Marketing appeared approximately around the 16th century where in buying and selling had emerged at the market. And while marketing has been around forever, Philip Kotler a professor of Kellogg Graduate School of Management who is recognized in the international community for his work claims to have invented the word “marketing.”
In historical review, there are variations while referring to marketing thought which is based on the economy and culture of the society; in contrast to the marketing practice which was based on the disciplines of marketing. The purpose of development of either is to indulge in a business that provides services which have a way of attracting customers. Successful marketing also goes one step further because a business should also pursue ways to retain customers for future sales. The size of a company determines marketing strategy. Some companies may have a department dedicated to performing this work. Other companies may need to pursue these tasks while performing other work, too. On the way to its development into its technical and modern forms, marketing is now seen as a conjunction which emerged with the rise of customer culture in the 17th to 19th century. This led to a strategic level of competition among the customers and develop organizations. It is much familiar in the current days where ‘marketing organization' focuses on small and medium enterprise i.e, production sales. In the original scenario, the service sector or industrialization, including banks and tourism take much of the credit. It is in fact a short contribution of strategy and technology. In the late 1990's, blogs had become an essential portion of marketing. Presently, there are over 150 million active blogs. The 60's to 80's were a period of great change. In marketable terms, industry was going through a revolution. Boardrooms that had been controlled by ‘old money' and accountants were paving way to a better wave of soothsayers and an entrepreneurial ethic. 40 years before, we were using labor-intensive typewriters. There was no internet, no Microsoft, no Google, Facebook, Twitter, LinkedIn, no mobile phones or the social media and software tools we now take for granted. In 1978, the year Marketing Week launched, marketing had become mainstream and a ‘must-have' discipline for any ad agency or client company wishing to be thought of as innovative or entrepreneurial.
Marketing has changed over the centuries, decades and years. The production centered system systematically changed into relationship era of today and over the period; the specializations have emerged such as sales versus marketing and advertising versus retailing. The overall evolution of marketing and advertising versus retailing. The overall evolution of marketing has given rise to the concept of business development. Marketing has taken the modern shape after going through various stages since last the end of 19th century. The Production oriented practice of marketing prior to the twentieth century was conservative and hidebound by rules-of-thumb and lack of information. Science & technology developments and specially the development of information technology have now changed the way people live, the way people do business and the way people sell and purchase.
The field of marketing has developed over time, each of these time are characterized with different practices and challenges, but despite all, one thing that remained common and certain at the center of every stage of development is exchange of goods and services, and ideas. The field of marketing is very much lucrative, challenging, innovative, and creative. By 1900, it was being found that demand consisted of more than simple purchasing power. It reflected desire as well as ability to purchase, and new experiences with advertising and salesmanship were proving that desire could be increased and molded by factors other than the mere existence of supply. Another concept of the market concerned its capacity to adjust itself automatically to a harmonious equilibrium. It had long been held that competitive forces would normally, in the long run, dissipate tendencies of dis-equilibrium, but as competition diminished in some industries and trades, the assumptions found in traditional economic theory became increasingly invalid. A third idea was that cost was the principal determinant of price, at least in the long run. Concepts of the elasticity of demand were still another influence upon the thinking of early students of marketing. Alfred Marshall‟s concept of elasticity of demand has long been used by marketing writers as a theoretical basis for selling, advertising and the promotional work of marketing in general.
For many CMO's and leaders in marketing, there has been a litany of proclamations about what marketing will become. During the past few years, urgent bell ringing to dive into new definitions of marketing has besieged marketers:
Social media marketing
And, most notably – content marketing
Content marketing has been the latest to join new proclamations of redefining marketing. The call has been for the reinvention of marketing to become publishers with their own editorial staff. As with most new business concepts these days, this one calls for its' own chief. Suggesting Chief Marketing Officers should be replaced with or have a peer relationships with Chief Content Officers. This idea appeared to peak in interest late 2012 and early 2013. Heading into 2014, many marketing leaders are gaining perspective. Much needed perspective in fact.
