Marketing

Evolution,
Processes and
Market Research
M1
 Marketing Evolution
• Importance of marketing
• Initially thought that interaction / contact with customers was
unimportant
• Through pressure from consumers and competition, this
approach changed.
• Prior to the Industrial Revolution:
o Households - self sufficient
o Cottage industries

• Intermediaries – as distance between the consumer and

producer increased
• Role of intermediaries?
 Marketing Evolution
cont…
• Post Industrial Revolution
o Technical advances
o Mass manufacturing
o Large factories

• Management – large factories

• Management approaches changed
o Operation – oriented management
o Sales - oriented management
o Marketing – oriented management
o Consumer – oriented management
o Strategic approach to marketing
o Relationship marketing
 Operation – oriented
management
• Initially – management focused on the capabilities of the
organisation
• Organisations tried to increase the number and variety of
products produced

o What is easy to produce, given our equipment?

o What can we do best?
o What can our engineers do?
o What services are most convenient for us to offer?
o Where do our talents lie?

• Organisations organised around product lines

 Operation – oriented
management cont…
• Disadvantage – management concentrated mainly on
encouraging production in order to solve operation problems
o Marketing of manufactured goods did not cause many problems
o Consumers not accustomed to manufactured goods

• Marketing as a management function was undervalued

 Sales oriented
management
• New machinery worked steadily – stocks accumulated
• 1930 – 1950 – management = sales oriented
• Misleading advertisements
• Unethical sales methods
• Objective – sell products

• Management compelled to look for alternate marketing

methods
 Marketing oriented
management
• Sales message, price of the product and quality of the product,
packaging, distribution channels, methods of communication -
all need to be considered
• Post 1950 – use of advertising became important
• Advertising – effective way of transmitting information to the
mass market
 Consumer oriented
management
• As consumer demands changed, the importance of consumer
demand and the importance of the marketing component was
recognised by management
• Consumers needs, demands and preferences needed to be
considered when
product related decisions
were taking place.
• Management realised that
there was sense in producing a
product if there was no demand for it
 Strategic approach to
marketing
• Relatively recent development in marketing thought
• A need to continually monitor the consumer environment /
technological environment
• Changes such as technological innovation, economic
influences, political factors, changing consumer preferences,
demographic aspects and competition
• Marketing approached evolved into considering the impacts of
the abovementioned factors into consideration
 Relationship marketing
• Marketing management needed to establish long-term relationships with
people/ institutions that marketing was to be carried out in
• Long term relationship with consumers = customer loyalty = repeated
purchases
• Long term relationship with suppliers = availability of raw materials and
inventory
• Primary objective: Establish and maintain relationships with loyal,
profitable clients.
• Loyalty
• Marketing management – not responsible for negotiations with
suppliers, however, in light of long term relationships, marketing
management should aid in the establishment of these relationships
through mutual coorperation