evolution of marketing
TRANSCRIPT
TERM PAPER
On
EVOLUTION OF MARKETING: COMPARATIVE STUDY OF
TRADITIONAL AND MODERN MARKETING STRATEGIES
By
CHITRANSH SAXENA
MBA (General)
AUD 2387
Under the guidance of
Dr. Rajneesh Mishra
January-2015
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Abstract
This report mode0ls about the traditional marketing strategies and modern marketing
strategies. Advertising can be said as an old development as it is available from the time
of Ancient Greece. There is a vicinity of rivalry between individuals to move or offer
items speediest. It can be contrasted with an idiom " Survival of the fittest". Individual
dependably tries to win over others as a rule and this idea can be effortlessly identified
with the same idea.
Choosing appropriate marketing strategy is very important for any company to
sustain.We have also discussed the impact of modern marketing strategies on products
and organizations. This report shows how the foundation of marketing was laid and how
it was carried further and moreover, this report gives the information about about the
evolution of marketing, traditional and modern marketing strategies and needs of modern
marketing techniques in this competitive world.
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ContentsIntroduction..........................................................................................................................4
Benefits of Marketing......................................................................................................5
Era’s of Marketing...............................................................................................................6
Evolution of Marketing Strategies.......................................................................................9
Modern Marketing Techniques and its Influence on markets...........................................12
Cause Marketing............................................................................................................12
Event Marketing.............................................................................................................13
Freebie Marketing:.........................................................................................................13
To boost up the sales of a new launched product many at times kiosks is set up and
they provide some freebies and additional discounts on the products...........................13
Digital marketing...........................................................................................................13
Online Advertising.........................................................................................................13
Email Marketing.........................................................................................................13
Cloud Marketing:.......................................................................................................14
Search Engine marketing............................................................................................14
Social media marketing..............................................................................................15
Content marketing......................................................................................................16
Mobile Marketing..........................................................................................................17
Conclusion.........................................................................................................................20
References..........................................................................................................................21
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Introduction
Marketing is the process of offering service or an item to clients by conveying service or
value of that particular item.
From a social point of view, advertising is the association between an overall population's
requirements and its monetary illustrations of response. Showcasing satisfies these needs
and helps building long term associations. Advertising blends craftsmanship and
connected science, (for example, behavioral sciences) and makes utilization of data
innovation.
As the study of marketing methodologies the half- century mark, it is both fascinating
and beneficial to audit its improvement and to watch a percentage of the early impacts
which served to shape its course. Such impacts were differed and were both target and
subjective in nature. Proof of more target variables is found in the actuality the structure
and substance of promoting thought have generally reflected the way of the pre-
overwhelming advertising issues.
Advertising can be said as an old development as it is available from the time of Ancient
Greece. There is a vicinity of rivalry between individuals to move or offer items
speediest. It can be contrasted with an idiom " Survival of the fittest". Individual
dependably tries to win over others as a rule and this idea can be effortlessly identified
with the same idea.
Choosing appropriate marketing strategy is very important for any company to sustain.
There are several steps which help in understanding the marketing strategy needed by the
company:
4
Figure 1 Steps for Understanding of marketing strategy
Benefits of Marketing:1. To enhance the image of the organization
2. Helps in launching a new product
3. Increase number of customers
4. Generate more sales.
5
Era’s of MarketingThere was a requirement for the headway in innovation and systems of promoting
utilized by a few organizations to expand the offers of an item that is precisely created by
one's competitor. There were a few real Eras of Marketing.Some of major Era’s are
categorized by Philip Kotler are stated below:
1. Sales Orientation Era
2. Marketing Orientation Era
3. Relationship marketing Era
4. Social Marketing Era
5. Production Era
6. Product Era
We will discuss these Era’s in detail:
1. Production Era:This Era is one of the most seasoned Era's. In this Era as per Kotler, customers
supported those items that were accessible in colossal amounts yet requiring little
to no effort furthermore the items that were promptly accessible. In this way the
supervisors of a few associations that we're creation situated in this Era attempted
to have wide circulation of their items with expanding generation productivity.
