Transcript History of Marketing

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
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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
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SALES ERA
(1930-1940’S)
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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
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Planning
Production
Promotion
Distribution
• Coordinate all business activities to reach
long term goals
• Produce products people want
TRANSITIONS IN MARKETING
Old marketing thinking:
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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