Contemporary Issues in

Marketing
School of Marketing
Thought
Introduction
Marketing started in the early part of the twentieth
century (between 1900 and 1910) out of questions and
issues neglected by its mother science, economics.

In the early years of study and teaching of trade

practices, the word “marketing” was not used. Instead,
“trade,” “commerce,” and “distribution” were the
common operations of the area to which the term
“marketing” is identified today.
History of Marketing Thought
Marketing history
an investigation into the ways that marketing has
been practiced; and how those practices have evolved
over time as they respond to changing socio-economic
conditions
History of marketing practice

Periodization
Birth of marketing ideas
Traditional schools
Modern schools
Periodization
It’s a history of marketing thought by period of time.
Robert A Bartels in The History of Marketing Thought categorised the
development of marketing theory decade by decade from the
beginning of the 20th century.
One marketing standard chronology subdivides marketing history as
follows:
Production orientation era
Product orientation era
Sales orientation era
Market orientation era
Customer orientation
Relationship orientation
Social/mobile marketing orientation
Positive Word of Mouth generation.
Birth of Marketing ideas

In pre-modern economies, the predominance of

small enterprises militated against the recognition
of marketing as a separate field of expertise.
Changes in the patterns and intensity of economic
activity, as well as the rise of economics as a
science.  Marketing emerged as a separate
technical field only in the late 19th century.
Traditional schools

Traditional authorities on marketing concentrated on

products and on the sale and purchase of goods and
services. They paid little attention to areas like after-
sales service, and devoted even less attention to social
responsibility or to social accountability.
Modern schools

Marketing began to incorporate other fields of

knowledge besides economics, notably behavioral
science, becoming a multidisciplinary field.
For some scholars, Alderson's book marks the
beginning of the Marketing Management Era.
Stages of Marketing Thought
 1900-1910 Period of Discovery of basic concepts and
their exploration.
In the early years, teachers of marketing sought facts about
the distributive trades. The concept of “marketing”
occurred, thus, the terminology was given to it.

1910-1920 Period of Conceptualization, Classification

and Definition of terms.
Many marketing concepts were initially developed. Its
concepts were classified, and terms were defined.

 1920-1930 Period of Integration. Principles of marketing

were postulated, and the general body of thought was
integrated for the first time.
Stages of Marketing Thought
1930-1940 Period of Development, Specialization and
Variation in theory
Specialized areas of marketing continued to be developed,
hypothetical assumptions were verified and quantified, and
some new approaches to the explanation of marketing
knowledge.

1940-1950 Period of Reappraisal. The concept and

traditional explanation of marketing was reappraised in the
light of new demands and a more scientific approach.

1950-1960 Period of Reconception. Traditional

approaches to the study of marketing were supplemented
by managerial decision making, the societal aspects of
marketing, and quantitative marketing analysis.
Stages of Marketing Thought
1960-1970:Period of Differentiation. As marketing
expanded, new concepts took on substantial identity as
significant components of the total structure of thought.
differentiation on bases such as
Managerialism, holism, environmentalism, systems,
and internationalism.

1970: Period of Socialization. Social issues and

marketing became much more important. It is the
influence not of society upon marketing, but of marketing
upon society that became a focus of interest. the
adaptation of marketing to social change
Schools of Marketing Thoughts
We can define a school of marketing thought as:
substantial body of knowledge;
developed by a number of scholars; and
describing at least one aspect of the what, how, who,
why, when and where of performing marketing
activities.
Schools of Marketing Thoughts
Sheth et al. (1988) tried to label & categorize different
schools of thought to improve the understanding of
marketing’s evolution.
They identified 12 different schools and 4 different
categories.
Schools of Marketing Thoughts
Schools Questions Focus of analysis Key concepts &
addresses theories
Marketing What Marketing Value added by
Functions activities/function Middlemen marketing
s comprise activities
marketing?
Marketing How are different Trade flows, types Classification of
commodities types of goods of goods goods
classified & related •Industrial &
to different types consumer
of marketing •Products &
activities? services
•Convenience,
shopping &
specialty
Schools of Marketing Thoughts
Schools Question Focus of analysis Key concepts &
Addressed theories

Marketing Who performs Retailers, •Market gaps &

Institutions marketing wholesalers, flows
functions on middlemen, •Parallel systems
commodities? Channels of •Sorts &
distribution transformation
•Depots
•Conflicts &
cooperation
•Postponement

Marketing How should Seller, suppliers •Marketing mix

management managers market •Customer
good to customers? orientation
•Segmentation,
targeting &
positioning
 Schools of Marketing Thoughts
Schools Question Addressed Focus of analysis Key concepts &
theories
Marketing What is a marketing •Firms & •Interrelationships
systems system? Why does it households between parts &
exist? •Channels of whole
How do they work? distribution •Unity of thought
Who performs •Aggregate •Societal impact
marketing work? marketing systems

Consumer behavior Why do consumers •Business buying •Subconscious

buy? How? How do •Consumer buying motivation
people think, feel? •Rational &
How can they be emotional
persuaded? motivation
•Needs & wants
 Schools of Marketing Thoughts
Schools Question Focus of analysis Key concepts &
Addressed theories
Macro How do marketing •Industries •Standard of living
Marketing systems impact •Consumer •Quality of life
society & how movement •Aggregate
society impacts •Public policy marketing
marketing systems? •Economic performance
development

Exchange What are the forms •Aggregation of •Strategic & routine

of exchange? Who buyers & sellers in transactions
are the parties to channels •Social, economic &
exchange? How •Firms & market exchange
does market households •Barter & market
exchange differ transactions
from other forms of
exchange?
Evolution of marketing & Emergence
of New Marketing Thoughts
Marketing 1.0, 2.0, 3.0
Marketing 1.0 > The Product Centric Era
 Marketing was concidered mere sellign, An art of persuasion, and even
Cheating.
Marketing 2.0 > The Customer Centric Era
 The product value is defined by the customers. It is a must for the
marketers to identify the unfulfilled needs & wants and convert them
into profitable opportunities.
Marketing 3.0 > The Human Centric Era
 customers will be treated as human beings who are active, anxious, &
creative. They will request more participation in value creation.
Comparison of Marketing 1.0, 2.0, 3.0