Globalized Marketing Development - Coursework Example

of THE SOCIAL ROLE AND FUNCTION OF MARKETING HAS FUNDAMENTALLY CHANGED DURING THE LAST FIFTY YEARS Introduction During the last fifty years, a lot of changes have taken place not alone in the world economic system, but also in the field of marketing. Since globalization has steeped in, competition has intensified and due to this every other day technological advancements are seen. While in the marketing world, every day new marketing strategies are emerging within the business operations so that companies can create benchmark and attain higher market share. But the basic concept of Marketing still remains the same, i.e. it plays a vital component in the prosperity of organizations. Further, companies still believe that it is such an activity that holds value to the society, because consumers actually pay for the marketing costs of their goods purchased. It is not only creating brand loyalty within the organization but it is also helping companies in production, distribution and in promotion of their product. The new strategies that businesses are using today are not only helping in creating demand and market share for the organizations but they also encourage sales, influence behaviors, and attract new customers. Changes in Marketing History When we look at the history or timeline of marketing alone, we come to the understanding that marketing has existed long time back since the pre-industrial age. In this age marketing and advertising were in their early time periods and they were just appearing. Even though there was not much need of marketing because products were produced and sold in small quantities. But it was during this time that First advertisement was printed in 1942, after Johannes Gutenberg printing press invention. Since then marketing and advertising took new form and gained popularity world wide. The role and function of marketing in this era was very limited because in this age uniform products were produced in masses, there was not much variety and products were similar and in bulk. But still marketing and advertising played a contribution by helping organizations cater a large market and a bigger target audience (Arens, 2004). This was the production-orientation stage, where behavior patterns among the individuals changed and they started to buy more, resulting in excess of demand for goods over supply of goods. Companies’ main emphasis was to produce in bulk and they emphasized on internal operations, efficiency and cost control. Marketing had not much emerged in this stage because companies believed that if the quality of the product was good then market of the product would be definitely certain (Etzal, Walker & Stanson, 2007). Then later in the industrial age, marketing took a new phase because now the commodity market became more saturated and inexpensive consumer, luxury and convenience goods developed. New strategies emerged in marketing as now companies started to believe in branding and thus heavy national brand advertising started. In this era/ age the marketing role and function changed as It gave rise to scientific advertising and advertising in radio also emerged within this era. Concepts such as product differentiation, unique selling proposition, market segmentation, and positioning strategies were the most common and popular strategies during this era (Arens, 2004). In the industrial stage, the focus changed from production oriented to sales oriented. Now, companies’ motives changed and their efforts shifted from manufacturing goods to selling (Etzal, Walker & Stanson, 2007). But after 1980, the post industrial age competition enhanced and market-oriented stage appeared. In this stage, companies started to value customers a lot and thus, those products were being produced that were demanded by the general public. This gave rise to customization, high valued and high quality goods, low cost and efficient production (Etzal, Walker & Stanson, 2007). But on the same side it also gave rise to aggressive marketing and thus de-marketing appeared. Companies spend millions on marketing and promotions but only some benefited while others got bankrupt. In this age the competition had intensified and thus to remain competitive and to maintain their position in the market place companies used four basic strategic, i.e. defensive, offensive, flanking and guerilla (Arens, 2004). After the post industrial age the global age emerged, i.e. today’s global market. Globalization has heightened the competition leading for some organization success while bankruptcy of others. It has changed the whole scenario of marketing and especially in the last fifty years marketing has set new standards. It is not only benefiting the customers but now have a larger target market and greater target audience with the help of marketing strategies and tactics alone. Some of the new concepts that have emerged during these years are relationship marketing, integrated marketing communication and viral marketing. (Arens, 2004). With the passage of time, new and advances emerged in the field of marketing, now social responsibility and societal factors have emerged within companies concern. This changed has occurred because now the general public is more aware about the societal causes and they value those companies who are socially responsible. Some state that the role and function of marketing during the last fifty years have changed and there has been epochal shift in the marketing. While some state that the function of marketing still remains the same, i.e. selling the product. They are of the view that today companies have adopted different strategies and tactics. Even though, these tactics are different from the previous ones but their core essence in the same i.e. selling the right product to the right customer. They are of the view that marketing is using new methodologies, media, communications and tools but role of marketing still remains the same. Changes In Social Role And Functions Of Marketing During the last fifty years social responsibility and social issues have emerged within the field of marketing. The companies and organizations are trying to become more ethical in their practices and thus are using more social marketing tools in their marketing. Due to this there have been certain most prominent changes, such as growth of nonprofit marketing, rapid