Although some marketing practices are as old as the earliest trades as its primitive essence lay on being an “element of commercial exchange”
Although some marketing practices are as old as the earliest trades as its primitive essence lay on being an “element of commercial exchange” (Baker and Saren p.4; 7), some refers that modern marketing have its roots from the Industrial Revolution (circa 1750 in United Kingdom, and then in circa 1830 in United States and Germany), conducting to a mass migration to urban areas that opened up to new potential markets to fulfil societies’ needs (Fullerton 1988 in Baker and Saren p.12, Fahy and Jobber 2015 p.3), which other claims otherwise; from the late XIX / early XX century in United States (Baker and Saren 2010 p.4; Lüdicke 2006 p.3; O’Shaughnessy 1990 p. 3, Morishita 1959 in Hollander et al. 2005 p.34) with the institutional development, division of labor, increase of life expectancy and population’s growth, advances of technology in machinery, evolvement of mass market, extending of distribution network; all contributing to the rapid United States’ economic growth, influencing social climate changes (customs, morals, attitudes and behavior), ensuing buyer’s power and growing consumption (Rostow 1959, Baker and Saren p.8, Lüdicke 2006 p.3). Debatably, these elements were the motivating cause for (1) academicians to study marketing under economics’ academic discipline, studying it’s challenges, processes and role (Powell 1910; Shaw 1912; Bartels 1988 et al.) (2) began to be though in United Sates’ Universities (Bartels, 1962 in Baker and Saren p.51-52) (3) generating as well to start develop, not much later during the Merchandizing Era (1920-1930) (Hotchkiss 1972 in Hollander et al. 2005 p.33; Bartels 1962 in Baker and Saren p.51-52), marketing discipline’s fundamental knowledge (ideas, concepts, principles and application, nature and scope) (Lüdicke 2006 p.3, Baker and Saren p.51-52) and in more practical terms (3) generated marketers to use already at that time, some of modern marketing practices (Fullerton 1988 in Baker and Saren 2010 p.11-13; Lüdicke 2006 p.3, O’Shaughnessy 1990 p. 3). Indeed, as began to surface a strong distribution competitivity between small local farmers and industrialized entities during the late Large Scale retailing Era (1873-1919) (Lüdicke 2006 p.3, Hotchkiss 1938 in Hollander et al. 2005 p.33), marketing academicians started to analyze and focus on marketing subject; it issues, processes and activities linked to its discipline (Bubik 1996; Butler 1917; Carver 1917; Powell 1910 et al. in Lüdicke 2006 p.3) and progressively became as well, a subject of undergoing intense study (Lüdicke 2006 p.3-4), reexamined and revised over the course time, coinciding with economic growth, technology development and society changes as marketing had been observed to be relevant to it transformations (Baker and Saren 2010 p.4, Sweeney 1972 p.3, Kotler 1999 p.1), and which conversely these changes influence marketing practices (Converse 1959 in Baker and Saren 2010 p.55). The study of marketing extended its nature, scope (covering now; goods, services, experiences, events, persons, places, properties, organizations, information and ideas) and functions (promotion, sales management, retailing, advertising, marketing research, wholesale management, distribution management, product development, packaging, marketing management, retail management, consumer behavior, international marketing, brand equity, pricing, customer service and public relations and many more) (O’Shaughnessy 1990 p. 3; Kotler 1999 p.13; hunt 2010 p.55), building complexity to its meaning, enveloping now however, a rich and diverse marketing tools and techniques, all to aid, determine, establish and perform the best marketing decision and process to reach organization’s objectives (Kotler 1999 p.2-4; Hunt 2010 p.17). It is through a comprehension of the evolvement of marketing practices, theories and ideas on which it is founded with a glimpse of its history along with the occurring economic and social changes as well with the progress of technology that the vast meaning of marketing and its functions can be best understood (Baker and Saren 2010 p. XVI): “As it currently stands, the marketing literature shows no record of a theory that explains what marketing actually is, rather than what marketing does” (Lüdicke 2006 p.4). Thus, marketing is referenced as a profession, an activity, a set of actions undertaken by organizations, marketers and other individuals including also the consumers and thus, in these regards, marketing is a process in both its practice and marketing research (AMA 2007 in Hunt 2010 p.61; Hunt 2010 p.61; 64).
