Marketing: Earlier and Contemporary Approaches to Marketing

Marketing: Earlier and Contemporary Approaches to Marketing!

Marketing in its present form travelled a lot of distance guided by different philosophies at different times. Yet, in different countries and in different industries different philosophies are used even now.

Earlier approaches include Production to Product to selling to marketing.

Earlier Approaches:

1. Production Concept:

Focus:

Production orientation .The firm specializes in making production as much as possible of a given product or service. Thus, the firm exploits economies of scale. “Doesn’t matter what color car you want, as long as it is black.”…A typical quote of Henry Ford during the production era.

When Used:

Demand for a product is greater than supply. A production orientation may be deployed when the demand for a product or service is high coupled with a good certainty that consumer tastes will not rapidly alter.

Objective:

Profit through efficient production methods knowing all output can be sold. Also useful concept when increasing production raises economies of scale etc. to reduce price.

Dominant Era:

From mid-19th century to early 20th Century industrial revolution in the USA, till 1950 in Western Europe and till 1991 in India.

Indian Example:

Bajaj Scooters (waiting period extended 5 years or more) and State- owned telephone services (lightening calls took more than 2 days).

2. Product Concept:

Focus:

On making superior products; “Better-mousetrap” fallacy. The organization feels that it knows its product better than anyone else. The firm knows what will work in designing and producing the product and what will not work. For example, the company may decide to emphasize the low cost or high quality of their products.

This confidence in their ability is not a radical concept, but the confidence leads to the consumer being overlooked. Since the organization has the great knowledge and skill in making the product, the organization also assumes it knows what is best for the consumer.

Most of the time organization falls too much in love with their product that they forgot about other product development, competition and other external factors result in marketing myopia.

When Used:

A firm employing a product orientation is chiefly concerned with the quality of its own product.

Objective:

Profit through quality products. As long as product was of a high standard, people would buy and consume the product. Not only product is of good quality, but price, distribution and promotion too should be good so as to “make & sell”.

Dominant Era:

Until the 1960s in the Western Europe.

3. Selling Concept:

Focus:

Selling methods focus on advertising Just selling an already existing product, and using promotion techniques to attain the highest sales possible.

When Used:

When a firm holds dead stock It is useful for unsought goods, i.e., encyclopedias and political candidates.

Objective:

Profit through selling methods selling important, not post consumer satisfaction. No need to determine new consumer desires. The selling philosophy holds that an organization can sell any product it produces with the use of advertising and personal selling. The assumption is that a well-trained and motivated sales force can sell any product.

Dominant Era:

1920’s to mid 1930’s WWII to early 1950s in the USA and between the 1950s and 1960 in the Western Europe.

4. Marketing Concept:

Focus:

“The customer is king”. Determine what the consumer wants, then produce the same and sell the same. Avoid having a dissatisfied customer.

When Used:

Supply is greater than demand.

Objective:

Profit through satisfaction of needs and wants of customers

Dominant Era:

1930’s to WWII 1950’s to present in the USA and 1970 to present day in the Western Europe.

Selling Philosophy versus Marketing Philosophy:

Selling Philosophy	Marketing Philosophy
■ Output “sold” to Consumers ■ Looks at individual, single consumer ■ Seeks sales rather than profit ■ Short-term goal orientation ■ Concerned with current inventory reduction ■ Narrower view of consumer needs ■ Little adaptation to environment ■ Informal planning and feedback	■ Consumer-oriented ■ Stresses research and consumer analysis ■ Looks at groups of consumers ■ Profit-oriented ■ Directed to long-range goals ■ Two-way interactive process ■ Appropriate adaptation to marketing environment ■ Broad view of consumer needs ■ Integrated planning and feedback

Contemporary Approaches:

Kotler et al (Marketing Management, 13th Edition, and Pearson) has put contemporary approaches in one term called ‘Holistic Marketing’, which includes relationship marketing, integrated marketing, internal marketing, and performance marketing.

1. Relationship Marketing/Customer Relationship Marketing:

Focus:

On whole relationship between suppliers and customers.

When Used:

To concentrate on selected customers.

Dominant Era:

1960s to present day in the Western Europe.

Objective:

Profit through best possible customer service and building customer loyalty.

2. Business Marketing/Industrial Marketing:

Focus:

On industrial goods or capital goods rather than consumer products or end products.

Objective:

Building and keeping relationships between organizations.

When Used:

Industrial customers are important.

Dominant Era:

1980 to present day in Western Europe

3. Social Marketing:

Focus:

Benefit to society.

Objective:

Profit through caring for social interests.

When Used:

Realization that no harm be made to the interest of the society.

Dominant Era:

1990s to present day in the Western Europe.

Social marketing is more popularly known as societal marketing, when a firm takes care of its social responsibility.