Historical stages of marketing development. A Brief History of Marketing Development

14.06.2015

The history of marketing development begins its way from the time of the creation of markets. At that time, the first concepts appeared, such as:

  • mediation;
  • wholesale and retail;
  • price formation.

Even in ancient Greece and Rome, there were intermediaries, and in those ancient civilizations they were of different types. At the same time, with the emergence of the market, such a concept appeared. like pricing policy and advertising.

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The history of the emergence of marketing began to become more active towards the end of the 17th and beginning of the 18th centuries. American scientists concluded that some marketing concepts were used by merchants in England in the 17th century, after which the colonists transported them to the United States.

American scholar Peter Ferdinand Drucker, a respected management theorist, was convinced that marketing originated in Japan. This was found documentary evidence. In 1690, a resident of Tokyo opened the first store, which focused on the demand of customers, increased the range of goods. The first guarantees of product quality appeared there.

The history of marketing marks three main stages of development

Stage one. This time is different in that the competition among buyers was greater than between manufacturers. Historians distinguish three main periods:

Lasts throughout 1860 and 1920. Given the high level of demand, manufacturers have set their sights on the volume of goods produced, and not on its quality.

from 1920 to 1930. After achieving high volume productivity, manufacturers began to pay more attention to the quality of their products and adjust the product range according to its popularity.

In the period from 1930 to 1960, due to a decrease in demand, supply began to prevail. Thanks to this, a new branch in marketing began to actively develop, modeling the behavior of the buyer in the sales market.

The second stage is considered the period of 50–60 years of the XX century, during this period marketing was recognized as a science of management. The first to make this statement was not a little-known American inventor, Cyrus Hall McCormick, who was also the founder of the McCormick Harvesting Machine Company, which in 1902 became part of the International Harvester enterprise.

Developed countries, having overcome the difficulties of the post-war period, began to develop a market economy, therefore this page of history is also called the period of consumer orientation.

In the third stage, the marketing philosophy was established. This has become the basis of communication between the company and the consumer.

Moments of development of foreign marketing

There are a number of historical episodes in the development of marketing policy abroad. Here are some of them:

  • 1902 US universities began to teach marketing courses;
  • between 1934-36, the first publications in the direction of marketing were published;
  • 1990 was distinguished by the appearance of marketing terms.

Development of marketing in the Russian Federation

Marketing development in Russia also has several stages:

The period from 1880 to 1917 is considered the first stage. The industrial potential in Russia on an entrepreneurial basis quickly gained momentum. At this time, marketing elements were widely used in domestic business. The most common among them were:

  • advertising techniques of a different nature;
  • communication between the enterprise and the public was established in every possible way.

But there was no integral system marketing.

The beginning of the twentieth century was marked by the active development of industry, so it is considered the second stage of development. But because of the attitude of the Soviet economy to marketing as a science, it was not recognized and was not subject to study.

The mid-70s was the third stage of development for marketing. It was recognized as a market concept of production management, sales of goods and services. But the central control mechanism did not allow to apply all the principles of marketing in the domestic market. Economic entities were prohibited from free realization of market opportunities.

In the 90s, after the adoption of the property law, marketing gained momentum in development, which became the fourth stage of evolution.

Important Points

In Russian marketing, there are a number of important events and dates assigned to them, such stages as:

  • in 1967 the creation of a marketing section;
  • 1980 was distinguished by the introduction of marketing courses in economic universities;
  • in 1990, a decision was made to organize an institute for system research and marketing;
  • in 1992 he started the issue of the magazine "Marketing";
  • in 1995, the Russian Marketing Association was created.

Based on the analysis of marketing development in Russia, it can be seen that the formation takes place episodically in a series of meaningless impulses, as marketing tasks arrive and the search for a method to solve them. As a rule, they are associated with the sale of goods and were perceived as excessive imposition of products, through psychological processing and manipulation of consumer behavior.

The number of companies that have access to post-industry society marketing is not large enough. Most entrepreneurs work within the strict confines of industrial marketing. They are inaccessible to such methods as customer orientation, quality improvement or updating the product range. The marketing principle of an industrial society is product orientation.

Due to the high level of monopolists and oligopolists, the situation with socially responsible marketing is even more difficult. Monopoly enterprises do not work on a long-term policy either with consumers or with products. For them, the concept of making money from turnover does not exist. The principle of their policy is to get a quick income by maintaining a high price while limiting output.


