Overview
This lecture covers the evolution of marketing, highlighting key eras from production to technology-augmented approaches, emphasizing the shift towards relationship and value co-creation with customers.
Evolution of Marketing Eras
- Marketing emerged around the turn of the 20th century, later than fields like accounting or economics.
- The Production Era (early 1900s): Companies simply produced products without customer input, expecting customers to buy what was available.
- The Sales Era (1920s-1950s): Companies focused on selling excess products, using persuasion rather than responding to customer needs.
- The Marketing Orientation Era (1950s onwards): Companies started conducting marketing research to identify and meet customer needs and wants.
- Any company not at least at the marketing orientation stage now likely struggles to compete.
Value-Based and Relationship Marketing
- Value-Based Marketing Era (mid-1990s-present): Focus shifted to long-term customer relationships rather than single transactions.
- Building customer trust encourages repeat and larger future purchases.
- Customer Relationship Management (CRM) became central, emphasizing relationships over transactions ("ROTen" = Relationships Over Transactions Every time).
Technology Augmented Era & Value Co-Creation
- The Technology Augmented Era incorporates tools like automation and data analytics to support marketing and CRM.
- Example: Amazon uses machines for order fulfillment and tracking, setting new expectations for delivery speed.
- Technology enables value co-creation—customers participate in product design or service delivery (e.g., Beta Brand lets customers vote on new clothing styles).
- Ongoing customer contact post-purchase helps ensure satisfaction and enables innovation.
Marketing’s Broader Role & Societal Impact
- Marketers now use data to understand evolving customer needs and innovate accordingly.
- Social and mobile marketing facilitate engagement without overwhelming customers.
- Companies address ethical and societal issues like sustainability (e.g., reducing plastic use) and health (promoting healthier beverages).
Key Terms & Definitions
- Production Era — Marketing focused on making products, not engaging customers.
- Sales Era — Emphasis on selling and persuasion, not customer needs.
- Marketing Orientation — Approach centered on understanding and serving customer needs and wants.
- Value-Based Marketing — Building long-term relationships to increase customer lifetime value.
- Customer Relationship Management (CRM) — Managing company interactions with current and future customers.
- Value Co-Creation — Customers participate directly in creating the products or services they buy.
- Technology Augmented Era — Using technology to enhance all marketing activities.
Action Items / Next Steps
- Prepare for chapter two: review marketing strategy and the structure of a marketing plan.