2. Products Era:In this Era shoppers put stock in those items having superior and quality, and thus
the advertising chiefs for the most part focused on the prevalence of the items. For
sound promoting items and the creation, both are similarly critical. In these
periods the generation organizations used to outline and production their items
without knowing the requests and need of the clients. The illustrations of such
organizations were a few auto producing organizations and Insurance
organizations that endured enormous misfortune due to this disadvantage. Any
organization ought to dependably understand the current circumstance of the
business and after that item ought to be made in like manner from now and again
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of misfortunes just promoting supervisors are considered in charge of the all the
organization's misfortune.
3. Selling Era:
In this Era it was accepted that on the off chance that you don't advance your
items and in the event that you leave clients to purchase items all alone, then the
client won't purchase quite a bit of your organization's items and consequently
every association must join limited time and forceful offering of their items, i.e.
the one ought to have the capacity to play with the psyches of the client to such a
degree, to the point that client purchases their organizations item. This Era is
focused around the suspicion that all the associations in this Era agrees of all
devices important for advancements and offering of their items. This idea is
rehearsed even now-a-days yet with more animosity. This idea is basically
utilized by those organizations who attempt to offer their own items independent
of the needs of the business.
4. Marketing Era:This Era tested the idea fused by first three Eras. As indicated by this Era
Organizational objectives must be attained if associations are viable in facilitating
and incorporating exercises that arrangements with the fulfillment of the needs of
target markets when contrasted with their rivals. The establishment of sound
promoting is the ideas of showcasing which rests of the accompanying elements:
Customer needs
Target market
Profitability
Integrated Marketing
It takes a shot at the idea of an outside-in point of view, i.e. at first it concentrates
on the needs of the clients and after that it coordinates the exercises that
influences clients lastly benefits are delivered by fulfilling clients by giving items
according to their needs.
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5. Social Marketing Era:
It is the latest Era and it is focused around the idea that the fundamental point of
the associations is to comprehend what are the premiums, needs and the needs of
the target business sector and afterward to furnish with the obliged fulfillment
more effectively than rivals in such a route, to the point that it builds the clients
additionally it ought to be in the public arena's prosperity. According to this idea
there ought to be a harmony between:
1. Public Interest
2. Consumer needs and wants
3. Company profits.
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Evolution of Marketing StrategiesThe period up until around the dot.com air pocket comprised of advertising mediums
that underpinned out-bound type marketing.
1450-1950: Printed Advertisements show up.
1450- Gutenburg imagined portable sort making mass printing workable
surprisingly.
1730's - magazines initially arose as medium of ads. To begin with
American magazine was distributed in 1741 in Philadelphia.
1839- Posters started to be and they got to be popular to the point that they
must be banned on property in London.
1867- Billboards
1920-1949: Introduction of new methods and mediums.
1922- Radio publicizing starts. By 1933, the rate of U.S homes with radio
increased from 0% in 1921 to 55.2% in 1933.
1941- Televisions, initially recorded utilization of TV publicizing. The
primary business for Bulova timekeepers arrived at 4000 TV sets.
1946- Telephones
1956-1972: Marketing Evolved:
In this Era, more doors for advertising were opened by introducing more
mediums.
1954- TV ADS. Television advertisement income surpassed magazines
and radio deals. Radio promotion income dropped by 9%. Television
incomes increased from 5% in 1953 to 16% in 1954.
1972- Print media felt the monetary crush of outbound advancing. Time
Inc. shut down its Life magazine after 36 years, the reason being problems
from TV.
1973-1994:Digital Era was gaining popularity and new technologies emerged:
In this Era, new developing innovations kept on changing the showcasing scene,
empower new types of advertising to increase quality and experienced.
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On April 3, 1973, Motorola specialist Dr. Martin Cooper makes the direct held
cell telephone call.
1981-1985: Computers: IBM Corporation introduced the IBM PC.
In 1984 after the introduction of IBM PC, Apple dispatched its super effective
Macintosh with an epic Super Bowl business. The expense of the advertisement
was around $900000.
1985- Print: Print promoting is made much less demanding with the rise of
desktop, distributed and the PC prompting a blast in print publicizing.
1990-1994: Mobile
2g versatile system progressions go before a blast in the ascent of cell phones One
utilization making ready for future headways like SM informing which landed in
1992. Television dislodged daily papers as the country's biggest commercial
medium.
1990-1998: Aggregate promoting incomes on a high quality TV developed from
$2.1 billion to an expected $8.3 billion.
Web and Spam: In April 1994, Phoenix law office focus and Seigel publicize their
administrations by posting a message on a few thousand newsgroups. This is
likely the initially computerized expansive scale business case of spam. It is
likewise the occurrence that makes the term well known.