Introduction
Marketing is a process of organizing production, promotion and marketing of products aimed at current and future success, based on an understanding of the situation and processes taking place on the market, and built taking into account the establishment of an optimal balance of interests of all its participants.
Marketing is a phenomenon of the 20th century. It owes its origin to economic science and developed as a form of applied economics. Marketing is closely related to the basic categories of economic theory, such as exchange, profit maximization, utility, specialization, rationality.
1. History of the development of marketing abroad
In world practice, marketing did not appear immediately. It is the result of many years of evolution of the views of managers on the goals, objectives and methods of development of production and marketing. Sales promotion, advertising, public relations methods have been used since ancient Rome, and maybe even earlier.
As far back as the second half of the 18th century, the well-known political economist Adam Smith wrote in his work “The Wealth of Society” that the producer has no greater concern than satisfying the needs of consumers.
According to some economists, the time of the formation of marketing refers to the period following the "great depression" that swept the West in 1923 - 1933, others believe that this is the period of the early 50s of the XX century. But its history is much older.
The emergence of marketing, from the point of view of Peter Drucker, is associated with Japan. According to him, marketing appeared in Japan around 1650, when the first member of the Mitsui family settled in Tokyo and opened a store there that can be called the first department store. There he pursued a policy that by 250 years anticipated what was then carried out by the largest trading firms, namely:
1) became a buyer for his consumers, buying in the store those products and goods that they needed;
2) looked for means and sources for their production;
3) introduced the principle of an unconditional refund for the returned goods;
4) significantly expanded the range of products for customers.
In the West, marketing arose in the middle of the 19th century. Cyrus McCormick was the first to point out that marketing should become a central function of the enterprise, and the creation of a circle of consumers - a special job of a manager, was Cyrus McCormick. And although he is better known as the designer of the first combine, nevertheless, it was he who created such areas of modern marketing as market research and analysis, principles of pricing policy and after-sales service. All this led to the prosperity of his company "International Harvester". As an academic discipline, marketing first emerged in America. In 1901, a short course in marketing began to be taught at the Universities of Illinois and Michigan. In 1905, V.E. Kreuse and taught the course "Product Marketing" at the University of Pennsylvania. In 1910, at the University of Wisconsin, R. Butler began to teach a permanent course "Methods of Marketing".
Thus, the United States is considered to be the birthplace of modern marketing. During this period, marketing was linked mainly only with the sale of goods: the main attention was paid to the organization of sales, trade and advertising. However, later the limitations of this interpretation became obvious. The crisis of 1929-1933 also played a significant role in this, after which marketing finally lost its purely sales orientation. World War II acted as a catalyst for the development of heavy industry, which required new principles and approaches to production management. Mass production is developing, which, in the conditions of excess of effective demand over the available supply on the market (“seller's market”), contributed to the implementation of the marketing policy and the accumulation of further experience in this area of ​​marketing.
But, starting from 1948, marketing began to be considered as the implementation of other types of economic activity that directs the flow of goods and services from the producer to the final or intermediate consumer.
As a system, marketing was created under the influence of the development of monopolies, which required a larger and deeper market research and a better organization of firms in the market. At the same time, its organizational design took place. In 1908, the first commercial marketing organization was created, and marketing research departments began to be created in many of the largest firms at that time (1911 - Curtis Publishing, Y.S. Rubber, Swift and Company, etc.). The creation of these organizations and their activities marked the beginning of scientific publications on marketing, in which attempts were made to form the foundations of marketing as an art of sales management.
In 1926, the National Association of Marketing and Advertising Educators was organized in the USA, on the basis of which the American Society of Marketing was subsequently created, renamed in 1973 into the American Marketing Association (AMA), which today unites about 23 thousand teachers, researchers and representatives of the business world. Somewhat later, similar associations and organizations appeared in Western Europe and Japan. International organizations began to emerge - the European Society for the Study of Marketing and Public Opinion (ESOMAR), the European Academy of Marketing, the International Marketing Federation (IMF).
Since the late 80s - early 90s, there has been a process of globalization of marketing. So, in 1992 in Canber (Australia) an international conference on global marketing was held, which proclaimed: "Marketing is everything."
The term “marketing” originated in the United States at the turn of the 19th and 20th centuries, and marketing has been considered as the leading management function since the 50s.
Scientific and technological progress has had a great influence on the formation of the concept of marketing, providing a huge variety of goods, high rates of their renewal, and effective management of production and marketing.
2. Eras of marketing development
The evolution of marketing fits into the evolution of the development of the management concept, which has gone through the following stages:
1. Production era
Until 1925, most companies, even those operating in the most developed countries of Western Europe and North America, focused mainly on manufacturing. Manufacturers focused on producing high quality products and then looked for people to sell them. During this period, the prevailing opinion was that a good product (having a high physical quality) would be able to sell itself. A manufacturing orientation has set the business philosophy for decades; indeed, the success of a business was often measured only in terms of production achievements. The era of production ended before it even reached its peak, and this happened already at the beginning of the 20th century. This orientation is fully exemplified by Henry Ford's assembly line, which he used to mass-produce cars. The most common attitude to marketing in those years vividly reflects Ford's famous expression: "They (consumers) can have any color (of the car) they want, as long as it remains black." Those years were characterized by a lack of production capacity and active consumer demand. It is easy to understand how much production activities were a priority under such conditions.
