History of Marketing

HISTORY OF MARKETING

Marketing which was once a part of management now becomes an independent subject. Now a days, marketing is an important area of study throughout the world.

The development of marketing is evolutionary rather than revolutionary. Different persons understand the meaning of marketing differently depending on their ability, need and environment. Consumer considered it as a synonymous to shopping, sellers treat it as selling, farmers understood it as co-operative marketing, engineers considered it as product designing and managers as retailing. Hence, everyone understood marketing in his own way. In short, it may be said that the word marketing is commonly used by us but the word marketing is mostly misunderstood by most of us. As a matter of fact, the term marketing is not confined to shopping, selling, co-operative marketing, product designing, advertising, retailing, etc.

Practically, marketing is a comprehensive term and it includes all resources and set of business activities necessary to direct and facilitate the flow of goods and services from producer to consumer or user, including product planning and after sales services , in the process of distribution.

An orientation, in the marketing context, related to a perception or attitude a firm holds towards its product or service, essentially concerning consumers and end-users. Throughout history marketing has changed considerably as consumer tastes are changing faster.[1]

The marketing orientation evolved from earlier orientations namely the production orientation, the product orientation and the selling orientation.[1][2]

In 1950s, the firm focused on production methods A firm focusing on a production orientation specializes in producing as much as possible of a given product or service. Thus, this signifies a firm exploiting economies of scale, until the minimum efficient scale is reached. A production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes do not rapidly alter In 1960s , the firm focused on quality of product. A firm employing a product orientation is chiefly concerned with the quality of its own product. A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.In the above two periods, A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. In 1970s till present date, a firm focus on needs and wants of customers. The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing. It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes. As an example, a firm would employ market research to gauge consumer desires, use R&D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.

Ordinarily, the term marketing means purchase and sales of goods. It is a narrow concept of marketing. Modern marketing experts use the term marketing in its broad sense. Modern marketing also includes all those activities which are undertaken before and after the sale and purchase of goods.

According to American Marketing Association (AMA) ".. the performance of business activities that direct the flow of goods and services from producer to consumer or user." [3]

According to The Chartered Institute of Marketing (CIM), UK"Marketing is the management process responsible for identifying, satisfying and anticipating customer requirements profitably." [4]

A firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand