Question

Describe the first two stages of marketing.

Answer 1

The first two stages of marketing are:

1. Production-oriented Stage (1869–1930):
   1. In this stage, the motto was ‘sell what can be produced’.
   2. There was an acute shortage of goods; there was no need to generate demand.
   3. The product was the center of attention, and communication with the buyer was not needed.
   4. This was based on Say’s Law: ‘Supply creates its own demand’.
   5. The production and engineering departments established the company’s objectives and strategy.
   6. There were no separate marketing departments, just sales departments.
   7. Firms made efforts to make their products affordable and broadly available by mass-producing and distributing.
   8. The philosophy was that buyers would buy things that were inexpensive and easily accessible.
   9. This stage lasted until the Great Depression.
2. Sales-oriented Stage (1930–1950):
   1. The Great Depression impacted buying habits and created a need to strongly sell.
   2. The focus moved from manufacturing to sales, and the new slogan was ‘get rid of what you have’.
   3. Producers understood that consumers would not buy enough unless they were contacted with extensive selling and promotional efforts.
   4. The emphasis was on growing sales rather than customer happiness. This stage was marked by aggressive selling and, on occasion, unethical behaviour.
   5. Salesmanship became the emphasis of marketing efforts.
   6. The customer’s importance was recognised, but only as a means of disposing of the items produced.
   7. The selling mentality is still utilised in insurance, charitable fundraising, and other unpopular products/ideas.