Marketing Evolution: Stages, Concepts, and Competitive Analysis

History of Marketing

Marketing Stages of Economic Development

1. Economic Self-Sufficiency: Early stage group self-sufficiency; needs met within the family/group; sharing existed.
2. Primitive Communism: Union of families, land, and work-sharing community.
3. Barter of Merchandise: Distribution of economic assets—the base for marketing.
4. Local Market: Increased trade; birth of merchant trade players: producer, consumer, distributor.
5. Monetary Economy: Problems with different values in barter; conceptual patterns of property value established using metals: copper, gold, silver, bronze.
6. Primitive Capitalism: Concept of profit born; ideal: to generate greater benefits; trade runs a greater diversity of products; marketing involves seeking customers, markets, and transportation.
7. Mass Production: Business development, improved production systems; the marketing administration profession is born, organizing the estates, men, machines, materials, and money for Maximum Performance of resources invested. Competitive prices change, and uncertainty among producers appears.
8. Prosperous Society: Basic needs met, surplus money and knowledge to compete in society. Birth of market research: What is needed? Quality? Quantity? What can I afford for the product or service?

The Birth of Modern Marketing (1920)

Marks and packaging became necessary to communicate with the purchaser. Advertising was needed to stimulate sales and create preferences. Merchandising and promotions were born to generate sales.

What is Marketing?

Marketing is a discipline that identifies and understands consumer requirements and creates solutions, obtaining the best value.

Peter Drucker on Marketing Mentality

Peter Drucker stated: "The company was sold before it produced (the mentality of production)... The company today must produce what the market needs (the modern marketing mentality)."

Marketing Operational Mix (The 6 Ps)

The operational marketing mix, often referred to as the 6 Ps, includes:

• Product
• Price
• Place (Distribution)
• Promotion
• People
• Physical Evidence

Benchmarking and Strategic Planning

Benchmarking: Continuous assessment of products, services, and business processes; learning from others; a problem-solving process to improve the organization.

Utility: Compilation of information sources for strategic planning and business ideas, allowing for powerful business thinking.

Types of Benchmarking

• Internal: Activities in different sites, departments, etc.
• Competitive: Direct competitors selling to the same client. Objective: Information obtained allows knowing the key to the success of the competition.
• Functional: Organizations accredited for having the most advanced processes.

Competitive Market Forces Analysis

1. Identification and Analysis of Suppliers

1. Identification of suppliers: Number of suppliers for raw materials, production capacity, importance for us and for them (negotiating skills), Value, Price, Quality. (Requires SWOT Analysis).
2. Classification of strategic suppliers.
3. Identify bargaining power.
4. Identify integration possibilities.

2. Client Analysis and Classification

1. Identify Customers: Customer Ranking, Evolution.
2. Classification of customers.
3. Identify customers involving 20% to 80% of sales (Pareto Principle).
4. Identify bargaining power.
5. Identify vertical integration capacity.

3. Substitute Products

Products with a different technology can perform the same function or satisfy the same need. The degree of substitutability depends on the quality at which it satisfies the need.

• Identify substitute products.
• Classify according to their ability to replace.
• Identify their competitive advantages.
• Make permanent monitoring.

4. Industry Barriers

• Barriers to Entry: Hinder the entry of new competitors into the market, such as: Capital, Legal, Technological, Political, Contacts.
• Exit Barriers: Make it difficult to exit from the market, such as: Capital, Legal, Contracts, Technology, Policy.

5. Direct Competition Analysis

1. Identification of competition: Product Portfolio, Market share, Turnover, Production capacity, Distribution channels, Coverage, Marketing Investment/Budget, Business with customers and supplier capacity vs. our company.
2. Analysis of the competition's SWOT.
3. Identification of their strategy.
4. Define competitive advantage.
5. Permanent monitoring.