between them. The essen(e of internationa& 'arketing theory as in(&uded aspe(ts of 'arketing %oth )ithin
other (ountries and a(ross %orders in rea(hing the'. =n+iron'enta& (hara(teristi(s of )or&d 'arkets,
resu&t in differen(es in 'arketing fro' (ountry to (ountry. Throughout the de(ade (196$.s) there )as a
persistent effort 'ade to differentiate %et)een internationa& trade and internationa& 'arketing. They
%e&ie+ed internationa& trade to %e essentia&&y do'esti( trade pro6e(ted a(ross nationa& po&iti(a& %oundaries.
4f a su%stantia& differen(e %et)een do'esti( and internationa& 'arketing is to %e 'ade, it )ou&d see'
nearest to fa&&, as indi(ated %y Hohn ;ayer)eather (196E), a&ong &ines of e(ono'i( for(es shaping
internationa& trade, patterns and nationa&isti( go+ern'ent po&i(ies distorting those patterns.
C1A49T4#9.
The refra(tion of 'arketing )hi(h o((urred during the 196$.s )as a resurgent interest in the physical
moement of goods fro' produ(ers to (onsu'er. This rene)ed area of study %e(a'e kno)n as &ogisti(s.
The definition of 'arketing as the actiities inoled in moement of goods and transfer of their title8
pro+ided a natura& di(hoto'y of the su%6e(t and in+ited the de+e&op'ent of t)o distin(t &ines of thought7
the physi(a& and the so(ia&.
='ergen(e of physi(a& distri%ution as a spe(ia& fie&d of study o((urred around 196$ in response to %oth
en+iron'enta& and (on(eptua& de+e&op'ents. *ppre(iation of the 4nterdependen(e of transportation and
storage and per(eption of the 'erits of an integrated approa(h offered hope of effe(ting e(ono'ies in the
gray area %et)een 'anufa(turing and 'arketing. The di+ersity of terms designating this fie&d of study
re+ea&s the fo&&o)ing tit&es7 .hysical distribution, physical distribution systems, physical distribution
management, business logistics, business logistics management, marketing logistics, marketing
logistics and distribution planning, principles of logistics management, logistical management. The
fa%ri( of &ogisti(s thought )as a 'esh of distri%ution a(ti+ities inter)o+en )ith interdis(ip&inary
perspe(ti+es. The &ist of manageable actiities gre) to in(&ude the fo&&o)ing7 >rder processing,
transportation, containeri2ation, manufacturing and conerting capacity, information flows, storage,
freight transportation, market forecasting, supply scheduling, packaging, transit insurance,
communication control, customer serice, materials handling, moement serice, order processing.
The fo&&o)ing (ontri%utions )ere 'ade to the de+e&op'ent of 'arketing thought7
1. Recognition )as gi+en to a su%stanti+e area of 'arketing na'e&y physi(a& distri%ution,
in(&uding the genera& fun(tions of transportation and storage.
2. +dentification of the actiities (o'prised in physi(a& distri%ution, )ere 'ade a+ai&a%&e for
theoreti(a& ana&ysis. The 'arketing (on(ept )as %roadened to in(&ude physi(a& support
perfor'an(e of the produ(t or ser+i(e.
M*>?=T4@A *@< 91#4=TG.
<uring the 196$.s a 'a6or (hange in 'arketing thought %egan, na'e&y, the inclusion of society in
marketing theory and practice. Marketing is +ie)ed not 'ere&y in the (onte2t of the tota& 'arket syste',
or e+en the so(io'arket syste', %ut the tota& so(ia& syste' as e2pressed %y Ca,er and ?e&&ey. The resu&t is
a 'o+e'ent fro' the (onsideration of profits or sa&es on&y, to a (onsideration of the so(ieta& i'p&i(ations
and di'ensions of 'arketing de(isions and a(tion. Marketing 'anagers dea&t further )ith market conflict
fa(ed )ith the fu&& %&o) of social demands.
&a(k of (on(ern for :ua&ity of &ife
preferen(e for sa&es +o&u'e and profits
i'%a&an(e %et)een produ(ers and (onsu'er in the 'arket p&a(e
e2p&oitation of the poor and disad+antaged
fai&ure to pro+ide opportunities for 'inority group 'e'%ers
)aste of resour(es, po&&ution of the en+iron'ent
in+asion of pri+a(y of (iti,ens
de(epti+e ad+ertising and pro'otion
defau&t in )arranties and guarantees
i'%a&an(e %et)een 'arketing po)er and &arger so(ia& o%6e(ti+es
pro'otion of the dog'a of 'ateria&is'
%ureau(rati( neg&e(t and (orporate disregard of the pu%&i(.
* ne) era had %egun )hi(h de'anded a 'eta'orphosis of 'arketing phi&osophyL(onsu'eris', so(ia&
issues, 'arketing and so(iety and fina&&y )ith so(ia& 'arketing.
Chaper 13 ? The Maturing of Marketing Thought.
This (hapter su''ari,ed the de+e&op'ent of 'arketing thought. 4t stands as histori(a& e+iden(e different
in perspe(ti+e fro' the )ay in )hi(h de+e&op'ent of thought )as +ie)ed.
