HISTORY OF MARKETING

DO GOOD PRODUCTS NEED MARKETING?

• If there is anything we have learned from history, the answer is YES! • The span of marketing has changed over time but

the need has always been consistent.• PRODUCTS NEED MARKETING

THE 6 ERA’S

• Simple Trade Era• Production Era• Sales Era• Marketing Department Era• Marketing Company Era• Marketing Concept Era

WHAT IS MARKETING NOT?

• Marketing should not try to get people to buy things they don’t want.• Marketing should not be deceptive or pushy• Marketing should be the process of developing

products to satisfy customers through PROPER pricing, promotion, and distribution.

HOW IT ALL BEGAN

• Early Nineteenth Century• Two choices to obtain products• Make it yourself or hire someone to make it for you

• Make yourself= Self Sufficient• Providing everything you need for you and your family

without outside help.• i.e- make your own clothes, grow your own crops• You don’t rely on anyone besides yourself

• Hire Someone to make for you= Bartering• Before money system was invented• People specialized in one area• Hunting, cheese maker, coutier

• Products were exchanged in order to obtain what was needed

BARTERING

• Time Consuming• Products you need may not be available • May not be willing to trade unless they want what

you have• A Rooster and a Bean Seed• Lesson Learned- Bartering AINT easy

• Lets See If you Can Barter- Activity 1

MONEY SYSTEM

• Made it easier to obtain needed products• Currency became the median of exchange

THE SIMPLE TRADE ERA

• Prior to Industrial Revolution (pre 1900)• People made most of what they consumed• Excess products were brought to town and traded or sold• No need for marketing

• After Industrial Revolution• Businesses produced products• Exchanges must be made• Marketing started to become needed

PRODUCTION ERA(1900-1920’S)

• Simple production processes• Few product choices available• People had limited resources• Hard to transport goods to customers- inefficient

transportation• If you can produce products, you can sell them• Focus on new product development

SALES ERA(1930-1940’S)

• Businesses more effective at producing products• Standard of living higher• People have more disposable income• Use of assembly line for mass production• Rely on sales people to sale products• Realized products wouldn’t sell themselves

MARKETING DEPARTMENT ERA(1950-1960’S)

• US economy growing• More Disposable

income• Consumers not easily

convinced to buy products.• Developed marketing

department to develop new sales methods• Expanded the use of

advertising• Inform consumers• Reasons to buy• Location of products

• Expanded ways of getting products to consumers• Introduction of credit

card sales

THE DOWNFALL OF THE MARKETING DEPARTMENT ERA• Marketing expensive• Marketers began to misuse marketing activities• These unethical activities lead to customer

complaints• Discovery that some people didn’t want some

products• If product didn’t satisfy needs- no sale

THE MARKETING CONCEPT ERA(1970-TODAY)

• Listen to customer needs• Target marketing• Focus on customer during• Planning• Production• Promotion• Distribution

• Coordinate all business activities to reach long term goals • Produce products people want

TRANSITIONS IN MARKETING

Old marketing thinking:• Sales/product centered…• Practice mass marketing…• Focus on product/sales…• Make sales to customers…• Get new customers…• Grow share of market…• Serve any customer…• Use mass media…• Standardized products…• Sales/marketing responsible

for customer satisfaction/value…

New marketing thinking:• Market/customer centered• Selected market segments• Focus on customer

satisfaction/value• Develop customer

relationships• Keep old customers• Grow share of customer• Serve profitable customers• Connect with customers

directly• Customized products• Enlist all departments to

deliver customer satisfaction/value