Changing Marketing Paradigms : Issue and Challenges
Ravindra, Raghav Mishra, Parijat Singh
Marketing is a "social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others." It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
Marketing is used to create the customer, to keep the customer and to satisfy the customer. With the customer as the focus of its activities, it can be concluded that marketing management is one of the major components of business management. The evolution of marketing was caused due to mature markets and overcapacities in the last decades. Companies then shifted the focus from production more to the customer in order to stay profitable.
The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
A marketing paradigm defines the way marketing is being done by means of a set of procedures and attitudes.
The traditional marketing paradigm
Although marketing may have the same age as civilization itself, when talking about modern marketing as an applied art, the 1960s and 70s must be considered the beginning, in consumer markets where relatively low-valued products were sold to mass markets using mass media. Determining first the customers’ needs, and producing after that a product or service able to satisfy these needs were the most important aspects of the marketing theory based on the fact that the firm's strategic decisions were driven by customer expectations. Along the years this fundament has suffered many changes and even different names, among which there are: marketing orientation, customer driven, the marketing philosophy, customer intimacy, customer focus, and market driven.
The evolution of marketing seen as a discipline also suffered many changes such as: shifts from mass marketing to segmented marketing to mass customization; actions of including industrial markets (based on the concepts of "long-term marketing relationships", "micro segmentation", and "buying centers"), electronic markets (based on the concept of "personalized marketing"), and channel management (based on the concepts of "supply chain marketing programs" and "distributor marketing programs").
New marketing paradigms
A new perspective on marketing was felt as necessary since 1980s, when a group of theorists considered this gradual evolution as no longer pertinent, considering marketing as an established discipline ripe for a paradigm shift. Their perspective is often related to relationship marketing, customer experience management, or network marketing. For relationship marketers a complete revamping of the discipline is necessary, due to the shift from single transaction marketing to long-term relationship marketing. Their option is denied by the customer experience marketers who disagree with relationship marketers' dependence on customer relationship management software, which caused them to lose focus of the individual customer's experience of the service encounter. Network marketers bring a new view pointing out the interconnectedness of market actors and transactions, being seen as the application of systems thinking to marketing.
Any of these views bring great contribution to marketing, even if a gradual evolution, or a radical paradigm shift may be related more to factors associated with the individual's psyche than to any objective or...
Please join StudyMode to read the full document