Marketing history: an overview

In pre-literate societies, the distinctive shape of amphora served some of the functions of a label, communicating information about region of
origin, the name of the producer and may have carried product quality claims

According to etymologists, the term 'marketing' first appeared in dictionaries in the sixteenth century where it
referred to the process of buying and selling at a market.[7] The contemporary definition of 'marketing' as a
process of moving goods from producer to consumer with an emphasis on sales and advertising first appeared in
dictionaries in 1897.[8] The term, marketing, is a derivation of the Latin word, mercatus meaning market or
merchant.
Historians of marketing tend to fall into two distinct branches of marketing history - the history of marketing
practice and the history of marketing thought. These branches are often deeply divided. These branches have
very different roots. The history of marketing practice is based in management and marketing studies, while the
history of marketing thought is based in economic and cultural history. This means that they ask very different
types of research questions and employ different research tools and frameworks. [9]
Historians of marketing have undertaken considerable investigation into the emergence of marketing, yet there is
little agreement about when marketing first began.[10] Some researchers argue that marketing practices can be
found in antiquity [11][12][13] while others suggest that marketing, in its modern form, emerged in conjunction with
the rise of consumer culture in seventeenth and eighteenth century Europe [14] while yet other researchers suggest
that modern marketing was only fully realised in the decades following the industrial revolution in Britain from
where it subsequently spread to Europe and North America.[15] Hollander and others have suggested that the
different dates for the emergence of marketing can be explained by problems surrounding the way that marketing
has been defined - whether reference to 'modern marketing' as a planned, programmed repertoire of professional
practice including activities such as segmentation, product differentiation, positioning and marketing
communications versus 'marketing' as a simple form distribution and exchange.[16]
Marketing in antiquity

Mosaic showing garum container, from the house of Umbricius Scaurus of Pompeii. The inscription which reads "G(ari) F(los) SCO(mbri)
SCAURI EX OFFI(CI)NA SCAURI" has been translated as "The flower of garum, made of the mackerel, a
product of Scaurus, from the shop of Scaurus"
A number of studies have found evidence of advertising, branding, packaging and labelling in
antiquity.[17][18] Umbricius Scauras, for example, was a manufacturer of fish sauce (also known as garum) in
Pompeii, circa 35 C.E. Mosaic patterns in the atrium of his house were decorated with images
of amphora bearing his personal brand and quality claims. The mosaic comprises four different amphora, one at
each corner of the atrium, and bearing labels as follows: [19]
1. G(ari) F(los) SCO[m]/ SCAURI/ EX OFFI[ci]/NA SCAU/RI Translated as "The flower of garum, made of the
mackerel, a product of Scaurus, from the shop of Scaurus"
2. LIQU[minis]/ FLOS Translated as: "The flower of Liquamen"
3. G[ari] F[los] SCOM[bri]/ SCAURI Translated as: "The flower of garum, made of the mackerel, a product of
Scaurus"
4. LIQUAMEN/ OPTIMUM/ EX OFFICI[n]/A SCAURI Translated as: "The best liquamen, from the shop of
Scaurus"
The reputation of Scauras' fish sauce was known to be of very high quality across the Mediterannean and
its reputation travelled as far away as modern France. [20]Curtis has described this mosaic as a "an
advertisement... and a rare, unequivocal example of a motif inspired by a patron, rather than by the
artist." [21] In Pompeii and nearby Herculaneum, archeaological evidence also points to evidence of
branding and labelling in relatively common use. Wine jars, for example, were stamped with names, such
as "Lassius" and "L. Eumachius;" probably references to the name of the producer. Carbonized loaves of
bread, found at Herculaneum, indicate that some bakers stamped their bread with the producer's name. [22]
David Wengrow has argued that branding became necessary following the urban revolution in ancient
Mesopotamia in the 4th century BCE, when large-scale economies started mass-producing commodities
such as alcoholic drinks, cosmetics and textiles. These ancient societies imposed strict forms of quality
control over commodities, and also needed to convey value to the consumer through branding. Producers
began by attaching simple stone seals to products which over time were transformed into clay seals
bearing impressed images, often associated with the producer's personal identity thus giving the product a
personality.[23]
Diana Twede has argued that the "consumer packaging functions of protection, utility and
communication have been necessary whenever packages were the object of transactions" (p.107). She has
shown that amphoras used in Mediterranean trade between 1500 and 500 BCE exhibited a wide variety
of shapes and markings, which provided information for transactions. Systematic use of stamped labels
dates from around the fourth century BCE. In a largely pre-literate society, the shape of the amphora and
its pictorial markings conveyed information about the contents, region of origin and even the identity of
the producer which were understood to convey information about product quality. [24] Not all historians
agree that these markings can be compared with modern brands or labels. Moore and Reid, for example,
have argued that the distinctive shapes and markings in ancient containers should be termed proto-
brands rather than modern brands. [25]
Marketing in the Middle Ages

