revolution of marketing

8/14/2019 Revolution of Marketing

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EVOLUTION OFEVOLUTION OFMARKETINGMARKETING

Issues in FocusA. Evolution of MarketingProduction EraSales EraMarketing EraSocietal Marketing EraB. Marketing myopia

C. Marketing Challenges and Adjustments for21st CenturyD. Significance of Marketing


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PRODUCTION ERAPRODUCTION ERASalient Features Prominent in the period of 17th Century to late

1920s

Law of supply creates its own demand

Sellers dominance in the market

Focus on efficiency of production rather than theproduct

Wider and quicker supply base and lower price wasthe fancy of marketers

Perception of customers preference for productavailability rather than the product

More demand and less supply


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RAMIFICATION OFRAMIFICATION OFPRODUCTION ERAPRODUCTION ERA

Industries kept concentrating on supplyand lost pulse of the demand andsupply started overriding the demand.

Industries chose for efficiency andlowering the price. This phenomenonled to price war and subsequentlyfuelled the competition.

Margins shrank and productdifferentiation was out of scene


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SALES ERASALES ERA

Prominent in late 1920s to early 1950s

Production era fuelled the competitionbecause of low price and more supply in

the market Main thrust on SELLING the product

Distribution and promotion became thetools to outwit the competition

Advertising, sales promotion, marketresearch received the focus


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RAMIFICATION OF SALESRAMIFICATION OF SALESERAERA

Promotion etc created clutter in themarket

Products still incongruent to themarket

Sales and distribution costs keptcrunching margins further


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MARKETING ERA-1MARKETING ERA-1 Started in mid 1950s and it continues Consumerism in the air

Customer orientation received the focusand prime importance

Customer information is also taken up asinput besides raw material, fuel etc.

Selling becomes superfluous. Marketingbecomes the mantra for success

Besides profitability customer satisfactionalso becomes the equally worthy objective


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MARKETING ERA-2MARKETING ERA-2

Customer becomes the inception andterminus of the manufacturing process

Functional integration earns the significance

for ultimate aim of customer satisfaction Differentiation at every possible mean ofsatisfying the customer, if feasible

Need, want and demand concept take birth


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RAMIFICATION OFRAMIFICATION OFMARKETING ERAMARKETING ERA

Customer status is elevated to the top ofhierarchy of companies

Companies are evaluated not only in

terms of profitability but also on accountof customer satisfaction and long termsustainable relationship

Concepts of CRM, ERP, Reengineering,SCM, debottlenecking,six sigma emergefor more functional integration tounderstand and satisfy the customer


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SOCIETAL MARKETINGSOCIETAL MARKETINGERAERA

Companies realize the importance of society forlong term sustainability

One more facet added for evaluation ofcorporate- Profitability, Customer and BENEFITSTO SOCIETY

Economic, Environmental and social feasibility ofcompanies operations get into the board rooms

Corporate Responsibility Profile is added in the

vision of the corporate TermCorporate Citizen becomes the buzzword


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RAMIFICATION OFRAMIFICATION OFSOCIETAL MARKETING ERASOCIETAL MARKETING ERA

Increasing environmental consciousness isfurther buttressed

Concept of green marketing, three bottom

line approach, Corporate ResponsibilityProfile come into existence

Global and national certifications ISO, Ag-mark, BIS, ISI for process and product

become important for goodwill of corporate


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LEARINING BYLEARINING BYEXAMPLESEXAMPLES

ITC, a major in tobacco, fertilizers andFMCG; promulgates the concept of THREEBOTTOM LINE approach. ITC will evaluate

and do accounting of its operations onthree bottoms-Economic, social andenvironmental concerns

HLL, a major player in FMCG; starts a

campaign named SHAKTI for upliftmentand welfare of rural women in Gujarat andRajasthan


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MARKETING myopiaMARKETING myopiaIndustries fail not because markets aresaturated but because of failure & short

sightedness of management.

Theodore Levitt in Harvard Business Review.Reasons of Marketing myopia-

Marketers fancy for the product , process andselling

Demand is in the function of population and its

income rise No substitutes nearby

Lower price means more demand for theproduct


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REMEDY TO RECOVER FROMREMEDY TO RECOVER FROMMARKETING myopiaMARKETING myopia

Be customer led

Market orientation should flow to everyfacet of organization

Proactive and visionary management

Search for differentiation, positioningand

new combinations of product andservices


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NEW CHALLENGES IN 21NEW CHALLENGES IN 21STST CENTURYCENTURY

Frequent changes in customerprofiles

More fragmented and more informedaudience

Technological development shortens

life for technology-in-use More customers ,more players and

more expectations


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NEW DIMENSIONSNEW DIMENSIONS REENGINEERING the existing processes

OUTSOURCING the peripheral or none-corefunctions for more focus on core and crunching thecost

e-COMMERCE to assist in making quick decisionsand continuous updating of market movement

BENCHMARKING against the latest performance

SUPPLIERS RELATIONSHIP for long run economicbenefit

TERRITORIAL EXPANSION to the new markets

DECENTRALIZATION of operations to adjust with

local ambiance

revolution of marketing

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