Accordingly, in more practical term, the observed occurring events within the United States’ market during the Merchandizing Era (1920-1930) (Hotchkiss 1972 in Hollander et al. 2005 p.33), on account of rapid economic growth and constant progress of technology in United Sates; facilitated commercial organizations to enter and reach the now enlarged market, stimulating increase of demand for private consumption, further striving commercial entities to increase supply and so improving society’s standard of living, becoming more mature and mobile (Rostow 1959 p.11-12; Baker & Saren 2010 p.8). Thus, commercial organization were mostly focused on managing activities of producing large volume of goods at a lowest cost in attractive and adequate locations with nearby good communication channels and resources (natural and human) and working closely with specialized distribution channels (Rostow 1959 p.12, Baker and Saren 2010 p.8-9). In the other hand, these elements generated marketing practitioners to use already at that time, some marketing tools and techniques throughout few of its practice such as; strategic product policies, market research, advertising campaign, sales management, product differentiation, prestige pricing and others (Lüdicke 2006 p.3, Baker & Saren 2010 p.8-9; Fullerton 1988 in Baker and Saren p. 11). By reason, some marketing experts even refer it period as the Mass Production (1920-1930) (Mayer 1989 in Hollander et al. 2005 p.33) Advertising Boom (1920-1929) (Fox 1984 in Hollander et al. 2005 p.33) and Managerial Sage I (1924-1929) (Jackson 1979 in Hollander et al. 2005 p.33). By the end of the Merchandizing Era (1920-1930), the followed depressed world’s economy, further technology advances, stabilization of demand and population growth, lead to a further competitivity between business, driving marketing practitioners to use further aggressive selling tactics (Baker and Saren 2010 p.8-10) and thus, some refer it period as the Sales Era (circa 1920-1945) (in Baker and Saren 2010 p.10). By reference and as it origins indicates, marketing had been referred as a technology of a firm (), an organizational function (in Hunt 2010 p.62) a business function for profit-oriented organizations (Kotler and Zaltman 1971 p.4) focused on business activities (American Marketing Association 1985 in Hunt p.8) for the greatest purpose of making profit/generating revenue, carried out through market transaction (Luck 1969 in Hunt 2010 p.8-9, Kotler 1999 p.4) taking place in the physical place called market (referenced today as “marketplace” or “marketspace” when this one is carried out on-line) (Kotler 1999 p.4), involving the exchange of money, goods and/or services between a producer/seller and buyer (in Kotler and Zaltman 1971 p.4; p.7). In this regard, marketing had been interpreted as a “system of distributive institutions performing economic functions required to move products from points of production to points of consumption” (Sweeny 1972 p.4) and an “art of selling products” (in Kotler 1999 p.4) even more so that is needed or wanted (Drucker 1973 in Kotler 1999 p.4).
The business orientations taken during these periods by commercial organizations originated to shape few dominant marketing concepts, among other being: (1) production concept; established through a mass, inexpensive and efficient production and distribute the inexpensive goods in a large-scale (2) product concept; focused on constant re-improving quality, features and performance of long time-available products (3) selling concept focus on creating sales transactions through using aggressive promotion tools’ strategies (Kotler 1999 p.11-12).