Market scene by Pieter Aertsen, c.1550

In England and Europe during the Middle Ages, market towns sprang up. Some analysts have suggested that the
term, 'marketing,' may have first been used in the context of market towns where producers used the term to
describe the process of carting and selling their produce and wares in market towns. Blintiff has investigated the
early Medieval networks of market towns and suggests that by the 12th century there was an upsurge in the
number of market towns and the emergence of merchant circuits as traders bulked up surpluses from smaller
regional, different day markets and resold them at the larger centralised market towns.[26]
Braudel and Reynold have made a systematic study of these European market towns between the thirteenth and
fifteenth century. Their investigation shows that in regional districts markets were held once or twice a week,
while daily markets were more common in the larger cities and towns. Over time, permanent shops began to
open daily and gradually supplanted the periodic markets. Peddlers filled in the gaps in distribution by travelling
door-to-door selling produce and wares. The physical market was characterised by transactional exchange and
the economy was characterised by local trading. Braudel reports that, in 1600, goods travelled relatively short
distances - grain 510 miles; cattle 4070 miles; wool and wollen cloth 2040 miles. However, following the
European age of discovery, goods were imported from afar - calico cloth from India, porcelain, silk and tea from
China, spices from India and South-East Asia and tobacco, sugar, rum and coffee from the New World.[27]
 Bronze plate for printing an advertisement for the Liu family needle shop
at Jinan, Song dynasty China. It is considered the world's earliest identified printed
advertising medium.

Although the rise of consumer culture and marketing in Britain and Europe have been studied extensively, less is
known about developments elsewhere.[28]Nevertheless, recent research suggests that China exhibited a rich
history of early marketing practices; including branding, packaging, advertising and retail signage. [29] From as
early as 200 BCE, Chinese packaging and branding was used to signal family, place names and product quality,
and the use of government imposed product branding was used between 600 and 900 AD.[30] Eckhart and
Bengtsson have argued that during the Song Dynasty (9601127), Chinese society developed a consumerist
culture, where a high level of consumption was attainable for a wide variety of ordinary consumers rather than
just the elite (p. 212). The rise of a consumer culture led to the commercial investment in carefully managed
company image, retail signage, symbolic brands, trademark protection and the brand concepts of baoji, hao, lei,
gongpin, piazi and pinpai, which roughly equate with Western concepts of family status, quality grading, and
upholding traditional Chinese values (p. 219). Eckhardt and Bengtsson's analysis suggests that brands emerged
in China as a result of the social needs and tensions implicit in consumer culture, in which brands provide social
status and stratification. Thus, the evolution of brands in China stands in sharp contrast to the West where
manufacturers pushed brands onto the market in order to differentiate, increase market share and ultimately
profits (pp 218219).

Marketing in seventeenth and eighteenth century Europe

Josiah Wedgewood's techniques exhibited many of the characteristics of modern marketing in the eighteenth century