The essence of the manufacturing era also captures well a statement made over 100 years ago by philosopher Ralph Waldo Emerson: “If a man writes a better book, gives a better sermon, or builds a better mousetrap than his neighbor, the house is in the forest, people will surely tread a path to its doors. However, a better mousetrap is no guarantee of success, and marketing history shows many huge mistakes that have occurred despite superior mousetrap designs. In fact, over 80% of new products fail. Moreover, inventing the best new product is not enough. It must also satisfy the demands felt in the market. Without it, even with the best engineering, the finest quality product will fail. Remember that even horseless carriages took some time to achieve demand. In the beginning, people were simply afraid of motorized vehicles, which made a lot of noise, raised clouds of dust on muddy roads, got stuck in the mud and interfered with the movement of horses. And the huge speed of 7 miles per hour led to various accidents and other difficulties on the roads. So the early car salesmen had to resort to all sorts of clever marketing tricks to change people's minds about their new product, which eventually worked: people had a clearly felt need for the new product.
2. Sales era
Manufacturing techniques in the United States and Europe became more and more sophisticated, and output grew steadily from the 1920s to the 1950s. Therefore, manufacturers have begun to pay more and more attention to the effective work of sales staff, so that they are more actively looking for consumers of their products. In this era, firms tried to match output to the potential number of consumers who would want it. Sales-oriented companies started on the assumption that consumers would resist buying goods and services that did not seem essential to them, and that the main job of the sales and advertising department was to persuade them to make a purchase.
Although at this time the marketing departments began to emerge from the shadows of production, finance and engineering, they nevertheless usually remained in secondary positions anyway. This is reflected even in the titles of job positions: many senior marketing managers in those years were called sales managers. Here is how this period is described in the history of Pillsbury.
Our flour milling company produces a wide variety of products for the consumer market. We must have a first-class sales organization that can sell all of our products at competitive prices. To help our sales force, we draw on consumer advertising and marketing knowledge. We want our sales representatives and our dealers to have all the necessary tools to enable them to sell all the products of our enterprises.
However, sales are not the only component of marketing. Harvard University marketing professor Theodore Levitt puts it this way: “Marketing is as different from sales as chemistry is from alchemy, astronomy from astrology, chess from checkers.”
3. Age of Marketing
After the Great Depression in the early 1930s, personal income and consumer demand for goods and services skyrocketed, making marketing a much more important role. The survival of the organization required that managers pay the utmost attention to the markets for their products and services. This trend ended with the outbreak of World War II, during which food rationing and shortages of consumer goods were commonplace. However, the war years were only a kind of pause in the overall growing trend in business: there was an increasingly dynamic transition from focusing on products and sales to satisfying consumer needs.
The marketing concept, a major change in management philosophy, can best be explained as a shift from a seller's market, which had many buyers of a limited number of goods and services, to a buyer's market, which offers more goods and services than there are consumers willing to purchase them. The Second World War ended, and the factories stopped producing tanks and ships and returned to the production of consumer products, i.e. to the type of activity that, due to the current situation, ceased at the beginning of 1942.
The emergence of a strong buyer market has created a need for consumer-oriented types of business. Companies now needed to go to the market with their goods and services, and not just produce and sell them. This understanding was the impetus for the emergence of the marketing concept. The formation of this concept and its dominant role in the business dates back to 1952, when General Electric proclaimed a new management philosophy.
The concept puts the marketer at the beginning, not at the end of the production cycle and integrates marketing with every phase of the business. Therefore, marketing, through its research and analysis, shows engineers, designers and manufacturers what the consumer wants in a particular product, what price he is willing to pay for it and where and when he wants to get the product. Therefore, marketing is given the necessary authority in product planning, production planning and inventory control, as well as in sales, distribution and services related to the product.
Marketing is no longer seen as an additional activity carried out after the completion of the production process. On the contrary, marketing begins to play a leading role in product planning. Now marketing and sales are no longer synonymous terms.
A fully developed marketing concept is a company-wide customer orientation aimed at achieving long-term success. It proceeds from the fact that all departments of the organization should contribute to the definition of consumer needs and desires, and then to their satisfaction. Marketers aren't the only ones doing this. Loan officers and product engineers also play important roles. The focus on achieving long-term success is what distinguishes the concept discussed here from the focus on short-term maximum profits. Since the initial assumption of the marketing concept is the long-term existence of the firm, the broad customer orientation of the company in the long run will lead to higher profits than options for management philosophy focused on achieving immediate goals.
