Evolution of Marketing Philosophies
Marketing Concepts are popularly called marketing philosophies which clarify how the marketing activities of the organization from the past to present are guided. As per the history or evolution of human civilization, the history of the marketing concept also evolved. As time passes by, With the changing human needs and competition in the market, different marketing concepts have evolved with respect to time.
As a dynamic and ever-evolving field, marketing has gone through a number of concepts and approaches over the years. The concepts have evolved as a result of changes in customer preferences, market conditions, and technological advancements. As marketing has evolved over time, it has transformed from a simple exchange of goods and services to a comprehensive set of concepts that encompass the entire customer journey.
The major concepts of marketing that have evolved with time are as follows:
1. Old Marketing Concepts
- Exchange Concept
- Production Concept
- Product Concept
- Selling Concept
a) Exchange Concept:
This concept is the foundation of all marketing and is the oldest marketing concept that focuses on the transactional nature of marketing. It is the simple idea that people will trade something of value to them for something of value to others. In a market economy, this exchange occurs via the purchase and sale of goods and services.
The exchange concept emphasizes the importance of understanding customer needs and wants and creating products and services that satisfy those needs in exchange for payment. According to the exchange concept, customers are rational, and they will only purchase goods and services that offer them more value than the price they paid.
Retail and consumer goods are industries where customers are price-sensitive and value-driven, making the exchange concept particularly relevant. To provide value to their customers, companies that embrace the exchange concept may employ a variety of tactics, including discounts, bundles, and loyalty programs.
The product concept is particularly relevant in industries where product differentiation is crucial to success, such as in the technology and automotive industries. A company that embraces the product concept may use advanced technology, unique features, and superior quality to differentiate its products.
b) The Production Concept (1770-1820):
{Slogan-“we can sell”}
The production concept assumes that consumers will favor those products that are available and highly affordable so they should focus on improving production and distribution efficiency. The concept of production came into existence during the Industrial Revolution when businesses began producing goods on a mass scale.
During that time, businesses believed that if they could produce goods at a lower cost, they would be able to sell them at a lower price and gain a competitive advantage. This concept was centered on maximizing production efficiency and reducing costs. In order to offer competitive pricing, the production concept emphasizes efficiency and cost reduction. The concept assumes that customers will buy widely available and affordable products.
- The main focus is on producing high-quality products at low costs
- Assumes that consumers are primarily interested in the availability and affordability of products
- Marketing efforts are geared towards making products widely available and affordable
c) The Product Concept (1820-1930):
{Slogan-“we make what we can sell”}
Product concept assumes that consumers will favor those products having good quality, performance, and features so the organization should focus on product improvement. When companies began focusing on improving their products’ quality the product concept emerged.
In order to stand out in the market, companies should focus on creating products that meet the needs of their customers. The product concept emphasizes the importance of product quality, innovation, and differentiation. It is assumed that customers will buy products of superior quality with unique features and benefits.
Product concepts are particularly relevant in industries such as technology and automobiles where product performance is critical. To create innovative and high-quality products, companies that embrace the product concept typically invest heavily in research and development. Its high-quality products have helped Apple build a loyal customer base by focusing on product design and innovation.
- Emphasizes product quality, innovation, and features over other marketing factors
- Assumes that customers will seek out and purchase products that are of high quality and innovative
- Marketing efforts focus on creating and promoting superior products
d) The Selling Concept (1930-1950):
{Slogan-“we sell what we make”}
The selling Concept assumes that consumers will either buy or not buy enough of the firm’s product unless the firm makes a substantial effort to stimulate their interest in its products. This concept believes that people will buy more products and services if means of aggressive selling are adopted.
Sales concepts emerged during the mid-19th century and emphasized aggressive sales and promotion tactics to promote products. Companies believed that by promoting products and selling to customers, they could increase their profits and market share. The sales concept emphasizes the importance of persuasive communication and sales tactics to convince customers to buy a product. The concept assumes that if customers are not persuaded through effective marketing and sales techniques, they will not purchase a product.
In industries like retail and consumer goods, where there is intense competition and price sensitivity, the sales concept is particularly relevant. Discounts, limited-time offers, and high-pressure sales techniques are all examples of tactics companies can use to persuade customers to buy their products when they embrace the sales concept.
- Assumes that consumers will not purchase a product unless they are aggressively sold to
- Emphasizes the importance of personal selling, advertising, and promotion in driving sales
- Marketing efforts focus on convincing customers to buy through persuasive tactics
2. New Marketing Concepts
a) The Marketing Concept (1950-1970):
Marketing Concept believes that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. Marketing Concept takes an outside-in view that focuses on satisfying customer needs as a path to profits.
An important aspect of the market concept was that it aimed to understand and satisfy the needs and wants of customers. Rather than trying to convince customers to buy products that they don’t want or need, businesses should focus on creating products that meet customer needs. Market research, segmentation of customers, and creating a marketing mix (product, price, place, promotion) that addresses target customers’ needs were emphasized in this concept.
The market concept is particularly relevant in industries where customer satisfaction and loyalty are critical to long-term success, such as the hospitality industry and service industry. Companies that embrace the market concept may use a variety of tactics to understand and meet the needs of their customers, such as customer surveys, focus groups, and market segmentation.
- Emphasizes the importance of understanding customer needs and wants
- Assumes that the best way to succeed is by satisfying customers and building long-term relationships
- Marketing efforts focus on creating value for customers and building strong customer relationships
b) The Societal Marketing Concept (1970-2000):
{Slogan-“we are not free from social responsibility”}
Societal Marketing Concept believes that a company should make marketing decisions by considering consumers’ wants, the company’s requirements, and society’s long-term interests. It emphasizes social consciousness as part of an overall marketing plan.
