The Development of Marketing over the Last Century - Research Paper Example

? The Development of Marketing over the Last Century al Affiliation The Development of Marketing over the Last Century Introduction The origin of marketing can be traced back to about a century ago. Since then, marketing has undergone many changes over the years. Today marketing has become a major tool of winning a market. However, most people do not understand the some of the changes that marketing has undergone to date. Understanding the changes is essential since it helps managers understand marketing and predict what the future might look like for business competitiveness. This discourse attempts to explore the developments of marketing throughout history and the implications of the developments to marketing organizations. The history of marketing dates back to early 1900 although some marketing practices can be traced back to 1700 B.C according to Dix et al. (2005). Segmentation, marketing developments, promotion, and branding are some of the marketing activities practiced today that have a long history. The origin of these marketing activities dates back to as early as the pre-colonial era. Dix et al. (2005) notes that the marketing concepts of relationship orientation and ‘domesticated markets’ began during the agricultural era. As such, the current popularity of relationship marketing is merely a rebirth of the marketing practices of the pre-industrial period when consumers and producers interacted directly with each other and built structural and emotional bonds in their economic market behaviors. History shows that marketing was initially based on production orientation. This was the marketing concept that was applicable during the industrial revolution. According to this marketing concept, the focus of marketing was based on efficient production and distribution (Dix et al., 2005). In fact, under this system, consumers would purchase goods as long as they could afford the goods. At the turn of 1900, marketing developed from production orientation to sales orientation. Sales orientation was marked by increased competition for the limited customers. As a result, business owners began embarking on intense advertising, communication, and branding as means of persuading customers to purchase their products. This marketing concept became applicable from the 1900s to the 1950s. Therefore, the current marketing concepts involving branding, communication, and intensive ads that characterize the modern business environment are merely a rebirth of the concepts used by marketers at the start of the 20th century up to the 1950s (Belz, 2006). At the turn of 1960, a new marketing concept known as marketing orientation emerged. This concept became common from 1960 onwards. This marketing concept emerged because of market saturation that triggered intense competition. Marketing also became a strategic thinking process for managers. Today marketing as a discipline has become an outward looking discipline where strategies and actions depend on the external environment of a company. As such, any change in the external environment affects the marketing strategy adopted by a company (Belz, 2006). The world has also experienced radical changes in technological, economic, and socio-cultural environments since the beginning of the 20th century. These changes have created new marketing opportunities and challenges. Globalization has transformed marketing concepts by bringing regional and global societies and economies together. Some of the opportunities that globalization has brought include increased number of market opportunities. For instance, globalization has made it possible for companies to set up businesses in other countries easily. In addition, globalization has transformed marketing by making it easier for companies to penetrate some markets with more ease than ever before. Further, it has provided companies with the opportunity to develop and implement cost-effective international marketing strategies (Johnson, 2007). Despite the benefits that globalization has brought in the discipline of marketing, it has also come with a myriad of challenges that managers ought to know. Firstly, globalization has brought new competitors in the market. Today, many businesses compete with national and global companies of all sizes. This poses a big threat to many businesses especially those that cannot compete favorably. In fact, in this environment, only competitive businesses survive as those that cannot withstand the competition are forced out of business (Johnson, 2007). The effects of globalization have a number of implications to markers. Firstly, marketers need to know that to survive in a market, the company must strive to differentiate itself from competitors in the market. This can be achieved by offering superior products and services, excellent customer service, or affordable prices, just to name but a few. The implication of the effects of globalization on marketing also shows that marketers need to concentrate on innovation and avoid being a follower. In addition, small businesses should attempt to find their market niche where the business can operate favorably with the potential of becoming a market leader (Hart, 2003). The other major change that has occurred in marketing over the years is that consumers have become more informed and unstable than ever before. Schmid (2011) notes that today’s consumers are quite different from consumers of yester years and have come up with new characteristics. For instance, brand loyalty has significantly decreased as consumers keep switching more easily from one brand to another. At the same time, there has been a constant need for novelty. This is because most consumers today prefer the latest (trendy) products/technology that are available in the market. In addition, consumers of today are more interested in ethical and environmental issues, as evidenced by their consumption patterns. Further, most consumers of today are not as responsive to advertising as those of the past were. These changes in consumer behaviors have many implications, which marketing managers must take into consideration. Firstly, the change in consumer behavior implies that marketers need to have strong branding to avoid brand switching, which requires a large amount of resources and communication efforts. Secondly, these changes imply that companies that only follow others on the market will not survive in the end. Therefore, company managers must be innovative to keep up with the changes in consumer behavior. The changes also imply that the traditional forms of advertising such as radio and TV ads are no as effective as they were previously given the current level of Internet penetration in the world (Schmid, 2011). The Internet has also emerged as a power-marketing tool in the 21st century. The Internet has impacted profoundly on marketing activities. Today the Internet has reached almost everywhere in the world. It can be accessed on a variety of devices such as laptops, mobile phones and netbooks among other devices. Even though the Internet was developed a couple of decades ago, it has developed into a very powerful communication tool that is essential for marketers. With the emergence of the Internet, there came e-commerce as a way of marketing, buying, and selling products. Today people can shop at the comfort of their homes, thanks to the Internet. The Internet has increased the flow of information, especially through social media and other sites (Schmid, 2011). The emergence of the Internet as a marketing tool has many implications to marketing managers. Firstly, as the Internet continues to shape the marketing world, marketers must be able to use this essential communication tool effectively and efficiently. Marketing managers must also be able to control the image and brand reputation of their organizations. The other consideration that marketing managers must make is target the right market segment, which in most cases, is not as easy to do with the Internet as it is using traditional communication tools (Schmid, 2011). Conclusion In conclusion, marketing has undergone many changes over the years. It has become apparent that as new technologies emerge, consumer behaviors also changes. As a result, marketing managers must be able to respond to the changes appropriately for the companies they manage to survive, otherwise they will be faced out. References Belz, F. (2006). Marketing in the 21st century. Business Strategy and the Environment, 15(1), 139-144. Dix, L. F., Hollander, S. C., Jones, D. G. B., & Rassuli, K. M. (2005). Periodization in Marketing History. Journal of Macromarketing 25 (1): 32–41. Hart, S. (2003). Marketing Changes. London: Cengage Learning EMEA. Johnson, K. (2007). Marketing changes over the years. Retrieved from http://www.marketingease.com/web-marketing-blog/marketing/marketing-changes-over-the-years. Schmid, V. (2011). The impact of technology on marketing strategy. Norderstedt, Germany: GRIN Verlag. Read More