@=/=> #1@#=5T9 4@ M*>?=T4@A TH1DAHT.
9in(e 19E$ a nu'%er of &ines of thought (on(erning 'arketing, )hi(h %efore had appeared sporadi(a&&y as
unorthodox approaches and as constructie criticism, ha+e %een gi+en fu&&er e2pression.
TH= M*>?=T4@A M4M.
The 'arketing 'i2 is the (o'%ination of 'eans for a(hie+ing the 'arketing o%6e(ti+e of a %usiness fir'.
The e&e'ents of the 'i2 in(&ude all promotional means under the authority of the 'anager of 'arketing
a(ti+ities7 personal selling, adertising, credit serice, product deelopment, packaging, dealer
relations, etc) The fa(tors i'p&ied in the origina& (on(eption of 'arketing %y 3ut&er, )hen he defined
'arketing as 7eerything that the promoter of a product has to do prior to his actual use of salesmen
and of adertising)8
TH= M*>?=T4@A #1@#=5T.
This ter' designates that +ie) point taken in %usiness 'anage'ent )hi(h (auses all management
decisions to be oriented to market considerations. The (onsu'er, or the (usto'er, is assu'ed to %e the
end and o%6e(t of a&& %usiness effort. *n ear&ier (ounterpart of this (on(ept )as that the #onsu'er is
?ing.
#1@#=5T 1; M*>?=T4@A.
Marketing is in(reasing&y (on(ei+ed as ways to express other insights into the marketing task and
performance. @e)er (on(epts tend to introdu(e into 'arketing ana&ysis the (on(epts and ter'ino&ogy of
other so(ia& s(ien(es. They ref&e(t new insights into the so(ia& and 'anageria& pro%&e's in 'arketing.
H1C49T4# *55>1*#H.
='phasis has %een p&a(ed %y so'e s(ho&ars upon iewing marketing as a whole, e'phasi,ing its inter
re&ations.
M*@*A=>4*C M*>?=T4@A.
Marketing thought has a&)ays %een de+e&oped for the purpose of guiding the formation of business
policy, %ut in re(ent years e'phasis has %een p&a(ed upon 'arketing 'anage'ent as a decision'making
process)
#1@9DM=> 5>13C=M 91CB4@A.
Consumption has &ong %een regarded as a passi+e pro(ess, )ith %usiness de(isions %eing inherent&y
different fro' (onsu'er de(isions in e+a&uating 'u&tip&e 'eans for satisfying desires. * (on(ept of
(onsu'er %eha+ior has pro+ided ne) insights into the task of 'arketing 'anage'ent. /hi&e during the
196$.s and 197$.s su%stanti+e kno)&edge of 'arketing in(reased, progress in thought de+e&op'ent during
that period )as perhaps %est sho)n in )ritings a%out the for', rather than the (ontent, of 'arketing
thought. The su%stan(e of those writings pertained to issues of science, of theory and of definition.
TH= 499D= 1; 9#4=@#=.
/hether the s(ien(e is e+entua&&y (a&&ed e(ono'i(s, 'arketing, or 'arket e(ono'i(s and )hether )e are
(a&&ed e(ono'ists or 'arketers is not i'portant. /hat is i'portant is that we should welcome the
opportunity to become scientists and to de+e&op the s(ien(e of 'arket %eha+ior rather than to remain
content to describe the art of marketing, that )e think in ter's of %asi( prin(ip&es, that )e %e(o'e
s(ientists o%6e(ti+e&y seeking truth (H/ Huegy). 9trong e2(eption )as taken to this +ie) %y )riters )ho
sa) 'arketing as an art, and not as a s(ien(e. H< Hut(hinson (19E2) attri%uted the slow deelopment of
theory to the fa(t that 'arketing is not a s(ien(e. He he&d that only teachers and marketing researchers
beliee that marketing is a science, because they work with the scientific method8 those engaged in day
to day distri%ution don.t regard it as su(h.
TH= 499D= 1; TH=1>G.
The issue of theory is the (on(ern for the de+e&op'ent of that for' in 'arketing thought, beginning with
wonderment, )hether there )ere 'arketing theories, through the proposa& of identified theories, to
(onsideration of a genera& theory and the 'etatheory %y )hi(h it )ou&d %e stru(tured.
TH= 499D= 1; <=;4@4T41@.
@hether marketing is a science, and what kinds of theories comprise it, depends upon ho) 'arketing
is defined. The (onfusion and (ontro+ersy )hi(h ha+e 'ake issues of the status of 'arketing thought ha+e
originated &arge&y in the under'lineated diersity of concepts of marketing )hi(h ha+e %een pre+a&ent in
the &iterature. *'ong 'ay definitions of 'arketing, t)o 'a6or (on(epts are outstanding7 that marketing is
an economic process, and that marketing is a social process. /hen 'arketing thought is so out&ined, it is
apparent that progress is pro2i'ated %y our progressi+e en&arge'ent of 'arketing thought. Marketing
thought has progressed for' the narro)er (on(ept to the %roader, fro' the predati+e a(tion to the
ser+i(efu&, fro' se&f interest to so(ia& (onsideration, fro' e(ono'i( to so(ia& deter'inis', fro' a(tion to
intera(tion, fro' the pro+in(ia& to the g&o%a&.