TERM PAPER

On

EVOLUTION OF MARKETING: COMPARATIVE STUDY OF

TRADITIONAL AND MODERN MARKETING STRATEGIES

By

CHITRANSH SAXENA

MBA (General)

AUD 2387

Under the guidance of

Dr. Rajneesh Mishra

January-2015

1

Abstract

This report mode0ls about the traditional marketing strategies and modern marketing

strategies. Advertising can be said as an old development as it is available from the time

of Ancient Greece. There is a vicinity of rivalry between individuals to move or offer

items speediest. It can be contrasted with an idiom " Survival of the fittest". Individual

dependably tries to win over others as a rule and this idea can be effortlessly identified

with the same idea.

Choosing appropriate marketing strategy is very important for any company to

sustain.We have also discussed the impact of modern marketing strategies on products

and organizations. This report shows how the foundation of marketing was laid and how

it was carried further and moreover, this report gives the information about about the

evolution of marketing, traditional and modern marketing strategies and needs of modern

marketing techniques in this competitive world.

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ContentsIntroduction..........................................................................................................................4

Benefits of Marketing......................................................................................................5

Era’s of Marketing...............................................................................................................6

Evolution of Marketing Strategies.......................................................................................9

Modern Marketing Techniques and its Influence on markets...........................................12

Cause Marketing............................................................................................................12

Event Marketing.............................................................................................................13

Freebie Marketing:.........................................................................................................13

To boost up the sales of a new launched product many at times kiosks is set up and

they provide some freebies and additional discounts on the products...........................13

Digital marketing...........................................................................................................13

Online Advertising.........................................................................................................13

Email Marketing.........................................................................................................13

Cloud Marketing:.......................................................................................................14

Search Engine marketing............................................................................................14

Social media marketing..............................................................................................15

Content marketing......................................................................................................16

Mobile Marketing..........................................................................................................17

Conclusion.........................................................................................................................20

References..........................................................................................................................21

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Introduction

Marketing is the process of offering service or an item to clients by conveying service or

value of that particular item.

From a social point of view, advertising is the association between an overall population's

requirements and its monetary illustrations of response. Showcasing satisfies these needs

and helps building long term associations. Advertising blends craftsmanship and

connected science, (for example, behavioral sciences) and makes utilization of data

innovation.

As the study of marketing methodologies the half- century mark, it is both fascinating

and beneficial to audit its improvement and to watch a percentage of the early impacts

which served to shape its course. Such impacts were differed and were both target and

subjective in nature. Proof of more target variables is found in the actuality the structure

and substance of promoting thought have generally reflected the way of the pre-

overwhelming advertising issues.

Advertising can be said as an old development as it is available from the time of Ancient

Greece. There is a vicinity of rivalry between individuals to move or offer items

speediest. It can be contrasted with an idiom " Survival of the fittest". Individual

dependably tries to win over others as a rule and this idea can be effortlessly identified

with the same idea.

Choosing appropriate marketing strategy is very important for any company to sustain.

There are several steps which help in understanding the marketing strategy needed by the

company:

4

Figure 1 Steps for Understanding of marketing strategy

Benefits of Marketing:1. To enhance the image of the organization

2. Helps in launching a new product

3. Increase number of customers

4. Generate more sales.

5

Era’s of MarketingThere was a requirement for the headway in innovation and systems of promoting

utilized by a few organizations to expand the offers of an item that is precisely created by

one's competitor. There were a few real Eras of Marketing.Some of major Era’s are

categorized by Philip Kotler are stated below:

1. Sales Orientation Era

2. Marketing Orientation Era

3. Relationship marketing Era

4. Social Marketing Era

5. Production Era

6. Product Era

We will discuss these Era’s in detail:

1. Production Era:This Era is one of the most seasoned Era's. In this Era as per Kotler, customers

supported those items that were accessible in colossal amounts yet requiring little

to no effort furthermore the items that were promptly accessible. In this way the

supervisors of a few associations that we're creation situated in this Era attempted

to have wide circulation of their items with expanding generation productivity.

2. Products Era:In this Era shoppers put stock in those items having superior and quality, and thus

the advertising chiefs for the most part focused on the prevalence of the items. For

sound promoting items and the creation, both are similarly critical. In these

periods the generation organizations used to outline and production their items

without knowing the requests and need of the clients. The illustrations of such

organizations were a few auto producing organizations and Insurance

organizations that endured enormous misfortune due to this disadvantage. Any

organization ought to dependably understand the current circumstance of the

business and after that item ought to be made in like manner from now and again

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of misfortunes just promoting supervisors are considered in charge of the all the

organization's misfortune.