Explicit market orientation, i.e. a situation where a company adopts a marketing concept usually contributes to achieving market success and an overall improvement in company performance. It also has a positive impact on the development of new products and the introduction of innovative products. Companies that adopt market-driven strategies are better able to understand consumer experiences, buying habits, and demands. Therefore, these companies can develop products to gain an advantage over competitors and achieve a level of quality that meets customer requirements. Consumers in this case are more willing to accept new products. This is the beginning of consumer driven marketing.
4. Relationship era
The fourth era in the history of marketing emerged in the last decade of the 20th century and continues to this day, into the 21st century. Organizations today are transforming the marketing-era consumer orientation and taking it a step further by placing greater emphasis on establishing and maintaining relationships with both customers and suppliers. This focus reflects a dramatic shift away from the traditional concept of marketing as a simple exchange between buyer and seller. Relationship marketing, unlike the past approach, is built on long-term and evolving relationships between buyers and suppliers over time, adding value to both parties. Strategic alliances and partnerships between manufacturers, retailers, and suppliers usually bring benefits to all involved. Ryder System, owner of famous yellow trucks for rent, has formed alliances with companies such as Delphi Automotive, America's largest supplier of automotive parts, and Toyota Tsusho America, which supplies iron, steel and textiles to auto companies. Ryder and Toyota formed a joint venture they called TTR Logistics, with Toyota Tsusho supplying materials and Ryder managing the flow and warehousing of various materials such as plastics and wires. Ryder expects this alliance to generate $22 million in revenue in its first year and hundreds of millions into the future. Participants in a coordinated relationship generate an estimated 25% more sales than firms operating individually. By having a wider reach of potential buyers of their products, they also reduce the risks associated with introducing new types of products to the market.
3. History of marketing development in Russia
There are several periods in the development of Russian marketing.
The first period can be designated as the time interval 1880-1917. At that time there was a rapid development of the industrial potential of Russia on the basis of entrepreneurship. In the practice of Russian entrepreneurship of this period, many elements of marketing were used. In particular, Russian entrepreneurs widely used print and wall advertising, some elements of Public Relations. For example, many industrial exhibitions and fairs were held in Russia (the famous Nizhny Novgorod fair functioned, which determined European prices for a number of goods, for example, grain). Russian entrepreneurs participated in international exhibitions, in particular, the Paris exhibitions, winning prizes. In Russia patronage of entrepreneurs was widely practiced in relation to the social sphere (hospitals, orphanages, etc.), cultural institutions. Russian entrepreneurs pursued a flexible pricing policy and used various elements of sales promotion. In Russia, the industry for the production of packaging products was developed.
The development of the theory and practice of marketing in Russia was almost completely interrupted in 1917. For five years, there was a shortage of almost all goods in the country, and a significant part of industrial capacity was destroyed. It was connected with the First World War, two revolutions of 1917, the civil war. During these years, a rigid distribution system of "war communism" existed in the country.
The third period in the development of Russian marketing lasted from 1922 to 1928. It was associated with the NEP (new economic policy) introduced by V.I. Lenin. In Russia, entrepreneurship began to develop again, which needed the use of marketing. In practical economic activity, elements of marketing were quickly restored. In practical economic activity, elements of marketing that had taken place before the 1917 revolution were quickly restored. There were several scientific organizations dealing with marketing problems, in particular the Market Institute in Moscow.
Since 1929, the development of marketing in Soviet Russia again comes a long break. A strict command and distribution system is being introduced in the country, and a general shortage of goods accompanying it appears. There is no place for marketing in these conditions.
A new stage in the development of Russian marketing began in the late 60s and early 70s and is associated with the so-called "détente of international tension." During this period, the Soviet economy needed the active development of international economic relations for the sale of its products (primarily raw materials and energy consumers) and the purchase of consumer goods and food. The ignorance of the basics of marketing by foreign trade workers in Soviet Russia led to unfortunate failures in foreign trade. This prompted the top leadership of the country to start training domestic specialists who are proficient in marketing, to conduct their own scientific research in this area.
With the beginning of the reforms, M.S. Gorbachev in 1985-1986, a new stage in the development of Russian marketing begins.
First of all, activities in the field of international marketing have intensified. Intermediary firms and commercial companies arose with the share capital of Soviet organizations providing marketing services for the export of various, standard engineering products (cars, electric motors, tractors, etc.).
With the beginning of the transition to the market, the reduction and liquidation of a number of state sources of funding for science, the financial situation of many scientific organizations became simply critical, which caused the rejection of previously made applications.
Difficulties with sales forced the company to engage in market research and marketing of its products.
Most of the research firms providing economic information did not go beyond the areas in which their organizers actually worked. The existing sociological organizations mostly specialized in politicized surveys, and if they took up marketing research, they asked for a disproportionately high price.
To collect the necessary information, it was necessary to conduct a rather expensive field study (questionnaires of potential buyers), during which there were also many difficulties. For example, it was difficult to obtain a list of necessary addresses for mailing survey questionnaires.
