What were the different approaches used in marketing earlier?

There were three marketing approaches used earlier:

a. Production orientation: An organization which focuses on production specializes in producing most of the given services and products without considering the quality.

b. Product orientation: An organization which focuses on product orientation is mainly concerned with the quality of the products.

c. Selling orientation: An organization which uses sales orientation mainly focuses on the selling or promoting a particular product, and not determining new consumer desires as such.

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Former marketing and sales =

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Marketing in its present form traveled a lot of distance guided by different philosophies at different times. Yet, in different countries and in different industries different philosophies are used even now.

Earlier approaches include Production to Product to selling to marketing.

Earlier Approaches:

1. Production Concept:

Focus:

Production orientation .The firm specializes in making production as much as possible of a given product or service. Thus, the firm exploits economies of scale. "Doesn't matter what color car you want, as long as it is black."...A typical quote of Henry Ford during the production era.

When Used:

Demand for a product is greater than supply. A production orientation may be deployed when the demand for a product or service is high coupled with a good certainty that consumer tastes will not rapidly alter.

Objective:

Profit through efficient production methods knowing all output can be sold. Also useful concept when increasing production raises economies of scale etc. to reduce price.

Dominant Era:

From mid-19th century to early 20th Century industrial revolution in the USA, till 1950 in Western Europe and till 1991 in India.

AN Example taken from India:

Bajaj Scooters (waiting period extended 5 years or more) and State- owned telephone services (lightening calls took more than 2 days).

2. Product Concept:

Focus:

On making superior products; "Better-mousetrap" fallacy. The organization feels that it knows its product better than anyone else. The firm knows what will work in designing and producing the product and what will not work. For example, the company may decide to emphasize the low cost or high quality of their products.

This confidence in their ability is not a radical concept, but the confidence leads to the consumer being overlooked. Since the organization has the great knowledge and skill in making the product, the organization also assumes it knows what is best for the consumer.

Most of the time organization falls too much in love with their product that they forgot about other product development, competition and other external factors result in marketing myopia.

When Used:

A firm employing a product orientation is chiefly concerned with the quality of its own product.

Objective:

Profit through quality products. As long as product was of a high standard, people would buy and consume the product. Not only product is of good quality, but price, distribution and promotion too should be good so as to "make & sell".

Dominant Era:

Until the 1960s in the Western Europe.

3. Selling Concept:

Focus:

Selling methods focus on advertising Just selling an already existing product, and using promotion techniques to attain the highest sales possible.

When Used:

When a firm holds dead stock It is useful for unsought goods, i.e., encyclopedias and political candidates.

Objective:

Profit through selling methods selling important, not post consumer satisfaction. No need to determine new consumer desires. The selling philosophy holds that an organization can sell any product it produces with the use of advertising and personal selling. The assumption is that a well-trained and motivated sales force can sell any product.

Dominant Era:

1920's to mid 1930's WWII to early 1950s in the USA and between the 1950s and 1960 in the Western Europe.

4. Marketing Concept:

Focus:

"The customer is king". Determine what the consumer wants, then produce the same and sell the same. Avoid having a dissatisfied customer.

When Used:

Supply is greater than demand.

Objective:

Profit through satisfaction of needs and wants of customers

Dominant Era:

1930's to WWII 1950's to present in the USA and 1970 to present day in the Western Europe.