3. Selling Era:

In this Era it was accepted that on the off chance that you don't advance your

items and in the event that you leave clients to purchase items all alone, then the

client won't purchase quite a bit of your organization's items and consequently

every association must join limited time and forceful offering of their items, i.e.

the one ought to have the capacity to play with the psyches of the client to such a

degree, to the point that client purchases their organizations item. This Era is

focused around the suspicion that all the associations in this Era agrees of all

devices important for advancements and offering of their items. This idea is

rehearsed even now-a-days yet with more animosity. This idea is basically

utilized by those organizations who attempt to offer their own items independent

of the needs of the business.

4. Marketing Era:This Era tested the idea fused by first three Eras. As indicated by this Era

Organizational objectives must be attained if associations are viable in facilitating

and incorporating exercises that arrangements with the fulfillment of the needs of

target markets when contrasted with their rivals. The establishment of sound

promoting is the ideas of showcasing which rests of the accompanying elements:

Customer needs

Target market

Profitability

Integrated Marketing

It takes a shot at the idea of an outside-in point of view, i.e. at first it concentrates

on the needs of the clients and after that it coordinates the exercises that

influences clients lastly benefits are delivered by fulfilling clients by giving items

according to their needs.

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5. Social Marketing Era:

It is the latest Era and it is focused around the idea that the fundamental point of

the associations is to comprehend what are the premiums, needs and the needs of

the target business sector and afterward to furnish with the obliged fulfillment

more effectively than rivals in such a route, to the point that it builds the clients

additionally it ought to be in the public arena's prosperity. According to this idea

there ought to be a harmony between:

1. Public Interest

2. Consumer needs and wants

3. Company profits.

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Evolution of Marketing StrategiesThe period up until around the dot.com air pocket comprised of advertising mediums

that underpinned out-bound type marketing.

1450-1950: Printed Advertisements show up.

1450- Gutenburg imagined portable sort making mass printing workable

surprisingly.

1730's - magazines initially arose as medium of ads. To begin with

American magazine was distributed in 1741 in Philadelphia.

1839- Posters started to be and they got to be popular to the point that they

must be banned on property in London.

1867- Billboards

1920-1949: Introduction of new methods and mediums.

1922- Radio publicizing starts. By 1933, the rate of U.S homes with radio

increased from 0% in 1921 to 55.2% in 1933.

1941- Televisions, initially recorded utilization of TV publicizing. The

primary business for Bulova timekeepers arrived at 4000 TV sets.

1946- Telephones

1956-1972: Marketing Evolved:

In this Era, more doors for advertising were opened by introducing more

mediums.

1954- TV ADS. Television advertisement income surpassed magazines

and radio deals. Radio promotion income dropped by 9%. Television

incomes increased from 5% in 1953 to 16% in 1954.

1972- Print media felt the monetary crush of outbound advancing. Time

Inc. shut down its Life magazine after 36 years, the reason being problems

from TV.

1973-1994:Digital Era was gaining popularity and new technologies emerged:

In this Era, new developing innovations kept on changing the showcasing scene,

empower new types of advertising to increase quality and experienced.

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On April 3, 1973, Motorola specialist Dr. Martin Cooper makes the direct held

cell telephone call.

1981-1985: Computers: IBM Corporation introduced the IBM PC.

In 1984 after the introduction of IBM PC, Apple dispatched its super effective

Macintosh with an epic Super Bowl business. The expense of the advertisement

was around $900000.

1985- Print: Print promoting is made much less demanding with the rise of

desktop, distributed and the PC prompting a blast in print publicizing.

1990-1994: Mobile

2g versatile system progressions go before a blast in the ascent of cell phones One

utilization making ready for future headways like SM informing which landed in

1992. Television dislodged daily papers as the country's biggest commercial

medium.

1990-1998: Aggregate promoting incomes on a high quality TV developed from

$2.1 billion to an expected $8.3 billion.

Web and Spam: In April 1994, Phoenix law office focus and Seigel publicize their

administrations by posting a message on a few thousand newsgroups. This is

likely the initially computerized expansive scale business case of spam. It is

likewise the occurrence that makes the term well known.

