Evolution of the marketing concept

Until the mid of the 20th century, the development of the marketing theory has experienced mainly three periods, named as development orientation period, sales orientation period and marketing orientation period. Along with the market-driven business is convinced that everything must take the client needs as the starting place, which "to create what customers want". At that time, the introduction of social productive forces was quite swift, and the style of a purchasers' market started out to emerge. At exactly the same time, the non-public income of residents had experienced an instant growing period, which managed to get was easy for customers to find the product. To succeed your competition, many companies started out to recognize the value of change management concepts in order to survive and develop. Along with the marketing theory has helped them to understand that the key to reaching business goals is to effectively determine the prospective market's needs, also to provide more successfully than the competition. A market-driven business can help the enterprise to gain the greatest chance of success in the marketplace. This essay will first of all discuss the advancement of the marketing theory. Following this, it will clarify the characteristics of your market-driven business. Finally, it'll analyze the advantages for firms to adopt a marketing-orientated approach.

Before understand the progression of the marketing concept, it is necessary to truly have a general idea of this is of marketing. Here the author provides the explanation from several main authoritative options. According to North american Marketing Relationship in the year of 2007, "marketing can be an organisational function and a set of techniques for creating, interacting, and providing value to customers and then for managing customer human relationships in ways that benefit the organization and its stakeholders" (American Marketing Association, 2007). UK Chartered Institute of Marketing feels that "marketing is the management process that identifies, anticipates and satisfies customer requirements profitably" (The Chartered Institute of Marketing, 2010). And the daddy of modern marketing management, Philip Kotler once defined marketing as "satisfying needs and would like through an exchange process" (Kotler, 1984).

The marketing theory has experienced different steps, and the advancement of this idea has reflected the various business philosophies which once had been predominant for another type of historical time. And these different philosophies may still work for specific organizations in specific areas on the planet. And according to Jobber (2010), the development of the marketing concept can be generally been split into three periods, which can be named as production orientation, sales orientation, marketing orientation. And each different period keeps different business philosophies and emphasizes.

Firstly, the creation orientation period. The creation orientation notion prevailed from the time of the industrial revolution before early 1920`s. The business enterprise philosophy had not been from the consumer demand, but from the development of the firms. The main performance can be described as "What I produce, what to sell". And this production orientation concept assumed that e consumers wish to choose the products in low prices and just about everywhere, and this companies should strive to improve production efficiency and syndication efficiency, to develop production, also to reduce costs, to be able to expand the marketplace. An example to illustrate that theory can be studied from American car company giant Ford, who once arrogantly declared that Ford only produce cars in dark-colored color no matter what other color the clients want. The backdrop for this theory is the seller's market condition. Throughout that time, the production concept was very popular among the venture management, due to the scarcity of materials and the merchandise an issue.

Secondly, the sales orientation period. The Sales Concept prevailed from the end 1920`s to the early 1950`s. The performance was "the customers buy what I sell". And this concept holds the belief that the customers will not purchase a big variety of products because of the purchase mindset, and that the corporations must actively do advertising activities in order to stimulate the purchase activities of customers. The background of the sales concept is the transitional stage from the "seller's market" to the "buyer's market" in many american countries. Between your time of 1920 to the entire year of 1945, the occurrence that the resource experienced outstripped the demand in the market gradually emerged, due to the rapid increase of products offered on the market, which may be described by the development in technology and technology, the enforcement of scientific management and the mass development. Because of this, the competition among retailers became fierce, and enterprises began to apply the marketing concept, especially during the economic turmoil period from the year of 1929 to the year of 1933. In those days, companies understood that it had not been essential to produce the products only, and companies discovered to try to persuade customers to buy products through advertising and personal selling. Although this concept was better than the previous concept, watching advertising techniques, the substance of the sales concept still focuses on internal creation.

Thirdly, the marketing orientation period. This idea stems from the 1950`s, when the buyer`s market was very increase, due to the situation that the resource exceeded the demand. And this concept holds the belief that to place the needs of the clients first in every aspect of an enterprise, and thinks that the key task of businesses is to meet customer needs, however, not sell the merchandise. Narver and Stanley (1990), Jaworski and Kohli (1996), Webster (1994) all emphasizes the importance of putting the customer firs. During this period, many enterprises have realized that it's important to find the potential demand of the clients, which is more important to generate demands alternatively than meet current demands. Therefore, there are four important parts inside this marketing concept, that happen to be marketing research, aim for market segments, customer needs, built in marketing and profitability capacity.

