Evolution of marketing

Assignment
Topic: evolution of marketing
concept
Submitted by: musaab khan
(172919853005)
&
m.a moin irfan
(172919853014)

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 Evolution of marketing

Definition
Marketing is defined by the American Marketing Association as "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".] The term developed from the original
meaning which referred literally to going to market with goods for sale. From a sales process
engineering perspective, marketing is "a set of processes that are interconnected and
interdependent with other functions of a business aimed at achieving customer interest and
satisfaction".

Philip Kotler defined marketing as "Satisfying needs and wants through an exchange
process". and a decade later defines it as “a social and managerial process by which individuals
and groups obtain what they want and need through creating, offering and exchanging products
of value with others.”

The Chartered Institute of Marketing defines marketing as "the management process responsible
for identifying, anticipating and satisfying customer requirements profitably". A similar concept is
the value-based marketing which states the role of marketing to contribute to
increasing shareholder value. In this context, marketing can be defined as "the management
process that seeks to maximise returns to shareholders by developing relationships with valued
customers and creating a competitive advantage".

In the past, marketing practice tended to be seen as a creative industry, which

included advertising, distribution and selling. However, because the academic study of marketing
makes extensive use of social
sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the
profession is now widely recognized as a science, allowing numerous universities to offer
Master-of-Science (MSc) programs.

The process of marketing is that of bringing a product to market, which includes these steps:
broad market research; market targeting and market segmentation; determining distribution,
pricing and promotion strategies; developing a communications strategy; budgeting; and
visioning long-term market development goals.[18] Many parts of the marketing process
(e.g. product design, art director, brand management, advertising, inbound
marketing, copywriting etc.).

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Concept[
The 'marketing concept' proposes that to complete its organizational objectives, an organization
should anticipate the needs and wants of potential consumers and satisfy them more effectively
than its competitors. This concept originated from Adam Smith's book The Wealth of Nations but
would not become widely used until nearly 200 years later. Marketing and Marketing Concepts are
directly related.

Given the centrality of customer needs, and wants in marketing, a rich understanding of these
concepts is essential:

Needs: Something necessary for people to live a healthy, stable and safe life. When
needs remain unfulfilled, there is a clear adverse outcome: a dysfunction or death. Needs
can be objective and physical, such as the need for food, water, and shelter; or
subjective and psychological, such as the need to belong to a family or social group and
the need for self-esteem.

Wants: Something that is desired, wished for or aspired to. Wants are not essential
for basic survival and are often shaped by culture or peer-groups.
Demands: When needs and wants are backed by the ability to pay, they have the
potential to become economic demands.

Marketing research, conducted for the purpose of new product

development or product improvement, is often concerned with identifying the

consumer's unmet needs.] Customer needs are central to market segmentation

which is concerned with dividing markets into distinct groups of buyers on the basis

of "distinct needs, characteristics, or behaviors who might require separate products

or marketing mixes."] Needs-based segmentation (also known as benefit

segmentation) "places the customers' desires at the forefront of how a company

designs and markets products or services." Although needs-based segmentation is

difficult to do in practice, it has been proved to be one of the most effective ways to

segment a market. In addition, a great deal of advertising and promotion is designed

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to show how a given product's benefits meet the customer's needs, wants or

expectations in a unique way.

Orientations
A marketing orientation has been defined as a "philosophy of business management." or "a

corporate state of mind"[ or as an "organisation[al] culture"[ Although scholars continue to debate

the precise nature of specific orientations that inform marketing practice, the most commonly

cited orientations are as follows:

Product
A firm employing a product orientation is mainly concerned with the quality of its product. A

product orientation is based on the assumption that all things being equal, consumers will

purchase products of superior quality. The approach is most effective when the firm has deep

insights into customer needs and desires as derived from research or intuition and understands

consumer's quality expectations and price consumers are willing to pay. Although the product

orientation has largely been supplanted by the marketing orientation, firms practicing a product

orientation can still be found in haute couture and arts marketing.

Sales
A sales orientation focuses on the selling/promotion of the firm's existing products, rather than

developing new products to satisfy unmet needs or wants. This orientation seeks to attain the

highest possible sales through promotion and direct sales techniques. The sales orientation "is

typically practiced with unsought goods."[One study found that industrial companies are more

likely to hold a sales orientation than consumer goods companies. The approach may also suit

scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand,

with little likelihood of changes in consumer tastes diminishing demand.

