Professional Documents
Culture Documents
1900 1910
Period of Discovery
In the early years, teachers of marketing sought facts about the distributive trades. The
Marketing theory was borrowed from economics, which thus resulted to distribution,
world trade, and commodity markets. The concept of marketing came into being and
the business activity was thus named.
1910-1920
Period of Conceptualization
Many marketing concepts were being developed. These concepts were classified and
terms were defined.
1920-1930
Period of Integration
Principles of marketing were postulated. The general body of thought was integrated for
the first time.
Paul W. Ivey was the first to use Principles of Marketing as a book title although other
authors had used principles in the relation to advertising, retailing, and credit granting.
1930-1940
Specialized areas of marketing continued to be developed, hypothetical assumptions
were verified and quantified, and some new approaches were developed to explanation
of marketing knowledge.
The scientific aspects of the subject were considered.
1940-1950
Period of Reappraisal
The concept and traditional explanation of marketing was appraised in terms of current
needs for the marketing knowledge. The scientific aspects of the subject were
considered.
1950-1960
Period of Reconception
Traditional approach to the study of marketing were supplemented by increasing
emphasis on managerial decision making, the societal aspects of marketing, and
quantitative marketing analysis. Many new concepts, some borrowed from the field of
management and from other social sciences, were introduced into marketing.
1960-1970
Period of Differentiation
As marketing expanded, new concepts took on substantial identity as significant
components of the total structure of thought, Among them were such elements as
managerialism, Holism, Environmentalism, systems, and internationalism.
1970
Period of Socialization
Social issues and marketing became much more important, It is the influence not of
society upon marketing, but of marketing upon society that became focus of interest.
What is marketing? The discussion in the different approaches to the study of marketing
point to multi-dimensional factors that affect marketing, making it difficult to give a
complete concept of marketing in one definition. Through time, the following definitions
of marketing have been given:
A human activity responsible for managing the demand structure of need-satisfying
goods and series in order to facilitate satisfactorily, the exchange process at a
reasonable profit, or present and potential customers
A social and managerial process whereby individuals and groups obtain what they
need and want through creating a exchanging products and value with others.
An expanded and broader view of marketing integrating the different approaches to
marketing is this definition:
A social and managerial process for managing the demand structure of needs,
wants and satisfying products and services in order to effectively facilitate the
exchange process and values with the others at a reasonable profit, for present and
potential customers.
4. marketing
Functions in Management
The different function of managers in a business organization are as follows: planning
organizing, staffing, directing supervising, and evaluating of personnel, plans and
programs in the different departments of company.
Marketing as a Management function
Marketing is a part of four-key management functions: marketing, production, finance,
and human resource.
Figure 1-2 : Management Function
Management
Marketing
Production
Finance
Human Resource
MARKETING
Table 1-1 summarizes the behavioral concepts relevant to marketing and the marketing
thoughts, which came out of these concepts.
Table 1-1: Bliss Perrys Summary of the Behavioral Concepts Relevant to Marketing
(Bartel 1976, 196-197)
Behavioral Concept
Marketing Thought
From anthropology
Culture
Comparative Approach
(community in entirety)
Subculture
Climate for business
Market research
Culture restraints
Word Association
Communication
Retailing Structures
From sociology
Social class
Market segments
(Individuals in relation to Social differentiation
Social Class awareness
other individuals)
Status crystallization
New Product
Reference Groups
acceptance
Informal group
Shopping behavior
Social role
Leisure
The family
Groups, products,
Individuals
brands
Institutions
Aspirations
References
Status conflicts
Personal influence
Decision Making
Life Cycle
From Psychology
Motivation
Motivation
(center on the
Drives
Risk reduction
individual)
Cognitive dissonance
Ego
Achievement
Self Image
Affiliations
Concept generalization
Hierarchy of motives
Brand choice
Perception
Orientation
Scope
Threshold
Perceptual function
Mechanism of vision
Time
Selective perception
Classical and operant
learning
Serial Learning
insight
Learning concepts
Attitudes
Power groups
Values
Trade association
Public Policy
Goals of Marketing
The four goals of marketing system: maximize consumption, maximize consumer
satisfaction, maximize choice, and maximize life quality. (Kotler 2000)
Marketing: The Strategic 3Cs Concept
The two interacting components in marketing are the company and the market.
Marketing is the interfacing of a company and its target market. (Josiah)
Figure 1-4: Two Interacting Components of Marketing
Company
Market
The company and its market are equally important. It is marketing that gives fulfillment
to both components. Marketing people should balance between the companys
requirements for profit and desired market share.
The market is composed of two other interacting components: the customers and
competition. The overriding objective of the company is not just to satisfy the needs and
want of its customers. It has to be profitable and better than its competitor. Otherwise,
the competitor could win the customer because it is able to satisfy them. (Go 2001).
Figure 1-5: Two Interacting Components of a Market
Customer
Competitor
Combining the three interacting and equally important components of marketing will
produce the strategic 3Cs of marketing (Go 201 19-20).
