Question

Explain any two stages in the evolution of marketing.

Answer 1

1. Production-oriented Stage (1869-1930):
   1. In this stage, the motto was to 'sell what can be produced.' There was an acute shortage of goods, and there was no need to create demand.
   2. The product was the focus of attention, and communication with the buyer was not needed. Products were manufactured on the assumption that customers would search and buy well-built and reasonably priced products.
   3. This was based on Say's Law. 'Supply creates its own demand.' It was believed that customers were capable of selecting products from among the competing brands.
   4. The firms that follow the production stage make efforts to make their products inexpensive and widely available through mass production and mass distribution.
   5. In this stage, production and engineering departments shaped the company's goals and strategy. Marketing was dependent on production capacity, and marketing consisted of mere distribution. There were no marketing departments. 
2. Sales-oriented Stage (1930-1950):
   1. The Great Depression resulted in a situation that questioned the thinking/strategy of business firms. Drastic changes in buying habits and consumer behaviour, technological advancements in transportation and communication, and the growth of corporate organisations have also changed thinking.
   2. The focus shifted from production to selling. How to sell became a problem, and the new motto was to 'get rid of what you have'. Producers began to realise that consumers will not buy enough unless approached with substantial selling and promotional efforts.
   3. The focus was on increasing sales rather than on consumer satisfaction. Demand outstripped supply, and it was still a seller's market. Thus, the sales-oriented stage was characterised by hard selling. In the process of aggressive selling, unscrupulous practices occurred.
   4. Salesmanship was the focus of marketing activities because products could not be sold without an effective sales force. The customer's importance was realised but only as a means of disposing of the goods produced. The selling philosophy is still used in insurance, charity fundraising and other unsought products/ideas.