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A 2011 meta analyses] found that the factors with the greatest impact on sales performance are

a salesperson's sales related knowledge (knowledge of market segments, sales presentation

skills, conflict resolution, and products), degree of adaptiveness (changing behavior based on the

aforementioned knowledge), role clarity (salesperson's role is to expressly to sell), cognitive

aptitude (intelligence) and work engagement (motivation and interest in a sales role).

Production
A firm focusing on a production orientation specializes in producing as much as possible of a

given product or service in order to achieve economies of scale or economies of scope. A

production orientation may be deployed when a high demand for a product or service exists,

coupled with certainty that consumer tastes and preferences remain relatively constant (similar to

the sales orientation). The so-called production era is thought to have dominated marketing

practice from the 1860s to the 1930s, but other theorists argue that evidence of the production

orientation can still be found in some companies or industries. Specifically Kotler and Armstrong

note that the production philosophy is "one of the oldest philosophies that guides sellers... [and]

is still useful in some situations."]

Marketing
The marketing orientation is the most common orientation used in contemporary marketing. It is

a customer-centric approach that involves a firm basing its marketing program around products

that suit new consumer tastes. Firms adopting a marketing orientation typically engage in

extensive market research to gauge consumer desires, use R&D (Research & Development) to

develop a product attuned to the revealed information, and then utilize promotion techniques to

ensure consumers are aware of the product's existence and the benefits it can deliver. Scales

designed to measure a firm's overall market orientation have been developed and found to be

robust in a variety of contexts.

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The marketing orientation has three prime facets, which are:

Customer orientation: A firm in the market economy can survive by producing goods that

people are willing and able to buy. Consequently, ascertaining consumer demand is vital

for a firm's future viability and even existence as a going concern.

Organizational orientation: The marketing department is of prime importance within the

functional level of an organization. Information from the marketing department is used to

guide the actions of a company's other departments.

As an example, a marketing department could ascertain (via marketing research) that

consumers desired a new type of product, or a new usage for an existing product. With

this in mind, the marketing department would inform the R&D department to create a

prototype of a product/service based on consumers' new desires.

The production department would then start to manufacture the product, while the

marketing department would focus on the promotion, distribution, pricing, etc. of the

product. Additionally, a firm's finance department would be consulted, with respect to

securing appropriate funding for the development, production and promotion of the

product. Finance may oppose the required capital expenditure, since it could undermine

a healthy cash flow for the organization.

Mutually beneficial exchange: In a transaction in

the market economy, a firm gains revenue, which thus leads to
more profits, market shares, or sales. A consumer on the other
hand gains the satisfaction of a need/want, utility, reliability and
value for money from the purchase of a product or service.

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Societal marketing
A number of scholars and practitioners have argued that marketers have a

greater social responsibility than simply satisfying customers and providing

them with superior value. Marketing organisations that have embraced the

societal marketing concept typically identify key stakeholder groups such as

employees, customers, and local communities.Companies that adopt a

societal marketing perspective typically practice triple bottom line reporting

whereby they publish social impact and environmental impact reports

alongside financial performance reports. Sustainable marketing or green

marketing is an extension of societal marketing.

Environment
The term "marketing environment" relates to all of the factors (whether internal, external, direct or

indirect) that affect a firm's marketing decision-making/planning. A firm's marketing environment

consists of three main areas, which are:

 The macro-environment, over which a firm holds little control

 The micro-environment, over which a firm holds a greater amount (though not necessarily

total) control

 The internal environment, which includes the factors inside of the company itself

Macro
A firm's marketing macro-environment consists of a variety of external factors that manifest on a

large (or macro) scale. These include factors that are:

1. economic

2. social

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3. political

4. technological

A common method of assessing a firm's macro-environment is via a PESTLE (Political,

Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE analysis, a firm

would analyze national political issues, culture and climate, key macroeconomic conditions,

health and indicators (such as economic growth, inflation, unemployment, etc.), social

trends/attitudes, and the nature of technology's impact on its society and the business processes

within the society.

Micro
A firm's micro-environment comprises factors pertinent to the firm itself, or stakeholders closely

connected with the firm or company.