Overtime however, the long term usage of these business orientations had been observed to be limited and ineffective as (1) production business approach is uniquely and most suitable for organizations who seek to reach a mass market and/or expending it, develop technology to increase efficiency of production and lower it cost; (2) product concept leads to marketing myopia and (3) selling concept comes at a high risk, discredit and failure (Levitt 1960 in Baker and Saren 2010 p.9-10; in Kotler 1999 p.11-12). Indeed, by being mostly concerned and preoccupied on financial rewards’ objective by using these marketing approach, led marketing practitioners to dismiss the ultimate role of commercial organizations: “to maximizing satisfaction through the utilization of scarce resources” (in Baker and Saren 2010 p.5) and which in this context, marketing’s function acts as a mean to “facilitates achievement of this goal” (Baker and Saren 2010 p.5). Consequently and as “the act of consumption changes the consumer” (Baker and Saren 2010 p.4-5), these elements led marginal utility of substitute products to diminish, creating a situation of market saturation within the market (Rostow 1962 in Baker and Saren 2010 p. 8) and causing past competitive and powerful organization to slowly decline and presented to be in situation with little to no chance to survive within the further competitive market in the 50’s (Levitt 1960 in Baker and Saren 2010 p.9-10). Later, it had been stated that by successfully archiving customer’s satisfaction and through managing and influence the level, timing and composition of the various demand states (negative demand, no demand, latent demand, declining demand, irregular demand, full demand, overfull demand, unwholesome demand), marketers will most likely archive their primarily goal; to meet organization’s objective (Kotler 1999 p.3; Baker and Saren 2010 p.10). Although observed marketing professionals to use numerous of modern marketing tools and techniques (such as market segmentation, product differentiation, prestige pricing, saturation advertising, direct mail campaigns, direct mail campaigns) to meet large-scale consumer’s demand even during the United Kingdom’s Industrial Revolution (Fullerton 1988 in Baker and Saren 2010 p.11), the needs and behaviors of different market segments were only “assumed … based on economic as opposed to sociological and psychological factors” (Baker and saren 2010 p.11), lacking marketing rules and conducting measures of fully satisfy and so limit financial risks, whereas demand level were frequently vague and dubious (Fullerton 1988 in Baker and saren 2010 p.11; Baker and saren 2010 p.11-12).
All of the mentioned and followed occurrences after the World War II with the massive migratory flux, economic upswing, increase of birth rate and as subsequent, acknowledge the next generation to be the upcoming consumers afflux (Bake and Saren 2010 p.12), generated to the “rediscovery of marketing” developing marketing thoughts and practice, chronologically with the progression of marketing management schools (Baker and Saren 2010 p.13, Lüdicke 2006 p.4). Intensively studied under various social science disciplines other than economics, marketing academicians developed since then; powerful marketing management concepts (STRONGELY LINKED TO) as well as market and behavioral theories, borrowed from other disciplines such as economics, psychology,; behavioral sciences, sociology, political science (Baker and Saren 2010 p.12-13; 26; 106) that are till today used and applied in marketing practice to aid marketers to make better problem solving, strategies and managerial decisions throughout their various operational tasks (Lüdicke 2006 p.4; Halbert 1965 in Baker and Saren 2010 p.28; Kerin 1996 in Baker and Saren p.29).
Thus, marketing began to be better annotated as a managerial function (Kotler 1999 p.4) (set of techniques) (Sweeny 1992 p.4) and which opened up to the period of Marketing Era from the mid 1950 (Keith 1960 in Baker and Saren 2010 p.10) where marketing implications, optics and concepts drastically expended, driving business to apply a customer-driving approach, centered in their business philosophy (Baker and Saren 2010 p.12-13).
Also, it was during this period that marketing (or at least marketing-like activities) had been observed and remarked to be practiced and beneficial as well for nonbusiness/nonprofit oriented organizations (Kotler and Levy 1969 in Hunt 2010 p.8). Although some had been resilient to extend marketing concept from fear that it could bring further irrelevancy and unpracticality for marketing practitioners (Luck 1969 in Hunt p.9, in O’Shaughnessy 1990 p. 3), this empirical remark gave reason that marketing could no longer be defined solely through activities of transportation (and distribution), buying and selling (Lavidge 1970 in Hunt 2010 p.9) of tangible goods (Vargo and Lusch 2004 in Hunt 2010 p.62), for ultimate goal and concern of market transaction, but rather, should be defined in a more inclusive way (Kotler 1972 in Hunt 2010 p.9-10). Additionally, later expressed and justified further its reasoning as many of non-profit institutions play a central role in marketing practice and its regulation as they “guide, inform, and regulate ethical, responsible, and legal marketing” Hunt (2010 p.62).
The continuous economic dynamic occurring in United States, brought its society to an exceeding subsistence level (exceeding the necessary working-class labor’s wage to satisfy their needs), growing its social and cultural conditions, changing American consumer’s behavior, attitude and perception; pronouncing to become an environmental conscious society, in search for new material and psychological needs; in search for quality over quantity and actualization (Rostow 1970 in Baker & Saren 2010 p.8; Baker and Saren 2010 p.9), becoming a determinant’s source of success/failure of a product/service (Dawson 1971 p.67). These interrelated elements raised the importance to focus on the before neglected consumer investment for the sake of the organization’s survival as many had been concerned if “… these children of affluence grow up to be consumers on quite the same economy-moving scale of their parents?” – Zalaznick (1969 in Dawson 1971 p.67).