1995-2002: The Bubble:
Amid this period new innovations kept on emerging and get to be embraced by
wide gatherings of people. Cellphones picked up ubiquity and the web turned into
a basic instrument for trade opening the entryways for a blast in showcasing.
1995-1997:
Yahoo internet searcher propelled in 1995 emulated soon after Ask.com in 1997.
These administrations help clients find the data items and administrations they
crave. Number of individuals utilizing the web and looking expanded from 16
million in December 1995 to 70 million in December 1997.
1995-1997: SEO:
The initially recorded utilization of the term " Search Engine Optimization" was
at an interactive media advertising gathering by John Audettes. At this point look
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calculations depend on website admin gave data like metadata, keyword density
and other on page variables. In 1998 Google and MSN web index developed.
Google introduced Page Rank which Google uses to decide how sites are to be
ranked.
1998: Blog develops: Evan Williams and Meg introduced Blogger.com on
August 1999 but it was later taken over by Google in the year 2003.
By mid 2006 50 million web journals existed.
2000: period of inbound marketing:
After the dot.com air pocket blast, web starts to enter another age portrayed by
more prominent attention on data imparting client focused outline and
coordinated effort.
This new pattern prompts purchasers captivating with brands in new days.
Rather than just pushing, promoting at buyers online the profits of Creating
quality for clients and acquiring their business starts to grab hold.
2003-2001: Social Media Begins:
Telemarketing:
Buyers get to be considerably more baffled with intrusive outbound
strategies and see the national don't call Registry executed. 200 million
Americans on the DND list.
2011: Google Palooza:
Google Panda dispatches google+
Phonebooks:
San Francisco bans conveyance of spontaneous Yellow Pages.
Web:
Youngsters at a normal 13.6 hours sitting in front of the TV versus 13.7
hours on the web.
Inbound Marketing:
It costs 62% short of what outbound advertising. Advertisers plan to build
their online networking plan by 64%. In 2012 the crowd of web clients in
U.S will stretch by 3.12%. Now-a-days Digital Marketing is gaining
popularity day by day.
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Modern Marketing Techniques and its Influence
on markets
To reach more number of customers through several outlets different strategies are
being used. In this Hi-speed age of information, for any kind of business to
comprehend, several branches of marketing are necessary. Some of them are listed
below:
Cause Marketing
This concept of cause marketing is very successful these days. In this concept of marketing
first the organization decides whom they would like to help in the world and then they
creates such promotions that customers gets attracted towards their company. One of the
example of an organization using this marketing tactic is Toms Shoes. Toms was successful in
increasing the customer base after they provided a free pair of shoes to all the needy people
for every shoe purchased that is made by their customers.
Trends of Cause Marketing are:
1. Crowd Sourced Philantrophy
2. Social enterprise spin-offs
3. Digital Campaigns
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4. Cause Affinity Platforms
Event Marketing:
Events offers the perfect reason for customers to shop and is considered the best way to
drive sales.
Freebie Marketing:
To boost up the sales of a new launched product many at times kiosks is set up and they
provide some freebies and additional discounts on the products
Digital marketing
Digital marketing includes different kinds of advertising done through the
utilization of the Internet. It covers everything from "push" advertising systems
(e.g. Email and texting) to "force" showcasing strategies (e.g. Pay-every click ads
and substance showcasing).
As the Internet keeps on becoming an indispensable part of individuals' lives,
computerized promoting is rapidly transformed into a significant street for each
business looking to flourish today and tomorrow..
Online Advertising
This is the new form of marketing that emerged in the period of 1995.Online marketers
are attempting to seek the attention of the customers by pop-ups or banner ad’s on the
webpage. Gieco, an insurance company uses this marketing strategy in a very effective
manner by just asking about the customers zip code to provide them with instant better
savings options.
1. Email Marketing:This type of marketing is the primary way to connect with their customers in
many business to business marketers.
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2. Cloud Marketing:
This form of marketing uses marketing resources and assets are then bought
online to allow customers to share, develop, modify and use
them. Amazon.com allows its customers to buy movies, Tv shows and digital
books that can be accessed by customer from their online account and on their
digital devices.
