History of Marketing

History of marketing
The study of the history of marketing, as a discipline, is meaningful

because it helps to define the baselines upon which change can be
recognised and understand how the discipline evolves in response to
those changes.[1] The practice of marketing has been known for
millennia, but the term "marketing" used to describe commercial
activities buying and selling a products or services came into popular
use in the late nineteenth century.[2] The study of the history of
marketing as an academic field emerged in the early twentieth
century.[3]
The term, 'marketing', comes from
Marketers tend to distinguish between the history of marketing the Latin, 'mercatus', meaning a
practice and the history of marketing thought: marketplace. Pictured: La Boqueria,
Barcelona, Spain
1. the history of marketing practice refers to an investigation
into the ways that marketing has been practiced; and how
those practices have evolved over time as they respond to
changing socio-economic conditions
2. the history of marketing thought refers to an examination of
the ways that marketing has been studied and taught
Although the history of marketing thought and the history of

marketing practice are distinct fields of study, they intersect at
different junctures.[4] Marketing practitioners engage in innovative
practices that capture the attention of marketing scholars who codify
and disseminate such practices. At the same time, marketing
academics often develop new research methods or theories that are
subsequently adopted by practitioners. Thus developments in
marketing theory inform marketing practice and vice versa. The
history of marketing will remain incomplete if one disassociates
academia from practitioners.[4]
The publication, in 1960, of Robert Keith's article, "The Marketing

Revolution", was a pioneering work in the study of the history of Scholars have found evidence of
marketing practices in the
marketing practice.[5] And, in 1976, the publication of Robert Bartel's
marketplaces of antiquity. Pictured:
book, The History of Marketing Thought, marked a turning-point in
The Moorish Bazaar, painting by
the understanding of how marketing theory evolved since it first
Edwin Lord Weeks, 1873
emerged as a separate discipline around the turn of last century.[6]
Contents
Etymology
Marketing history: an overview
Marketing in antiquity
Marketing in the Middle Ages
Marketing in seventeenth and eighteenth century Europe
Marketing in the nineteenth and twentieth centuries
History of marketing practice
Orientations and philosophies
Common periods
Production orientation
Selling orientation
Marketing orientation
Societal marketing concept
Relationship orientation
Periodisations
Keith's periodisation
Fullerton's periodisation
Other periodisations
History of marketing thought
A periodisation approach
A 'schools of thought' approach
Brief description of the dominant schools of thought
The commodity school
The institutional school
The functional school
Marketing management
Key innovations that influenced marketing practice
See also
General histories
Early marketing theorists
References
Further reading
Etymology
According to etymologists, the term 'marketing' first appeared in dictionaries in the sixteenth century where it
referred to the process of buying and selling at a market.[7] The contemporary definition of 'marketing' as a
process of moving goods from producer to consumer with an emphasis on sales and advertising first appeared
in dictionaries in 1897.[8] The term, marketing, is a derivation of the Latin word, mercatus meaning market-
place or merchant.[9]
Marketing history: an overview

Historians of marketing tend to fall into two distinct branches of marketing history - the history of marketing
practice and the history of marketing thought. These branches are often deeply divided and have very different
roots. The history of marketing practice is grounded in the management and marketing disciplines, while the
history of marketing thought is grounded in economic and cultural history. This means that the two branches
ask very different types of research questions and employ different research tools and frameworks.[10]
Historians of marketing have undertaken considerable investigation
into the emergence of marketing practice, yet there is little agreement
about when marketing first began.[11] Some researchers argue that
marketing practices can be found in antiquity [12] while others suggest
that marketing, in its modern form, emerged in conjunction with the
rise of consumer culture in seventeenth and eighteenth century Europe
[13] while yet other researchers suggest that modern marketing was
only fully realised in the decades following the industrial revolution in
Britain from where it subsequently spread to Europe and North
America.[14] Hollander and others have suggested that the different In pre-literate societies, the
dates for the emergence of marketing can be explained by problems distinctive shape of amphora served
surrounding the way that marketing has been defined - whether some of the functions of a label,
reference to 'modern marketing' as a planned, programmed repertoire communicating information about
of professional practice including activities such as segmentation, region of origin, the name of the
product differentiation, positioning and marketing communications producer and may have carried
versus 'marketing' as a simple form distribution and exchange.[15] product quality claims
Marketing in antiquity
A number of studies have found evidence of advertising, branding,

packaging and labelling in antiquity.[16][17] Umbricius Scauras, for
example, was a manufacturer of fish sauce (also known as garum) in
Pompeii, circa 35 C.E. Mosaic patterns in the atrium of his house
were decorated with images of amphora bearing his personal brand
and quality claims. The mosaic comprises four different amphora, one
at each corner of the atrium, and bearing labels as follows:[18]
1. G(ari) F(los) SCO[m]/ SCAURI/ EX OFFI[ci]/NA SCAU/RI