1995-2002: The Bubble:

Amid this period new innovations kept on emerging and get to be embraced by

wide gatherings of people. Cellphones picked up ubiquity and the web turned into

a basic instrument for trade opening the entryways for a blast in showcasing.

1995-1997:

Yahoo internet searcher propelled in 1995 emulated soon after Ask.com in 1997.

These administrations help clients find the data items and administrations they

crave. Number of individuals utilizing the web and looking expanded from 16

million in December 1995 to 70 million in December 1997.

1995-1997: SEO:

The initially recorded utilization of the term " Search Engine Optimization" was

at an interactive media advertising gathering by John Audettes. At this point look

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calculations depend on website admin gave data like metadata, keyword density

and other on page variables. In 1998 Google and MSN web index developed.

Google introduced Page Rank which Google uses to decide how sites are to be

ranked.

1998: Blog develops: Evan Williams and Meg introduced Blogger.com on

August 1999 but it was later taken over by Google in the year 2003.

By mid 2006 50 million web journals existed.

2000: period of inbound marketing:

After the dot.com air pocket blast, web starts to enter another age portrayed by

more prominent attention on data imparting client focused outline and

coordinated effort.

This new pattern prompts purchasers captivating with brands in new days.

Rather than just pushing, promoting at buyers online the profits of Creating

quality for clients and acquiring their business starts to grab hold.

2003-2001: Social Media Begins:

Telemarketing:

Buyers get to be considerably more baffled with intrusive outbound

strategies and see the national don't call Registry executed. 200 million

Americans on the DND list.

2011: Google Palooza:

Google Panda dispatches google+

Phonebooks:

San Francisco bans conveyance of spontaneous Yellow Pages.

Web:

Youngsters at a normal 13.6 hours sitting in front of the TV versus 13.7

hours on the web.

Inbound Marketing:

It costs 62% short of what outbound advertising. Advertisers plan to build

their online networking plan by 64%. In 2012 the crowd of web clients in

U.S will stretch by 3.12%. Now-a-days Digital Marketing is gaining

popularity day by day.

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Modern Marketing Techniques and its Influence

on markets

To reach more number of customers through several outlets different strategies are

being used. In this Hi-speed age of information, for any kind of business to

comprehend, several branches of marketing are necessary. Some of them are listed

below:

Cause Marketing

This concept of cause marketing is very successful these days. In this concept of marketing

first the organization decides whom they would like to help in the world and then they

creates such promotions that customers gets attracted towards their company. One of the

example of an organization using this marketing tactic is Toms Shoes. Toms was successful in

increasing the customer base after they provided a free pair of shoes to all the needy people

for every shoe purchased that is made by their customers.

Trends of Cause Marketing are:

1. Crowd Sourced Philantrophy

2. Social enterprise spin-offs

3. Digital Campaigns

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4. Cause Affinity Platforms

Event Marketing:

Events offers the perfect reason for customers to shop and is considered the best way to

drive sales.

Freebie Marketing:

To boost up the sales of a new launched product many at times kiosks is set up and they

provide some freebies and additional discounts on the products

Digital marketing

Digital marketing includes different kinds of advertising done through the

utilization of the Internet. It covers everything from "push" advertising systems

(e.g. Email and texting) to "force" showcasing strategies (e.g. Pay-every click ads

and substance showcasing).

As the Internet keeps on becoming an indispensable part of individuals' lives,

computerized promoting is rapidly transformed into a significant street for each

business looking to flourish today and tomorrow..

Online Advertising

This is the new form of marketing that emerged in the period of 1995.Online marketers

are attempting to seek the attention of the customers by pop-ups or banner ad’s on the

webpage. Gieco, an insurance company uses this marketing strategy in a very effective

manner by just asking about the customers zip code to provide them with instant better

savings options.

1. Email Marketing:This type of marketing is the primary way to connect with their customers in

many business to business marketers.

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2. Cloud Marketing:

This form of marketing uses marketing resources and assets are then bought

online to allow customers to share, develop, modify and use

them. Amazon.com allows its customers to buy movies, Tv shows and digital

books that can be accessed by customer from their online account and on their

digital devices.

