Marketing is often the most misunderstood function in a business today. If you ask ten people what marketing is you'll usually get ten different answers. I think it will be helpful to learn more about the history of marketing and how it evolved so we can incorporate it more effectively into our businesses today. 1) Simple
Trade Era – Beginning of time to mid 1800’s During this time, everything
was made or harvested by hand in limited quantities for your own use. As we
began to produce more products than we could consume -- barter, trade and farmers’
markets were created. (The word marketing actually emerged from selling at a farmers’
market). If you believe in the
Biblical account of creation, Eve had to convince Adam to eat the forbidden
fruit and became the first to incorporate marketing tactics but others would
say it was the snake who had to first convince Eve. 2)
Production Era – Mid 1800’s to the 1920’s Industrial revolution, mass production, wider product
selections were available. The focus was on products. Selling was easier
because there was less competition. Advertising
agencies emerged and progressive companies began to experiment with newspapers,
magazines and then radio to sell their products or services. If you build it
they will come became the marketing messaging. 3) Sales
Era – Through the 1940’s Competition increased
and consumers had more choices. The focus was still on the product which became
harder to sell based on their features only. Products became commodities and
price became the main distinguishing competitive advantage. This is when TV was
introduced into the media mix. It’s
when discounts, two for one and $.99 cents began to give the impression of a
deal. 4) Marketing
Department Era – Through the 1960’s Manufacturing firms
realized that their old methods of product based selling were not working any
longer. Consumers exercised more power in the marketplace. To deal with this
reality, businesses consolidated all research, product development, manufacturing,
distribution, advertising and sales activities into one internal department
although they met with extreme push back from the old guard. Branding and sponsorships
were experimented with and incorporated. Some
call this time “The great awakening”. The time when companies began to realize
that marketing is the primary reason a business will grow and survive. 5)
Marketing Company Era – From the 1960’s and is active today This is the time when
businesses decided that they exist to satisfy customer needs and that the
customer should be the focus of all their endeavors. All employees became part
of the marketing effort and the customer became king. Cable TV was introduced. Find a need and fill it became their mantra. I believe there are two more eras not taught
much if at all in our universities and business schools. As new technologies
and media is introduced, causing marketing strategies to evolve, we must accept
and learn how to incorporate these new realities or be doomed to failure. 6)
Relationship Marketing – 1990’s to today As we move our emphasis
from the product to the customer, the natural extension of this strategy then
would lead us to focus on developinglifetime customer value
by building relationships and creating loyalty.It costs much less to keep a customer than to find a new
one.Customer Relationship
Management (CRM), segmentation and data mining became the buzzwords. The key to
building relationships is trust which should become the central tenant of
relationship marketing. 7) Social
/ Mobile Marketing Era – The new game in town In this era, businesses
are connected 24/7 to current, potential and future customers. The focus is on
real time connections and social exchanges based on relationships developed
from permission based or opt-in sources. And when these customers or prospects
talk, you better listen and respond. They call it “social media” for a reason
and you have to be willing to create conversations and become more sociable. The
explosion of smart phones makes this imperative. This then leads us to the
most recent approach in advertising and promotion which is content marketing.
This is when you provide relevant and useful information that attracts and
educates potential customers and lets them know you are an expert. And finally,
what is becoming the most important effective tool in all of marketing is
presenting content through the use of video. Summary CEO's tend to see
marketing as a department that comes into play after the product has been made
and the
only job left is to sell it. I
would argue instead that marketing must be seen as setting the strategic
direction for the firm long before the product exists. Peter Drucker
stated it well over thirty years ago: “A company has only two basic
functions: innovation and marketing.” According to Drucker, marketing is an essential
component for the success of any venture. This may come as a shock to you, but
when it’s all said and done, what really matters for any enterprise is not
the products or services you offer, what you do or how you do it. What
matters is that you communicate what you have or do in a way that others will
take interest in it, buy it, support or join it and most importantly be excited
enough to tell their friends about it. How you communicate is key -- that’s what marketing
is all about. |
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CategoriesAdvertisingBranding Business Development Jon's Tip Of The week Marketing Strategic Planning |
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