Marketing’s Role Today and Tomorrow

The Changing Role of Marketing Production Emphasis: 1900-1920 Emphasis was on producing and distributing new products Production processes were simple and only a few product choices were available Consumers had limited money with which to purchase products Businesses believed that if they could produce the products, they would be able to sell them

The Changing Role of Marketing Sales Emphasis: 1930-1950 (plus) Production became more efficient resulting in a large numbers of products at lower costs (assembly lines and transportation systems used) American standard of living improving Companies begin to rely on salespeople to represent their products and convince potential customers their product was better than the competition

The Changing Role of Marketing Marketing Department Emphasis: Post WWII Expanded economy following WWII, wage level increased, amount of work hours decreased Begin to use advertising to inform the consumer of products, reasons to buy the products, and where the products were located Catalogs, credit, use of airlines for distribution

The Changing Role of Marketing Marketing Concept Emphasis: modern companies only with big picture view (1970’s) Marketing departments did not always mean more profits (in fact marketing can be expensive!) and sometimes unethical activities Changing paradigm from what the business produces to what the customer wants

Marketing Concept Era Marketing more than the just the work of one department Requires the interaction of all the departments within a business with marketing personnel working closely with others throughout the organization Proven an effective method that is used by the majority of successful businesses and organizations

The Changing Definition of Marketing Marketing seen as only a tool to be used if sales were low or lagging, but not needed in times of good sales Today’s Marketing: Provides information about customers & their needs Help businesses plan more effectively Better serves customers through distribution, pricing, credit, customer services Increase customer satisfaction Help businesses become more profitable by coordinating activities and controlling costs

The Changing Definition of Marketing The Progress of Marketing Marketing as a Variety of Activities Marketing as Promotion Marketing as Selling Marketing as Distribution

Marketing in Other Organizations Libraries, Governments, Churches, Community Organizations, and the Military use marketing

Importance of Marketing Marketing Managers: Work with people inside and outside the organization Responsible for a large part of a company’s budget Study people, competition, and market conditions

Ultimately, marketing is important to every business for what reason? Marketing is important because marketers make decisions that dramatically affect businesses’ long-term profitability