The Emergence of Modern Marketing

In entitling this collection of essays 'The Emergence of Modern Marketing' we are referring to the characteristics of persistent, systematic, and.
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However, the salient features of the most commonly cited periods appear in the following section. A production orientation is often proposed as the first of the so-called orientations that dominated business thought. Keith dated the production era from the s to the s, but other theorists argue that evidence of the production orientation can still be found in some companies or industries.

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Specifically Kotler and Armstrong note that the production philosophy is "one of the oldest philosophies that guides sellers" and "is still useful in some situations". The production orientation is characterised by: The selling orientation is thought to have begun during the Great Depression and continued well into the s although examples of this orientation can still be found today. Characteristics of the marketing orientation: Phillip Kotler is often credited with first proposing the societal marketing orientation or concept in an article published in the Harvard Business Review in The societal marketing concept adopts the position that marketers have a greater social responsibility than simply satisfying customers and providing them with superior value.

Instead, marketing activities should strive to benefit society's overall well-being. Marketing organisations that have embraced the societal marketing concept typically identify key stakeholder groups including: They ensure that marketing activities do not damage the environment and are not hazardous to broader society.

Societal marketing developed into sustainable marketing. Characteristics of societal marketing: Starting in the s, a new stage of marketing emerged called relationship marketing. The focus of relationship marketing is on a long-term relationship that benefits both the company and the customer. The characteristics of relationship marketing include: Empirical support for relationship marketing as a distinct paradigm is very weak.

One study suggests that relationship marketing is really a sub-component of large scale movements of the value-added process rather than a separate era or framework. To investigate the history of marketing practice, scholars often turn to a method known as periodisation. In a major review of the periodisation approach, Hollander et al.

Of these, the contributions of Robert Keith and Ronald Fullerton are the most frequently cited. In , Robert Keith, the then Vice President of Pillsbury , [83] set the stage for decades of controversy when he published an article entitled the "Marketing Revolution" in which he set out the way that the Pillsbury Company had shifted from a focus on production in the s through to a consumer focus in the s. He traced three distinct eras in Pillsbury's evolution: In addition, Keith hypothesised that a "marketing control era" was about to emerge.

Keith's notion of distinct eras in the evolution of marketing practice has been widely criticised and his periodisation described as "hopelessly flawed". The article, which is entirely based on Keith's personal recollections and did not use a single reference, is best described as anecdotal.

Systematic studies carried out since Keith's work have failed to replicate Keith's periodisation. Instead, other studies suggest that many companies exhibited a marketing orientation in the 19th-century and that the business schools were teaching marketing decades before Pillsbury adopted a marketing-oriented approach. In , Fullerton developed a more subtle and nuanced periodisation for the so-called marketing eras. In spite of the intense criticism leveled at Keith's eras of marketing practice, his periodisation is the most frequently cited in textbooks [80] and has become the accepted wisdom.

For all the controversies surrounding marketing stages or periods, Keith and others appear to have contributed a lasting legacy. Grundey summarised five different periodisations in the history of marketing, as shown in the following table, as a means of highlighting the general lack of agreement among scholars. Dating the history of marketing, as an academic discipline, is just as problematic as the history of marketing practice.

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Marketing historians cannot agree on how to date the beginnings of marketing thought. In , the University of Michigan offered what many believe to be the very first course in marketing. Other universities soon followed, including the Harvard Business School.

Prior to the emergence of marketing courses, marketing was not recognised as a discipline in its own right; rather it was treated as a branch of economics and was often called applied economics. Subjects, which today might be recognised as marketing-related, were embedded in economics courses. Early marketing theories were described as modifications or adaptations of economic theories. The impetus for the separation of marketing and economics was due, at least in part, to economic's focus on production as the creator of economic value and general failure to investigate distribution.

In the late 19th century and early 20th century, as markets became more globalised, distribution began to assume increasing importance.

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Some economics professors began to run courses examining various aspects of the marketing system, including "distributive and regulative systems. As the first decades of the 20th century progressed, books and articles concerning marketing topics began to emerge.

Several scholars have attempted to describe the evolution of marketing thought chronologically and to connect it with broader intellectual and academic trends. Bartels provided a brief account of marketing's formative periods, and Shah and Gardner briefly considered the development of the six dominant schools in contemporary marketing.

He categorised the development of marketing theory decade by decade from the beginning of the 20th century:. Other marketing historians have eschewed the periodisation approach, and instead considered whether distinct schools within marketing reflect different facets of common theory and whether a more unifying intellectual structure has emerged.

These approaches tend to identify distinct schools of thought. A school of thought refers to an intellectual tradition or a group of scholars who share a common philosophy or set of ideas. To a certain extent, there is some agreement that in early marketing thought, three so-called traditional schools, namely the commodity school, the functional school and the institutional school co-existed. Weitz point to the publication of Wroe Alderson 's book, Marketing Behavior and Executive Action , as a break-point in the history of marketing thought, [] moving from the macro functions-institutions-commodities approach to a micromarketing management paradigm.

Following on from Alderson, marketing began to incorporate other fields of knowledge besides economics, notably behavioral science and psychology, becoming a multi-disciplinary field. For many scholars, Alderson's book marks the beginning of the Marketing Management Era. Of those historians who identify schools, there is no real agreement about which schools were dominant at different stages in marketing's development.

Although the distinctive features of these schools can be identified and described, many of the early text-books included elements drawn from two or more schools of thought- for example, in a series of chapters devoted to commodities followed by a series of chapters devoted to the institutional and functional schools. In the following section, a brief overview of the contributions of key thinkers will be outlined with respect to the prevailing schools that have dominated marketing thought. Hunt and Goolsby, identified four schools of thought that have dominated marketing, namely; the commodity school, the institutional school, the functional school and the managerial school.

