The Evolution of Marketing
A quick look at the evolution that marketing has seen over the course of the past 100 years, as well as the introduction of the concept of CRM.
From Ford’s famous production line in the early 20th century, to pesky salesmen pushing their vacuum cleaners, to the modern-day concepts of ‘customer relationship management’ (CRM), marketing has seen a rapid evolution over the last 100 years.
Up until the 1930s, companies had a “production orientation”. Many firms were more focused on producing than on selling, and they could afford this luxury as demand exceeded supply. This period of time is called the “production era” and remained the strategy of choice for firms until the industrial revolution. Some firms today may use a production oriented marketing strategy successfully if the demand exceeds supply in their market, although this is very rarely the case.
The 1930s saw the real start of the “selling era” – firms focused on selling their products, with little account to what the consumers really wanted and with little regard to value. This strategy was particularly popular during the great depression, as firms desperately tried to turn a profit. Firms using this strategy are more successful in selling their products once to a consumer than setting up repeat business.
The consumer era, from 1957-98, focused on the consumer and delivery high quality goods. Market research was done to find out what the consumer really wanted and what he/she thought about the product. Firms differentiated themselves from other firms by creating higher quality products.
The new era, or the ‘new era orientation’, which started in 1988 and is the strategy of choice for most firms today, introduced the concept of CRM – Customer Relationship Management. The core concept of this strategy is building long term relationships with consumers. The idea of CRM is to track and monitor consumers preferences to be able to create products which are more tailored to an individual’s wants and needs. CRM has been widely implemented via the internet, and firms today view the web as an integral part of their marketing strategy.
While marketing is constantly evolving, it is clear that focusing on the consumer and delivering a high value product is the way forward for the modern firm. Companies that focus on building long-term relationships with their consumers will be the ones that are ultimately the most successful on the marketplace.