As companies began realizing their responsibilities towards society and the environment, the concept of societal responsibility emerged. As a result, companies should create products and services that are environmentally friendly and socially responsible as their primary focus.
This concept focuses on corporate social responsibility, sustainability, and ethical business practices. It assumes that customers will support companies that are socially responsible and environmentally conscious.
In industries like the energy sector and consumer goods industry, companies have a significant impact on society, which is why the societal concept is particularly relevant. Companies that embrace the societal concept may use a variety of tactics to contribute to the welfare of society, such as reducing their carbon footprint, donating a portion of their profits to social causes, and engaging in fair and ethical business practices.
- Emphasizes the responsibility of businesses to address social and environmental issues
- Assumes that businesses should not solely focus on profits, but also on creating societal value
- Marketing efforts focus on promoting ethical and socially responsible products and practices
c) The Holistic Marketing Concept (2000-21st Century):
{Slogan-“Develop Corporate culture”}
Holistic Marketing Concept believes in the development, design, and implementation of marketing programs, processes, and activities that recognize the breadth and interdependencies. When companies realized that marketing is more than just selling products, it also involves creating a positive impact on society and the environment, the holistic marketing concept emerged.
In accordance with this concept, companies should be focusing their efforts primarily on developing a comprehensive and integrated marketing strategy that incorporates all aspects of marketing, including product development, pricing, promotion, and distribution.
The idea was that businesses should consider all aspects of marketing, including traditional marketing (product, price, place, promotion), relationship marketing, and societal marketing, to create a comprehensive marketing strategy Integrating all aspects of a business’s operations, such as its customers, employees, partners, and stakeholders, into a holistic marketing strategy is the holistic marketing concept.
- Emphasizes a comprehensive and integrated approach to marketing
- Considers all aspects of marketing, including product, price, promotion, and distribution
- Marketing efforts focus on creating a seamless, cohesive customer experience across all touchpoints
d. Digital Marketing Concept:
The digital marketing concept emerged when companies realized the potential of digital technologies for marketing. In accordance with this concept, companies should emphasize using digital technologies to reach customers and promote their products and services, such as social media, email, and search engines. It emphasized using digital channels and technologies to do so.
Using social media, the internet, and mobile devices, businesses were supposed to connect with customers and provide personalized experiences. The concept emphasized digital marketing channels, search engine optimization (SEO), social media marketing, and content marketing.
- Emphasizes the importance of digital channels in reaching and engaging with customers
- Assumes that consumers are increasingly using digital channels to research and purchase products
- Marketing efforts focus on using digital marketing tools and tactics to reach and engage with customers
e. Purpose-Driven Marketing Concept:
Purpose-driven marketing emerged when companies realized that consumers were increasingly seeking companies with a mission beyond profit. Through their products and services, companies should be focusing on creating a positive impact on society and the environment.
Customers support companies with a clear purpose and mission that goes beyond making profits, according to the purpose-driven marketing concept. A company can market purposefully by aligning its brand and values with a social or environmental cause.
- Emphasizes the importance of having a clear and meaningful purpose beyond profit
- Assumes that customers are more likely to support and engage with brands that have a positive impact on society
- Marketing efforts focus on communicating the brand’s purpose and impact to customers
f. Customer Experience Concept:
As companies began to realize the importance of creating positive customer experiences, the customer experience concept emerged. All touchpoints of the customer journey, from pre-purchase through post-purchase, should be focused on creating a positive and memorable experience for customers.
Customer experience goes beyond providing good customer service; it involves understanding the customer’s needs, preferences, and emotions, and designing an intuitive, seamless, and personalized journey for them.
This concept seeks to foster long-term relationships with customers by creating a customer-centric culture that provides value, builds trust, and fosters long-term relationships. Customer experience assumes that customers will remain loyal to companies that provide them with positive and memorable experiences.
- Emphasizes the importance of creating exceptional customer experiences
- Assumes that customer experience is a key differentiator in a competitive marketplace
- Marketing efforts focus on creating a seamless and positive customer journey across all touchpoints
g. Agile Marketing Concept:
The agile marketing concept emerged when companies started realizing the importance of being agile and adaptable in the ever-changing marketing environment. This concept argues that companies should focus on being flexible and responsive to changes in customer preferences, market conditions, and technological advances.
During agile marketing, collaboration, experimentation, and interactive improvement are emphasized. Marketing initiatives are broken down into smaller, more manageable “sprints” that can be completed within a short amount of time. In each sprint, the marketing team focuses on achieving a specific set of goals and objectives based on data and customer feedback.
Companies that are agile and adaptable will have the best chance of surviving in today’s dynamic and ever-changing marketing environment, according to the agile marketing concept.
- Emphasizes the importance of flexibility and adaptability in marketing
- Assumes that markets and consumer needs are constantly changing
- Marketing efforts focus on quickly adapting to changes and testing new strategies to optimize results.
Conclusion:
In conclusion, the evolution of marketing concepts reflects the changing needs and preferences of customers, as well as technological advancements and market conditions. As part of the modern marketing landscape, organizations must strive to create value for customers, be socially responsible and environmentally conscious, provide personalized and memorable customer experiences, and be agile and adaptable in the face of change.
It will be companies that are adaptable to these changing trends that will succeed in the 21st century’s competitive and dynamic marketing environment.
NICE NOTES