Figure 1-6: The Strategic 3Cs of Marketing
Customers
Company
Competition
Company
Competitor
Profit
Market Shares
Consumer
Price
(Affordable)
Place
(Availability)
A product is anything marketed to satisfy a want or a need. It may be a person, a place,
and organization, an idea or a good offered to a target market. For Example, Mobile
Phone, MP3, Donut, Coffee, body and soap.
A Target Market consist of a set of buyers who share common needs or characteristics
that the company decides to serve (Kotler 2003, 255). Thus, the companys concern is
how to develop the right product that will satisfy customers needs. Hence, product
needs to satisfy the customer first before the other mixes because how potential
customers view the product affects the development of other Ps.
Place considers all the functions, problems, and institution involved in getting the right
product to the target market. Place also refers to the channel of distribution that
marketers work in and through to move goods from manufacturers to the consumers.
Promotion includes advertising, sales promotions, public relations, personal selling,
and direct marketing. It is concerned with any communication tool used to persuade and
influence the target and potential market about the right product that will be sold in the
right place at the right place.
In setting the price, factors like competition, existing practices on markups, discounts
and terms of sale, product appeal, and legal restrictions must be considered.
The elements of the marketing mix are interdependent; hence any decision about the
4Ps must be made at the same time. The marketing mix thought follows some
sequence (McCarthy and Shapiro 1975,80):
A product is developed to satisfy the target customers. Then a way (place) is
fond to reach the target market. Promotion informs the target market about the
availability of the product. Then the price is established based on expected customs and
reaction to the total offering.
Conceptual Approach
This approach studies the ideas of marketing rather than the activities of marketing, Its
emphasis is on theoretical analysis and development of new concepts whether of
consumer, products, marketing institution, functions, process or policies. The concept of
marketing is more important than the definition of marketing. The conceptual approach
is recognized when marketing is defined to bring out various ideas for which marketing
stands.
Conceptualization is viewed as a means of advancing the understanding of marketing
as a tool aiding analysis and logic, and facilitating communication of ideas (Bartels
1976,230).
Thus, the conceptualists seek ways to improve marketing, and provide means of solving
marketing problems through research, logical analysis and innovative thought.
The approach is viewed in two-ways, as a marketing concept and as a concept in
marketing.
The marketing concept views all management decision to be market oriented, within the
consumer or the customer as the end or object of all business effort, The counterpart for
this approach was the Consumer is King concept. While this consumer concept before
is mainly in selling and on the retail level, the new application of marketing concept
has been adopted by manufacturers as well ( Bartels 1976,228).
President
VP Finance
Production
VP Human Resource
VP Marketing
VP
Sales
Marketing Research
Product Manager
Promotions Managers
Customers Service
End-User
Suppliers
Market
Intermediaries
Competitors
According to Kotler (2003), Marketers must connect effectively with customers others in
the company and external partners in the face of major environmental forces. A
companys marketing environment consist of the actors and forces outside marketing
that affect marketing managements ability to develop and maintain successful
relationships with its target customers. The marketing environment offers both
opportunities and threats. Successful companies now the vital importance of constantly
watching and adapting to the changing environment.
The micro environment consists of forces close to the company that affect its ability to
serve its customers the company, suppliers, marketing channels firms, customer
markets, competitors, and demographic, economic, natural, technological, political and
cultural forces.
Marketing Management
This concept is a managerial approach to marketing. It emphasizes marketing
management as a decision making process and how decision makers, specifically the
marketing managers, handle specific marketing problems and situations, marketing
activities and strategies are evaluated and developed to achieve specific management
objective. The approach establishes the position of the marketing manager as a toplevel position in a companys organization.
Marketing Management is defined as the analysis, planning, implementation, and
control of programs designed to create, build, and maintain beneficial exchanges with
target buyers for the purpose of achieving organizational objectives.
The bottom line is that effective marketing can take many forms. There will be a
constant tension between the formulated side of marketing and the creative side. It is
easier to learn he formulated side of marketing.
CLEARING POINT
Many people think of marketing only as selling and advertising.
1. Marketing is no longer telling and selling
2. Marketings new sense is concerned with satisfying customers needs
The term selling is interpreted as Marketing that we have to clarify to avoid
misunderstanding.
Many think of marketing as selling. This is partly True, as selling which is one of the
promotion mix integrated marketing communication, is only a part of the total marketing
program. Marketing is a comprehensive term, which embrace selling, distribution,
PERSONAL SUMMARY:
Marketing is a relatively young discipline. Some, however, argue that it has been around
for a long time.
Trade and payment in money, goods and services has been around for many thousands
of years.
Barter or counter trade is becoming popular in business again.
Some marketing tools such as advertising have been around for hundreds and even
thousands of years. The Ancient Greeks used advertising for commercial purposes. The
traders hired 'criers' to promote their products. Their advertising propositions were
sometimes surprisingly similar to today's television advertisements. But none of the
ancient brands lasted the test of time. Few brands last a century let alone a millennium
or two.
Change has been constant throughout the history of marketing. Markets change
constantly. The only certainty is change. Everything changes - customers grow old,
develop new tastes, new values, earn different amounts , prioritize 'new' needs,
competitors emerge, laws and regulations change, and technology sends out shock
waves of change. Nothing stays the same.
The world and marketing are changing. They will continue to change. Today's winners
may be tomorrow's losers.