- The Contextual Development of Marketing
Marketing is generally seen as a 20th century phenomena but it has been practiced for centuries just like commerce. The turn of the twentieth century, however, introduced marketing as a distinctive discipline. Modern marketing unquestionably originated, grew and thrived in USA. It was here that marketing was considered as a field of study worthy of scholarly endeavour. The post World War II world saw the availability of products and services to a large number of European and North American consumers (Egan 2008).
With the development in century, marketing emerged as a recognisable business-related activity. In the same connection, the period from 1910-1920 has been given the name of the “period of conceptualization” for marketing. Although no new ideas emerged during 1930-1940, the existing concepts regarding marketing developed (Egan 2008).
The period 1950 till 1970 can be regarded as marketing’s glory days as it was during this time that the public craving for new goods and services became unquenchable. With the fall of product prices, the western markets experienced a substantial rise. The start of commercial television turned out to be the most influential mass-market communications means for the marketers (Meek, Ryan & Lenney).
Thus, the supremacy and influence of marketing helped to double the consumer spending during this time. The economic conditions during this time strengthened the professed dominance of the marketing mix paradigm. Marketing was seen as a means of achieving the demand for standardized consumer goods. Thus, the marketing mix paradigm along with its minimalism and communicability unified to make marketing “an extremely successful impact machine” (Egan 2008).
The next decade presented the world with McCarthy’s 4Ps’ model of marketing. The swift development of computer technology during that time also affected marketing in a profound way. The 1990s and the contemporary era is seen by many as a turnaround in the business attitudes due to the global technological and scientific advancement (Egan 2008).
If the history of marketing is summed up, it can be easily observed that marketing has moved its focus from the instant sale to the maintenance of future sales. Marketing practice that may be considered as good today involves thinking ahead of the unique sale. It simply means that marketers of the recent times need to do long-term planning and that is what has made modern marketing a more complex process to administer.
- Marketing Mix and its Pros and Cons
Marketing mix (based on McCarthy’s 4Ps’), is the method to decide the price, product, promotion and the distribution in the scheming procedure of a product, service or a brand. However, Gronroos, van Waterschoot, Van den Bulte and Hunt criticized McCarthy’s 4P model insufficiently strong as a basis for academic research (O'Malley & Patterson 1998).
The advantages of making use of this model are unlimited that help to support the administrative decision making. However, there are various disadvantages that should be considered before adapting this model. It can devalue the permanent benefits of some specific marketing channels like SEO if too much emphasis is given to the temporary sales. This model makes it difficult for the companies to capture the impact of brand equity.
- Relationship Marketing
Marketing today is going through a reconceptualization in its point of reference from transactions to relationships (Sheth & Parvatiyar 1995). Relationship marketing characterizes the latest phase in the advancement of marketing science. Berry was the first person who mentioned this term in 1983. The idea centrally focuses on the idea that customers remain valuable throughout the time they stay in business with a particular company. Therefore, the focus is entirely on the relationships instead of transactions. The development of the theory and practice of RM can be easily examined from a wide number of perspectives. Three schools of thought are particularly important to understand its existence i.e. The Nordic School, The Industrial Marketing and Purchasing Group (IMP Group) and The Anglo-Australian approach (The Cranfield School).
Researchers found that a company’s proﬁtability can be signiﬁcantly increased if customers/consumers are retained for a little longer time. According to Sheth & Parvatiyar (1995), “the paradigm shift from transactions to relationships is associated with the return of direct marketing both in business-to-business (BTB) and business-to-consumer (BTC) markets”.
- The Global Financial Crisis
The world today is experiencing a global recession which has caused extensive business contraction, an increase in joblessness and reduced government revenues. According to the latest facts and figures, the huge industrialized economies may possibly are at the bottom but are beginning to making progress; the rate of joblessness is still increasing. A good number of small banks and households are still going through a tough time while struggling to restore their balance sheets. More or less every industrialized country and many second and third world nations have made an announcement regarding their economic stimulus. As their last resort, several countries have chosen to borrow from the International Monetary Fund (IMF).
This global financial crisis has brought the fundamental weaknesses in worldwide financial systems out in the open.
Even after several years after the beginning of the crisis, the policymakers and researchers are not fully agreed about the factors that led to the build-up of these global financial imbalances. Most commentators admit that there was a lack in the supervision and regulation of the overall economic scenario. On the other hand, many agree that the global financial crisis “may have been a combination of accommodative monetary policy and growing global imbalances” (Merrouche & Nier 2010).
- The Use and Development of Internet in Marketing
Technology, especially computer-based technology, has influenced every aspect of our lives. Over the last two decades, the face of marketing practice has tremendously changed due to the new developments and techniques, particularly the Internet. The Internet usage has has created a podium for the current e-marketing revolution. The Internet has enabled the marketing process not only more effective but more efficient as well. It has also increasingly smoothen the process through which information regarding effectual marketing planning and decision-making can be gathered, studied and used. Internet-based business technologies also help smaller businesses in reducing their size disadvantage owing to the fact that e-commerce has no territorial restrictions (Lancaster & Reynolds 2001).
It has become necessary for the contemporary marketing management to gain knowledge of and comprehend the technological advancements of the current times. Some marketing firms like Napster.com and Amazon.com have even contributed to such changes. Napster.com is the initiator of marketing of music on the Internet. Similarly, the marketing of books and CDs on the Internet has been pioneered by the Amazon.com. These two firms are the genuine examples of the marketing firms who have made use of the Internet to contribute to the development of marketing strategies (Lancaster & Reynolds 2001).
The Internet, in short, has transformed the methods how businesses function. Due to its comprehensive effects, the ways that businesses correspond with their customers, suppliers, and employees has affected tremendously. It has become possible for the companies to provide a quick, inexpensive way to converse with customers in distant places. Due to its far-reaching outcomes, Internet is now being regarded as a new marketing channel by many modern marketers.
Egan, J. (2008). Relationship Marketing: Exploring Relational Strategies in Marketing. 3rd. ed. England: Prentice Hall. Print.
Lancaster, G. & Reynolds, P. (2001). Marketing: The One-Semester Introduction. [online]. Boston: Butterworth-Heinemann. Available from: <http://www.questia.com/read/119965447/marketing-the-one-semester-introduction>. [Accessed December 10, 2012].
Meek, R., A. Ryan, and P. Lenney, eds. Marketing 101. Vol. 1. N.p.: n.p., n.d. Print.
Merrouche, O. & Nier, E. (2010, December). What Caused the Global Financial Crisis? —Evidence on the Drivers of Financial Imbalances 1999–2007. [online]. (10). International Monetary Fund, USA. Available from: <http://www.imf.org/external/pubs/ft/wp/2010/wp10265.pdf>. Accessed: December 10, 2012.
O'Malley, L. & Patterson, M. (1998). Vanishing Point: The Mix Management Paradigm Re-Viewed. Journal of Marketing Management. 14, pp.829-851.
Sheth, J. N. & Parvatiyar, A. (1995). The Evolution of Relationship Marketing. International Business Review [online]. 4 (4), p.397-418. Available from: <http://www.iei.liu.se/program/ekprog/civilek_internt/ar_3/722g60/gruppernas_artiklar_och_presentationer/1.149402/Artikel.GruppC3.pdf>. [Accessed December 9, 2012].