Question

Explain any two stages of marketing.

Describe the first two stages of marketing.

Discuss various stages of marketing.

Answer 1

1. Production-Oriented stage (1869-1930): In this stage, the motto was to 'sell what can be produced.' There was acute shortage of goods and there was no need to create demand. Product was the focus of attention and communication with the buyer was not needed. Products were manufactured on the assumption that customers would search and buy well-built and reasonably priced products. This was based on Say's Law: 'Supply creates its own demand.' It was believed that customers were capable of selecting products from among the competing brands. The firms that follow the production stage make efforts to make their products in expensive and widely available through mass production and mass distribution.
2. Sales-oriented stage (1930-1950): The Great Depression resulted in a situation that questioned the thinking/strategy of business firms. Drastic changes in buying habits and behaviour of consumers, technological advancements in transportation and communication and growth of corporate form of organisation also changed the thinking. The focus shifted from production to selling. How to sell became a problem and the new motto was to 'get rid of what you have'. Producers began to realise that consumers will not buy enough unless they are approached with substantial selling and promotional efforts. The focus was on increasing sales rather than on consumer satisfaction. Demand outstripped supply and it was still a seller's market. Thus, the sales-oriented stage was characterised by hard selling.
3. Product-oriented stage (1950-1960): In this stage, marketers believed that customers will buy the product if its quality was good. Therefore, the focus shifted from promotion to product improvement. Firms made efforts to improve product features and performance. However, overemphasis on product quality may overlook other aspects which influence satisfaction of consumers. This has been called marketing myopia which means short sightedness.
4. Marketing-oriented stage (1960-1980): Emergence of keen competition and consumer awareness forced producers to rethink over the philosophy of marketing. They realised that business policies and programmes should be built around the goal of customer satisfaction. Management should think of itself not as producing products but as providing value satisfaction to customers. The aim of marketing should be to know and understand the customer so well that the product or service fits him and sells itself.
5. Social marketing stage (1980-...): With growing population, poverty, pollution and resource shortages, the marketing concept was expanded to include social welfare. Under the societal marketing concept, firms are expected to ascertain the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the well-being of not only the consumers but of the society as a whole.