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25/07/20161CHAPTER 1The changing worldof marketingNo organization can avoid coming to grips with the rapidlyevolving behavior of consumers and business customers.They check prices at a keystroke and areincreasinglyselective about which brands share their lives. They formimpressions from every encounter and post withering onlinereviews … these changes present significant organizationalchallenges, as well as opportunities. The biggest is that all ofus have become marketers: the critical moments ofinteraction, or touch points, between companies andcustomers are increasingly spread across different parts ofthe organization, so customer engagement is noweveryone’s responsibility.Tom French, Laura LaBerge and Paul Magill‘Five no regrets moves for superior customer engagement’, McKinseyQuarterly, July 2012, p. 1Focus of this chapterAfter studying this chapter you will have gained anunderstanding of:the changes that have occurred over the years inthe way marketing is conceptualised and practisedthe forces that have driven these changesthe new value creation paradigm that hasrevolutionised marketing thought and practicethe impact of the digital revolution on marketingthought and practice.
25/07/20162The evolution of marketing thought andpracticeLate 1700s1950s1950slate 1980sLate 1980slate 1990sEarly 2000s - currentFormative yearsManagement school ofthoughtMarketing as an integratedorganisational processThe digital eraMarketing thought and practice- The formative years (Late 1700s-1950s)Foundational conceptsAdam Smith - Economic liberalism 1776>Exchange theorymarket exchangesocial exchangeMarketing as an academic disciplineGerman historical school 1850s>Marketing courses 1912>Schools of thought early 1900sMarketing functionsCommodities schoolInstitutional schoolThe early practice of marketingAdvertising agencies 1786>Trademarks as a means of branding 1860s>Database marketing 1870s>Sales training late 1800s>Product management (P&G) 1930s>Marketing thought and practice- The formative years (Late 1700s-1950s)… the idea thatconsumer needs and wantsshould be the starting point for businessthinking is certainly not revolutionary. For acentury or more, economists have madeassertions that the aim of our economic andbusiness structure and its functioning was thesatisfaction of consumer needs.H.R. Tosdal,‘Some recent changes in the marketing of consumer goods’,Harvard Business Review, X1, no. 2, January, 1933, p. 157.The notion of satisfaction of consumer needs
25/07/20163Marketing thought and practice- The marketing management school of thought(1950s-late 1980s)The marketing conceptDrucker (1954), McKitterick(1957), Levitt (1960), Keith(1960), McCarthy (1960>), Kotler(1967>)The practice of marketingEstablishment of marketing departmentsMarketing responsible for advertising, sales andmarket researchMarketing as a general management responsibilityMarketing planningNew conceptsMarketing mix4Ps (1960>)Consumer behaviour

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Business, Marketing, American Marketing Association, Journal of Marketing, T Levitt, P Kotler, E J McCarthy

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