Evolution of marketing Marketing Evolution Business orientation Business orientation References

Evolution of Evolution of marketingmarketing

Marketing Marketing

EvolutionEvolution

Business orientation Business orientation

ReferencesReferences

Marketing Marketing 'Marketing' is the craft of linking the producers (or potential producers) of a product or service with customers, both existing and potential. It is an inevitable and necessary consequence of capitalism.

MarketingMarketingHowever marketing is not limited to capitalist countries. Marketing techniques are applied in all political systems, and in many aspects of life. Marketing methods are informed by many of the social sciences, particularly psychology, sociology, and economics.

MarketingMarketing

Marketing research underpins these activities. Through , it is also related to many of the creative arts.

What marketing involvesWhat marketing involves

Contrary to the popular conception, marketing is not just about promotion -- it can be divided into four sections, often called the "four Ps".

Four PsFour Ps

ProductProduct - The - The Product managementProduct management aspect of aspect of marketing deals with the marketing deals with the specifications of the actual good specifications of the actual good or service, and how it relates to or service, and how it relates to the the end-userend-user's needs and wants. 's needs and wants.

PricingPricing - This refers to the - This refers to the process of setting a process of setting a priceprice for a for a product, including discounts. product, including discounts.

They are:

Four PsFour Ps PromotionPromotion - This includes , - This includes ,

publicitypublicity, word of mouth, and , word of mouth, and personal selling, and refers to the personal selling, and refers to the various methods of promoting the various methods of promoting the product, product, brandbrand, or company. , or company.

PlacePlace or or distributiondistribution refers to how refers to how the product gets to the customer; the product gets to the customer; for example, point of sale for example, point of sale placement or placement or retailingretailing..

Four PsFour PsThese four elements are often referred to as the marketing mix. A marketer will use these variables to craft a marketing plan. For a marketing plan to be successful, the mix of the four "p's" must reflect the wants and desires of the consumers in the target market.

Four PsFour PsTrying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on marketing research to determine what consumers want and what they are willing to pay for.

Four PsFour PsMarketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process.

Evolution of marketingEvolution of marketing

Marketing as we know it Marketing as we know it today began in the 1970's today began in the 1970's with the birth of the "with the birth of the "marketing orientationmarketing orientation". ". During the first stage of During the first stage of capitalismcapitalism business had a business had a production orientationproduction orientation. .


Business was concerned Business was concerned with production, with production, manufacturing, and manufacturing, and efficiency issues. By the mid efficiency issues. By the mid 1950's a second stage 1950's a second stage emerged, the emerged, the sales orientationsales orientation stage. stage.


Business's prime concern was Business's prime concern was to sell what it produced. By to sell what it produced. By the early 1970's a third stage, the early 1970's a third stage, the marketing orientation the marketing orientation stage emerged as businesses stage emerged as businesses came to realize that consumer came to realize that consumer needs and wants drove the needs and wants drove the whole process.whole process.


Marketing research became Marketing research became important. Businesses realized it important. Businesses realized it was futile putting a lot of was futile putting a lot of production and sales effort into production and sales effort into products that people did not products that people did not want. Some commentators want. Some commentators claim that we are now on the claim that we are now on the verge of a fourth stage, one of a verge of a fourth stage, one of a personal marketing orientationpersonal marketing orientation..


They believe that the They believe that the technology is available today technology is available today to market to people on an to market to people on an individual basis (see individual basis (see personalized marketingpersonalized marketing, , permission marketingpermission marketing, and , and mass customizationmass customization). ).


They feel it is no longer They feel it is no longer necessary to think in necessary to think in broad aggregated broad aggregated terms like market terms like market segments or target segments or target markets.markets.


Marketing has become an Marketing has become an academic discipline in academic discipline in itself, with tertiary itself, with tertiary degrees in the field now degrees in the field now routinely awarded.routinely awarded.

Evolution of marketingEvolution of marketing Masters and Doctrinal degrees Masters and Doctrinal degrees

can be obtained in numerous can be obtained in numerous subcategories of marketing subcategories of marketing including: including: Marketing ResearchMarketing Research, , Consumer Consumer BehaviourBehaviour, , International Marketing, International Marketing, Industrial Marketing (also called Industrial Marketing (also called b-to-b marketing), Consumer b-to-b marketing), Consumer Marketing (also called b-to-c Marketing (also called b-to-c marketing), Product marketing), Product Management, and e-Marketing. Management, and e-Marketing.

Marketing orientationMarketing orientation

A marketing oriented firm is one that allows the wants and needs of customers and potential customers to drive all the firm's strategic decisions.


The firm's corporate culture is systematically committed to creating customer value. In order to determine customer wants, the company usually needs to conduct marketing research.


The marketer expects that this process, if done correctly, will provide the company with a sustainable competitive advantage.


extensive use of marketing extensive use of marketing research research

broad broad product linesproduct lines emphasis on a emphasis on a product'sproduct's

benefits to customers rather benefits to customers rather than on product attributes than on product attributes

A marketing oriented firm will A marketing oriented firm will typically show the following typically show the following characteristics:characteristics:


use of use of product innovationproduct innovation techniques techniques

the offering of ancillory services the offering of ancillory services like credit availability, delivery, like credit availability, delivery, installation, and warrantyinstallation, and warranty


The concept of marketing orientation was developed in the late 1960's and early 1970's at Harvard University and at a hand-full of foward thinking companies.


It relaced the previous sales orientation that was prevalent between the mid 1950's and the early 1970's, and the production orientation that predominated prior to the mid 1950's.

Marketing ManagementMarketing Management

Marketing management is the practical application of marketing techniques. It is the analysis, planning, implementation, and control of programs designed to create, build, and maintain mutually beneficial exchanges with target markets.

Marketing ManagementMarketing Management

The marketing manager has the task of influencing the level, timing, and composition of demand in way that will achieve organizational objectives.

Marketing Management Marketing Management InvolvesInvolves Understanding the economic Understanding the economic

structure of your industry structure of your industry Identify Identify segmentssegments within your within your

market market Identifying your target market Identifying your target market Do Do marketing researchmarketing research to to

develop profiles (demographic, develop profiles (demographic, psychographic, and behavioural) psychographic, and behavioural) of your core customers of your core customers

Marketing Management Marketing Management InvolvesInvolves

Understand your competitors and Understand your competitors and their their productsproducts

Develop new products Develop new products Establish Establish

environmental scanningenvironmental scanning mechanisms to detect mechanisms to detect opportunities and threats opportunities and threats

Understand your company's Understand your company's strengths and weaknessesstrengths and weaknesses


Audit your customers' experience Audit your customers' experience of your brand in full of your brand in full

Develop marketing strategies for Develop marketing strategies for each of your products using the each of your products using the marketing mix variables of price, marketing mix variables of price, product, distribution, and product, distribution, and promotionpromotion

Create a Create a sustainable competitive advantasustainable competitive advantagege


Understand where you want Understand where you want your brands to be in the future, your brands to be in the future, and write marketing plans on a and write marketing plans on a regular basis to help you get regular basis to help you get there there

Setup feedback systems to help Setup feedback systems to help you monitor and adjust the you monitor and adjust the process process

ReferencesReferences

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Evolution of marketing Marketing Evolution Business orientation Business orientation References