Marketing Industry, Marketing Trade

By: EconomyWatch   Date: 30 June 2010

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In ancient times, producers relied on the town courier to publicize their products. In the early twentieth century, the marketing industry was conservative, characterized by primitive information gathering tools and the inability of the media to successfully disseminate information. It was only after the onset of new technological practices in the mid-twentieth century that marketing acquired a new dimension. Historians have divided the evolution of marketing into three eras.

Marketing Industry: Production Orientation Era

This era started at the beginning of the capitalist age and continued till the industrial revolution of the mid-1950s. During this period, marketing dealt primarily with the distribution and pricing of products. Say’s Law explains this era as the one in which “supply created its own demand.”

This era was characterized by:

  • A limited product lineup.
     
  • Pricing based on production and distribution.
     
  • Packaging had no ornamental consideration and was designed only for product protection.
     
  • Limited promotional or advertising efforts.

Marketing Industry: Sales Orientation Era

This era commenced in the mid-1950s and continued till the early 1970s. During this period, production exceeded demand. As a result, sellers had to devise new methods to attract the attention of potential customers. Consequently, in this era:

Numerous selling tactics, such as closing, probing and qualifying, became an integral part of the marketing industry.
 

  • Efforts were made towards the establishment of an in-company sales department.

  • Advertising and sales promotion plans began to be incorporated in the company’s marketing strategy.
     
  • Packaging became crucial to gaining attention.
     
  • Pricing was determined taking into account competitors.

Marketing Industry: Marketing Orientation Era

The roots of the contemporary marketing industry can be traced back to 1970. This year witnessed the introduction of the concept of marketing orientation. Businesses began to make attempts to identify customer needs and develop products to satisfy these needs. Thus, market research became a crucial component of the marketing trade.

This era witnessed the mushrooming of specialized marketing companies. These specialized providers help companies formulate their marketing strategies and offer the tools required to implement them.

The modern marketing industry has imbibed customization. This includes the development of personalized communication and is poised to evolve further with every transformation in the communications fraternity.


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