On the basis of these two distinctive circumstances, academicians gave reason to extend marketing concept, firstly throughout an explanation its core essence. Doubtlessly, as marketing action and theory’s core essence remain as “exchange” (Lüdicke 2006 p.6), “exchange process” (Kotler 1999 p.4) and “transaction” (Newman 1993 p.8) or “transfer” (Kotler 1999 p.7), this one stressed out to lie on “general idea of exchange” (Kotler and Levy 1969 in Hunt 2010 p.9) and of “value” (Kotler 1972 in Hunt 2010 p.9-10; Carman in O’Shaughnessy 1990 p.3) intended to satisfy both the organization and individual (Kotler 1999 p.4). The exchange being a process (Kotler 1999 p.7) must be therefore primarily “concerned with how transactions are created, stimulated, facilitated, and valued” (Kotler 1972 in Hunt 2010 p.9-10) as this crucial analysis increase chances that the exchange will take place (Kotler 1999 p.7). This is when marketing management concepts comes into greater play, performing an essential instruments to marketing and business operational tasks, helping through its various developed analytical tools, techniques and behavioral theories (such as; marketing mix (Borden 1965); Porter’s 5-forces (Porter 1979), SWOT analysis (Porter 1978)) (in Lüdicke 2006 p.4) to reach organization’s goals and lower significantly financial and investment risk that organizations take whenever they introduce a new product/service in the market (Kotler and Zaltman 1971 p.4). Defined as: “analyzing, planning, implementation and control of program designed to bring about desired exchange with target audiences for the purpose of personal or mutual gain… relies heavily on adaptation and coordination of product, price, promotion and place for achieving effective response” (in Kotler and Zaltman 1971 p. 4), marketing management revolves around constructing a set of optimal marketing efficient and effective solutions and decisions by manipulating marketing factors (marketing mix), determined and aided through marketing research and market research analysis for organization long-term growth and to remain competitive in the dynamic and competitive world and markets, considering therefore as well; all forever-changing macroenvironment/broad environment forces (demographic, economic, natural, technological, political-legal and social-cultural environments) and microenvironment/task environment forces (these one influences by broad environment forces, consist of all players who affect organization’s ability to produce, distribute and promote), pursuing to influence demand, ideally growing a strong and satisfied customer base, by way of delivering better value to its target market and segment (identified through various criteria such as such as socio-demographic, geographical, psychographic, behavioral criteria), to obtain a desire effective response (attention, a vote, donation, a purchase) from prospects (potential consumers and/or those that recently expressed an interest or intent to purchase) (Kotler 1999 p.4-5; 9 Baker and Saren 2010 p.14): “We see marketing management as the art and science of applying core marketing concepts to choose target markets and get, keep, and grow customers through creating (tangible and/or intangible market offerings in accordance with of consumers’ needs, wants, tastes, and preferences, that holds therefore tangible and/or intangible as well as objective and subjective attributes to the customer’s point of view), delivering (that include the activities, channels, intermediaries and processes of distribution), and communicating superior customer value (inform availability and attributes of market offering).” (Kotler 1999 p.4, Hunt 2010 p.62). By cause of this last crucial element, Hunt (1976) re-define marketing essence as “actions undertaken by persons to bring about a respond in other persons concerning some specific social object” – Hunt (1976 in O’Shaughnessy 1990 p.3).
Further, the exchange process had been expressed to be only feasible when both or more involved parties have each “something to exchange and able to carry communication and distribution” (Kotler and Zaltman 1971 p.4). Indeed, organizations must reach, inform and persuade (Sandage in Kotler and Zaltman 1971 p.5) potential consumers, feasible through different types of marketing channels (communication, dialogue and monologue channels) (Kotler 1999 p.8; Hunt 2010 p.62) and which after being effective, the buyer/donator, sends simultaneously and besides money; crucial indicative information (Kotler 1999 p.4) (Table 1: A Simple Marketing System). As consequence, the buyer is perceived as the market and seller as the industry (Kotler 1999 p.4).