globalization, and more ethical & social responsibility. Further, development of media culture has also played a major contribution in the changed role of marketing. Growth Of Nonprofit Marketing Previously marketing was only applied in the business sector but since the last few years marketing is serving many nonprofit organizations as well, such as; schools, hospitals, museums, orchestras, churches and even government. These non profit organizations are adopting this methodology because of rising costs, intense competition, and lower output. Due to this they are using different strategies such as branding, pricing discounts, and advanced services to attract their desired audience. Thus they are conducting a through market research, and thus they are then redesigning their product offerings accordingly. To attract more customers they are also carrying out social marketing campaigns and are developing innovative marketing plans (Kotler & Armstrong, 1997). Rapid Globalization With rapid globalization not only have geographical and cultural distances shrunk but it has allowed companies to expand their market coverage, adopt technical advances, and get benefit of global purchasing and manufacturing services. Due to this, marketing role is now not only limited to a certain target market but now they cater world wide customers. Thus marketers have to cater to all situations and have to be extra careful when they are launching a product international market. They have to keep a close look on the culture, norms and taboos while developing the product till delivering the product. All the stages are critical to the success of businesses because one wrong step can ruin the whole scenario. Thus branding, packaging, promotion, advertisement all should be carefully planned before any implementation takes it in the society (Kotler & Armstrong, 1997). Ethical And Social Responsibility Ethical issues, social responsibility and business ethics has become extremely important in today’s business world. Thus worldwide companies are increasing their standards of environmental responsibility in their marketing activities. Further more, Companies are now trying to create their image as socially responsible companies by getting involved in social activities. Some companies are raising voices for social causes such as Aids, Women rights and others while others are trying to act environmental friendly. Tobacco companies are the biggest example here; they are showing concern for the environment by raising awareness regarding the plantation of trees and pollution in the environment (Kotler & Armstrong, 1997). Change From Mass-Market Oriented To Customization With the passage of time there has also been change in the production process, first there was mass production and the market was dominant with mass-market but today customized goods are demanded. Thus it can be stated that today there is Post-Fordist marketing applied all over the world. According to this theory an economy shifts from mass production to flexible specializations. Further, they use innovative technology, multi-skilled labor force and direct segmentation of product is done. Only the targeted customers are served through demographic, psychographic segmentation and different advertising strategies and tools are used to attract the desired customers instead of mass of customers. Some of the famous international franchises using this theory are McDonalds and Star Bucks. These companies have benefited a lot as their service productions have gained efficiency, their assembly lines improved and their customer services also enhanced. Thus it all resulted in higher profit margin and high sales and revenue for the business (Raine, 2009) Development Of Media Culture During the last fifty years, media has also developed a lot and now marketing and promotions are not just limited to traditional television advertisement but they have advanced to online advertising as well. Now companies are using this media channel to advertise their product and attain international customers. Even though television is still the most highly preferred marketing and advertising median but slowly online advertising is gaining popularity day by day. According to the Interactive Adverting Bureau and PricewaterhouseCoopers internet advertising is booming and companies are spending now more on internet advertising as compared to traditional television advertisement and due to this Tech Advertising revenue reached $ 2.3 billion in the first quarter in 2004. Thus was lead by a growth in old-line brick-and-mortar corporations, AT&T Wireless Services increased 1,262% of the number of online advertisement impressions (Oser, 2004). These online advertisements have access to wider audience but it also builds strong relationships that is promoting personalization and enhances brand recognition. Conclusion With reference to above theories and logics it can be stated that with the passage of time new technologies have emerged and competition has intensified. Thus companies faced a lot of making difficulty to survive in the global hemisphere. They now have to adopt different marketing tactics to create benchmark and gain competitive edge and thus they can only attain this edge when they show differentiation in their activities. Due to this companies have showed and changed their marketing functions and roles and adopt new tactics. Thus it can be stated that social role and function of marketing has fundamentally changed during the last fifty years for a better cause. And those companies that will adopt this change only they will be able to survive otherwise their chances of going out of business are great. REFERENCES Raine, Emily, 2009, Fordism And Post-Fordism In Specialty Café Chain: Machinery And Marketing In Forward-Looking Service Economy, Accessed march, 24 2010 from http://www.avenuejournal.ca/index.php/avenue/article/viewFile/2/3 Oser, Kris, 2004, Internet Advertising Reaches $ 2.3 Billion High; Traditional Marketers Feed Q1 Rebound, Accessed march, 24 2010 from http://goliath.ecnext.com/coms2/gi_0199-408086/Internet-advertising-reaches-2-3.html Kotler, Philip & Armstrong, Gary, 1997, Marketing: An Introduction, Edition 4, Prentice Hall. Etzal, Micheal J, Walker, Bruce J& Stanson, Willaim J, 2007, Marketing, Edition 14th. Arens, William F, 2004, Contemporary Advertising, edition 9th, McGraw Hill. Read More