Marketing Rev
The History of Marketing
Aims:
* The origins and development of the marketing concept * Definitions of marketing and marketing orientation * The role of marketing in adding value to the firm *
Marketing: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” American Marketing Association, 2007 * * History: * The Three Eras Model (Keith, 1960)
1870-1930: Production era * 1930-1950: Sales era * 1950- : Marketing era * * Production Era: * Demand > Supply = Higher Disposable Income * Products sold themselves * * 1929 - Property Bubble, Economy crashed. (Disposable Income decreased) + WAR! * * Sales Era: * Depression – Increased production to close gap between D and S * Need to promote and sell their products. Early forms of market research * Advertising and improved selling techniques * * Travelling salesmen – Skilled orators * * Marketing Era: * Increase in Competition * Tech Innovation – Consumer Affluence (Wealth) Stabilizing * Market Growth slowing – Competition FIERCE * Consumer Orientated Marketing * * * Marketing Concept: * * “Marketing is not only much broader than selling, it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise. There is only one valid definition of business purpose: to create a customer.” * * Marketing is broader than: * Selling and the sales role * A specific and defined organisational function * Promotion decisions * * Consumer-centric * “…an organisation aims all its
Aims:
* The origins and development of the marketing concept * Definitions of marketing and marketing orientation * The role of marketing in adding value to the firm *
Marketing: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.” American Marketing Association, 2007 * * History: * The Three Eras Model (Keith, 1960)
1870-1930: Production era * 1930-1950: Sales era * 1950- : Marketing era * * Production Era: * Demand > Supply = Higher Disposable Income * Products sold themselves * * 1929 - Property Bubble, Economy crashed. (Disposable Income decreased) + WAR! * * Sales Era: * Depression – Increased production to close gap between D and S * Need to promote and sell their products. Early forms of market research * Advertising and improved selling techniques * * Travelling salesmen – Skilled orators * * Marketing Era: * Increase in Competition * Tech Innovation – Consumer Affluence (Wealth) Stabilizing * Market Growth slowing – Competition FIERCE * Consumer Orientated Marketing * * * Marketing Concept: * * “Marketing is not only much broader than selling, it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise. There is only one valid definition of business purpose: to create a customer.” * * Marketing is broader than: * Selling and the sales role * A specific and defined organisational function * Promotion decisions * * Consumer-centric * “…an organisation aims all its