Marketing: What is it all about?

(by Priyank Panthari)

Welcome to the first part of our series on 'Marketing tips for small businesses'. In this blog posting today we will discuss the definition, scope and evolution of marketing.

As is evident from its name, marketing is the art and science of knowing the market. It is an integrated process through which the companies create value for the customers and build strong customer relationships in order to capture values from customers in return. Marketing is defined by the American Marketing Association (AMA) 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." In simpler terms, marketing can be defined as the process of identification of the customer's needs and subsequent offering of products and services in order to cater to those needs optimally.
Marketing as a business and management discipline has evolved over time. The changes in the society and technology have had their effects on how marketing is done and perceived by marketers. Generally speaking, the history of marketing can be divided as follows:
  • Production oriented marketing
  • Product oriented marketing
  • Sales oriented marketing
  • Market/ Customer oriented marketing

The earlier marketing approaches include the production oriented marketing, product oriented marketing and the sales oriented marketing. The market or customer oriented marketing approach has evolved from these earlier approaches. We shall now briefly discuss the earlier approaches of marketing.

Production oriented marketing was the marketing as done during the era of Industrial revolution. It was based on the premise called Say's Law which states "Supply creates its own demand". The emphasis was on the 'economics of scale' which means that in order to get more profits one must streamline the production process and cut the costs of production. This concept of marketing worked well in case of markets or industries, where demand for products or services remained high and unchanged during a considerable duration of time. This concept of marketing remained popular till around the 1950s.

Product oriented marketing emphasises the quality of the product. It is based on the belief that if the product and services are of a high quality, customers will always buy and consume the product or avail the services. Hence this approach puts much stress on the research and development, before the product or service is introduced to the market and furthermore on maintaining the competitive edge by continuous evolution over its entire life-cycle. This was the primary marketing approach until the 1960s.

Sales oriented marketing puts emphasis on efficient sales management techniques. A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not paying much attention to the customer's changing desires. This orientation may suit scenarios in which a firm has a stagnant inventory, or otherwise sells a product that is in high demand and with a little probability that demand will change too much over a duration of time. This approach was popular during 1950s and 1960s.

All of these approaches have their advantages and disadvantages and still contribute in varying extents to the modern marketing efforts depending on the market and industry. In the next article we will discuss the contemporary approaches of marketing. Hope you enjoyed reading!

No TrackBacks

TrackBack URL: http://www.yalwa.info/cgi-bin/ya_mt/mt-tb.cgi/110

3 Comments

Writers are not appreciated enough, thank you for taking the time to post this.

Excellent, I was looking for something along the lines of this. What would you say would be the most effective way of marketing online (apart from) emailing, because that's a given.

very good publish, i definitely love this website, carry on it

International

Recent Entries

Company of the Week: Scarletia Enterprise
At Scarletia Enterprise, your animanga wonderland you will find those cute cuddly little creatures as well as other items. If…
Company of the Week: Capture Photography & Video
That special day only happens once in a life time and those precious moments should be captured forever. Capture Photography…
Protecting Consumers' Rights And Your Business
A successful business entails not only having a growing profit mechanism, but also maintaining satisfied customers in terms of how…