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FAQ
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Marketing:
In this section you can find answers to some of your
questions about marketing. We have also included a brief history of
Marketing along with Industry Timeline.
What is marketing and how important is it?
Marketing is fundamental to the successful creation,
distribution, promotion, and pricing of goods, services and ideas in all
business and non-profit organizations. As business has evolved, marketing
has changed from a selling orientation to a broader customer orientation.
Today, marketing is more and more focused on the development and
implementation of competitive strategies. It is the marketer's
responsibility to understand changes in customer needs and to get the
right products to the market at the right time. The survival of companies
depends on the development of successful marketing strategies.
Many people erroneously think of marketing as
"selling," but such a definition is too narrow. Although sales is one part
of marketing, the discipline also includes such topics as new product
introduction, pricing, advertising, marketing research, distribution, and
many other tasks.
Is there a standard definition of
marketing?
There is a great number of different definitions of the
term. Marketing, according to the American Marketing Association is "the
process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives." Marketing focuses on
the process by which consumers' and business' needs for products and
services are anticipated and satisfied. Modern marketing stresses research
and analysis to understand consumer behavior and to identify customer
needs, new product research and development, competitive pricing,
coordinated promotional or sales programs and efficient distribution.
Can non-profit organizations benefit from
marketing?
All organizations, either explicitly or implicitly,
practice marketing activities. Although it is common to think of marketing
as something that is practiced only by for-profit businesses,
not-for-profit organizations and government agencies need to realize that
their ultimate goal is to determine their client's needs for products and
services and to provide those that fit within the organization's mission.
What is the relationship between technology
and marketing?
Rapid technological innovations continue to change
human needs. The challenge facing organizations is how best to satisfy
these changing needs and provide goods and services to consumers at an
affordable price. Marketers are instrumental in finding the answer to such
challenges.
History of Marketing
(History of Marketing and Timeline Have
Been Compiled by AceWeb Marketing)
Lined with Signs
The streets of ancient
Rome
were lined with signs advertising the wares of the various merchants. As
the use of printing presses spread in the 17th and 18th centuries,
handbills became a popular means of advertising. These two media – outdoor
and circulars – remain popular today. But today’s advertising industry
grew up alongside the modern, often-electronic media of the 20th century.
Until the latter part of the 19th century, advertising
in newspapers was limited by single columns, small typefaces and
restrictions on illustrations and displays. Mass marketing was hindered by
the poor
US
transportation infrastructure and limited manufacturing capacity until the
late 1800s.
Boasts and Rip-Offs
Advertising had a shaky reputation through the 1800s.
Within the business, advertisers distrusted their agents, who were known
to buy ad space at low prices and sell it to their clients at much higher
prices; agents distrusted publishers, who would often inflate circulation
numbers to ask for bigger ad rates; and publishers looked down on agents,
who they considered unreliable when it came to paying bills.
On the consumer side, there was no regulation of
advertisers’ often wildly boastful claims. This was particularly true of
“patent” medicines, which went from a $3.5 million business before the
Civil War to a $75 million industry by the turn of the century, according
to historian Stephen Fox in “The Mirror Makers.” The majority of this
growth was fueled by ads that made fantastic claims for products that were
often essentially worthless.
Gradually, order and respectability grew. The first
comprehensive list of domestic publications and their circulations,
Rowell’s American Newspaper Directory, appeared in 1869 – giving
advertisers their first fairly complete and standardized listing of
periodicals. The same year, N.W. Ayer & Son was founded in
Philadelphia; it became the agency credited with popularizing the “open
contract,” which set out exact financial terms between an advertiser and
publisher that included a set percentage fee for the agency rather than a
mysterious mark-up on ad space.
Magazines became an important new venue for advertising
in the late 1800s. Until that time, most magazines catered to an upscale
audience that publishers thought would abhor advertising. Legendary ad
agency founder J. Walter Thompson is credited for helping to bring
advertising to upper-crust magazines starting in the 1870s.
Broadcast Boom
Radio and television broadcasting proved to be huge
boons to advertising. At first, the lack of reliable audience measurement,
combined with the new demands of each medium, flabbergasted most marketers
and advertisers. But by the late 1930s, radio ads accounted for one-third
or more of the billings of top agencies.
Television, combined with the overall postwar boom in
consumerism, ushered in an extremely busy and profitable era for
advertising. From 1950 to 1955, TV ad volume soared from $171 million, or
3% of all ad volume, to more than $1 billion, or 11.3% of all ad volume.
In 1994, television passed newspapers for the first time to become the top
advertising medium in terms of revenues.
The early days of online advertising were similar to
the early days of broadcast advertising, in terms of presenting an
advertising challenge. A number of competing firms quickly arose to try to
quantify the audiences for online ads, but confusion remained. To deal
with the new medium, Web-specific divisions have sprung up at most major
agencies, along with a host of new agencies focusing solely on the
Internet.
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Marketing
is the process of researching, promoting, selling and distributing
a product or service. Marketing covers a broad range of practices,
including advertising, publicity, promotion, pricing, and overall
packaging of the goods or services. |
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1631
A French newspaper carries a classified ad
1704
A newspaper in Boston
prints advertising
1878
Full-page newspaper advertisements appear on the scene
1898
New York State
passes a law against misleading advertising
1922
A commercial is broadcast at the rate of $100 for 10 minutes
1924
The Everready Hour is the first sponsored radio program
1928
Times Square gets moving headlines in electric lights
1933
NBC and CBS allow prices to be mentioned in commercials
1953
The first color television commercial airs, courtesy of Castro Decorators,
New York
1964
The "Daisy" commercial for Lyndon Johnson's presidential campaign marks the
birth of negative political television advertising
1970
Coca-Cola's "I'd Like to Teach the World to Sing" commercial is a smash hit
on both television and radio
1970
Congress bans cigarette advertising on radio and television, costing the
broadcast business about $220 million in advertising
1982
The Home Shopping Network launches
1984
Apple Computer introduces the Macintosh with an epic 60-second commercial
called "1984" during the third quarter of the Super Bowl
1992
Infomercials generate estimated sales of $750 million
1999
Online advertising breaks $4.6 billion
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