In general, it was possible to ascertain the presence of a large deficit of marketing information, both in the field of the market and the consumer goods market. There was so little information about the characteristics of the population, about the trends in its development, that it did not allow predicting changes in demand. The following data had low reliability: on the absolute size of the population and its geographical distribution, on density, mobility, on regional indicators, age and sex distribution, birth and death rates, marriage and divorce, on racial, ethnic, religious structures. The paradox was that it was easier to learn such information about the peoples of other countries than about one's own people.
A somewhat more gratifying picture in the late 1980s was the advertisement. It was during this period that it began to develop rapidly in the domestic market. Advertising has penetrated central and local television and radio, which, along with some central newspapers and weeklies (Izvestiya, Ekonomika i Zhizn, etc.), have become the most important carriers and often creators of advertising materials. Gradually, the experience of professional promotional videos and films, music videos, stories, commercials began to be acquired. However, advertising materials still lacked a lot, especially in the correct orientation to a specific consumer, in taking into account his special requests and opportunities. Another advertising problem was the very high prices for advertising services that existed in broadcasting agencies, which scared off many potential customers.
The authors do not consider it necessary to dwell on the description of the state of other elements of marketing during this period, since there were no significant changes in them. Organizationally, in a number of firms, marketing departments took shape, but in fact they were small advertising divisions.
At the turn of 1992 - 1993, changes took place in the Russian economy, which allow us to speak about the beginning of a new stage in the development of Russian marketing. On the one hand, Russia's macroeconomic indicators continued to deteriorate. But on the other hand, the reforms launched by the government of E. Gaidar led to a qualitatively different nature of economic relations in the Russian economy, and to a situation where marketing becomes necessary for most firms. Of course, the shifts were visible, first of all, in large cities such as Moscow, St. Petersburg, Yekaterinburg, Nizhny Novgorod. Two main factors contributed to the development of marketing - a privatization and falling effective demand. The price liberalization initiated in January 1992 (excluding energy prices) resulted in the devaluation of the monetary savings of the majority of the population. The composite consumer price index for 1992 increased 26 times. About 40% of the population found themselves below the poverty level (on the consumer basket, which includes durable goods) and about 20% below the physiological minimum. Due to this, even with a decrease in production volumes, distribution channels were saturated with goods.
The factor contributing to the saturation of the market was the liberalization of foreign trade. A significant number of goods are imported from abroad, which compete with domestic products. Market saturation was facilitated by the fact that before price liberalization, the population purchased a large number of durable goods for future use and could do without them for several years (2-3 years). Naturally, the privatization process that has begun has aggravated competition. He went especially far in trade. In some cities, up to 60-70% of trade enterprises were quickly privatized. In general, in Russia, at that time, about 55 thousand enterprises were privatized. True, these were mainly small and medium-sized enterprises. As a result of the emerging competition, there was a relative, and even an absolute decline in prices for goods. So, for example, in May-June 1992 (with the tight financial policy of the Gaidar government) in St. Petersburg, potato prices fell by 2 times (from 12 to 6 rubles per kilogram). In 1993, for half a year, prices for chocolate products (albeit, mainly imported) did not change or grew very slightly (1-2%), with an average monthly inflation rate of 30-40%.
All these factors, plus the more real threat of bankruptcy (a presidential decree on bankruptcies was issued), forced enterprises to resort to marketing. First of all, this concerned enterprises producing means of production (investment activity dropped sharply due to galloping inflation) and durable goods. In St. Petersburg, a large number of enterprises were forced to establish a part-time work week due to the fact that goods are not in demand. There was also a closure and re-profiling of a number of trading enterprises selling durable goods (they began to sell food products that are in a more favorable position in terms of demand for them).
In Russia today, marketing activities in one form or another are carried out by manufacturing and service enterprises, project-oriented structures, non-profit organizations, educational and medical institutions, individuals, politicians, celebrities - a variety of subjects of market activity. Thus, the degree of coverage of marketing activities in the country today is quite large, but the depth and directions of development have nothing to do with the countries of Europe and America. Under the "depth" refers to a qualitative characteristic of the distribution of marketing, assessed by the systematic use of marketing, with a sufficiently high level of implementation of individual components (specific marketing tasks).
The directions of marketing development differ from the generally accepted ones due to the objective factors of the transitional economy: the reduction in the volume of commodity production, the low effective demand of the population, the prevailing monopoly nature of production. In our country, the transition to market relations is accompanied not by growth, but by a rapid decline in the production of all types of goods. Marketing in this regard extends to those areas of activity where competition is most developed. Such areas were banking, education, medical and legal practice - mainly the service sector. This largely affected the qualitative characteristics of marketing activities at the stages of its formation, as there was no necessary experience of specialists involved in the production of goods. Like an avalanche that suddenly fell off a mountain, "formless" and impetuous it (marketing) literally swept over the designated areas and just as quickly melted away, leaving no trace.
An analysis of marketing activities in Russia shows that the funds invested in marketing are not used effectively, activities are not controlled, and the consumer, as a result, incurs additional costs. Marketing activity in most cases is carried out haphazardly and sporadically in the form of solving individual marketing tasks, most often associated with the sale of goods, is perceived as a carrier of gross imposition, psychological processing and manipulation of consumer behavior and is rejected due to imperfection.
etc.................

