Although some marketing practices are as old as the earliest trades, some refers that modern marketing concept have its roots since the late XIX/early XX century with the evolvement of mass market in United States (Baker and Saren 2010 p.4; Powell 1910 in Ludicke 2006 p.3; Ludicke 2006 p.3; O’Shaughnessy 1990 p. 3). Indeed, as began to surface a strong competitivity between small local farmers to reach the larger market distribution against institutionalized entities during the production era (Ludicke 2006 p.3), marketing has since then become a subject of undergoing intense study (Powell 1910, Butler 1917 et al in Ludicke 2006 p.3), reexamined and revised over the course of time coinciding with economic growth and development (Baker and Saren 2010 p.4). This is furthermore true as marketing have a great role to the economic dynamism dawson p67
Its discipline evolvement led however to emerge several marketing concepts, thus, extending its nature and scope, adding complexity to its meaning and leading to confusion of what marketing is.
Thus, a sight of marketing evolution can significantly clarify what marketing is but most importantly what it does, and which is best understood through its core essence and theories on which marketing concept is founded (Baker and Saren 2010 p.XVI).
First, it shall be noted that today, marketing can be distinguished from two different perspectives; (1) marketing as a managerial function (2) marketing as a societal process (Kotler 1999 p.4, Ohio State University 1965 in Hunt 2010 p.8).
Although these two aspects are quite different, they still share a dominate objective: to meet and deliver both human and social needs and wants (Kotler 1999 p.1-4). However, the major contrast between these two lies in their respective core function; Marketing as a societal process aims to construct a freely (Kotler 1999 p.4) “exchange process” (Kotler and Zaltman 1971 p.4; Newman 1993 p.8) between individuals and/or groups thus, product and services are referred as “values” (Kotler and Levy 1972 in Hunt 2010 p.10) and oppositely, marketing core function have for aim to sell (products and/or services) directed to turn it into profitability (Kotler 1999 p.1), even more so that is needed or wanted (Drucker 1973 in Kotler 1999 p.4), thus in this sense, marketing is characterized as an “art of selling products” (in Kotler 1999 p.1-4).
Indeed, as it origins indicates, marketing is referred as a business discipline (in Kotler and Zaltman 1971 p.4) for profit-oriented organizations, built though business activities and processes (American Marketing Association 1985 in Hunt p.8) for the greatest purpose of market “transaction” (Luck 1969 in Hunt 2010 p.8-9) involving the exchange of money, goods and/or services between a producer/seller and consumer/buyer (in Kotler and Zaltman 1971 p.4) and which it process is only feasible when both or more parties that are involve are “able to carry communication and distribution” (Kotler and Zaltman p.4). Thus, marketing envelops several concepts, among others being (1) production concept; established through a mass, inexpensive and efficient production of goods or services distributed in a large-scale (2) product concept; focused on creating best quality and innovative products/services on the market and improved them overtime (3) selling concept; focus on aggressive sells through using high promotion tools strategies (Kotler 1999 p.11-12).
However, over time and more precisely in the 60’s, marketing had been observed to be practiced and beneficial as well for nonbusiness/nonprofit oriented organizations (Kotler and Levy 1969 in Hunt 2010 p.8) and so, marketing can no longer be defined solely through activities of transportation, buying and selling (Lavidge 1970 in Hunt 2010 p.9) for ultimate goal and concern for market “transaction”. Although some had been resilient to extend marketing concept from fear that it could bring further irrelevancy and unpracticality for marketing practitioners (Luck 1969 in Hunt p.9, Dawson 1971 p.66), other found reason that marketing should be defined in a more inclusive way (Kotler 1972 in Hunt 2010 p.9-10). Indeed, as marketing core essence remain as “transaction” and “exchange process” (Kotler and Zaltman 1971 p.4; Newman 1993 p.8), this one commented to lie therefore on “general idea of exchange” (Kotler and Levy 1969 in Hunt 2010 p.9) of “value” (Kotler 1972 in Hunt 2010 p.9-10) (including: functional value, monetary value, social value, and psychological value) primarily “concerned with how transactions are created, stimulated, facilitated, and valued” (Kotler 1972 in Hunt 2010 p.9-10). In truth, at that time in the United States appeared new product policies and growing consumer’s conscience and consciousness toward the environment thus noticed changes in consumer buying behavior, bringing no other choice for organizations and marketers to compel and adjust with these changes to their organizational philosophy and marketing process, oriented now toward consumers for the sake of the organizations’ survival (Dawson 1971 p.67-68). This is when marketing management process and concept comes into greater play, defined as “analyzing, planning, implementation and control of program designed to bring about desired exchange with target audiences for the purpose of personal or mutual gain… relies heavily on adaptation and coordination of product, price, promotion and place for achieving effective response” (in Kotler and Zaltman 1971 p. 4). marketing management performs therefore a major instrument to marketing and business operational tasks, helping to reach marketing’s goal and lower significantly financial and investments risks that business organizations take whenever they introduce a new product or service in the market (Kotler and Zaltman 1971 p.4). Consequently, arise two major concepts in the modern marketing concept both further adjacent to marketing management concept: (4) marketing concept and (5) Societal Marketing.
Thus today, many define marketing core essence as “the establishment of mutually satisfying exchange relationships” (Baker and Saren 2010 p.3) partially due as well by cause that the “exchange” had been claimed to be only feasible when both or more involved parties have each “something to exchange, and able to carry communication and distribution” (Kotler and Zaltman p.4). (SHEMA)
Table 1: Transaction Exchange Marketing System
Source: Kottler 1999 p.5
While each of the two concepts continues to pursue profitability and/or organizations objectives (for both profit oriented and nonprofit organization and public organization), marketing concept contractionary to selling concept, aim to do so, by applying a customer-oriented approach ingrained in the business philosophy reached through creating, delivering and communicating customer “value” better so than competitors (Kottler 1999 p.12): “Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer” (Levitt 1960 in Kotler 1999 p.12).
For the reason that company’s sales (or fundraising for the case of nonprofit organizations) come from both acquired costumers (customer attraction) and most importantly loyal once (customer retention) (Sellers 1986 in Kottler 1999 p.12-13). Consequently, organizations that use it business orientation must; (1) identified target market (2) fit and satisfy their needs (stated, real, unstated, delight, secret needs) by addressing to fill stated needs (responsive marketing), fulfilling near-future needs (anticipating marketing) and/or creating a solution through a product or service to a once unknown problem or inconvenience before it became available to the market (creative marketing) (Kotler 1999 p.12) (3) use an integrated marketing approach, that is for all departments’ work and tasks’ to be evenly coordinate and align with the organization’s mission stated above. For that, the organization must firstly use all marketing tactics set by its respective department which embrace all marketing functions throughout diverse occupations, professions and practices (such as pricing, sales management, distribution, retailing, advertising, market research, wholesale management, distribution management, packaging, marketing management, retail management, consumer behavior, international marketing, brand equity, relationship marketing etc.) (O’Shaughnessy 1990 p. 3; Kottler 1999 p.13; hunt 2010 p.55) and which must be grasped and mirrored by all other departments: “Marketing is far too important to be left only to the marketing department!” – Packard (in Kottler 1999 p.13). further, as costumer’s entire experience with the organization influence their attitudes and satisfaction toward the organization, it is therefore crucial for companies to use both external marketing and must importantly internal marketing tactics (Kottler 1999 p.13). Organization that truly imply costumer-orientation as their business philosophy rotates the traditional company’s organization at 90-degree; putting customers on top followed by employees having direct contact with them (Kottler 1999 p.13).