Charting the Course: Marketing Foundations
Evolution of the Marketing Orientation
The perception of an organization’s role in society and its relationships with customers has evolved significantly over time. From a marketing perspective, this is known as the evolution of the marketing orientation[1] or philosophy. This evolution occurred in distinct stages, reflecting broader societal changes. Below is a detailed overview of these stages.
Examples
Evolution of the Marketing Concept
| Stage | Definition | Era | Examples |
|---|---|---|---|
| Production Orientation | This orientation focuses on high production efficiency and wide distribution. The belief is that consumers prioritize availability and affordability over specific product features. | This approach was prevalent during the Industrial Revolution, when mass production became possible due to technological advancements. | Henry Ford’s Model T is a classic example of production orientation. Ford focused on producing affordable cars for the masses, emphasizing efficiency and cost reduction. |
| Product Orientation | Product orientation emphasizes the quality and innovation of the product itself. The assumption is that consumers will favour products that offer the best quality or features. | This approach gained prominence in the early to mid-20th century, as competition increased, and consumers began to have more choices. | The luxury watch manufacturer Rolex is known for its emphasis on craftsmanship, precision, and the technical capabilities of its timepieces, rather than focusing on specific customer needs or market trends. |
| Sales Orientation | Sales orientation revolves around aggressive sales techniques and advertising to persuade consumers to buy products. The focus is on selling what the company produces rather than meeting consumer needs. | This approach became common in the mid-20th century, as markets became saturated, and competition intensified. | Door-to-door sales, multilevel marketing (MLM), and telemarketing are typical of a sales orientation, where the emphasis is on convincing consumers to purchase products. |
| Marketing Orientation | Marketing orientation focuses on understanding and meeting the needs and wants of consumers. It involves market research and tailoring products to consumer preferences. | This approach emerged in the latter half of the 20th century, as businesses recognized the importance of customer satisfaction for long-term success. | Amazon’s marketing approach is centred around understanding customer buying behaviour and preferences, and then using that information to provide highly personalized recommendations and offers. |
| Societal/Holistic Marketing Orientation | Societal marketing orientation considers not only customer needs but also the long-term interests of society and the environment. | This is a contemporary approach that reflects the interconnected nature of modern business environments. | Patagonia is known for its commitment to environmental sustainability and social responsibility. Their marketing efforts highlight their use of eco-friendly materials, their support for various environmental causes, and their efforts to promote a more sustainable lifestyle. |
These stages illustrate how marketing strategies have evolved to become more customer-centric and socially responsible, reflecting broader changes in consumer expectations and business practices. Ethical business practices are now commonly expected by consumers and are often regulated by governments. We will examine sustainable and responsible marketing in more detail later in Chapter 9.
- Albrecht, M.G., Green, M., & Hoffman, L. (2023). Evolution of the marketing concept. In Principles of Marketing. OpenStax. https://openstax.org/books/principles-marketing/pages/1-4-evolution-of-the-marketing-concept ↵
The evolution of an organization's approach to marketing, progressing from production-centric to customer-centric and societal-focused approaches.
A marketing orientation that balances customer satisfaction, company profits, and societal well-being.
