Transcript Early Developments in Marketing

MKT 420
Contemporary Issues in Marketing
Chapter 2
Early Developments in Marketing
THE EARLY DEVELOPMENT OF MARKETING
THOUGHT: A COMPLEX BEGINNING
Shaw , 1995 in his study revealed that the earliest recorded
English language use of the term “Marketing” as a noun
was in 1561. ( Shaw, 1995 , p. 16).
Shaw , 1995 found that an 1880 cookery book called ‘Miss
Parloa’s New Cookbook and Marketing Guide ’ had discussed
marketing, In this cookery book, Shaw tells us, the term
‘marketing ’ related to ‘buying and selling activities ’.
Robert Bartels, 1988 told the term ‘marketing ’ was first used ‘as a
noun ’, that is, as a label for a particular practice, sometime
‘between 1906 and 1911 ’.
The American Encyclopaedic Dictionary (1896) defines
marketing as “the act or process of transacting business in
markets ” as well as “goods offered for sale and purchased in
a market.
A century later, Webster’s Collegiate Dictionary (1994)
continues to define marketing as “the act or process of selling
or purchasing in a market ”
THE FIRST COURSES ON MARKETING IN THE EARLY
TWENTIETH CENTURY
We know that the earliest courses were delivered in 1902
at the Universities of Michigan, California and Illinois. These were
Not called ‘marketing ’ per se, but labelled with a variety of other
names such as ‘Distributive and Regulative Industries ’, ‘trade’ or
‘commerce’.
First course in marketing offered at the University of Michigan by
Dr. E.D. Jones in 1902.
On a more theoretical level, there is some agreement in the historical
literature that marketing developed as a form of ‘applied economics
’
(cf. Cassels, 1936 ; Jones and Monieson, 1990 ). Scholars say
‘applied economics’ because early and later marketing thought often
contested the assumptions of classical and neoclassical economics.
STUDYING THE MARKETPLACE
First scholars required material for their own teaching, they needed to
study marketing related topics in real life.
Marketing was studied products from their point of production and
manufacture, all the way through to their distribution to the ultimate
consumer.
Weld, 1941 for instance, describes a number of his own research
Projects where he ‘personally followed shipments of butter and eggs
and
Other commodities from the country shipper in Minnesota through the
wholesalers, jobbers, and retailers to New York, Chicago, and other
cities. He analyzed each item of expense involved in this passage
Through the channels of trade ’
Jones and Monieson, 2008 had opined that marketing conceptualization
involved the processes involved in moving a product from its point of
origin – where it was harvested, for example – to the final consumer,
was a result of scholarly and public concern over marketplace efficiency
and what was called ‘the marketing problem.
Research projects undertaken at the time (1910–1920), asked questions
about whether there were any elements in the supply chain that could be
eliminated to save costs. In other words, were certain intermediaries
(middlemen) actually adding any value to a product, such as getting it to
the right place, at the right time, in a satisfactory condition, or did they
simply only add further cost to the product.
The cost factor was notably important to people living in the late 1920s
And 1930s US, as the Great Depression left many people unemployed,
Lacking the financial wherewithal and ability to search for the highest
quality, cheapest products; so any efficiency savings that could be made
in terms of the distribution of products was considered a very important
subject.
Marketplace was no longer a sellers ’ market, business faced an
important situation that it had not confronted on a large scale
previously:
demand was less than supply hence marketers needed to understand
consumer behaviour for which marketing research evolved. Due to ever
growing competition from 1950 marketers started focusing on
Advertising and other promotions took over the market.
THE MARKETING CONCEPT
Webster, 1988 claimed that until the mid-1950s, the business
world equated “marketing ” with “selling.”Under this traditional view of
marketing, the key to profitability was greater sales volume, and
marketing’s responsibility was to sell what the factory could produce.
High pressure selling was still used in some industries, and not all
marketers were equally attentive to customer requirements. The same
is true even nowadays.
Borch, 1958 had tried to work on new concepts of customer
orientation and customer satisfaction. Other concepts which also gained
Importance were new product development, product line improvement,
marketing research.
Webster, 1988 claimed that until the mid-1950s, the business
world equated “marketing ” with “selling.”Under this traditional view of
marketing, the key to profitability was greater sales volume, and
marketing’s responsibility was to sell what the factory could produce.
High pressure selling was still used in some industries, and not all
marketers were equally attentive to customer requirements. The same
is true even nowadays.
Borch, 1958 had tried to work on new concepts of customer
orientation and customer satisfaction. Other concepts which also gained
Importance were new product development, product line improvement,
marketing research.