Translated as "The flower of garum, made of the mackerel, a
product of Scaurus, from the shop of Scaurus"
2. LIQU[minis]/ FLOS Translated as: "The flower of Liquamen"
3. G[ari] F[los] SCOM[bri]/ SCAURI Translated as: "The flower
of garum, made of the mackerel, a product of Scaurus"
4. LIQUAMEN/ OPTIMUM/ EX OFFICI[n]/A SCAURI
Translated as: "The best liquamen, from the shop of Scaurus"
Mosaic showing garum container,
from the house of Umbricius Scaurus The reputation of Scauras' fish sauce was known to be of very high
of Pompeii. The inscription which quality across the Mediterranean and its reputation travelled as far
reads "G(ari) F(los) SCO(mbri) away as modern France.[19] Curtis has described this mosaic as a "an
SCAURI EX OFFI(CI)NA SCAURI" advertisement... and a rare, unequivocal example of a motif inspired
has been translated as "The flower of
by a patron, rather than by the artist." [20] In Pompeii and nearby
garum, made of the mackerel, a
Herculaneum, archaeological evidence also points to evidence of
product of Scaurus, from the shop of
Scaurus"
branding and labelling in relatively common use. Wine jars, for
example, were stamped with names, such as "Lassius" and "L.
Eumachius;" probably references to the name of the producer.
Carbonised loaves of bread, found at Herculaneum, indicate that some bakers stamped their bread with the
producer's name.[21]
David Wengrow has argued that branding became necessary following the urban revolution in ancient
Mesopotamia in the 4th century BCE, when large-scale economies started mass-producing commodities such
as alcoholic drinks, cosmetics and textiles. These ancient societies imposed strict forms of quality control over
commodities, and also needed to convey value to the consumer through branding. Producers began by
attaching simple stone seals to products which over time were transformed into clay seals bearing impressed
images, often associated with the producer's personal identity thus giving the product a personality.[22]
Diana Twede has argued that the "consumer packaging functions of protection, utility and communication
have been necessary whenever packages were the object of transactions" (p. 107). She has shown that
amphoras used in Mediterranean trade between 1500 and 500 BCE exhibited a wide variety of shapes and
markings, which provided information for transactions. Systematic use of stamped labels dates from around the
fourth century BCE. In a largely pre-literate society, the shape of the amphora and its pictorial markings
conveyed information about the contents, region of origin and even the identity of the producer which were
understood to convey information about product quality.[23] Not all historians agree that these markings can be
compared with modern brands or labels. Moore and Reid, for example, have argued that the distinctive shapes
and markings in ancient containers should be termed proto-brands rather than modern brands.[24]
Marketing in the Middle Ages
In England and Europe during the Middle Ages, market towns sprang
up. Some analysts have suggested that the term, 'marketing,' may have
first been used in the context of market towns where the term
'marketing' may have been used by producers to describe the process
of carting and selling their produce and wares in market towns.
Market scene by Pieter Aertsen,
Blintiff has investigated the early Medieval networks of market towns
c.1550
and suggests that by the 12th century there was an upsurge in the
number of market towns and the emergence of merchant circuits as
traders bulked up surpluses from smaller regional, different day
markets and resold them at the larger centralised market towns.[25]
Braudel and Reynold have made a systematic study of these European market towns between the thirteenth
and fifteenth century. Their investigation shows that in regional districts markets were held once or twice a
week, while daily markets were more common in the larger cities and towns. Over time, permanent shops
began to open daily and gradually supplanted the periodic markets. Peddlers filled in the gaps in distribution
by travelling door-to-door in order to sell produce and wares. The physical market was characterised by
transactional exchange, bartering systems were commonplace and the economy was characterised by local
trading. Braudel reports that, in 1600, goods travelled relatively short distances - grain 5–10 miles; cattle 40–70
miles; wool and wollen cloth 20–40 miles. However, following the European age of discovery, goods were
imported from afar - calico cloth from India, porcelain, silk and tea from China, spices from India and South-
East Asia and tobacco, sugar, rum and coffee from the New World.[26]
Although the rise of consumer culture and marketing in Britain and Europe have been studied extensively, less
is known about developments elsewhere.[27] Nevertheless, recent research suggests that China exhibited a rich
history of early marketing practices; including branding, packaging, advertising and retail signage.[28] From as
early as 200 BCE, Chinese packaging and branding was used to signal family, place names and product
quality, and the use of government imposed product branding was used between 600 and 900 AD.[29] Eckhart
and Bengtsson have argued that during the Song Dynasty (960–1127), Chinese society developed a
consumerist culture, where a high level of consumption was attainable for a wide variety of ordinary
consumers rather than just the elite (p. 212). The rise of a consumer culture led to the commercial investment in
carefully managed company image, retail signage, symbolic brands, trademark protection and the brand
concepts of baoji, hao, lei, gongpin, piazi and pinpai, which roughly equate with Western concepts of family
status, quality grading, and upholding traditional Chinese values (p. 219). Eckhardt and Bengtsson's analysis
suggests that brands emerged in China as a result of the social needs and tensions implicit in consumer culture,
in which brands provide social status and stratification. Thus, the
evolution of brands in China stands in sharp contrast to the West
where manufacturers pushed brands onto the market in order to
differentiate, increase market share and ultimately profits (pp 218–
219).
Marketing in seventeenth and eighteenth