Some marketing historians like Jagdish Sheth have identified the modern "marketing schools" as: Yet other commentators identify a broader range of schools. O'Malley and Lichrou, for example, document the schools as: By the s, the marketing discipline was organised into three schools of thought: The following sections briefly outlines the schools of thought as conceptualised by key thinkers in the discipline.

History of marketing

Although these can be treated as separate schools of thought, considerable overlap between them is evident. The three schools that preceded marketing management exhibited a highly descriptive approach and collectively these are often called the classical schools. These schools borrowed heavily from economics and were largely concerned with aggregate demand and lacked a focus on the individual firm. The commodity school is thought to have originated with an article by C. Parlin with a focus on the objects of exchange and was primarily concerned with classifying commodities.

A different article published by Copeland, and published in the Harvard Business Review proposed the convenience-shopping-specialty goods classification which is still in use today. Other theorists developed a plethora of methods for classifying goods. The institutional school focused its attention on the agents of market transactions, specifically those organisations active in the intermediary channel system, such as wholesalers and retailers.

It was primarily concerned with documenting the channels of distribution, the functions performed by channel members and the value-adding services they provided. In short, the institutional school was fundamentally concerned with the activities required to achieve efficiency within distribution systems. The institutional school was heavily influenced by economics, but in the s, began to take on ideas from behavioural science. An Institutional Approach The functional school was thought to have originated with the publication of Shaw's article, Some Problems in Market Distribution, The functional school was primarily concerned with documenting the functions of marketing.

In other words, it attempted to address the question, What work does marketing do? Different theorists within the functional school produced long lists of marketing's functions.


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Although there was little agreement about what should be included in the list, much of it revolved around the value added by marketing intermediaries. In those early years, advertising and promotion was rarely seen as a marketing function. In addition to Shaw, key thinkers in the functional school included Weld, Vanderblue and Ryan. Wroe Alderson changed marketing thought with the publication of his work, Marketing Behaviour and Executive Action in which he was primarily concerned with the problems and challenges faced by marketers and the types of solutions that had been found to be successful.

This shifted the emphasis away from the functions of marketing and towards a more problem-solving approach, thereby paving the way for a more managerial approach within the discipline. The marketing management school emerged as the dominant school in the s following the publication of Basic Marketing: A Managerial Approach, written by E. Jerome McCarthy and replaced the so-called functional school which had been the dominant school for the first part of the twentieth century. In the words of Hunt and Goolsby, the publication of McCarthy's text, sounded the "beginning of the end for the functional school.


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While the management school continued to borrow from economics, it also introduced ideas from the new and emerging fields of sociology and psychology, which offered useful insights for explaining aspects of consumer behaviour such as the influence of culture and social class. A Managerial Approach From Wikipedia, the free encyclopedia. Marketing Marketing Marketing Management Key concepts. Behavioral targeting Brand ambassador Broadcasting Display advertising Drip marketing In-game advertising Mobile advertising Native advertising New media Online advertising Out-of-home advertising Point of sale Printing Product demonstration Promotional merchandise Publication Visual merchandising Web banner Word-of-mouth.

Advertising Advertising management - concerned with the theories and tactics that inform the practice of advertising Branding List of the oldest newspapers Market economy Marketing Marketing research Market segmentation Market place Psychological pricing Retail. History of advertising article History of advertising section History of branding History of brand management History of market segmentation History of marketing research History of merchants and trading History of retailing History of shopping History of strategic marketing Origins of consumer behaviour Origins of the 'positioning' concept.

Borden - coined the term, 'marketing mix' Clayton Christensen - educator, author and consultant, published in the areas of innovation and entrepreneurship George S. Day - author and educator; has published in the area of strategic marketing Ernest Dichter - pioneer of motivational research Andrew S.

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Ehrenberg - made contributions to the methodology of data collection, analysis and presentation, and to understanding buyer behaviour and how advertising works Edward Filene - early pioneer of modern retailing methods Seth Godin - Popular author, entrepreneur, public speaker and marketer Paul E. Green -academic and author; the founder of conjoint analysis and popularised the use of multidimensional scaling, clustering, and analysis of qualitative data in marketing.

Hunt -former editor of the Journal of Marketing and organisational theorist John E. Jeuck - early marketing educator Philip Kotler - popularised the managerial approach to marketing; prolific author E. Elmo Lewis - developed the AIDA model used in sales and advertising Christopher Lovelock - author of many books and articles on services marketing Theodore Levitt - former editor of Harvard Business Review , prolific author of marketing articles and famed for his article, "Marketing Myopia" E. Jerome McCarthy - popularised the managerial approach and developed the concept of the 4Ps Arthur Nielsen - early market researcher; pioneered methods for radio and TV ratings David Ogilvy businessman - advertising guru, early pioneer of product positioning Vance Packard - journalist and author, wrote The Hidden Persuaders which explored the use of motivational research in marketing practice Charles Coolidge Parlin - pioneer of market and advertising research methods Rosser Reeves - advertising guru; advocate of frequency; pioneered the concept of the unique selling proposition USP - now largely replaced by the positioning concept Al Ries - advertising executive, author and credited with coining the term, 'positioning' in the late s Don E.

Schultz - father of 'integrated marketing communications' Arch Wilkinson Shaw - early management theorist, proponent of the scientific approach to marketing Byron Sharp - N. Tedlow - author and educator; published in the area of marketing history J Walter Thompson - founded one of the earliest modern advertising agencies Jack Trout - advertising executive, author and partnered with Al Ries in popularising the positioning concept Stephen Vargo - together with R.

Brian; Dix, Laura Farlow The earliest consumer packages?