Evolution of marketing

• Consider how much marketing has changed in the last century

and will continue to shift by the minute as markets expand and
new marketing platforms emerge
• What we consider today to be the fastest way to reach our
customers might be obsolete tomorrow.
• Therein lies the beauty of this profession... change
 Evolution of marketing
• The barter system
• Searching became a tedious job
• Local markets
• Shops / bazaars
• Common mediums of exchange like cows, pigs, sheep, slaves. Then, copper, iron, silver, gold etc.
• Currency
• Production at larger scale

• More workers were required

• Middlemen
• Marketing
 http://dstevenwhite.com/2010/06/18/the-evolution-of-
marketing/

1. Production era: ‘Cut costs. Profits will take care of themselves’

2. Product era: ‘A good product will sell itself’

3. Sales era: ‘Selling is attracting the customer’

4. Marketing era: ‘The customer is King!’
5. Relationship marketing era: ‘Relationship with customers determine our
firm’s future’
 The Exchange Concept

"For Wealth without Greed, Take only what you

Need!"
 The Production Concept
Henry Ford’s Model T

"You can have any color you want as long as it is black"

- Henry Ford
 1. Production Orientation

 - Product is which are widely available and inexpensive

 - High production efficiency
 - Low cost

 - Mass production and distribution

 - Features do not matter much
 1. Production Orientation

• Focuses on internal capabilities of firm.

• “ Field of Dreams” strategy

– “If we build it, they will come”

• Best used when

– competition is weak
– demand exceeds supply
– generic products competing solely on price

• Problem is that they don’t understand wants/needs of marketplace.

2. The Product Concept
 2. The Product Concept

• Good quality

• Good performance
• Innovative features
• No customer input

• No competitor analysis
 3. The Selling Concept

Clear this
inventory, no
matter what
it takes
 3. The Selling Concept

Prior to the 1950s

• People will buy more goods/services if aggressive sales techniques are used.
• High sales will result in high profits.

• Used with unsought products

– life insurance
– encyclopedias
• Problem is that they don’t understand wants/needs of marketplace.

• I can sell everything, if I know how to sell it

 3. The Selling Concept

1.- Sales promotion efforts

2.- Buying resistance

3.- More stuff to more people

4.- Unsought goods

5.- High risk

The Marketing Concept

MR-MM
 4. Marketing Orientation

The social and economic justification for an organization’s existence is the

satisfaction of customer wants and needs, while meeting organizational

objectives.
 3. Marketing Orientation . . .
• Requires:
– Top management leadership
– A customer focus

– Competitor intelligence
• strengths
• weaknesses

– Interfunctional coordination to meet customer wants/needs and deliver

superior values.
 5. Societal Marketing Orientation

• Organization exists not only to satisfy customer wants/needs and to meet

organizational objectives, but also to preserve and enhance individuals’ and
society’s long-term best interests.
• Extends marketing concept to serve one more customer - society as a whole.
Societal Marketing Concept
 Differences between Sales & Marketing Orientations

Production/Sales Focus Marketing Focus

• Organization’s needs • Customer’s needs

• Producing/Selling goods/services • Satisfying customer wants/needs

• Everybody • Specific groups of people
• Profit through max. sales volume • Profit through customer satisfaction

• Intensive promotion • Coordinated mktg. activities (4 p’s)

Activities of Marketing

Dr. Rosebloom
Activities
Activities of
of Marketing
Marketing

Exchange

 Buying - seeking and evaluating alternatives

 Selling - promotion of alternatives to
consumers

Dr. Rosebloom
Activities of Marketing

Dr. Rosebloom
 Logistical

 Transporting - movement of goods and services

 Storing - holding of goods and services

Dr. Rosebloom
Activities of Marketing

Dr. Rosebloom
 Facilitating

 Financing - facilitating exchange

 Risk-taking - holding title
 Providing information - understanding markets
(consumer and industrial)
 Standardizing and grading - sorting by size and quality

Dr. Rosebloom
 Marketing Myopia

Short sightedness by business firms causing

management to define their business too
narrowly

Dr. Rosebloom
 Marketing Myopia Examples

Myopic Description: Broad Description:

• Railroad company  Transportation company

• Electricity company  Power company
• Television network  Entertainment provider

Dr. Rosebloom
 What is Marketed?

 Goods 
Places
 Services 
Properties
 Events 
Organizations
 Experiences 
Information
 Persons 
Ideas
Holistic Marketing Dimensions
 Marketing Philisophies

Orientation Key Ideas

Production Focus on efficiency of internal operations –

if we make it, they will buy it
Sales Focus on aggressive sales techniques and believe that high sales
result in high profits

Marketing Focus on satisfying customer needs and wants

while meeting objectives - if they will buy it, we will make it

Societal Focus on satisfying customer needs and

wants while enhancing individual and
societal well-being. I.e.-mfg using recyclables