century Europe
Scholars have identified

specific instances of
marketing practices in Bronze plate for printing an
England and Europe in the advertisement for the Liu family
seventeenth and eighteenth needle shop at Jinan, Song dynasty
centuries. As trade between China. It is considered the world's
countries or regions grew, earliest identified printed advertising
companies required medium.
information on which to base
business decisions.
Individuals and companies carried out formal and informal research
on trade conditions. As early as 1380, Johann Fugger travelled from
Augsburg to Graben in order to gather information on the
international textile industry. He exchanged detailed letters on trade
conditions in relevant areas.[30] In the early 1700s British industrial
houses were demanding information, that could be used for business
decisions. In the early 18th-century, Daniel Defoe, a London
merchant, published information on trade and economic resources of
England and Scotland.[31][32] Defoe was a prolific publisher and
among his many publications are titles devoted to trade including;
Trade of Britain Stated, 1707; Trade of Scotland with France, 1713
Josiah Wedgewood (1730–1795) and The Trade to India Critically and Calmly Considered, 1720; all
invented many of the techniques of books that were highly popular with merchants and business houses
modern marketing of the period.[33] While such activities might now be recognised as
marketing research, at that time they were known as 'commercial
research' or 'commercial intelligence' and not seen as part of the
repertoire of activities that make up contemporary marketing practice.
Eighteenth century advertising showed a high level of sophistication in its execution and ability to reach mass
audiences.[34] In a major review of consumer society, McKendrick, Brewer and Plumb found extensive
evidence of eighteenth century English entrepreneurs inventing modern marketing techniques, including
product differentiation; sales promotion; loss leader; planned obsolescence; fashion magazines; national
advertising campaigns, fancy showrooms, and concentration on elite taste-setting customers. English pottery
makers Josiah Wedgewood (1730–1795) and Matthew Boulton (1728–1809) were the pioneers of modern
mass marketing methods.[35][36] Wedgewood introduced direct mail, travelling salesmen and catalogues in the
eighteenth century.[37] Wedgewood's marketing was highly sophisticated and recognisably 'modern' in that he
planned production with the sale in mind.[38] He carried out serious investigations into the fixed and variable
costs of production and recognised that increased production would lead to lower unit costs. He also inferred
that selling at lower prices would lead to higher demand and recognised the value of achieving scale
economies in production. By cutting costs and lowering prices, Wedgewood was able to generate higher
overall profits.[39] Similarly, one of Wedgewood's colleagues Matthew Boulton, pioneered early mass
production techniques and product differentiation at his Soho Manufactory in the 1760s. He also practiced
planned obsolescence and understood the importance of 'celebrity marketing' - that is supplying the nobility,
often at prices below cost and of obtaining royal patronage, for the sake of the publicity and cudos
generated.[40]
Fullerton argues that the practice of market segmentation emerged well before marketers used the notion
formally.[41] Certain strands of evidence suggest that simple examples of market segmentation were evident
prior to the 1880s. The business historian, Richard S. Tedlow, argues that any attempt to segment markets
prior to 1880 was highly fragmented since the economy was characterised by small, regional suppliers who
mostly sold goods on a local or regional basis.[42] When retail shops began to appear from the 15th century,
retailers needed to separate the "riff raff" from wealthier customers. Outside the major metropolitan cities, few
stores could afford to serve one type of clientele exclusively. However, gradually retail shops introduced
innovations that would allow them to separate wealthier customers from the lower classes and peasants. One
technique was to have a window opening out onto the street from which customers could be served. This
allowed the sale of goods to the common people, without encouraging them to come inside. Another solution,
that came into vogue from the late sixteenth century was to invite favoured customers into a back-room of the
store, where goods were permanently on display. Yet another technique that emerged around the same time
was to hold a showcase of goods in the shopkeeper's private home for the benefit of wealthier clients. Samuel
Pepys, for example, writing in 1660, describes being invited to the home of a retailer to view a wooden
jack.[43] Evidence of early marketing segmentation has also been noted across Europe. A study of the German
book trade found examples of both product differentiation and market segmentation in the 1820s.[44]
Marketing in the nineteenth and twentieth centuries
Until the nineteenth century, Western economies were characterised

by small regional suppliers who sold goods on a local or regional
basis. However, as transportation systems improved from the mid
nineteenth century, the economy became more unified allowing
companies to distribute standardised, branded goods at national level.
This gave rise to a much broader mass marketing mindset.
Manufacturers tended to insist on strict standardisation in order to
achieve scale economies with a view to keeping production costs Henry Ford began manufacturing the
down and also to achieving market penetration in the early stages of a mass-produced Model T in 1908.
product's life cycle.[45] The Model T Ford was an example of a Ford famously said that customers
product being manufactured at a price that was affordable for the could own a car in any colour as long
burgeoning middle classes. as it was black.
In the early twentieth century, as market size increased, it became

more commonplace for manufacturers to produce a variety of models pitched at different quality points
designed to meet the needs of various demographic and lifestyle market segments, giving rise to the
widespread practice of market segmentation and product differentation.[46] Between 1902 -1910 George B
Waldron, working at Mahin's advertising agency, used tax registers, city directories and census data to show
advertisers the proportion of educated versus illiterate consumers and the earning capacity of different
occupations in what is believed to be the first example of demographic segmentation of a population.[47]
Within little more than a decade, Paul Cherington had developed the 'ABCD' household typology - the first
socio-demographic segmentation tool.[48] By the 1930s, market researchers such as Ernest Dichter were
carrying out qualitative research into brand purchasers realised that demographic factors alone were
insufficient to explain different marketing behaviour of various user groups. This insight led to the exploration
of other factors such as lifestyles, values, attitudes and beliefs in market segmentation and advertising.[49]
When Wendell R. Smith published his now classic article, Product Differentiation and Market Segmentation
as Alternative Marketing Strategies in 1956, he noted that he was simply documenting marketing practices that
had been observed for some time and which he described as a "natural force".[50] Other theorists agree that
Smith was simply codifying implicit knowledge that had been used in marketing and brand management from
the early twentieth century.[51][52]
As industry grew, the demand for skilled business professionals also

