History of marketing

Marketing Mix 4p

What is marketing?
"Marketing is a social and managerial process by which
individuals and groups obtain what they need
and want through creating, offering and exchanging products
of value with others" (P.Kotler)
Marketing helps to answer entrepreneurs questions like what to produce, what
services to offer, how and where to sell, for which price, how to develop the
company in future
The marketing
mix is the
combination
of marketing
activities that
"Marketing
is the
process of planning
and executing
an organisation
engages inpricing,
so as to
best meetand
thedistribution
needs of its
the conception,
promotion,
of targeted
market. Traditionally
the marketing
mix consisted
ofevents
just 4 Ps.
ideas, goods,
services, organizations,
and
to create and maintain relationships that will satisfy
individual and organizational objectives."

Marketing is a set of activities that helps to move a product or

service to the end-user in a market

History of Marketing

The Era of Craft

Goods/products are hand made
Limited number of goods
Goods are exchanged or sold on local scale
Goods are brought outside a community on the occasions of
investigation trips

The Era of Production

Oriented Marketing
Business is centred on effective production, its optimization
and development. Time period: 1850 1900
The prevailing belief is that successful production process
results bring automatic rise in demand
Characteristics:
- The efficiency of production lines
- Prices are based only on production costs
- Packaging is used only to protect the product
- Clients are interested to obtain the product in general
and its quality is not important
- There is no marketing in the sense of our present day
understanding/concept

The Era of Product Oriented

Marketing
Time period: 1900 1920. The demand is rising and the
quality of product becomes important to people. People begin to
demand quality.
The managers of company are concerned about the product
and the constant improvement of it
The managers believe that the product is unique and
indispensable
The product is improved constantly due to the belief in the
ideal product selling by itself
The companies, which are preoccupied with the product
sometimes loose the connection with the real market situation,
e. g., by not accepting the fact that some product improvements
were not necessary for the client, the company lost a market
share

The Era of Sale Oriented

Marketing
The demand and competition is rising rapidly.
Time period: 1920 1950
The entrepreneurs recognise that products are not selling by
themselves and the process of selling them needs to be initiated
Sale means:
- Personal sale
- Advertising
- Distribution and accessibility provision of product

At times nowadays marketing is associated with the marketing

of this era

The Era of Market Oriented

Marketing
In the beginning of 1950s the entrepreneurs
understood that effective production, good
product and active selling does not necessarily
provide successful results
Time period: 1950-1960
The entrepreneurs conclude that the first step
is to obtain the information about the market
situation and then follows the production
process instead of producing at first and then
convincing the customers.
New products are developed in response to
market demands.

The first doll with dark

and blond hair
striped dress, 1959

The client is the king or without a client there is no market

The Era of Client Oriented

Marketing
The marketing era during which
the needs, wishes and demands of
the client become the centre of
attention. They are analysed and
evaluated. The sphere of different
services is developing rapidly.
Time period: 1960-1990
The issue question for marketing how to satisfy the client and
promote the prosperity of society, producing products with added
value.
Higher value is assigned to the individuality.
Attention is drawn to the safety aspect: how safe the product is for
people or society.

The Era of Marketing

Oriented on Relationships
with Client

Time period: 1990-2008

Marketing activities are dedicated to create and to maintain long
term relationships between a client an a company
Relationships are based on trust and loyalty
According to Kotler, the acquiring of a new client is 5 times more
expensive than maintaining of the existing one
The following aspects are important:
- Open communication about the wishes of the client and
the possibilities of the company to satisfy these wishes
- In order to raise the speed of solving the clients needs
and wishes, the employees are given more authority
- Clients opinion and investment participation is very important
- Team work - in order to effectively meet clients needs
employees of various competences are working together

The Era of Media and Socially

Oriented Marketing
Time period: the present
Active dialogue with/among clients, partners, the experts
opinions. The feedback is important.
Individual approach, personalisation
Communication in topical moment
Very dynamic marketing, the exchange and sharing of enormous
amount of information
Very important is the division
of clients
The emphasis falls on technologies
and innovative solutions
The disadvantage: it becomes more
difficult to notice and to find somebody
or something

Marketing Process
Understand Customer Needs and Wants
Design a Customer-Driven Market Strategy
Construct a Marketing program
Build Profitable Relationships

Capture value from Customers

Marketing Mix 4P

The marketing mix is the combination of marketing activities that

an organisation engages in so as to best meet the needs of its targeted
market. Traditionally the marketing mix consisted of just 4 Ps.
Getting the mix of these elements right enables the organisation to
meet its marketing objectives and to satisfy the requirements of
customers.

Marketing Mix 4P