Marketing Lecture 1
Lecture tips
Read the textbook and journal articles
Make notes on them and bring them to the lecture
Do the seminar exercise
Practice writing under pressure
The development of marketing thought
The history of human development
Living in villages
Small parts of specialisation develop
Expertise
Efficiency
Normally specialisation is inherited, i.e. making tools, building shelter
Not really a marketing problem to be solved
No distribution problems as everybody lives together
Specialisation gets better from generation to generation
Surplus resource
So efficient, that you are producing more than needed so you start looking for exchange beyond the village
Opportunities for trade are beginning
This continues seeing the development of the silk route
To allow trade to work we need a currency
Isaac Newton working in the royal mint, purified the British currency and allowed It to be reliable for a third of the world
Industrial revolution
The invention of machines for production and mechanisation of agriculture
Less workers are required for the agriculture sector
New workers provide labour force for new factories
Leading to cities
Now this creates problems for the agriculture sector, i.e. you can make a lot but there is nowhere to sell them
Factory owners are also considered to be inventors, they thought about the means of production and inventions, which leads to new marketing problems:
Where to sell the goods
What pitch should they use
How much to charge
Sense of entrepreneurs, making decisions to make business post war
How to think about marketing post WW2
Improvements in technology leads to a decrease in costs
Baby boom leads to an increase in consumer growth
Satisfaction of consumer needs, could produce enough to meet the new consumer demand
The choice of what we produce and satisfying basic needs, the new question is what to produce for who?
4 P’s of marketing
Product
Price
Promotion
Place
These become the essence of the managerial approach to marketing
Implementing a marketing orientation creates the ability to distribute goods, then once we leave the village,