Marketing Evolution Theory Explained
Marketing emerged as a branch of economics. On the early stage of its development marketers tried to understand principles on how to operate channels of distribution. Most economists state that market price is determined by fluctuations of supply and demand, without paying attention to various levels of distribution. At this stage marketing was mainly descriptive and institutional. In addition to the channels of distribution, initial marketing paid extra attention to advertising and traveling salesmen, and therefore it was perceived as another one term for sales. Years passed before they could get rid of this connotation.
The classy idea of marketing – “Understand and satisfy“, became real revolution in business practice. However, technological revolution of 80’s – 90’s of the XX century, challenged traditional model of consumer marketing. At the turn of the century another one marketing revolution riped out.
Classy marketing concept is actually pretty simple and elegant – “Find the need and satisfy it“. In this model, the starting point for marketologists has always been unmet needs of the target audience and the wording of relevant offers. The main task of marketing is to create ideal products that meet all wishes of consumers. On stating and analyzing these wishes, the best way of marketing the product is getting. Once information about improvements was delivered to the target audience, the company and the shareholders could take their share.
For many years after this paradigm was formulated, it remained the basic principle of action for those engaged in consumer marketing. But today marketing practice developed absolutely different model of behavior. In contrast to the first model, it can be called the “marketing of new ideas.” The main objective of this model is quite radical: make product, create a brand, tell consumers how to use it, and maybe they’ll like it.
Development of 4P’s of marketing: product, promotion, price and place. 4P’s became the basis for the market supply. Later marketers realized that for more precise classification of 4P components they need to understand better their customers, and they introduced 4C concept: consumer, costs, convenience, communication.
A bit later, marketers formed the idea that 4P complex must precede the development of segmentation strategy, the evaluation of the target audience – targeting, and positioning >> the so-called STP-marketing.
At the next stage, marketers realized that the company can operate on four targeted levels: the mass market, market segment, market niche or individual buyer.
Subsequent development of marketing was defined as a range of professional level of management, planning, and nature of demand.
Finally, the concept of marketing was expanded by means of marketing not only goods and services, but also ideas, public affairs, places, people, organizations, and other elements.
What’s More
- Move from Product centric to Consumer centric: Firms earlier dealt with marketing around their own product i.e. brand promotion, campaigns revolving around the product. But today it’s more Consumer centric.
- Earlier it was more Profit oriented for businesses for Marketers only but today we have a win-win situation for both consumer and the marketer. Rather can say consumers are in driver’s seat now.
- The thought earlier was that the Marketers own the brand, message and we use to shout out loud with same, but the scenario is different now with both brand and message is with consumers, it depends on how they communicate it and share.
- Use of technology and Internet has got a tremendous change to the way businesses market today, just with an ex of social media marketing has reached global platforms. Its important for any marketer to have reliable ethernet access.
- The way people communicate has changed, earlier every marketer used either print ads, news papers or calls to generate leads but it’s rare that anybody follows that.
- Measuring and metrics have been changed in significant way; today what is market it’s being measured. The scene was different some years back. Today marketers need to know what they market, and to whom they market. Now marketers define short term and long term goals.
Here are couple more slideshows for you to get deeper into the subject
By sprxmobile
By Tara Mahady
Do you know something interesting considering the history of marketing? Feel free to use comments section at the bottom.