The origins of the development of marketing go back to ancient times, because some marketing elements arose at the moment when the market and commerce appeared, including wholesale and retail trade, mediation.

How marketing has evolved

It should be noted that the wide distribution of trade was one of the key factors in the development of ancient civilizations, and various types of mediation were characteristic of both Ancient Rome and ancient Greece.

Since the emergence of the market, which dates back 6-7 thousand years ago, the initial marketing forms began to actively develop, which are the principles of pricing and advertising. With the social division of labor, products began to be produced for the purpose of exchange through purchase and sale. Interestingly, the first information about advertising is mentioned in the memos of the times of Ancient Egypt and Sumer.

Since the end of the 17th century, marketing activity has taken on an improved form. Historically, certain marketing terms were already in use during this period in England. In turn, such concepts were brought to the American colonies from England. There is also an opinion that Japan represents the birthplace of marketing. Back in 1960, a general store was opened in Tokyo. The owner of the store, Mr. Matsui, focused on the needs of consumers, purchasing only high-demand and high-quality goods, as well as constantly increasing the assortment of the store. According to Peter Drucker, for the first time in history, a business was created with such trading principles.

Stages of marketing evolution:

The modern development of marketing activities should be divided into three stages, in particular:

1. At the first stage, the foundation was laid for the evolution of modern marketing. This stage has one feature, consisting in three sub-periods:

  • 1860-1920- Improving production models against the backdrop of increasing demand over supply, so the main goal of trade was to increase the volume of manufactured goods.
  • 1920-1930- in conditions of successful growth of production volumes, the quality of products that are produced increases. It is worth considering that due to the above changes, the range of products is significantly changing.
  • 1930-1960-supply exceeds demand. For this reason, the development priority began to be to intensify and modernize efforts to commercialize products. Increasing attention began to be paid to the study of behavioral factors in the market, as well as modeling consumer behavior.

