THE EVOLUTION OF MARKETING
From the Stone Age to the post-modern digital era, our civilization has undergone a fascinating evolution in human history. The world of marketing is no different.
In
a free-market economy, marketing is so ubiquitous that we do not stop to think
about how it started and grew to what it is today. How did people discover
products in the early 1900s? It is hard to imagine, for this social media
generation, how old folks traditionally did their commercial activities without
smartphones.
Marketing,
in and of itself, has seen dramatic transformation for centuries. It started as
a distinct discipline that went through different periods of refinement. With
economic forces at the helm, businesses were faced with the reality of
competing for customers’ attention while ensuring that they lock in their
return on investment (ROI).
1.1 Eras that Shaped the Evolution of
Marketing
i.
Production
Orientation Era (1800s-1920s)
This
era highlighted a tunneled focus on mass production. Companies thought that
customers are willing to pay for products that are cheap and readily available.
Thus, business efforts were primarily geared toward increasing the quantity
rather than the quality of the output. Manufacturers followed the principle of
mass production to lower costs and more sales.
This
economic movement triggered the rise of the Industrial Revolution, which
started in Britain and expanded worldwide. Companies such as Slater Mill and
Ford Motor Company dominated this industry. They hired thousands of factory
workers to sustain the demand for production.
More
importantly, their goal was to increase efficiencies in production and
distribution. When it comes to marketing, businesses focused their efforts on
promoting low prices and beating their competitors.
ii.
Sales
Orientation Era (1920s-1940s)
As
more companies join the field, the sales tactics become even more competitive.
Generally, mass-produced products were already the norm. Back then, companies
cared more about sales volume rather than customer satisfaction.
This
ushered an idea that consumers will want to buy a company’s products if they
are enticed through eye-catching sales promotions. The Sales Orientation was an
era when companies heavily rely on marketing promotions to sell products that
companies made.
Advertisements
through different platforms such as radio, print, and television were
incredibly popular at this time. Additionally, sales professionals went
door-to-door to sell products in customers’ homes. The concept of marketing
took place only after products were produced. It is no surprise that even
today, some people associate marketing with selling.
iii.
Marketing
Orientation Era (1940s-1970s)
It
was around the 1940s when industries realized that focusing only on their
business needs often leaves customers unsatisfied. At this stage, businesses’
marketing tactics include identifying what customers need and effectively
customizing activities that address these needs.
Hence,
the marketing concept was born. It revolves around the idea that
reaching the business goals relies on understanding the needs of target
customers first. Additionally, it concerns providing them with the desired
satisfaction than its competitors.
Marketing
orientation (a.k.a, customer orientation) is all about focusing on customer
needs. A marketing-oriented organization begins with pinpointing the customers’
needs. Then, they segment them according to buyers’ specific purchasing goals.
They offer products unique to each group.
This
type of segmentation allows businesses to cater to the needs of the entire
group as a whole. That is because each market segment can satisfy its needs by
purchasing one or the other products from the company.
iv.
Societal
Orientation (1970s-Present)
In
this era, a marketing theory called societal marketing came into existence. It is a
concept that emphasizes an organization’s responsibility to develop strategies
that positively impact the consumers’ well-being and the environment. It
stemmed from a conflict of interest between satisfying the customers’
short-term needs with society’s long-term welfare.
In
the 60s and 70s, many companies were exposed to the public for their unethical
practices. Business owners and marketers started to take notice of the effects
of their actions on the environment. They understood that their
activities—while profitable—are destroying Mother Nature, which eventually
harmed society.
During
this phase, companies shifted their goals to provide a better-quality lifestyle
while ensuring that the environment is not polluted. They do not just create
high-quality products; they were environmentally friendly, too.
What
is great about societal marketing is it also creates a favorable spotlight on
the company’s image. The more socially and ethically responsible an organization
is, the more customers patronize them. This concept is closely related
to sustainable development and corporate social responsibility.
However, it should not be confused with social marketing or social media
marketing.
v.
Digital
marketing (1990s-Present)
It
was in this period that the world witnessed a shift in the dynamics of
marketing. Marketers struggled with developing their marketing campaigns
through traditional means. They did not get as many leads as expected.
Moreover, the old marketing strategies limited their reach, making it difficult
to reach their potential customers.
Then
came the advent of digital marketing. It opened the doors of opportunities for
better traffic and exposure for products or services. From the early 90s to
today, almost half of the world’s population is online. Businesses’ have since
then moved on to digital platforms to effectively reach their target
market.
On
the other hand, the modern-day digital era gave consumers the power to dictate
how they want to receive marketing content. Subscription-based sites such as
Amazon Prime made commercials obsolete. Likewise, consumers no longer have to
sit through ads they don’t like. Thanks to social media, they only follow
brands or organizations they support.
The
surge in mobile phones and other smart devices has also contributed to the
popularity of digital marketing. Since more people are now on their
smartphones, this enables marketers to reach a wider audience. Content
marketing, Search Engine Optimization (SEO), and mobile marketing are a few of the strategies
they use to dominate different digital platforms.
Nice info
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