grew. To meet this demand, universities began offering courses in
commerce, economics and marketing. Marketing, as a discipline, was
first taught in universities in the very early twentieth century.[53]
However, researchers only became interested in investigating the
history of marketing in the mid twentieth century. From the outset,
researchers tended to identify two strands of historical research; the
history of marketing practice [54] and the history of marketing thought
which was fundamentally concerned with the rise of marketing
Haven-Mason Hall at the University education and dissecting the way that marketing was taught and
of Michigan, where the first studied.[6][55] Early historical studies were primarily descriptive.
academic course in marketing was
taught
History of marketing practice
The practice of marketing may have been carried out for millennia, but the modern concept of marketing as a
professional practice appears to have emerged the post industrial corporate world.[56] In addition to the studies
of specific cultures or time periods, discussed in the preceding section, some historians of marketing have
sought to write more general histories of marketing's evolution in the modern era. A key question that has
preoccupied researchers is whether it is possible to identify specific orientations or mindsets that inform key
periods in marketing's evolution. Marketers disagree about the way that marketing practice has evolved over
time.[57]
Orientations and philosophies
In the marketing literature, continuing debate surrounds the orientations or philosophies that might have
informed marketing practice at different periods of time. An orientation may be defined as "the type of activity
or subject that an organisation seems most interested in and gives most attention to".[58] In relation to
marketing orientations, the term has been defined as a "philosophy of business management".[59] or "a
corporate state of mind"[60] or as an "organisational culture".[61]
Common periods
The general lack of agreement amongst scholars as to what constitutes clearly identifiable periods and the
orientation that characterised each distinct period has spawned a lengthy list of orientations. Space prevents an
exhaustive description of all periods or eras. However, the salient features of the most commonly cited periods
appear in the following section.
Production orientation
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 1860s to the 1930s, but other theorists argue that evidence of
the production orientation can still be found in some companies or industries. 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".[62]
The production orientation is characterised by:[63]
Focus on production, manufacturing, and efficiency

Attainment of economies of scale, economies of scope,
experience effects or all three
The production orientation is one of
Assumption that demand exceeds supply the oldest philosophies that guides
Mindset that is encapsulated by Say's Law; "Supply sellers
creates its own demand" or "if somebody makes a product,
somebody else will want to buy it"
Limited research that is largely limited to technical-product research rather than customer
research
Rose to prominence in an environment which had a shortage of manufactured goods relative to
demand, so goods sold easily.
Minimal promotion and advertising, marketing communications limited to raising awareness of
the product's existence
Selling orientation
The selling orientation is thought to have begun during the Great

Depression and continued well into the 1950s although examples of
this orientation can still be found today.[64] Kotler et al. note that the
selling concept "is typically practised with unsought goods".[65]
The selling orientation is characterised by:
Aggressive selling to push products, often involving door- The sales orientation, often
to-door selling characterised by door-to-door selling
Accepting every possible sale or booking, regardless of its is thought to have begun during the
suitability for the business Great Depression of the 1890s and
Strong transactional focus (ignores potential relationships) continues to this day. Pictured: A
Rawleigh's salesman in 1915
Marketing orientation
The marketing orientation or the marketing concept emerged in the 1950s.
Characteristics of the marketing orientation:[66]
Thorough understanding of the customer's needs, wants and behaviors should be the focal
point of all marketing decisions
Marketing efforts (sales, advertising, product management, pricing) should be integrated and in
tune with the customer
New product concepts should flow from extensive market analysis and product testing
Societal marketing concept

Phillip Kotler is often credited with first proposing the societal marketing orientation or concept in an article
published in the Harvard Business Review in 1972.[67][68] However, some marketing historians, notably
Wilkie and Moore, have argued that a societal perspective was evident in marketing theory and in marketing
texts, since the discipline's inception in the early 1900s[69] or that societal marketing is merely an extension of
the marketing concept.[70]
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: employees, customers, local communities, the
wider public and government and consider the impact of their activities on all stakeholders. 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:[71]
An attempt to balance corporate commitments to groups and individuals in its environment,

including customers, other businesses, employees and investors.
Companies must include social and ethical considerations into their marketing practices
Consideration is given to the environment includes problems such as air, water, and land
pollution
Consideration is given to consumer rights, unfair pricing and ethics in advertising
Relationship orientation
Starting in the 1990s, 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.[72] The
relationship is based on trust and commitment, and both companies tend to shift their operating activities to be
able to work more efficiently together.[73] One of the most prominent reasons for relationship marketing comes
from Kotler's idea that it costs about five times more to obtain a new customer than to maintain the relationship
with an existing customer.[74] A relationship marketing approach seeks to maximise the value of all the
potential exchanges an organisation could have into the future.[75]
The characteristics of relationship marketing include:[76]
Focus on the relationship between seller and buyer