3. Search Engine marketing:

Basically main aim of SEM is advancing a site and items that are contained in

those sites. For example Bing,Yahoo, Google to increase the amount of people

visit on the sites. SEO manages upgrading both the inside and outside parts of a

website so as to build its rank on internet searcher pages showing the results.

SEO leads have a business close rate of 14.6%, contrasted with outbound leads of

about 1.7% i.e. from standard mail or print publicizing. Search is the top activity

driver to substance arranged sites, creating generally speaking about four times

the movement of online networking (41% from inquiry, 11% of social).i 

An alternate study discovered a much more sensational preference for search,

with organic search giving 40% of all activity and Google alone represented about

36% of visits To B2B sites, while online networking represented only 5% of

traffic.ii

Keyword research looks into just goes in this way: 16% of every day Google

looks, as a rule, have never been seen previously.(Refer Reference i)

Remember when Google initially began "concealing" the definite keywords

utilized as a part of organic search, and guaranteed this would just influence a less

rate of search traffic? It now covers up, as a rule, keyword information for 41% of

all organic searches.iii

6 of 10 associations plan to expand SEO using not long from now. Nearly 1/3rd of

internet searches are based on locations.iv

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As per research data around 77% advertisers say that content marketing has

increased their website activity and 71% advertisers say that it has helped

improve their webpage's positioning in internet search.

Starting 2013, "More than 60% fail to offer a location on their landing page, and

almost half did not give a contact number… 47% were not introduced on Google

Places, and 35% did not have a Bing Local vicinity." v

Remember to streamline features for inquiry. YouTube is the second-biggest

"web index" by volume of quests..vi

Top brands use 41% of funds on display advertising, around 10% on social

networking, 14% on featuring content and 20% on making of a digital marketing

plan.vii

4. Social media marketing

This type of advertising is about outfitting the force of social networking to

advance an item and/or administration. Online networking is used by billions of

people around the world, with primary aim of interfacing individuals who offer

interests promptly makes it a very important part in any online marketing

campaign.

Use of social networking for business has gained much popularity. Around 93%

of advertisers use this technique.

Social networking has arrived at middle age. The quickest developing fragment of

social networking clients is presently grownups matured 45-54%. Of this age

group around 55% have their profiles on more than one social network.

Twitter, Google+, Facebook are the most prevalent interpersonal organizations

with web crawler advertisers. The second-most mainstream level incorporates

LinkedIn, YouTube. The minimum well known real systems are Flickr, Tumblr

and Stumbleupon.

Advertisers aren't similar to ordinary individuals. While 86% of promoting

experts have "liked" no less than 1 brand on Facebook. Also the crevice is

significantly more interesting on Twitter, where 61% of advertisers yet only 12%

of buyers take after no less than one brand.viii

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Only 12% of people confess to having their buys impacted by Facebook "Likes".ix

By January 2013, the five biggest informal organizations focused around month to

month clients were: Facebook (1 billion), Google+ (343 million) and YouTube

(800 million) took after by Twitter and Linkedin with 200 million dynamic month

to month clients each. Large number of clients that falls under 35 years of age

buys any item after getting any suggestion from an online campanion.

3/4th of advertisers are planning to increase their attempts to perform online

networking, with 68% additionally concentrating all the more on SEO and 63%

on web journals.(Refer Reference v)

54% of customers say that "littler groups have a more prominent impact on a

point than bigger ones." (Refer Reference vii)

89% of corporate marketers are fundamentally more inclined to use "free" online

networking apparatuses. 70% of brand advertisers view online networking

publicizing as most critical for building brand image than for driving prompt

response.x

5. Content marketing

This technique of marketing gives a noteworthy piece of the same describing

norms of inbound promoting. Many scholars have given their views on what

actually is Content Marketing, yet fundamentally it moves around the concept that

the most perfect methodology to force in surprising leads and change them into a

committed customer base is to make persuading content that revels about their

interests.

Extraordinary content can be anything like infographics, articles or features. If content

marketing is combined with social networking then it can have tremendous effects.

