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Wednesday, July 21, 2010
Evolution of Marketing
Marketing is a highly dynamic field of study. The field of marketing is constantly emerging and developing. The meaning and scope of marketing has changed over time. The role of marketing in business and society also changes with socio economic development. The term 'marketing' has been treated differently at different periods of time.
The first definition of marketing was given by the American Marketing Association (AMA) in 1960. "Marketing is the performance of business activities that directs flows of goods and services from producer to consumer or user".
Evolution of Marketing
The evolution of marketing is associated with the development of human society. The development in the field of science and technology also contributed to the development of marketing. Evolution of marketing can be studied in context to human development.
Marketing did not come suddenly on this present stage. It has a long evolution history which was gradually developed with human civilization, trade and business.
Phase 1
When people started to live permanently at village and start farming at that time farmer used to produce surplus food they used to exchange that surplus food with another needs like agriculture tools, clothes etc. with their neighbors in temporary market called haat bazaar. So marketing was born on barter system, where people exchange goods.
Phase 2
In this phase temporary market developed as a permanent market, where people use together to exchange their goods and services, more transaction take place at place of barter system. People used to sell their goods and services at permanent market. But the trade is limited within local market. People based and annual based transportation is used to distribute the products.
Phase 3
In this stage the area of market is not limited within national boarder, the area of market is expand from the establishment of trades routes on land and sea. Various means of transportation has been developed. In this age marketing is limited to transportation and profitable exchange.
Phase 4
Introduction of machine help in mass production of goods hand made products has been replaced by machine made products. New means of transportations, railways and steamer has been introduce in this stage. Mass production was supported by mass distribution. Distribution channels have been radically changed. Producer hired agents like wholesaler, retailer to contact buyers. Competitors forced manufacturers to adopt advertising and other promotional activities. Product warranty and guarantee has been introduced.
Phase 5
In this stage various pressure groups force marketers to take national and international certificate for their products. Many consumers group were formed for enactment of several consumer protection laws. Marketers in this stage declear the ingredients used in the product and expose truth in marketing.
Phase 6
Now a day's environmental protection has become a major issue internationally. Several enactments of laws have been introduced against the environmental pollution. So marketer has to develop ecologically safer product, recyclable packaging for better pollution control.
Phase 7
As we enter the twenty first century rapidly changing computer, information, communication and transportation technologies had brought new challenges and opportunity in marketing. Developments on technologies are making the world smaller place and we are connecting in new a different ways.
Marketer can use internet to know the consumer needs and preferences and can collect valuable information within a minute. Likewise customer can also place an order and get delivery of product through electronic commerce. This has given marketing companies an opportunity to under take direct marketing.
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