Investment in the lifetime of relationships rather than single transactions by calculating
customer lifetime value (CLV)
Orientation on product benefits and/or customer value
Better customer service, commitment, and contact
Quality is the concern of all
All activities are coordinated with the customer interface, including the customer's involvement
in the firm's processes
Customised offerings where practical
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.[77] Some theorists suggest that marketing is moving from a relationship
marketing paradigm and towards a social media paradigm where marketers have access to a more controlled
environment and are able to customise offers and communications messages.[72][78]
Periodisations
To investigate the history of marketing practice, scholars often turn to a method known as periodisation.[79]
Periodisation refers to the process or study of categorizing the past into discrete, quantified, named units for the
purpose of analysis or study.[80] Scholars do not agree on the periods that characterise the history of marketing
practice. In a major review of the periodisation approach, Hollander et al. have identified fourteen different
"stage theories" or "short periodisations" as well as a total of nineteen "long periodisations" that have been
carried out since 1957. Of these, the contributions of Robert Keith (1960) and Ronald Fullerton (1988) are the
most frequently cited.[81]
Keith's periodisation
In 1960, Robert Keith, the then Vice President of Pillsbury,[82] 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
1860s through to a consumer focus in the 1950s. He traced three
distinct eras in Pillsbury's evolution:[83]
Production-oriented era (1869–1930s): characterised by a Robert Keith's marketing eras

"focus on production processes" (production →selling →marketing)
Sales-oriented era (1930s–1950s): characterised by were based entirely on his
investment in research to develop new products and experience at the Pillsbury Company
advertising to persuade markets of product benefits
Marketing-oriented era (1950s–present): characterised by
a focus on the customer's latent and existing needs
In addition, Keith hypothesised that a "marketing control era" was about to emerge. Although Keith's article
explicitly documented Pillsbury's evolution, the article appears to suggest that the stages observed at Pillsbury
constitute a standard or normal evolutionary path (production→sales→marketing) for most large organisations.
Keith's notion of distinct eras in the evolution of marketing practice has been widely criticised and his
periodisation described as "hopelessly flawed".[84][85] Specific criticisms of Keith's tripartite periodisation
include that:
It ignores historical facts about business conditions[86]

It misstates the nature of supply and demand[86]
It slights the growth of marketing institutions[87]
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.[88] Jones and Richardson also investigated historical accounts of marketing practice and
found evidence for both the sales and marketing era during the so-called production era and concluded that
there was no "marketing revolution".[89] A detailed study of the chocolate manufacturer, Rowntree, found that
this company had shifted from a production orientation through to a marketing orientation by the 1930s,
without having transitioned through the so-called sales orientation.[90] Other critiques of Keith's work have
pointed out that the so-called "production era" fails to align with historical facts and have suggested that it is a
myth.[91] Keith's eras have become known, somewhat cynically, as the standard chronology.[92]
Fullerton's periodisation
In 1988, Fullerton developed a more subtle and nuanced periodisation

for the so-called marketing eras.[93][94] Fullerton's eras were:[91]
Era of antecedents (1500–1750): a long gestational period

in which people were largely self-sufficient and rural;
economy characterised by low levels of consumption;
commerce was seen as suspicious
Era of origins (1750–1870): precipitated by the dislocations
of the English industrial revolution and the rise of a more
urban population, this era is characterised by more The English industrial revolution is
attention to persuasive tactics designed to stimulate often seen as a trigger for the rise of
demand modern marketing
Era of institutional development (1850–1929): many of the
large institutions and modern marketing practices emerged
during this period
Era of refinement and formalization (1930–present): further development and refinement of
principles and practices developed in the preceding period
In spite of the intense criticism leveled at Keith's eras of marketing practice, his periodisation is the most
frequently cited in textbooks[79] and has become the accepted wisdom.[14] One content analysis of 25
introductory and advanced texts found that Keith's eras were reproduced in all but four.[95][88] Another study,
which examined 15 of the top selling marketing texts, found that the although the incidence of repeating
Keith's eras was waning, it had not been replaced by Fullerton's periodisation, nor any other more meaningful
framework.[96]
Other periodisations
For all the controversies surrounding marketing stages or periods, Keith and others appear to have contributed
a lasting legacy.[97] A study by Grundey (2010) suggests that many contemporary textbooks begin with
Keith's eras and expand on it by including newer concepts such as the societal marketing concept, the
relationship marketing concept and the interfunctional concept, as shown in the table below.[98] More recently,
Kotler and Keller added the holistic marketing concept to the list of eras in marketing.[99] Marketing theorists
continue to debate whether the holistic era represents a genuine new orientation or whether it is an extension of
the marketing concept. 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.[98]
Marketing philosophies or orientations in popular texts
Dibb & Simkin, Lancaster & Drummmond &
Blythe, 2005[102] Morgan, 1996[104]
2004[100] Reynolds, 2005[101] Ensor, 2005[103]
1. Production 1. Production 1. Production 1. Production
1. Cost philosophy
orientation orientation orientation orientation
2. Financial 2. Product 2. Product
2. Sales orientation 2. Product orientation
orientation orientation philosophy
3. Sales 3. Sales 3. Production
3. Marketing orientation 3. Sales orientation
4. Marketing 4. Customer
4. Financial orientation 4. Sales philosophy
orientation orientation
5. Customer 5. Societal
5. Marketing orientation 5. Erratic philosophy
orientation marketing
6. Competitor 6. Relationship 6. Marketing
7. Interfunctional 7. Social marketing
orientation philosophy
History of marketing thought