Characteristics of your Market-driven Business

Through the review of the marketing concept, it is clear that the first two principles take the internally orientated businesses as first, as the marketing concept needs the market-driven businesses as first. And based on the lecture, the comparability of a market-driven businesses and an internally orientated businesses can be summarized as the following twelve points: the ex - takes customer matter throughout business, as the latter takes the internal convenience comes first; the past strives to know customer choice standards and match with marketing combine, while the latter assumes price and product performance key to many sales; the former does section by customer differences, while the last mentioned does section by product; the past invests in market research and monitors market changes, while the latter relies on anecdotes and received wisdom; the past welcomes change, as the latter cherishes status quo; the last mentioned tries to comprehend competition, while the second option ignores competition; the former respect the marketing spend as an investment, as the latter respect the marketing spend as a luxury; the former is convinced innovation rewarded, while the latter believes invention punished; the ex - searches for latent markets, as the last mentioned sticks with the same; the former feels "being fast", while the latter thinks "why rush?"; the ex - strives for competitive advantage while the second option is pleased to be me-too; the previous is productive and effective, while the latter is useful.

From the above mentioned concept review and comparability, the characteristics of a market-driven business can be summarized as the next four points:

First of all, the starting point of marketing activities is the buyer demand, which is different from "products first" concept. Within a work, there's a change from manufacturer to market, from the existing products to the client needs.

Secondly, the measure of marketing activities includes a standard marketing mix technique for a target market occupation meeting the precise consumer demand, which is different from the various promotion ways for the products.

Thirdly, the profitable concentrate is on the long-term profit by taking the existing and potential customer needs into consideration, which is different form a short-term putting the focus on each gain and loss. Quite simply, a market-driven concept gains take advantage of the customer satisfaction as opposed to the sales

Fourthly, the internal corporation of business management also needs to copy from the production target to marketing focus. And the various practical departments within the enterprise, including personnel, funding, production and marketing departments, must be coordinated relative to the ideas of company.

To summarize, a market-driven business will deliver value to the clients by a thorough understanding of customers and potential customers, including their changing needs and needs.

Advantages of implementing a marketing-orientated approach

The author feels that we now have at least three advantages of adopting a marketing-orientated procedure for an enterprise, shown as the below.

First of most, to gain competitive advantages. To be more competitive available world, the primary thing is to under the changing needs of the client. With the science and technology improvement, the variety and the amount of products have been greatly enriched and increased, which has made the advertising be hard. At the same, with an increase of income, customers could manage to have significantly more choices to select those products that precisely satisfy their changing demand. A market-driven market business helps to know better of the client both current and potential, which business will combine more marketing actions to specify market segments, their size, and their needs, and discover the true needs of customers. "A substantial market orientation should be the foundation for an enterprise `s competitive gain strategy" (Narver and Stanley, 1990, p35).

Secondly, to be more rational when facing competition. In today`s business community competition, the distinctions in product and price have become less and less. In case a company only focuses on its inner activities, to be able to boost product quality and lower cost, it will be hard for the company to gain a long-term development. And for a market-driven business, to section customers alternatively than to section products can help the business to get market share and development room when facing the fierce conclusion from its peers. And the market show and development room is paramount to the success of an venture available on the market. The primary role in today`s current market is the client rather than the factory. Being modified to the trend, the competition should transfer from the merchandise to the customers.

Thirdly, to get a long-term income. A market-driven business will easily earn the preference of the clients by ecological cares, then gain more revenue from a long-term perspectives. Realizing a profit by successfully satisfying customer needs in the long-term will help the enterprise to gain continuous benefits. According to the analysis from Narver and Stanley (1990), the marketplace orientation way is an important determinant of profitability.

From a practical perspective, the writer takes an example from IBM, the blue giant in the computer industry, between the yr of 1991 to the year of 1993, IBM failed to catch the changing utilization habit of customer personal preferences for smaller desktop computer systems, which resulted in a reduction for the fourth one fourth of 1992 in excess of $5 billion. To resolve the problem, the new top administrator Louis Gerstner started to change IBM in 1993, into a far more customer-focused organization. By efforts, IBM gained $87. 5 billion in the year of 1999.


To sum up, a market-driven business places the client first atlanta divorce attorneys aspect of the organization, and delivers value to the customers by an intensive understanding of customers and customers, including their changing needs and desires. To accomplish a market-driven business will bring many advantages including competitive advantages, competition strategy and a long term profit, to the organization to allow them to get the greatest potential for success in the marketplace. However, there are still some limitations of the market-driven business, including the missing concern of the social, honest and environmental problems. The marketing concept still needs improvement.

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