2. The second stage begins in the 1950s and 1960s, when a new qualitative turn in economic development emerges. After successfully overcoming the difficulties of an economic nature, marketing activities began to be distinguished by a focus on consumer needs. Since the beginning of this stage, marketing has become a larger process than planning within firms. A consumer market was formed, the main feature of which was the excess of supply over consumer demand. It should be noted that Cyrus McCormick was the first to recognize the uniqueness of marketing influence as one of the central activities of any firm. In this regard, the main task of the manager was to work with a wide range of existing and potential customers.

3. The third stage is the cardinal transformation of modern business, where marketing has become its main philosophy and an effective means by which it is possible to carry out competent communication between the company and consumers.

The evolution of marketing is characterized by unique changes that were carried out at each of the stages, creating a whole complex systemic activity from a trading tool.

Plan

1.1. The purpose, objectives and content of the discipline "Marketing in construction".

1.2. Brief history of marketing development.

1.3. Essence, purpose, tasks and basic concepts of marketing in construction.

1.3.1. Essence, purpose and tasks.

1.3.2. Basic concepts.

1.4. Basic principles and functions of marketing in construction.

Literature.

1.1. The purpose, objectives and content of the discipline "Marketing in construction"

With the transition to a market economy of enterprises and organizations, a number of problems have arisen related to the market, both in their economic activities and in solving social issues. The scope of the market covers the labor market, securities, construction products, goods, services. The production itself in market conditions, supply, demand, the price of a product are closely related, and the successful operation of an enterprise depends on knowledge and the correct concept of market processes, the ability to organize market activities. All these issues can be solved by marketing, which covers all aspects of the economic activity of construction organizations (planning, organization, management of construction production, financing, supplies, research and development work, etc.).

The purpose of studying the discipline: the formation of modern views and special knowledge in the field of marketing among student managers, the acquisition of practical skills aimed at increased demand in the construction products market, taking into account the satisfaction of needs and ensuring the effective operation of the enterprise.

Course objective: familiarization of students-managers with the practical skills of conducting marketing research, developing a marketing plan, the organizational structure of the marketing service and the functional responsibilities of managerial personnel in the industry, etc.

The discipline provides for the study of the problems of industry marketing at all stages of the life cycle of building products. Particular attention is paid to the basics of a comprehensive market research, the system of trading in construction and pricing policy, investment and a comprehensive analysis of marketing research in construction.

A Brief History of Marketing Development

The appearance of marketing elements dates back to the middle of the 17th century. Its first principles were applied in Japan. In 1650, a member of the Mitsui family (now a well-known firm) opened a department store-style store in Tokyo that systematized and used information about the needs of customers. Based on this information, goods were made that were in high demand. When buying a product, the consumer was given a guarantee, during which, in the case of a poor-quality product, the buyer could return the product and receive a refund.



The creation of the main marketing tools - market research and analysis, pricing principles, organization of a service policy, dates back to the end of the 19th century and is associated with the name of the American Cyrus McCornick. Since 1902, in the US universities - Michigan, California and others, disciplines have been introduced and lectures have been given on the course "Marketing of goods", "Methods of marketing", etc.

Between 1910 and 1925 marketing began to penetrate into production, into business, for which purpose departments for market research were created at firms. There are publications on the formation of the foundations of marketing and sales management, and this concept of marketing is characterized as a production one.

The disadvantage of this concept was that it proceeded and obeyed the original principle: “I make and then I sell” and did not take into account the needs of the consumer, which changed over time. The concept, the so-called commodity concept, which arose again in the 20s and 30s of the 20th century, focused on the quality of products and was aimed at improving the consumer properties of the goods.

The generally accepted concept of marketing was formed in the mid-1950s, and marketing began to be seen as the implementation of various types of economic activities that direct the flow of goods and services from the producer to the final or intermediate consumer. In general, this period is characterized as a marketing concept, where the main question is solved: “How to sell the goods?”.



In 1960, Jerome McCarthy proposed the "four P" model, which explained the essence and content of marketing. The model identified four main elements of marketing: product (product), price (prace), sales (place), advertising, promotion (promotion).

Marketing institutes and associations began to organize themselves, which were engaged in marketing research, the formation and development of marketing organizational structures. During this period, marketing began to be considered as a system of views and practices, the development and implementation of the principles of strategic marketing began, the main task of which is the possibility of marketing products with certain consumer characteristics that give the company an economic advantage over competitors.