Dating the history of marketing, as an academic discipline, is just as
problematic as the history of marketing practice. Marketing historians
cannot agree on how to date the beginnings of marketing
thought.[105] Eric Shaw, for instance, suggests that a period of pre-
academic marketing thought can be identified prior to 1900.[106]
Other historians suggest that the theory of marketing only emerged in
the 20th century when the discipline began to offer courses at
University of Pennsylvania was universities.[107] Nevertheless, the birth of marketing as a discipline is
among the first universities to offer usually designated to the first decade of the twentieth century when
courses in marketing "marketing courses" appeared in universities. In 1902, the University
of Michigan offered what many believe to be the very first course in
marketing.[108] The University of Illinois also started offering
coursework in marketing in 1902.[109] In the academic year, 1904-1905, the University of Pennsylvania
commenced teaching marketing. Other universities soon followed, including the Harvard Business
School.[110]
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.[111]
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. Some economics professors began to run courses examining various aspects of the marketing
system, including "distributive and regulative systems." Other courses, such as the "marketing of products"
and the "marketing of farm-products" followed. As the first decades of the 20th century progressed, books and
articles concerning marketing topics began to emerge.[112] In 1936, the publication of the new Journal of
Marketing gave marketing academics a forum for exchanging ideas and research methods and also gave the
discipline a real sense of its own distinct identity as a maturing academic discipline.[113]
A periodisation approach
Several scholars have attempted to describe the evolution of marketing thought chronologically and to connect
it with broader intellectual and academic trends. Bartels (1965) provided a brief account of marketing's
formative periods, and Shah and Gardner (1982) briefly considered the development of the six dominant
schools in contemporary marketing.[114] However, these initial attempts have been criticised as overly
descriptive.[115] One of the first theorists to consider the stages in the development of marketing thought was
Robert Bartels, who in The History of Marketing Thought, (1965) used a periodisation approach. He
categorised the development of marketing theory decade by decade from the beginning of the 20th century:
1900s: discovery of basic concepts and their exploration

1910s: conceptualisation, classification and definition of terms
1920s: integration on the basis of principles
1930s: development of specialisation and variation in theory
1940s: reappraisal in the light of new demands and a more scientific approach
1950s: reconceptualisation in the light of managerialism, social development and quantitative
approaches
1960s: differentiation on bases such as managerialism, holism, environmentalism, systems,
and internationalism
1970s: socialisation; the adaptation of marketing to social change
Bartels was the first historian to provide a "long view of marketing’s past and wide sweep of its
subdisciplines" and in so doing, he nurtured an interest in the history of marketing thought.[116]
A 'schools of thought' approach
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.[117]
Marketing historians, Shaw and Jones, define a school of thought as one that has "a substantial body of
knowledge; developed by a number of scholars; and describing at least one aspect of the what, how, who,
why, when and where of performing marketing activities." [118]
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.[119] Marketing
historians such as Eric Shaw and Barton A. Weitz point to the publication of Wroe Alderson's book,
Marketing Behavior and Executive Action (1957), as a break-point in the history of marketing thought,[120]
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.[121]
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.[122]
The Commodity School: A focus on different types of goods in the marketplace and how they
are marketed.[123]
The Institutional School: Emphasised the functions of middlemen (or intermediaries); similar to
the functional school, but with a focus on channel flows.[124]
The Functional School: A focus on the characteristics of marketing, identifying the functions
and systems of marketing; adopts a systems approach.[118]
The Managerial School: A focus on the problems faced by marketing managers; focuses on the
perspective of the seller.[125]
Some marketing historians like Jagdish Sheth have identified the modern "marketing schools" as:[126]
The Managerial school emerged during the late 1950s and became arguably the predominant
and most influential school of thought in the field
The Consumer/buyer behavior school, which dominated the academic field in the second half
of the twentieth century (apart from the Managerial school), features theories emerging from
behavioral science
The Social exchange school, which focuses on exchange as the fundamental concept of
marketing
Yet other commentators identify a broader range of schools. O'Malley and Lichrou, for example, document the
schools as:[127]
Functional: What activities does marketing perform? Focus on intermediaries and value
adding.
Commodities: How are goods classified? Focus on classification of goods; trade flows
Marketing Institutions: Who performs marketing functions on commodities? Focus on retailers,
wholesalers, intermediaries, distribution channels
Marketing Management: How should marketers and managers market products and services to
consumers? Business firm as seller/ supplier
Marketing Systems: What is a marketing system and how does it work? Channels of
distribution and aggregate systems,
Consumer behaviour: How and why do consumers buy? organisational buyer and consumer
buyer
Macro-marketing: How do marketing systems impact on society? Industries, channels,
consumer movement, environmentalism
Exchange: What are the forms of exchange? Who are the parties to the exchange process?
Aggregations of buyers and sellers
Marketing history: When did marketing practice and ideas emerge and evolve? Marketing
thought and marketing practice
Brief description of the dominant schools of thought
By the 1920s, the marketing discipline was organised into three schools of thought: the commodity school, the
institutional school and the functional school. The following sections briefly outlines the schools of thought as
conceptualised by key thinkers in the discipline. 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.[128] By the 1960s, all previous schools of thought had been eclipsed by the
managerial school because it offered a problem-solving approach and presented marketers with potential
solutions to marketing problems that were frequently encountered.[129]
The commodity school
The commodity school is thought to have originated with an article by