According to 45% of marketers, content marketing has reduced their publicizing

expenses. 70% of advertisers say that Content marketing has helped in increasing

image of the brand while 59% trust that content marketing backs deal

development; and 45% say it has lessened their publicizing expenses.xi

Content creation is the most effective SEO strategy as per 92% of SEO

specialists, and 76% routinely put resources into content creation.Advertisers

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invest the vast majority of their time delivering blog entries, article and aides,

online networking overhauls, e-newsletters, and news discharges; they use the

minimum on podcasts, surveys and studies.xii

While 90% of organizations are occupied with some manifestation of content

marketing only 36% accept their endeavors are exceptionally powerful.xiii

Pictures are (imperative!) content as well: 94% more aggregate perspectives

generally speaking are pulled in by content containing convincing pictures than

content without pictures. Utilizing photographs gives an increase of 14% in news

discharge online visits and an increase of 37% in Facebook engagement. (Refer

Reference x)

Mobile Marketing

These days, everyone has smart phones. Organizations use smart phones as a medium for

marketing purposes. Mobile marketing provides the customers with ideas, services,

information about promotional goods and much more.

5% of all web searches a year ago was made on cell phones. Mobiles are used by

more than 25% of all web clients in U.S. More than 75% (77%) of portable clients

utilize their cell phones and tablets for seeking and long range interpersonal

communication. (Refer Reference iv)

While portable advertising is in no way, shape or form irrelevant, it may not

advocate a remarkable consideration it gets. Advertisers have a distorted

perspective of the business in light of the fact that while 90% of marketing experts

own cell phones, however a large portion of customers do. Keeping in mind 41%

of advertising experts says they have made a buy focused around data on

Facebook and only 12% of purchasers without smartphones have done so.

Disregard the application, simply utilize email. 33% of shoppers say that to build

loyalty among customers email is the best way. Then again, 23% of promoting

masters accept that custom applications are best at dedication building; only 7%

of buyers concur. (Refer Reference viii)

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When asked to marketers about their marketing strategy in 2013, the biggest rate

of advertisers (82%) were willing to concentrate on mobile promoting rather than

magazines and newspaper advertisements. (Refer Reference v)

B2B marketing

The Demands become more complex in cases where marketing is done from one business

to another. Marketers require lots of educating to take guarantee that the solutions given

by them is the best solution for prospects.

There are additionally diverse purchaser roles that need to be considered, so that it suits

their changing viewpoints. Other essential includes customer business group associations

and the intrinsic length of buying cycles that impact how a B2B association examines the

adequacy of its advertising crusades.

53% of B2B purchasers look after social talks about sellers they are considering.

(Refer Reference i)

Google represents 90% of search activity to b2b sites.Normal transformation rates

for distinctive sorts of B2B internet activity are:

For Email = 2.89%

Generally = 1.60%;

For referral visits = 1.04%

For direct visits = 1.65%;

For paid search = 1.96%;

For social networking = 1.22% (Refer Reference iii)

The greatest difficulties for content promoters of B2B? 64% fail to deliver content

required, while just over a large portion of (52%) finds generation of

"captivating" content as a challange. (Refer Reference iv)

Facebook, Twitter and LinkedIn are some of the mediums used by more than 80%

of B2B marketers. While 61% makes use of YouTube and 39% advertisers use

Google+. The channels that are used very rarely are Instagram,Foursquare,

Instagram, Quora and Tumblr. (Refer Reference xiii)

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Internet search records for, by and large, 41% of the movement to B2B

sites.Online networking, conversely, supplies about 2% of more hits however

nearly 5% of its leads. Facebook represents 54% of the B2B website online

networking visits; Twitter, then again, gives 82% of social leads. (Refer

Reference v)

ConclusionAdvertising can be said as an old development as it is available from the time of Ancient

Greece. There is a vicinity of rivalry between individuals to move or offer items faster. It

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can be contrasted with an idiom " Survival of the fittest". Individual dependably tries to

win over others as a rule and this idea can be effortlessly identified with the same idea.

Choosing appropriate marketing strategy is very important for any company to sustain. In

this term paper, we came to know about different types of marketing strategies that were

used several years back and marketing strategies that are used now-a-days. We also learnt

about the history of marketing and how marketing strategies evolved with time.

Marketing was started by advertisements in newspapers and now digital marketing and

online marketing are some of the ways of marketing. Strategies used these days have

increased the sales and have a positive impact on the organization. Therefore, it can be

said that new marketing strategies has helped organizations and its products to gain

popularity and increase the profits when compared to the old marketing strategies.

This is the reason many of the organizations have already adopted modern marketing

strategies and many organizations are working to implement these modern techniques of

marketing.

Hence we can say that modern marketing strategies are much better in every aspect when

compared to traditional ways of marketing.

References

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