DEMAND STIMULATION AND THE ‘DUAL CORE ’
MARKETING CONCEPT
Borch ,1958 has said that “ companies produce products which are
needed by the people or demanded by customers, rather companies also
try to produce something which customers feel they in fact do not need
them, but customers are educated that there is a need created by the
marketers which realizes the customer to buy the product” this is termed
as dual core marketing concept.
The dual core concept resulted in marketing research rather market
research which was being practiced till then, Zaltman and Burger ,1975
go so far as so identify a shift in the way ‘market research ’ was
translated into ‘marketing research ’. This change appears to have been
noted previously by Engel, who discussed the need to: ( cont : next
slide)
“ Distinguish between marketing research and market research on
the basis that the latter applies only to fact-finding, with perhaps
some analysis of a single-market or marketing area, whereas the broader
term includes not only the collection of facts about particular markets,
but about marketing organizations, marketing methods and policies, the
analysis of the facts, and the deduction of appropriate conclusions thereFrom “.
WORLD WAR II
During World War II industry massively expanded on the back of the
requirements of the Army, Navy and other military bodies since
respective governments were biggest buyers what industry produced
raging from food, medicine, automobiles, electronic equipment etc.
After the end of World War II industry was left with huge capacities of
production facilities in USA, Europe and Japan which were going
underutilized.
To cater to this situation where Tadajewski, 2006 said it was the fear
that
They losing site of consumers that really motivated firms to begin to
hire
the available marketing research agencies.
1950s witnessed the increased use of psychological and
psychoanalytical
theory and techniques in marketing research. Consultants such as Ernest
Dichter, who were well versed in such methods, claimed to be able to
tap
into consumer motivations beyond those available to questionnaire
Studies, drawing out subconscious motives that were influential forces
in
Structuring consumer behaviour.
This type of ‘motivation research ’ was interested in understanding why
consumers bought specific products and tried to understand consumer
buying motives and behaviour through a range of qualitative research
approaches, including in-depth interviews and ethnography.
THE BEHAVIOURAL REVOLUTION IN MARKETING
THEORY AND PRACTICE
Kassarjian, 1989 says that the revolutionary marketing theory
development using behavioural sciences as bases started with the
initiatives of Ford and Carnegie foundations.
Bartels, 1988 says these two foundations have pushed management
educators were pushed to earn PhD degrees and to ‘upgrade’ their
research skills, mainly in terms of improving their ability to manipulate
complex mathematics. It was the funding provided by the Ford
Foundation that ‘ served to usher in a new age for marketing.
Tadajewski, 2006 this Foundations financially supported a whole range
of textbooks, seminars and, training programmes that diffused their
scientific vision for business research.
Kernan,1995a, 1995b : Research had to be objective, scientific
and rigorous, Academic journals soon reflected this emphasis,
notably the newly founded Journal of Marketing Research.
A published research paper in this journals had to contain some
element of Mathematical symbolism or involve ‘laboratory
research, experimental design, computer simulation, operations
research, mathematical models, and high powered statistics.
Hodock, 1991 : industry felt the behavioural revolution did not provide
the much hoped for insights into market and consumer behaviour.
Technical sophistication does not necessarily guarantee success. Too
Many researchers are tied up with their numbers, statistics and rating
scales – all of which have their place – but they lose sight of the reason
for it all, which is insight into the consumer.
THE ‘IRRELEVANCE ’ OF MARKETING SCIENCE: MARKETING
AND THE MILITARY –INDUSTRIAL COMPLEX
Dawson, 1971 ; Wilkie and Moore, 2003, 2006 ; Shapiro, 2006 ) :
critics rallied against the growing irrelevance of ‘marketing
science ’, which was perceived to be ignoring the impact of marketing
on
society, focusing instead exclusively on issues related to managerial and
firm competitiveness. Observers called for marketing intellectuals to
devote attention to research issues that were central to contemporary
policy debates; or to study the impact of marketing on society, and vice
versa – that is, the study of macro-marketing.
The movement away from a preoccupation with managerial, technical
issues, was instigated by younger marketing academics rebelling against
the alignment of marketing with the ‘military –industrial complex ’ (i.e.
big business).
ENGAGING WITH SOCIETY
Lib, 2007 : in view of the vociferous criticism that took place in the
pages of the Journal of Public Policy and Marketing and
elsewhere, marketing has been redefined in such a way that its
impact on society is taken into account. The latest definition
of marketing calls ‘marketing ’ ‘the activity, set of institutions for
creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.
In line with this broadening of the scholarly and definitional focus
Of marketing, many researchers have, since the mid to late
1980s, engaged in research that studies ‘people’, not customers
or consumers necessarily.