Defining Marketing for the 21st Century
| The
21st century has seen the advent of the new economy, thanks to the
technology innovation and development. To understand the new economy, it
is important to understand in brief characteristics and features of the
old economy. Industrial revolution was the start point of the old
economy with focus on producing massive quantities of standardized
products. This mass product was important for cost reduction and
satisfying large consumer base, as production increased companies
expanded into new markets across geographical areas. The old economy had
the organizational hierarchy where in top management gave out
instructions which were executed by the middle manager over the workers. In contrast, the new economy has seen the buying power at all time thanks to the digital revolution. Consumers have access to all types’ information for product 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 Furthermore, standardization has been replaced by more customization with a dramatic increase in terms of product offering.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 purchase, which can be done 24 × 7 with products getting delivered at office or home. | |
Companies have also taken advantage of information
available and are designing more efficient marketing programs across
consumers as well as the distribution channel. Digital revolution has
increased speed of communication mobile, e-mail SMS, etc. This helps
companies take faster decisions and implement strategies more swiftly. | |
Marketing philosophy employed by any given company has to be mix of organization interest, consumer interest and societal interest. In production philosophy, companies focus is on numbers, high production count, which reduces 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 of product 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 of products, which under normal circumstance, they would be resistant. The marketing concept believes consumer satisfaction, thereby developing and selling products keeping focus solely on customer needs and wants. The customer philosophy believes in the creation of customized products, where in products is design looking at historical transaction 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 environment.
Digital revolution and 21st century have made companies fine tune the way they conduct their business. One major trend observed is the need of stream lining processes and systems with the focus on cost reduction through outsourcing. Another trend observed in companies is, encouragement to entrepreneur style of work environment with glocal (global-local) approach. At the same time, marketers of companies are looking forward to building long term relationship with consumers. This relationship establishes platform understanding consumer needs and preference. Marketers are looking at distribution channels as partners in business and not as the customer. Companies and marketers are making decisions using various computers simulated models.
To summarize 21st century marketing is challenge, which is to keep up pace with changing time.