The Essence of Marketing
The modern marketing concept would appear to have undergone at least 3 major phases of evolution
The Emergence of Mass Market
The Articulation of the Modern Marketing Concept
The Transit from an emphasis upon the transaction to the relationship
The term theory can be used to refer to a set of propositions
Hunt 1991 - states that the purpose of theory is to increase scientific understanding through a systematized structure capable of both explaining and predicting phenomena
Theory of Reason Action (1975) - pepple are rational and when faced with a choice they will decide based on a product which will have the most cost benefit and suitable reason.
Theory of Planned Behaviour - include behaviour in areas where we have degree of control
Technology Accepted Model (Davies) - used the principle of TRA and TPB and applied it with technology
Michael Halbert
Theoretical Rules are a prerequisite for learning
Practitioners need theory in order to make better decisions
Marketers cannot rely on borrowing from other disciples
One must distinguish between 3 classes of borrowing:
- Of content (presents few problems)
- Adaptation of techniques and methods from other subjects
- Borrowing of theories and concepts from other disciplines which is dangerous at best and larceny at worst.
Practical Value of Marketing Theories (according to Kotler)
Practical Value - better theories will improve managerial decision making and problem solving.
Knowledge Creation - theory provides direction and structure to academic inquiry and helps make sense of the facts.
Academic Status - marketing as an academic discipline requires its own theory. It cannot rely on borrowing from other disciplines.
Intellectual Curiosity - only theory can provide the basis for understanding how the marketing system works and explain the underlying foundations and forces.
Lack of Impact on Practice
Marketing knowledge development, model building and theorizing has had little impact on the practice of marketing.
Heffring (1985) gives 3 broad explanations
Marketing theories reflect the realities of the buildre, not the user.
Marketing theory provides complex answers to marketing problems.
Marketing theories may be logically correct but practically incorrect
Maslow's Hierarchy of Needs
conceives of human needs as resting on a foundation of physiological needs, essential to existence, and ascending through a series of levels (safety, love and esteem) to a state of self-actualization in which individual's specification of a need is entirely self-determined.
One can only ascend to a higher level once one has satisfied the needs of a lower level, and the inference may be drawn that scarcity would only cease to exist once every individual has attained the highest level of self-actualization.
Rastow's Stages of Economic Growth
Proposes that human societies progress from the lowest level of subsistence/survival in a series of clearly identified stages until they achieve the sophistication and affluence of the moden post-industrial state.
A fundamental law of economics is that beyond a certain point each additional unit of any good or service becomes worth progressively less and less to its owners
In order that those with services to exchange can be brought together it will be helpful to set aside a specific place for the purpose - market
One needs an accepted store of value that will act as a universal medium of exchange - money
Marketing is a separated task from production it will further increase productivity and add value if specialist intermediaries - merchants and retailers - come into existence to perform these functions.
The creation of markets and the development of exchange provides preconditions for take off
"... take-off consists, in essence, of the achievement of rapid growth in a limited number of sectors, where modern industries techniques are applied"
Evolution of Theory in Marketing
Marketing Definition
Marketing is concerned with the identification, creation and maintenance of mutually satisfying relationships
It is the process of exchange between individuals and/or organisations which is concluded to the mutual benefit and satisfaction of the parties.
Marketing and its guardians continue to foster its open and innovative cutlure.
A single definition is not aimed for, as its existence would probably discourage future development of the subject.
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