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8/14/2019 Revolution of Marketing
1/15
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