3. Search Engine marketing:
Basically main aim of SEM is advancing a site and items that are contained in
those sites. For example Bing,Yahoo, Google to increase the amount of people
visit on the sites. SEO manages upgrading both the inside and outside parts of a
website so as to build its rank on internet searcher pages showing the results.
SEO leads have a business close rate of 14.6%, contrasted with outbound leads of
about 1.7% i.e. from standard mail or print publicizing. Search is the top activity
driver to substance arranged sites, creating generally speaking about four times
the movement of online networking (41% from inquiry, 11% of social).i
An alternate study discovered a much more sensational preference for search,
with organic search giving 40% of all activity and Google alone represented about
36% of visits To B2B sites, while online networking represented only 5% of
traffic.ii
Keyword research looks into just goes in this way: 16% of every day Google
looks, as a rule, have never been seen previously.(Refer Reference i)
Remember when Google initially began "concealing" the definite keywords
utilized as a part of organic search, and guaranteed this would just influence a less
rate of search traffic? It now covers up, as a rule, keyword information for 41% of
all organic searches.iii
6 of 10 associations plan to expand SEO using not long from now. Nearly 1/3rd of
internet searches are based on locations.iv
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As per research data around 77% advertisers say that content marketing has
increased their website activity and 71% advertisers say that it has helped
improve their webpage's positioning in internet search.
Starting 2013, "More than 60% fail to offer a location on their landing page, and
almost half did not give a contact number… 47% were not introduced on Google
Places, and 35% did not have a Bing Local vicinity." v
Remember to streamline features for inquiry. YouTube is the second-biggest
"web index" by volume of quests..vi
Top brands use 41% of funds on display advertising, around 10% on social
networking, 14% on featuring content and 20% on making of a digital marketing
plan.vii
4. Social media marketing
This type of advertising is about outfitting the force of social networking to
advance an item and/or administration. Online networking is used by billions of
people around the world, with primary aim of interfacing individuals who offer
interests promptly makes it a very important part in any online marketing
campaign.
Use of social networking for business has gained much popularity. Around 93%
of advertisers use this technique.
Social networking has arrived at middle age. The quickest developing fragment of
social networking clients is presently grownups matured 45-54%. Of this age
group around 55% have their profiles on more than one social network.
Twitter, Google+, Facebook are the most prevalent interpersonal organizations
with web crawler advertisers. The second-most mainstream level incorporates
LinkedIn, YouTube. The minimum well known real systems are Flickr, Tumblr
and Stumbleupon.
Advertisers aren't similar to ordinary individuals. While 86% of promoting
experts have "liked" no less than 1 brand on Facebook. Also the crevice is
significantly more interesting on Twitter, where 61% of advertisers yet only 12%
of buyers take after no less than one brand.viii
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Only 12% of people confess to having their buys impacted by Facebook "Likes".ix
By January 2013, the five biggest informal organizations focused around month to
month clients were: Facebook (1 billion), Google+ (343 million) and YouTube
(800 million) took after by Twitter and Linkedin with 200 million dynamic month
to month clients each. Large number of clients that falls under 35 years of age
buys any item after getting any suggestion from an online campanion.
3/4th of advertisers are planning to increase their attempts to perform online
networking, with 68% additionally concentrating all the more on SEO and 63%
on web journals.(Refer Reference v)
54% of customers say that "littler groups have a more prominent impact on a
point than bigger ones." (Refer Reference vii)
89% of corporate marketers are fundamentally more inclined to use "free" online
networking apparatuses. 70% of brand advertisers view online networking
publicizing as most critical for building brand image than for driving prompt
response.x
5. Content marketing
This technique of marketing gives a noteworthy piece of the same describing
norms of inbound promoting. Many scholars have given their views on what
actually is Content Marketing, yet fundamentally it moves around the concept that
the most perfect methodology to force in surprising leads and change them into a
committed customer base is to make persuading content that revels about their
interests.
Extraordinary content can be anything like infographics, articles or features. If content
marketing is combined with social networking then it can have tremendous effects.