Scholars have identified specific instances of marketing practices in England and Europe in the seventeenth and
eighteenth centuries. As trade between countries or regions grew, companies required information on which to
base business decisions. Individuals and companies carried out formal and informal research on trade conditions.
In 1380, Johann Fugger travelled from Augsburg to Graben in order to gather information on the international
textile industry. He exchanged detailed letters on trade conditions in relevant areas.[31] In the early 1700s British
industrial houses were demanding information, that could be used for business decisions. During this
period, Daniel Defoe, a London merchant, published information on trade and economic resources of England
and Scotland. [32][33]Defoe was a prolific publisher and among his many publications are titles devoted to trade
including; Trade of Britain Stated, 1707; Trade of Scotland with France, 1713 and The Trade to India Critically
and Calmly Considered, 1720; all books that were highly popular with merchants and business houses of the
period. [34] While such activities might now be recognised as marketing research, at that time they were known as
'commercial research' or 'commercial intelligence' and not seen as part of the repertoire of activities that make up
contemporary marketing practice.
In a major review of consumer society, McKendrick, Brewer and Plumb found extensive evidence of eighteenth
century English entrepreneurs using 'modern' marketing techniques, including product differentiation, sales
promotion and loss leader pricing.[35] English industrialists, Josiah Wedgewood and Matthew Boulton, are often
portrayed as pioneers of modern mass marketing methods.[36]Wedgewood was known to have used marketing
techniques such as direct mail, travelling salesmen and catalogues in the eighteenth century.[37] Wedgewood also
carried out serious investigations into the fixed and variable costs of production and recognised that increased
production would lead to lower unit costs. He also inferred that selling at lower prices would lead to higher
demand and recognised the value of achieving scale economies in production. By cutting costs and lowering
prices, Wedgewood was able to generate higher overall profits.[38] Similarly, one of Wedgewood's
contemporaries, Matthew Boulton, pioneered early mass production techniques and product differentiation at his
Soho Manufactory in the 1760s. He also practiced planned obsolescence and understood the importance of
'celebrity marketing' - that is supplying the nobility, often at prices below cost and of obtaining royal patronage,
for the sake of the publicity and cudos generated.[39]
Evidence of early marketing practices has also been noted across Europe. A study of the German book trade
found examples of both product differentiation and market segmentation in the 1820s.[40] Other works have
documented the use of persuasive advertising practices in eighteenth century Italy, England and France as early
as the 1600s.[41]
Marketing in the nineteenth and twentieth centuries

Henry Ford began manufacturing the mass-produced Model T in 1908. Ford famously said that customers could own a car in any colour as
long as it was black.

Until the nineteenth century, Western economies were characterised by small regional suppliers who sold goods
on a local or regional basis. However, as transportation systems improved from the mid nineteenth century, the
economy became more unified allowing companies to distribute standardised, branded goods a national level.
This gave rise to a much broader mass marketing mindset. Manufacturers tended to insist on strict
standardisation in order to achieve scale economies with a view to keeping production costs down and also to
achieving market penetration in the early stages of a product's life cycle.[42] The Model T Ford was an example
of a product being manufactured at a price that was affordable for the burgeoning middle classes.
In the early twentieth century, as market size increased, it became more commonplace for manufacturers to
produce a variety of models pitched at different quality points designed to meet the needs of various
demographic and lifestyle market segments, giving rise to the widespread practice of market segmentation and
product differentation.[43] Between 1902 -1910 George B Waldron, working at Mahin's advertising agency, used
tax registers, city directories and census data to show advertisers the proportion of educated versus illiterate
consumers and the earning capacity of different occupations in what is believed to be the first example of
demographic segmentation of a population.[44] Within little more than a decade, Paul Cherington had developed
the 'ABCD' household typology - the first socio-demographic segmentation tool. [45]
When Wendell R. Smith published his now classic article, Product Differentiation and Market Segmentation as
Alternative Marketing Strategies in 1956, he noted that he was simply documenting marketing practices that had
been observed for some time and which he described as a "natural force". [46] Other theorists agree that Smith
was simply codifying implicit knowledge that had been used in marketing and brand management from the early
twentieth century. [47] [48]
As industry grew, the demand for skilled business professionals also grew. To meet this demand, universities
began offering courses in commerce, economics and marketing. Marketing, as a discipline, was first taught in
 universities in the very early twentieth century.[49] However, researchers only became interested in investigating
the history of marketing in the mid twentieth century. From the outset, researchers tended to identify two strands
of historical research; the history of marketing practice [50] and the history of marketing thought which was
fundamentally concerned with the rise of marketing education and dissecting the way that marketing was taught
and studied.[6][51] Early historical studies were primarily descriptive.

History of marketing practice

The practice of marketing may have been carried out for millennia, but the modern concept of marketing as a
professional practice appears to have emerged the post industrial corporate world.[52] In addition to the studies of
specific cultures or time periods, discussed in the preceding section, some historians of marketing have sought to
write more general histories of marketing's evolution in the modern era. To do this, historians often turn to a
method known as periodisation.[53]Periodisation refers to the process or study of categorizing the past into
discrete, quantified named units for the purpose of analysis or study.[54]
A key question that has preoccupied researchers is whether specific orientations or mindsets that inform key
periods of marketing's evolution can be identified. Marketers disagree about the precise periods that outline
marketing practice and describe the way that marketing practice has evolved over time.[55]
Orientations or philosophies that inform marketing practice[edit]
In the marketing literature, continuing debate surrounds the orientations or philosophies that might have
informed marketing practice at different periods of time. An orientation may be defind as "the type of activity or
subject that an organization seems most interested in and gives most attention to." [56] In relation to marketing
orientations, the term has been defined as a "philosophy of business management." [57] or "a corporate state of
mind" [58] or as an "organisation[al] culture" [59]
Hollander et al. have identified fourteen different stage theories or short periodisations as well as a total of
nineteen long periodisations that have been carried out since 1957. Of these, the contributions of Robert Keith
(1960) and Ronald Fullerton (1988) are the most frequently cited.[60]
Keith's periodisation[edit]
Robert Keith's marketing eras (production selling marketing) were based entirely on his experience at the
Pillsbury Company
In 1960, Robert Keith, the then Vice President of Pillsbury,[61] set the stage for decades of controversy when he
published an article entitled the "Marketing Revolution" in which he set out the way that the Pillsbury Company
had shifted from a focus on production in the 1860s through to a consumer focus in the 1950s. He traced three
distinct eras in Pillsbury's evolution:[62]

