The Evolution of Marketing

Trade has existed since when man was capable to produce a surplus. The
first method of this kind of trade is called the “barter system”. This means
exchanging goods with one another. During the 1800 the world was facing
industrial revolution, this means that people where shifting from agriculture
to industrial products this brought about opening of different factories.
People increased their income and there was a corresponding increase in
demand for products. In other words, the producer had an advantage over
the consumer in those days since whatever was produced was being
demanded.

The 5 Business Concepts or Philosophies

Production  Product  Sales  Marketing  Social Marketing
The Production Concept
The people working in production at that time of industrial revolution were
generally working by the technique known as division of labour that bring
about job specialisation. This concept resulted in higher level of skills also
in mass production. This concept is one of the oldest philosophies that
guide sellers. This concept is successful when faced with two types of
situations.
1. When demand for the product exceeds the supply.
2. When product’s cost too high and improved productivity is needed to
bring it down.
This concept suffers from marketing myopia which means a narrow minded
approach to what the customer really wants.
Example: Henry Ford’s philosophy was to make perfect the production of
model “T” so that its cost would be reduced and more people would buy it.
He joked about offering people a car of any colour as long as it was black.
The Product Concept
The production concept holds that consumers will favour products that offer
quality, performance and innovative features and that an organisation
should devote their energy to make continuous improvements. The
mentality of such concept is good ONLY IF this concept is used in the best
way. Unfortunately buyers may be looking for a better product rather than a
product full of nice features. In fact this concept may also lead to marketing
myopia.
If for example a consumer is going to buy a mouse trap, such customers
may be looking for a better solution to a mouse problem rather than a
better mouse trap.
“Make the best possible product and people will buy it”
-This is what such concept believes but unfortunately this is not always the
case.
The Sales Concept
In the world of economic recession of the early 20th century, we
experienced unemployment and a fall in demand for goods and services.
This situation resulted in excess supply and business people realised that it
was not enough to simply produce goods efficiently but for profits to be
made, these goods had to be sold.
The sales concept stated that effective demand could be created by the
use of sales techniques with the help of the sales department, the sales
person and the sales manager becoming the most important people in the
organisation hoping to achieve profitability.
 • Politicians are a good example of people who are consciously selling
themselves to the electorates.
• Jehovah selling their religion.
Comparison between the Sales and Marketing Concept

Short term Starting

Prospective
Point Focus Means Ends
Existing Agressive Profits
Sales Factory Products Personal Trough
Selling + Sales
Promotion Volumes

Long term
Prospective
Profit
Customer Integrated
Marketing Trough
Market Needs Marketing
Customer
Comm..
Satisfaction
To change from Sales to marketing oriented company, the organisation will
have to become long run oriented and preoccupied with planning the right
products, channels, level of service and marketing strategy to meet
customer’s long run needs.
The Marketing Concept
One can say that the Marketing concept emerged due to the short coming
of the other 3 business philosophies in fact; the marketing concept is a
modern 20th century phenomenal. The concept started during the 1950’s
and has since that time been adopted as a central business philosophy by
many firms throughout the world, under the marketing concept the
customer takes the central place and for a firm to survive and grow in the
long run it must work to identify and satisfy customers needs.

Example L.L.Bean.
1. For example L.L.Bean a successful catalogue retailer was founded
on the marketing concepts. L.L.Bean dedicate itself to deliver the
promise spelled out in 1916 that is any customer whom is unsatisfied
with the product from L.L.Bean may return it back and have it
exchanged even after 100 years.

2. When Apple introduced the “iPhone”, it was launched at a very

high price, this price was lowered in quite a small period of time and
thus refunded all the price difference to their early adopters
 3. Burger King some years ago, was considered very different and
crazy when it launched its now famous campaign “Have it you way”

After all such a promise was longed for customers but

unheard of in the mass production industry. As it turned out B.K.
campaign was an early sign of a big change in how businesses
behave towards consumers.

Marketing Concept...
A structured analysis process which leads to a specific implementation
plan, respective business plan.
- Analysis of
internal and external factors influencing the
company
- Development of the Marketing concept
- Implementation plan of the Marketing concept as whole
or

problem related
The Societal Marketing Concept

The Societal Marketing

Concept (SMC) holds that the organization should determine the needs,
wants and interests of the target markets. It should deliver the desired
satisfactions more effectively and efficiently that competitors in a way that
maintains or improves the customers of societal well being. The SMC is the
newest of the 5 management philosophies.
1. Body Shop is against Animal Testing
2. B.O.V. eco personal loan
Being an echo friendly bank B.O.V is assisting customers when
purchasing environmental friendly equipment by offering
A. Reduced interest rates
B. No processing fees
C. Repayment up to 8 years.