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 marketer new channels of communication as well as enhanced means of aggregating and analyzing marketing data. Specializations have emerged (especially sales versus marketing and advertising versus retailing) and re-combined (business development) over the years.
Timeline of innovation
1450: Gutenberg's metal movable type, leading eventually to mass-production of flyers and brochures
1730s: emergence of magazines (a future vector of niche marketing)
1836: first paid advertising in a newspaper (in France)
1839: posters on private property banned in London
1864: earliest recorded use of the telegraph for mass unsolicited spam
1867: earliest recorded billboard rentals
1880s: early examples of trademarks as branding
1905: the University of Pennsylvania offered a course in "The Marketing of Products."
1908: Harvard Business School opens
1922: radio advertising commences
1940s: electronic computers developed
1941: first recorded use of television advertising
1950s: systematization of telemarketing
1970s: E-commerce invented
1980s: development of database marketing as precursor to CRM
1980s: emergence of relationship marketing
1980s: emergence of computer-oriented spam
1984: introduction of guerrilla marketing
1985: desktop publishing democratizes the production of print-advertising
1991: IMC gains academic status
1990s CRM and IMC (in various guises and names) gain dominance in promotions and marketing planning.
1995-2001: the Dot-com bubble temporarily re-defines the future of marketing
1996: identification of viral marketing
2000s: Integrated marketing gains acceptance and in 2002 its first dedicated academic research center.
Periodization
One marketing standard chronology (Bartels, 1974; Dawson, 1969; Keith, 1960; Kotler and Keller, 2006) subdivides marketing history as follows:
- Production orientation era
- Product orientation era
- Sales orientation era
- Market orientation era
- Customer orientation
- Relationship orientation
- Social/mobile marketing orientation
Production orientation
A production orientation dominated business thought from the beginning of capitalism to the mid-1950s, and some argue it still exists in some industries. Business concerned itself primarily with production, manufacturing, and efficiency issues. Say's Law encapsulated this viewpoint, stating: "Supply creates its own demand". To put it another way, "if somebody makes a product, somebody else will want to buy it". This orientation rose to prominence in an environment which had a shortage of manufactured goods relative to demand, so goods sold easily.
Implications of this orientation include: narrow product line(s)pricing based on the costs of production and distribution research limited to technical product-research
packaging designed primarily to protect the 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:
The early car industry provides the classic example of production orientation, exemplified by the story of Henry Ford's Model T. At this time production orientation, an industry-wide philosophy, applied in many industries.
As of 2009 one sees examples of production-orientation marketing by individual companies rather than in whole industries because of increased competition. One might argue that some elements of the production orientation appear in the electronics industry where firms manufacture large quantities of low-cost, low-price goods when they know that a market exists. As a possible supplementary factor, one can usually replace an electronic product much more cheaply than fixing it.
Philip Kotler argues that assembly-line techniques have migrated to services like government benefits offices, in which they deal with people very efficiently, but without necessarily entailing full satisfaction on the part of the customer.
Relationship orientation
Starting in the 1990s, a new stage of marketing emerged called relationship marketing. The focus of relationship marketing is on a long-term relationship that benefits both the company and the customer.The relationship is based on trust and commitment, and both companies tend to shift their operating activities to be able to work more efficiently together. One of the most prominent reasons for relationship marketing comes from Kotler's idea that it costs about five times more to obtain a new customer than to maintain the relationship with an existing customer.
Sales in relationship marketing should encompass the following: open communication, employee empowerment, customers and the planning process, and teamwork. First, communication is essential in figuring out what the customers need and determining how the firm can satisfy those needs. With open communication, both sides can express what they are trying to do and can work out a way to make it work together. Second, employee empowerment is important so that the employees are able to satisfy customer needs. Without empowerment, they may be limited in their solutions and cannot creatively satisfy needs. Third, customers must be involved in the planning process. Customer input is invaluable, as the customer is the one who will be using the product. If the customer is not satisfied from the beginning, there is no way to gain approval after the product is incorporated. Lastly, relationship marketing must emphasize teamwork. Several people who can help solve customer problems should work together and use their talents to best serve the customers.
While relationship marketing is largely held as the most recent stage of marketing, there is speculation that we are now entering into a new era of marketing called the social/mobile marketing era where companies are connected to customers 24/7.
The societal marketing concept
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. The producer should not produce products deemed hazardous to society.
Source: Wikipedia and books
Source: Wikipedia and books
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