3 Purposes of Marketing
This definition by Peter Drucker is a simple sentence but profound in being the guiding purpose on the role of marketing. There are three major points, which serve as a compass:
1. Understand your customer so well. To gain a “so well” understanding of customers means the role of marketing is to research and gain deep as well as profound insights into buyers and customers.
2. The product or service fits. A guiding purpose of marketing is to identify the specific goals and needs of customers and to guide the creation of products or services to fulfill them.
3. And sells itself. Marketing must be able to communicate as well as provide information, which enables buyers or customers to make informed decisions in such a way – it is self-evident.
The evolution led to recognition that certain tactics would largely benefit seller/ buyer relationship. Starting with competition among customers, organizations looked to the buyer side of the transaction for ways to progress. There were 3 eras that could be distinctly differentiated. Prior to the first era, there was a trade era where in Production consisted in handmade goods that were limited and generally traded through exploration. In the 1st, the production era, it began as a ‘marketing ploy' which went slow throughout history. In the 2nd, the sales era, a whole new range of strategies emerged within declining sales. This meant that it was the time for the market to approach the door of the customers. Initially, it was a door to door approach and hence was a slow process. It was followed by new profitable posters, newspapers and magazine ads. Though these continue even today, the invent of television and radio gave people the ability to market things such as houses, housing projects and vacation resorts. By the 3rd era, the marketing era, mass marketing was available through satellite and internet capabilities. Commercial advertisers often seek to generate increased consumption of their products or services through branding, which involves the repetition of an image or product name in an effort to associate related qualities with the brand in the minds of consumers. Non-commercial advertisers who spend money to advertise items other than a consumer product or service include political parties, interest groups, religious organizations and governmental agencies. Nonprofit organizations may rely on free modes of persuasion, such as a public service announcement.
Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries. Mass media can be defined as any media meant to reach a mass amount of people. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail; or new media such as websites and text messages. The next era was the relationship marketing era wherein companies can utilize different types of marketing for promotion. Internet marketing is prevalent with today's advanced technology. This type of marketing includes any promotions that occur on the Internet, such as social media marketing, email marketing, and search engine marketing. Direct marketing includes activities such as cold-calling potential customers, sending newsletters, and purchasing space on billboards. Another marketing strategy includes maintaining a connection with previous customers via thank-you notes and special promotions. Marketing has a direct impact on sales and a company's overall profitability. Researching sales forecasts will determine how a company plans its production. Careful planning is crucial to ensure that a company remains solvent with expenses and income. Marketing enables a business to learn about its potential customers, which helps it to fulfill the needs and desires of consumers. Marketing also enables a company to test certain products or services to see whether they are successful with consumers. With a positive consumer response, a company can proceed with a sales plan. A meager response might lead to reorganizing a campaign and trying again to test consumer response.
Stages in the Evolution of Marketing Theory
Marketing theory has gone through a series of evolutionary stages before arriving at the marketing concept (the view that everything the company does should be driven by market forces, and ultimately by customer needs). In total, there are five stages:
1. Production Orientation: production efficiency, getting production costs as low as possible
2. Product Orientation: ideal product can be produced that will have all the features any potential customer might want.
3. Sales Orientation: manufacturing companies can produce far more goods than the market can accept.
4. Marketing Orientation: means being driven by customer needs
5. Societal Marketing Orientation: includes the concept that companies have a responsibility for the needs of society as a whole, so should include environmental impact and the impact of their products on non-users.
Developmental Stages of Marketing Thought:
The development of marketing thought may be classified as follows:
1900-1910 Period of Discovery. Initial teachers of marketing sought facts about the distributive trades. Theory was borrowed form economics relating to distribution, world trade, and commodity markets. The conception of marketing occurred and a name was given to it.
1910-1920 Period of Conceptualization. Many marketing concepts were initially developed. Concepts were classified, and terms were defined.
1920-1930 Period of Integration. Principles of marketing were postulated, and the general body of thought was integrated for the first time.
