Vocabulary
Industrial revolution | The process of change from an agrarian and handicraft economy to one dominated by industry and machine manufacturing. |
Digital revolution | The shift from mechanical and analog electronic technology to digital electronics which began in the latter half of the 20th century |
Advent | The fact of an event happening, an invention being made, or a person arriving |
Standardization | The process of making something conform to a standard |
Customized | Modified to suit a particular individual or task |
Comprehension questions
What has the 21st century should be thankful for?
What was the start point of the industrial revolution?
What was the organizational hierarchy of the industrial revolution?
What have companies taken advantage of in the industrial revolution?
What has the digital revolution helped companies with?
What makes marketing an art?
What should marketing people do in a business market, compared to the global market?
What is the marketing philosophy?
What is the glocal approach?
Article
The 21st century has seen the advent of the new economy, thanks to technological innovation and development. To understand the new economy, it is important to understand in brief the characteristics and features of the old economy.
The industrial revolution was the start point of the old economy with a focus on producing massive quantities of standardized products. This mass product was important for cost reduction and satisfying a large consumer base, as production increased companies expanded into new markets across geographical areas. The old economy had an organizational hierarchy where top management gave out instructions which were executed by the middle manager over the workers.
In contrast, the new economy has seen buying power at all times thanks to the digital revolution. Consumers have access to all types of information for products and services. Furthermore, standardization has been replaced by more customization with a dramatic increase in terms of product offering. Purchase experience has also changed as well with the introduction of online purchases, which can be done 24 × 7 with products getting delivered at the office or home.
Companies have also taken advantage of the information available and are designing more efficient marketing programs across consumers as well as the distribution channel. The Digital revolution has increased the speed of communication mobile, e-mail SMS, etc. This helps companies take faster decisions and implement strategies more swiftly.
Marketing is the art of developing, advertising, and distributing goods and services to consumers as well as businesses. However, marketing is not just limited to goods and services it is extended to everything from places to ideas and in between. This brings forth many challenges within which marketing people have to take strategic decisions. And the answer to these challenges depends on the market the company is catering to, for consumer market decisions are with respect to the product, packaging, and distribution channel.
For the business market, knowledge and awareness of products are very essential for marketing people as businesses are on the lookout to maintain or establish a credential in their respective market. For the global market, marketing people have to consider not only cultural diversity but also be careful with respect to international trade laws, trade agreements, and regulatory requirements of the individual markets. For not-for-profit organizations with limited budgets, importance is related to the pricing of products, so companies have to design and sell products accordingly.
The marketing philosophy employed by any given company has to be a mix of organization interest, consumer interest, and societal interest. In production philosophy, companies focus is on numbers, high production count, which reduces the cost per unit and along with mass distribution. This kind of concept is usually making sense in a developing market where there is the need for products in large numbers.
The product philosophy talks about consumers who are willing to pay an extra premium for high quality and reliable performance, so companies focus on producing well-made products.
The selling concept believes in pushing consumers into buying products, which under normal circumstances, they would be resistant to. The marketing concept believes in consumer satisfaction, thereby developing and selling products keeping the focus solely on customer needs and wants.
The customer philosophy believes in the creation of customized products, wherein products are designed looking at the historical transactions of consumers.
The last philosophy is the societal concept which believes in developing products, which not only generate consumer satisfaction but also take into account well being of society or the environment.
The Digital Revolution and the 21st century have made companies fine-tune the way they conduct their business. One major trend observed is the need for streamlining processes and systems with a focus on cost reduction through outsourcing. Another trend observed in companies is an encouragement to entrepreneur style of work environment with the glocal (global-local) approach. At the same time, marketers of companies are looking forward to building long-term relationships with consumers. This relationship establishes a platform for understanding consumer needs and preferences. Marketers are looking at distribution channels as partners in business and not as customers. Companies and marketers are making decisions using various computer-simulated models.
Source:
https://www.britannica.com/event/Industrial-Revolution
https://en.wikipedia.org/wiki/Digital_Revolution
https://penpoin.com/marketing-philosophy/
https://www.managementstudyguide.com/marketing-for-21st-century.htm