C.C. Parlin (1916) 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 (1923) proposed the convenience-shopping-specialty goods
classification which is still in use today. Other theorists developed a
plethora of methods for classifying goods.[130]
The institutional school
The institutional school focused its attention on the agents of market

transactions, specifically those organisations active in the The commodity school focused on
intermediary channel system, such as wholesalers and retailers. It was the objects of exchange. Pictured:
primarily concerned with documenting the channels of distribution, Cocao beans
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 1970s, began to take on ideas from
behavioural science.[131] A key work in the institutional school tradition is Weld's The Marketing of Farm
Products, (1916) while other important contributors included: Butler's Marketing and Merchandising, (1923);
Breyer's Commodity and Marketing (1931); Converse's Marketing: Methods and Policies (1921) and Duddy
& Revzan's Marketing: An Institutional Approach (1947).[132]
The functional school
The functional school was thought to have originated with the publication of Shaw's article, Some Problems in
Market Distribution, (1912) 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. 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.[133]
Marketing management
Wroe Alderson changed marketing thought with the publication of his work, Marketing Behaviour and
Executive Action (1957) 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.[134] Some historians have claimed that Alderson's article signalled a
paradigm shift in thinking, towards a new macromarketing approach.[135]
The marketing management school emerged as the dominant school
in the 1960s 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." [136] However, Hunt and
Goolsby note that the 1960s was a transitional period in which both
the functional school and the managerial school co-existed.[137] Shaw
and Jones have described the emergence of the managerial school in
the mid-twentieth century as a "paradigm shift." [138]
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. Key works in the marketing management tradition include Wroe The marketing management school
Alderson's Marketing Behavior and Executive Action, (1957), focuses on typical problems
Howard's Marketing Management (1957), Lazer's Managerial encountered by marketers
Marketing: Perspectives and Viewpoints, (1957) and McCarthy's
Basic Marketing: A Managerial Approach (1960).[139]
The salient features of the managerial approach to marketing are:
"an overt marketing-as-management orientation, and

an overt reliance on the behavioral and quantitative sciences as means of knowing." [140]
Key innovations that influenced marketing practice

1450: Gutenberg's metal movable type, leading eventually to mass-production of flyers and
brochures [141]
1600s: Paid advertising in Italy
1600s: Use of handbills and posters is common practice in Elizabethan England
1605: World's first newspaper published in Germany [142]
1600s and 1700s: Posters and handbills used for promotion in England [141]
1665: The Oxford Gazette first published in England (later renamed the London Gazette and
still published today) [143]
1700s: Widespread emergence of newspapers and magazines in England and France; by the
1730s daily newspapers in London devoted more than half the available space to advertising
[34]
1719: The Daily Post first published; early instance of a periodical dedicated to business,
science and innovation
1836: Paid advertising in a newspaper (in France) [141][144]
1839: Posters on private property banned in England [141]
1864: Earliest recorded use of the telegraph for mass unsolicited spam
1867: Earliest recorded billboard rentals
1876: Films produced by French film-makers, Auguste and Louis Lumiere, made at the request
of a representative of Lever Brothers in France and feature Sunlight soap, are thought to be the
first recorded instance of paid product placement.[145]
1880s: Early examples of trademarks as branding
1902: The first marketing course, taught by Edward David
Jones, was offered at the University of Michigan
1905: The University of Pennsylvania offered a course in
"The Marketing of Products"[146]
1908: Harvard Business School opens - Harvard was an
early influence on marketing thought [147]
1920: The magazine, Variety, reports that 50% of cinemas
show advertising programmes [148]
1920s: Radio advertising commences
1940s: Electronic computers developed
1941: First recorded use of television advertising
1955: Television viewing exceeded radio listening for the
first time in Britain [149]
1950s: Systematization of telemarketing [150]
1957: Three key scholarly texts published Wroe Alderson's
Marketing Behavior and Executive Action; Howard's
Marketing Management and Lazer's Managerial Marketing: Newspapers were an early form of
Perspectives and Viewpoints mass communication. Pictured: The
Boston News-Letter, 1704
1960 E. Jerome McCarthy published his now classic,
Basic Marketing: A Managerial Approach (1960).
1970s: E-commerce developed
1980s: Development of database marketing as precursor to
CRM[151]
1980s: Emergence of relationship marketing
1980s: Emergence of computer-oriented spam
1984: Introduction of guerrilla tactics
1985: Desktop publishing democratises the production of
print-advertising (precursor to consumer-generated media
and content)
1991: IMC gains academic status [152]
Mid 1990s: Modern search engines started appearing in
the mid-1990s, with Google making its debut in 1998 [141]
1990s CRM and IMC (in various guises and names) gain
dominance in promotions and marketing planning,[153][154] The telegraph was an early form of
1996: Identification of viral marketing mass communication
2000s: Integrated marketing gains widespread acceptance
with its first dedicated academic research centre opened in
2002[155][156]
2003 -2006: Emergence of social media. MySpace and LinkedIn emerged in 2003, Facebook
in 2004 and Twitter in 2006.[141]
See also
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
General histories
History of advertising (article)
History of advertising (section)
History of branding Sunlight was an early advertiser in
History of brand management cinema, radio and TV. Pictured:
Advertisement for Sunlight Soap
History of market segmentation
washing powder, 1897
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
Early marketing theorists