A firm's micro-environment typically spans:

 Customers/consumers

 Employees

 Suppliers

 The Media

 In contrast to the macro-environment, an organization holds a greater (though not

complete) degree of control over these factors.

Internal
A firms internal environment consists of factors inside of the actual company. These are factors

controlled by the firm and they affect the relationship that a firm has with its customers. These

include factors such as:

o Labor

o Inventory

o Company Policy

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o Logistics

o Budget

o Capital Assets

Personal selling
Personal selling involves an oral presentation given by a salesperson who approaches an

individual or a group of potential customers. Personal selling allows for two-way communication

and relationship building that can aid both the buyer and the seller in their goals. Personal selling

is most commonly seen in business-to-business marketing (e.g.: selling machinery to a factory,

selling paper to a print shop), but it can also be found in business-to-consumer marketing (e.g.:

selling cars at a dealership).

Female beer sellers warn the photographer that he also has to buy some, Tireli market, Mali 1989

Sales promotion
Sales promotion involves short-term incentives to encourage the buying of products. Examples of

these incentives include:

 free samples

 contests

 premiums

 trade shows

 giveaways

 coupons

 sweepstakes

 games

Depending on the incentive, one or more of the other elements of the promotional mix may be

used in conjunction with sales promotion to inform customers of the incentives.

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Public relations
Public relations is the use of media tools to promote a positive view of a company or product in

the public's eye. Public relations monitors the public opinion of a company or product and

generates publicity to either sustain a positive opinion or lessen or change a negative opinion.

Public relations can include interviews, speeches/presentations, corporate literature, social

media, news releases and special events.

Advertising
Advertising occurs when a firm directly pays a media channel to publicize its product. Common

examples of advertising include:

 TV commercials

 Radio commercials

 Radio ads

 Magazine ads

 Online ads

 Billboards

 Event sponsorship

 Direct mail ads

 Transit ads

Social Media
Social media is used to facilitate two-way communication between companies and their

customers. Social media outlets such

as Facebook, Twitter, Tumblr, Pinterest, Snapchat and YouTube allow brands to start a

conversation with regular and prospective customers. Viral marketing can be greatly facilitated by

social media and if successful, allows key marketing messages and content in reaching a large

number of target audiences within a short time frame. Additionally, social media platforms can

also house advertising and public relations content.

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The Marketing Plan

The area of marketing planning involves forging a plan for a firm's marketing activities. A

marketing plan can also pertain to a specific product, as well as to an organization's overall

marketing strategy. An organization's marketing planning process is derived from its overall

business strategy. Thus, when top management are devising the firm's strategic

direction/mission, the intended marketing activities are incorporated into this plan.

Process
Within the overall strategic marketing plan, the stages of the process are listed as thus:

 Mission Statement

 SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis

 Marketing Objectives

 Targeted Marketing Strategy

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 Marketing Mix

 Implementation

Types of marketing
Agricultural marketing

Business marketing and industrial marketing

Destination marketing

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Global marketing

Influencer marketing

Relationship marketing

Services marketing

Social marketing

Product life cycle

Product lifecycle
The product life cycle (PLC) is a tool used by marketing managers to gauge the progress of a

product, especially relating to sales or revenue accrued over time. The PLC is based on a few

key assumptions, including:

 A given product would possess introduction, growth, maturity, and decline stage

 No product lasts perpetually on the market

 A firm must employ differing strategies, according to where a product is on the PLC

In the introduction stage, a product is launched onto the market. To stimulate the growth of

sales/revenue, use of advertising may be high, in order to heighten awareness of the product in

question.

During the growth stage, the product's sales/revenue is increasing, which may stimulate more

marketing communications to sustain sales. More entrants enter into the market, to reap the

apparent high profits that the industry is producing.

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When the product hits maturity, its starts to level off, and an increasing number of entrants to a

market produce price falls for the product. Firms may use sales promotions to raise sales.

During decline, demand for a good begins to taper off, and the firm may opt to discontinue the

manufacture of the product. This is so, if revenue for the product comes from efficiency savings

in production, over actual sales of a good/service. However, if a product services a niche market,

or is complementary to another product, it may continue the manufacture of the product, despite

a low level of sales/revenue being accrued.

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