Evolution of Marketing and Its Significance

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A

PRESENTATION ON

EVOLUTION OF MARKETING

AND ITS SIGNIFICANCE


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CONTENTS

Introduction

Marketing Concept

Origin of marketing Evolution of Marketing Concept

Modern view of the marketing concept

Significance of the marketing concept References


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INTRODUCTION

DEFINITIONS OF MARKETING

A social and managerial process by which individuals andgroups obtain what they need and want through creating andexchanging products and values with others

Or

A management function responsible for identifying,anticipating and satisfying customer requirements profitably


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A SIMPLE MARKETING

SYSTEM

Industry

(a collectionof sellers)

Market

(a collectionof buyers)

Information

Money

Products and Services

Communication


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MARKETING CONCEPT

Origin of marketing concept

Evolution of marketing concept

Modern view of the marketing concept


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THE ORIGIN OF MARKETING

Formal marketing is a recent creation of the early1900s. Before that

Caveman

necessities in short supply

fend for yourself

exchange commodities within close groups

production limited


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Contd.

Families developed Competencies

Capacities increased

Exchange became more prevalent

Industrial Revolution..

products & production increased

Early 20th. Centurypopulation growth declined


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Contd..

Increased capacities & declining demand led to the

development of marketing

Producers started joining hands together to seek new

marketsCooperatives

Railways/improved transport made far off marketsreachable


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Contd..

Far off markets were the cue for Middlemen

Advent of Printing technology helped establish

Advertising

Products of one place/family came to be known bytheir nameBranding in its most nascent stage


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CONCEPT

Products and production when anything producedcould be easily sold

Sales and sales department - when selling becamedifficult

Marketing department when the inter-relationship of

the various marketing functions was realized

Customerorientationmarketing is a view or philosophyof business as a whole


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EVOLUTION OF THE

MARKETING ORIENTATION


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PHILOSOPHIES

KeyMarketingConcepts

2. Product

Concept

3. SellingConcept4. Marketing

Concept

5. SocietalConcept

1. ProductionConcept


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THE PRODUCTION CONCEPT

It holds that consumers will favor products that areavailable and highly affordable

Management should focus on improving production anddistribution efficiency

Useful in two types of situations:

1. Demand exceeds the supply

2. Products cost is too high

The chief protagonist here was the industrialist HenryFord


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For e.g.

Ambassador car

Fiat car


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THE PRODUCT CONCEPT

It holds that consumers will favor products that offer the

most quality, performance, and innovative features

Continuous product improvements

Qualitative concept

Marketing myopia


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For e.g.

L'Oreal hair color

Sony products


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THE SELLING CONCEPT

It holds that consumers will not buy enough of theorganizations products unless it undertakes a large scaleselling and promotion efforts

This concept emphasizes on to sell what they make ratherthat make what the market wants

High risks

It focuses on creating sales transactions rather than onbuilding long-term profitable relationships with customers


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e.g. Amway


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THE MARKETING CONCEPT

This philosophy holds that achieving organizational goalsdepends on determining the needs and wants of targetmarkets and delivering the desired satisfactions moreeffectively and efficiently than competitors do

Meeting needs profitably

Many companies claim to practice the marketing concept,

but they dont

Marketers must balance creating more value for customersagainst making profit for the company


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e.g. McDonald's

e.g. Wockhardt hospitals


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SELLING CONCEPT AND MARKETING

CONCEPT

Factory

Market

STARTINGPOINT

FOCUS MEANS ENDS

ExistingProducts

Customerneeds

Selling $Promoting

Integratedmarketing

Profits through

Sales volume

Profits through

Customersatisfaction

THE SELLING CONCEPT

THE MARKETING CONCEPT


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THE SOCIETAL MARKETING

CONCEPT

This concept emphasizes on maintaining or improving thecustomers and the societys well-being

It is the newest of the five marketing managementphilosophies

This concept says that the pure marketing conceptoverlooks possible conflicts between consumer short run

wants andconsumer long run welfare

E.g. Johnson & Johnson


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The three considerations underlying the societal

marketing concept are :

Society

(Human Welfare)

Consumers(Want satisfaction)

Company(Profits)

Societal

Marketingconcept


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MODERN VIEW OF MARKETING

CONCEPT

Marketing orientation replaces productionorientation

Elements of the modern marketing concept:

1. Customer is thefocus not the product

2. Integrated effort is the means not the high-

pressure selling3. Profit through customer satisfaction is the goal

not mere salesvolume


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SIGNIFICANCE OF THE

MARKETING CONCEPT

The whole world accepts

Everybody is concerned with marketing only

Applicable also to non-profit organizations

Social marketing

Importance of macro-marketing to society

Micro-marketing for individual business units

Applicable to all units, small or big

Marketing for the survival of the business

Most dynamic business function

Higher consumer satisfaction


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REFERENCES

Philip Kotler and Gary ArmstrongPrinciples of Marketing

Prentice hall of India, seventh edition

New Delhi

S.J. Bedekar

Marketing concepts and strategies

Oxford university press,Mumbai

www.google.com

www.quickmba.com

Evolution of Marketing and Its Significance

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