According to 45% of marketers, content marketing has reduced their publicizing
expenses. 70% of advertisers say that Content marketing has helped in increasing
image of the brand while 59% trust that content marketing backs deal
development; and 45% say it has lessened their publicizing expenses.xi
Content creation is the most effective SEO strategy as per 92% of SEO
specialists, and 76% routinely put resources into content creation.Advertisers
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invest the vast majority of their time delivering blog entries, article and aides,
online networking overhauls, e-newsletters, and news discharges; they use the
minimum on podcasts, surveys and studies.xii
While 90% of organizations are occupied with some manifestation of content
marketing only 36% accept their endeavors are exceptionally powerful.xiii
Pictures are (imperative!) content as well: 94% more aggregate perspectives
generally speaking are pulled in by content containing convincing pictures than
content without pictures. Utilizing photographs gives an increase of 14% in news
discharge online visits and an increase of 37% in Facebook engagement. (Refer
Reference x)
Mobile Marketing
These days, everyone has smart phones. Organizations use smart phones as a medium for
marketing purposes. Mobile marketing provides the customers with ideas, services,
information about promotional goods and much more.
5% of all web searches a year ago was made on cell phones. Mobiles are used by
more than 25% of all web clients in U.S. More than 75% (77%) of portable clients
utilize their cell phones and tablets for seeking and long range interpersonal
communication. (Refer Reference iv)
While portable advertising is in no way, shape or form irrelevant, it may not
advocate a remarkable consideration it gets. Advertisers have a distorted
perspective of the business in light of the fact that while 90% of marketing experts
own cell phones, however a large portion of customers do. Keeping in mind 41%
of advertising experts says they have made a buy focused around data on
Facebook and only 12% of purchasers without smartphones have done so.
Disregard the application, simply utilize email. 33% of shoppers say that to build
loyalty among customers email is the best way. Then again, 23% of promoting
masters accept that custom applications are best at dedication building; only 7%
of buyers concur. (Refer Reference viii)
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When asked to marketers about their marketing strategy in 2013, the biggest rate
of advertisers (82%) were willing to concentrate on mobile promoting rather than
magazines and newspaper advertisements. (Refer Reference v)
B2B marketing
The Demands become more complex in cases where marketing is done from one business
to another. Marketers require lots of educating to take guarantee that the solutions given
by them is the best solution for prospects.
There are additionally diverse purchaser roles that need to be considered, so that it suits
their changing viewpoints. Other essential includes customer business group associations
and the intrinsic length of buying cycles that impact how a B2B association examines the
adequacy of its advertising crusades.
53% of B2B purchasers look after social talks about sellers they are considering.
(Refer Reference i)
Google represents 90% of search activity to b2b sites.Normal transformation rates
for distinctive sorts of B2B internet activity are:
For Email = 2.89%
Generally = 1.60%;
For referral visits = 1.04%
For direct visits = 1.65%;
For paid search = 1.96%;
For social networking = 1.22% (Refer Reference iii)
The greatest difficulties for content promoters of B2B? 64% fail to deliver content
required, while just over a large portion of (52%) finds generation of
"captivating" content as a challange. (Refer Reference iv)
Facebook, Twitter and LinkedIn are some of the mediums used by more than 80%
of B2B marketers. While 61% makes use of YouTube and 39% advertisers use
Google+. The channels that are used very rarely are Instagram,Foursquare,
Instagram, Quora and Tumblr. (Refer Reference xiii)
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Internet search records for, by and large, 41% of the movement to B2B
sites.Online networking, conversely, supplies about 2% of more hits however
nearly 5% of its leads. Facebook represents 54% of the B2B website online
networking visits; Twitter, then again, gives 82% of social leads. (Refer
Reference v)
ConclusionAdvertising can be said as an old development as it is available from the time of Ancient
Greece. There is a vicinity of rivalry between individuals to move or offer items faster. It
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can be contrasted with an idiom " Survival of the fittest". Individual dependably tries to
win over others as a rule and this idea can be effortlessly identified with the same idea.
Choosing appropriate marketing strategy is very important for any company to sustain. In
this term paper, we came to know about different types of marketing strategies that were
used several years back and marketing strategies that are used now-a-days. We also learnt
about the history of marketing and how marketing strategies evolved with time.
Marketing was started by advertisements in newspapers and now digital marketing and
online marketing are some of the ways of marketing. Strategies used these days have
increased the sales and have a positive impact on the organization. Therefore, it can be
said that new marketing strategies has helped organizations and its products to gain
popularity and increase the profits when compared to the old marketing strategies.
This is the reason many of the organizations have already adopted modern marketing
strategies and many organizations are working to implement these modern techniques of
marketing.
Hence we can say that modern marketing strategies are much better in every aspect when
compared to traditional ways of marketing.
References
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