Professional Documents
Culture Documents
• 2 Marketing history
o 2.1 Timeline of innovation
o 2.2 Periodization
Periodization
Robert Bartels in The History of Marketing Thought' categorised the development of
marketing theory decade by decade from the beginning of the 20th century thus:
Traditional schools
Modern schools
Marketing historians like Eric Shaw and Barton A. Weitz point to the publication
of Wroe Alderson's book, Marketing Behavior and Executive Action (1957), as a
break-point in the history of marketing thought,[3]moving from the macro functions-
institutions-commodities approach to a micromarketing management paradigm. After
Alderson, marketing began to incorporate other fields of knowledge besides
economics, notably behavioral science, becoming a multidisciplinary field. For some
scholars, Alderson's book marks the beginning of the Marketing Management Era.
Marketing history
Much of traditional marketing practice prior to the twentieth century remained
hidebound by rules-of-thumb and lack of information. Information technology,
especially since the mid-twentieth century, has given the marketeer new channels of
communication as well as enhanced means of aggregating and analyzing marketing
data. Specializations have emerged (especially sales versus marketing
and advertising versusretailing) and re-combined (business development) over the
years.
[edit]Timeline of innovation
1990s CRM and IMC (in various guises and names) gain dominance in
promotions and marketing planning[7],[8]
1995-2001: the Dot-com bubble temporarily re-defines[citation needed] the future of
marketing
1996: identification of viral marketing
2000s: Integrated marketing gains acceptance and in 2002 its first dedicated
academic research centre[9],[10]
[edit]Periodization
[edit]Production orientation
narrow product-line(s)
pricing based on the costs of production and distribution
research limited to technical product-research
packaging designed primarily to protect product
minimal promotion and advertising, limited to raising awareness of the
existence of the product
consumers more interested in simply obtaining the product, and less in its
quality
Some examples:
Societal marketing emerged in the 1960s. The societal marketing concept deals with
the needs, wants and demands of customers: how to satisfy them by producing
superior value that should satisfy the customers and promote the well-being of
society.[citation needed] The producer should not produce products deemed hazardous to
society.[citation needed]
History of Marketing
Marketing is a relatively young discipline. Some, however, argue that it has been around for a
long time.
Trade and payment in money, goods and services has been around for many thousands of
years.
Barter or counter trade is becoming popular in business again. Counter trade is more
common than you think. Have a look at this barter example: Some chemical companies often
accept non-monetary payment such as other chemicals, as payment from their customers.
Some argue that marketing has been in existence whenever and wherever there have been
buyers and sellers i.e. - a market.
Some marketing tools such as advertising have been around for hundreds and even
thousands of years. The Ancient Greeks used advertising for commercial purposes. The
traders hired 'criers' to promote their products. Their advertising propositions were sometimes
surprisingly similar to today's television advertisements. But none of the ancient brands lasted
the test of time. Few brands last a century let alone a millennium or two.
There are, however, a few select brands which have been around for a few hundred years for
example: Guinness since 1759 and Pears since 1789
There were many famous brands created during the 19th century. Some have survived. But in
reality few brands succeed in the long term. Fewer still survive two centuries of change.
The great marketing graveyard in the sky is littered with once famous brands which were
regularly bought by legions of 'loyal' customers. Where are they now? Why have they gone?
What caused their demise? Why do you think these once famous and successful brands
eventually failed?
There are many underlying change factors such as fashion or technology, which if ignored,
can affect a market or even, kill off a brand. Everything changes - including lifestyles, values
and attitudes.
Change has been constant throughout the history of marketing. Markets change constantly.
The only certainty is change. Everything changes - customers grow old, develop new tastes,
new values, earn different amounts , prioritise 'new' needs, competitors emerge, laws and
regulations change, and technology sends out shock waves of change. Nothing stays the
same.
The world and marketing are changing. They will continue to change. Today's winners may
be tomorrow's losers.
Guess what percentage of the world's 500 most successful companies in 1957 still exist today
? 33%25 or one third of the companies who were at the top of the business league table in
1957 still survive today. Success is momentary. There is no time to rest on one's laurels.
Continual success requires continual monitoring and responses to change - often before the
change actually occurs.
The rate of change accelerated when television burst onto the scene in the 1950s. Today's
computers, satellite, cable, multimedia, and virtual reality networks are also changing
markets, and the way we buy, the way we sell, the products and services we want, the way
we communicate and deliver and even pay for tomorrow's brands.
Have a look at the UK's first commercial advertisement ever shown on TV: A lot has changed
since that advertisement was made.
The discipline of marketing involves much more than just advertising or selling. Today's
marketing requires constant research into customers, competition, communications,
distribution, channels, product development, pricing etc. In addition to continual improvement
in customer care, customer retention and product design, today's marketers look towards long
term changes and future market trends, lifetime customer relationships, as well as addressing
the short term promotional campaigns.
So marketers are surrounded by change. We all are. Back in 500 AD, Heraclitus the Greek
philosopher, spotted it and commented, 'You cannot step twice into the same river for fresh
waters are ever flowing in upon you.' Change is constant.