In the 70s of the XX century, marketing became widespread, and in the 80s it covered the entire service sector. By the end of the 70s of the last century in England, more than 500 firms carried out market research, and in the USA there were more than 350 marketing research firms, an extensive network of schools and various courses was created at associations, universities and other universities. This stage was called traditional.

In subsequent years, marketing activities are aimed at meeting the needs and requirements of target markets, taking into account the savings of labor, material and other resources, as well as environmental protection. A complex of marketing studies of social and economic consequences of the production and consumption of manufactured products is being carried out. This concept is called social - ethical marketing.

The modern concept of interaction marketing is the most progressive, both for the consumer, the manufacturer, and for society and business partners. It provides for meeting the needs of consumers, the interests of partners and the state, in the process of their commercial and non-commercial interaction and has found application in many advanced foreign countries.

The concept of marketing was also used in the former USSR. Already in the 70s, marketing research was carried out, when the demand for most goods exceeded supply, and when it was necessary to constantly improve production in order to increase production volumes. Even then, advertising and promotion were used; more than 100 market research agencies were organized, etc. In 1990, a marketing association was organized in the USSR.

Currently, in Ukraine, in many industrial enterprises and construction organizations, marketing services have been created and exist. In higher educational institutions, faculties and departments of marketing have been created and are working, which train specialists for managers - economists, engineers and engineers - economists. Every year, the number of scientific publications and scientific papers that characterize industry-specific marketing problems is growing, and a wide network of communication and information support has been developed.

In 1997, the Ukrainian Marketing Association was created on a voluntary basis. It carries out its activities in accordance with the Charter and the Code of Ethics of the Association. More than 100 enterprises, organizations, consulting firms, advertising agencies and others are members of the Association. Today, more than 20 non-state firms are engaged in marketing research.

At the same time, most Ukrainian enterprises use only separate disparate marketing tools, and not a marketing mix system - a mix; there is no marketing policy aimed at specific consumer problems. It is still a practice to sell what is produced by the enterprise and what they have become accustomed to over the years. Today, the formation of a marketing system is taking place at Ukrainian enterprises, which is associated with a number of problems, including:

The small number of personnel involved in marketing activities, as well as the lack of marketing services in many enterprises and organizations;

Lack of experienced, highly qualified marketers;

Lack of necessary interaction between the marketing service and other departments of the enterprise due to their failure to recognize the leading role of the marketing department in system research, as a result of which the latter is carried out separately;

Poor training of business leaders in marketing activities;

Lack of proper domestic experience compared to foreign marketers, etc.

Conducted scientific research and world practice of the evolution of marketing concepts by periods are characterized by the leading idea, tools and main goal, which are shown in table 1.1.

Table 1.1

The evolution of marketing concepts

years Concept Leading idea Basic Toolkit the main objective
1860-1920 Production I produce what I can cost, performance Production improvement, sales growth, profit maximization
1920-1930 Commodity Production of quality goods Commodity policy Improvement of consumer properties of goods
1930-1950 Marketing Development of a sales network of distribution channels Sales policy Intensification of sales of goods due to marketing efforts to promote and sell goods
1960-1980 Traditional marketing I produce what the consumer needs Marketing-mix complex, consumer research Meeting the needs of consumers in target markets
1980-1985 Socio-ethical marketing I produce what the consumer needs, taking into account the requirements of society Marketing-mix complex, the study of social and environmental impacts from the production and consumption of manufactured goods and services Meeting the needs of the needs of target markets, subject to saving human, material, energy and other resources, environmental protection
1995-200_ Interaction Marketing I produce what satisfies consumers and business partners Methods of coordination, integration and network analysis, modeling, marketing mix complex Meeting the needs of consumers, the interests of partners and the state, in the process of their commercial and non-commercial interaction

As we can see, marketing has gone through several stages in its development. World science and practice in the field of marketing and entrepreneurship has substantiated and recommends highlighting the following marketing concepts: production, commodity, sales, traditional, social - ethical marketing, interaction marketing(Fig. 1.1).

The history of marketing is much older than it might seem at first glance. The origins of marketing should be sought in the social division of labor, since it is the fundamental basis of commodity production, i.e. In a broad sense, the tasks of marketing are to determine and satisfy human and social needs.


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