1930-1940 Period of Development. Specialized areas of marketing continued to be developed, hypothetical assumptions were verified and quantified, and some new approaches to the explanation of marketing w3ere undertaken.
1940-1950 Period of Reappraisal. The concept and traditional explanation of marketing was reappraised in terms of new needs for marketing knowledge. The scientific aspects of the subject were considered.
1950-1960 Period of Reconception. Traditional approaches to the study of marketing were supplemented by increasing emphasis upon managerial decision making, the societal aspects of marketing, and quantitative marketing analysis. Many new concepts, some borrowed from the field of management and from other social sciences, were introduced into marketing.
1960-1970 Period of Differentiation. As marketing thought became expanded, new concepts took on substantial identity as significant components of the total structure of thought. Among them were such elements as managerialism, holism, environmentalism, systems, and internationalism.
1970 Period of Socialization. Social issues and marketing became much more important, as the influence not of society upon marketing, but of marketing upon society became a focus of interest.
In the history of digital marketing, the following were the progression of events:
1990: the term ‘Digital Marketing' was first used. The first search engine- ‘Archie' was also launched in the same year.
1993: first clickable web-ad banner was deployed
1994: First e-commerce transaction over Netmarket along with launch of Yahoo.
1996: launch of smaller search engines such as HotBot, LookSmart and Alexa.
1997: Launch of first social media site, SixDegrees.com
1998: Birth of Google; Microsoft launches MSN and Yahoo launched Yahoo! web search
2000: Smaller search engines wiped out; SixDegrees.com shut down; Internet bubble bursted
2001: First mobile marketing campaign (Universal Music)
2002: Launch of LinkedIn
2003: WordPress released; Launch of MySpace
2004: Gmail launches; Google goes public; Facebook goes live.
2005: Launch of YouTube
2006: Microsoft launches MS Live Search; Twitter launched; Amazon's e-commerce sales crossed $10 billion; Split testing in marketing.
2007: Launch of Tumblr; web- streaming service Hulu founded; iPhone launched
2008: China overtook US in number of internet-users; Spotify launched; Groupon went live
2009: Google launched Instant for real-time search engine resulted; Google's Affiliate Network shutdown
2010: Google Buzz launched; WhatsApp launched
2011: Google Buzz shutdown; Launch of Google+ and Google Panda; Web-use overtook figures for TV viewership among youth.
2012: Social Media budgets up 64%; Google knowledge graph launched
2013: Yahoo! acquired Tumblr
2014: Mobile exceeds PC internet usage; Facebook Messenger app, tailored ads on LinkedIn, iWatch and Facebook's Look Back launched; Facebook acquired WhatsApp
2015: Snapchat launched ‘Discover' feature; the rise of predictive analytics, wearable tech, and Content Marketing: Facebook launched ‘Instant Articles'
In recent years, rural markets have acquired importance, as the overall growth of the economy has resulted into considerable increase in the purchasing power of the rural communities.
On account of green revolution, the rural areas are consuming a large quantity of industrial and urban manufactured products. In this context, a special marketing strategy, namely, rural marketing, has emerged. But often, rural marketing is confused with agricultural marketing – the latter denotes marketing of produce of the rural areas to the urban consumers or industrial consumers, whereas rural marketing involves delivering manufactured or processed inputs or services to rural producers or consumers.
Based on these mass changes over decades and even centuries, adoption rates or the succeeding rate of marketing are faster than the speed of light. They have paved their way in through technology, responses of the customers in favorable and unfavorable circumstances
Finally you might consider that marketing has changed rapidly over this century and it continues to change. The sorts of activities that you might be involved with at the end of your marketing career might be very different from the marketing we see today. Marketing must be regarded not merely as a business practice, but as a social institution. Marketing is essentially a means of meeting and satisfying certain needs of people. It is a highly developed and refined system of thought and practice characteristic of a period in the development of market economy. A latent presumption in the practice of marketing has been that marketing gives to society more than society gives to it. The fact is that marketing is but one of several means of accomplishing a social objective.
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