Wroe Alderson (1898-1965) - proponent of marketing science and instrumental in developing
the managerial school of marketing
Igor Ansoff (1918-2002) - marketing/ management strategist; noted for the product/market
growth matrix
David Aaker - highly awarded educator and author in the area of marketing and organisational
theory
N. W. Ayer & Son - probably the first advertising agency to use mass media (i.e. telegraph) in a
promotional campaign
Leonard Berry (professor) - author and educator with strong interest in health marketing and
relationship marketing
Neil H. Borden (1922-1962) - 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 (1907-1991) - pioneer of motivational research
Andrew S. C. Ehrenberg (1926-2010) - made contributions to the methodology of data
collection, analysis and presentation, and to understanding buyer behaviour and how
advertising works
Edward Filene (1860-1937) - 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.
Shelby D. Hunt -former editor of the Journal of Marketing and organisational theorist
John E. Jeuck (1916-2009) - early marketing educator
Philip Kotler (1931-) - popularised the managerial approach to marketing; prolific author
E. St. Elmo Lewis - developed the AIDA model used in sales and advertising
Christopher Lovelock (1940-2008) - author of many books and articles on services marketing
Theodore Levitt (1925-2006) - 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 (1957) which explored
the use of motivational research in marketing practice
Charles Coolidge Parlin(1872-1942) - 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 1960s
Don E. Schultz - father of 'integrated marketing communications'
Arch Wilkinson Shaw (1876-1962) - early management theorist, proponent of the scientific
approach to marketing
Byron Sharp - N.Z. academic; one of the first to document buyer loyalty in empirical work
Daniel Starch - developed the so-called Starch scores to measure impact of magazine
advertising; Starch scores are still in use
Henry Charles Taylor (1873-1969) - the agricultural marketer
Richard S. 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.F. Lusch developed the service-dominant approach to
marketing
Henry Grady Weaver (1889-1949) - developed the survey questionnaire for use in market
research
Jerry (Yoram) Wind - former editor of the Journal of Marketing, educator and marketer
Gerald Zaltman - developed the Metaphor Elicitation Technique (ZMET)
Valarie Zeithaml - together with A. Parasurman and L.L. Berry, developed the model of service
quality and the SERVQUAL instrument
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Further reading
Adage, 'History of Marketing' from the Great Depression of the 1930s, featuring highlights from
AdAge articles, http://adage.com/article/ad-age-graphics/ad-age-a-history-marketing/142967
Gillett A.G., Tennent K.D. (2020) The Rise of Marketing. In: Bowden B., Muldoon J.,Gould A.,
McMurray A. (eds) The Palgrave Handbook of Management History. Palgrave Macmillan,
published online first. https://doi.org/10.1007/978-3-319-62348-1_92-1
Hubbard P., "Advertising and Print Culture in the Eighteenth Century," In: Craciun A., Schaffer
S. (eds), The Material Cultures of Enlightenment Arts and Sciences, [Palgrave Studies in the
Enlightenment, Romanticism and the Cultures of Print], London, Palgrave Macmillan, 2016
Jones, D.G. B. and Tadajewski, M., (eds),The Routledge Companion to Marketing History,
Oxon, Routledge, 2016
Lavin, M. and Archdeacon, T.J., "The Relevance of Historical Method For Marketing Research",
in Interpretive Consumer Research, Elizabeth C. Hirschman (ed.), Provo, UT, Association for
Consumer Research, 1998, pp 60–68, <Online:
http://acrwebsite.org/volumes/12176/volumes/sv07/SV-07>
Sheth, J.N. (ed.) Legends in Marketing (six volume set), Sage Publications, 2017
Wright, John S. and Parks B. Dimsdale, Pioneers in Marketing: A Collection of 25 Biographies
of Men Who Contributed to the Growth of Marketing Thought and Action," Georgia State
University, 1974
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History of marketing

The study of the history of marketing, as a discipline, is meaningful

Although the history of marketing thought and the history of

The publication, in 1960, of Robert Keith's article, "The Marketing

Marketing history: an overview

A number of studies have found evidence of advertising, branding,

1. G(ari) F(los) SCO[m]/ SCAURI/ EX OFFI[ci]/NA SCAU/RI

Marketing in the Middle Ages

Marketing in seventeenth and eighteenth

Scholars have identified

Marketing in the nineteenth and twentieth centuries

Until the nineteenth century, Western economies were characterised

In the early twentieth century, as market size increased, it became

As industry grew, the demand for skilled business professionals also

Orientations and philosophies

The production orientation is characterised by:[63]

Focus on production, manufacturing, and efficiency

The selling orientation is thought to have begun during the Great

The selling orientation is characterised by:

The marketing orientation or the marketing concept emerged in the 1950s.

Characteristics of the marketing orientation:[66]

Societal marketing concept

Characteristics of societal marketing:[71]

An attempt to balance corporate commitments to groups and individuals in its environment,

The characteristics of relationship marketing include:[76]

Focus on the relationship between seller and buyer

Production-oriented era (1869–1930s): characterised by a Robert Keith's marketing eras

It ignores historical facts about business conditions[86]

In 1988, Fullerton developed a more subtle and nuanced periodisation

Era of antecedents (1500–1750): a long gestational period

History of marketing thought

1900s: discovery of basic concepts and their exploration

A 'schools of thought' approach

Brief description of the dominant schools of thought

The commodity school

The commodity school is thought to have originated with an article by

The institutional school

The institutional school focused its attention on the agents of market

The functional school

While the management school continued to borrow from economics,

The salient features of the managerial approach to marketing are:

"an overt marketing-as-management orientation, and

Key innovations that influenced marketing practice

Early marketing theorists

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