Business School 101: Evolution of Marketing

Introduction

• Iconic I Heart New York logo created by Milton Glaser in 1977 during financial crisis.
• Marketing's role in revitalizing city image.
• Overview of marketing's evolution through various eras.

Stage 1: The Trade Era

• Early marketing along the Silk Road, although rudimentary.
• Key techniques:
  • Barter and negotiation: No common currency, merchants negotiated trades.
  • Product differentiation: Unique goods like Chinese silk, Indian spices, and Roman glassware.
  • Reputation and trust building: Established through honest practices and reliable goods.
  • Storytelling: Merchants enhanced product value through narratives about exotic origins and benefits.
  • Utilizing middlemen: Goods often passed through multiple merchants before reaching final buyer.
• Significance: Foundations of trade, commerce, and selling principles.

Stage 2: The Production Era

• Timeframe: Late 19th century to mid-20th century.
• Focus on producing large quantities due to high demand.
• Marketing campaign characteristics:
  • Focus on product features: Educating consumers on new products.
  • Quality and durability: Emphasized as primary consumer concerns.
  • Limited media channels: Mainly print media; examples include Ford's Model T campaign, focusing on affordability and reliability.
  • Mass market approach: Before market segmentation and targeted marketing.

Stage 3: The Sales Era

• Timeframe: 1920s to 1950s.
• Supply began to exceed demand, necessitating stronger sales efforts.
• Marketing campaign characteristics:
  • Persuasive techniques: Aggressive advertising and emotional appeals.
  • Mass marketing: Use of radio advertisements to reach a broad audience.
  • Sales teams: Cold calling and direct consumer engagement.
  • Product differentiation: Emphasizing small distinctions; example: Hoover's free flight promotion.
• Consequences: Increased advertising importance, consumerism concerns.

Stage 4: The Marketing Era

• Timeframe: Late 1950s to present.
• Shift from product-focused to consumer-focused marketing.
• Marketing campaign characteristics:
  • Customer-centric advertising: Focus on improving customers' lives.
  • Market segmentation: Targeting specific demographics and psychographics.
  • Multiple channels: Integrated marketing campaigns across various media.
  • Branding and relationships: Importance of loyalty programs and customer service.
  • Social responsibility: Emphasis on sustainability and ethical practices.
  • Example: Nike's Just Do It campaign, promoting a lifestyle rather than just products.

Stage 5: The Relationship Era

• Timeframe: 1990s to present.
• Focus on Customer Relationship Management (CRM).
• Marketing campaign characteristics:
  • Personalization: Tailoring messages based on customer data.
  • Use of technology: CRM systems, email marketing, and social media for relationship management.
  • Two-way communication: Engaging with customers through social media.
  • Loyalty programs: Rewarding repeat purchases to enhance customer relationships.
  • Community involvement: Brands engage with social issues aligning with consumer values.
  • Example: Starbucks' My Starbucks Rewards program, enhancing customer satisfaction through personalized offers.

Stage 6: The Societal and Digital Marketing Era

• Timeframe: Early 21st century onwards.
• Influenced by digital technology and societal consciousness.
• Marketing campaign characteristics:
  • Data-driven personalization: Utilizing big data and AI for targeted marketing.
  • Interactive content: Engaging formats like videos and quizzes.
  • Social media and influencer marketing: Collaborating with influencers for broader reach.
  • Real-time marketing: Interacting based on current events or consumer behavior.
  • Examples:
    • Dove's Real Beauty campaign promoting body positivity.
    • Coca-Cola's Share a Coke campaign, focusing on personalization and social media engagement.

Conclusion

• Recap of marketing evolution and its impact on society.
• Encouragement for questions and engagement through comments.
• Reminder to like and subscribe for more content.