the production oriented era from 1869 -1930s - characterised by a 'focus on production processes'
the sales oriented era from the 1930s to the 1950s - characterised by investment in research to develop new
products and advertising to persuade markets of product benefits
the marketing oriented era from the beginning of the 1950s - characterised by a focus on the customer's latent
and existing needs
In addition, Keith hypothesised that a marketing control era was about to emerge. Although Keith's article
explicitly documented Pillsbury's evolution, the article appears to suggest that the stages observed at Pillsbury
constitute a standard or normal evolutionary path (productionsalesmarketing) for most large organisations.
Keith's notion of distinct eras in the evolution of marketing practice has been widely criticised and his
periodisation described as "hopelessly flawed".[63][64] Specific criticisms of Keith's tripartite periodisation include
that:

It ignores historical facts about business conditions [65]

It mis-states the nature of supply and demand [65]
It slights the growth of marketing institutions [66]
The article, which is entirely based on Keith's personal recollections and did not use a single reference, is best
described as anecdotal. Systematic studies carried out since Keith's work have failed to replicate Keith's
periodisation. Instead, other studies suggest that many companies exhibited a marketing orientation in the
nineteenth century and that the business schools were teaching marketing decades before Pillsbury adopted a
marketing oriented approach.[67] Jones and Richardson also investigated historical accounts of marketing practice
and found evidence for both the sales and marketing era during the so-called production era and concluded that
there was no 'marketing revolution.' [68] A detailed study of the chocolate manufacturer, Rowntree, found that
this company had shifted from a production orientation through to a marketing orientation by the 1930s, without
having transitioned through the so-called sales orientation.[69] Other critiques of Keith's work have pointed out
that the so-called production era fails to align with historical facts and have suggested that it is a myth.[70] Keith's
eras have become known, somewhat cynically, as the standard chronology. [71]
Fullerton's periodisation[edit]

The English industrial revolution is often seen as a trigger for the rise of
modern marketing

In 1988, Fullerton developed a more subtle and nuanced periodisation

for the so-called marketing eras.[72][73] Fullerton's eras were:[70]

The era of antecedents 1500 -1750 - a long gestational period in

which people were largely self-sufficient and rural; economy
characterised by low levels of consumption; commerce was seen as
suspicious
The era of origins 1750-1870 - precipitated by the dislocations of
the English industrial revolution and the rise of a more urban
population, this era is characterised by more attention to persuasive
tactics designed to stimulate demand
The era of institutional development 1850-1929 - many of the large
institutions and modern marketing practices emerged during this
period
The era of refinement and formalisation 1930 - present [1988] -
further development and refinement of principles and practices
developed in the preceding period
In spite of the intense criticism levelled at Keith's eras of marketing
practice, his periodisation is the most frequently cited in text-
books [53] and has become the accepted wisdom.[15] One content analysis
of 25 introductory and advanced texts found that Keith's eras were
reproduced in all but four.[74][67] Another study, which examined 15 of the
top selling marketing texts, found that the although the incidence of
repeating Keith's eras was waning, it had not been replaced by
Fullerton's periodisation, nor any other more meaningful framework.[75]
Other periodisations[edit]
For all the controversies surrounding the so-called marketing stages or
periods, Keith and others appear to have contributed a lasting
legacy.[76] A study by Grundey (2010) suggests that many contemporary
text-books begin with Keith's eras and expand on it by including newer
concepts such as the societal marketing concept, the relationship
marketing concept and the interfunctional concept, as shown in the
table below.[77] More recently, Kotler and Keller added the holistic
marketing concept to the list of eras in marketing.[78] Marketing theorists
continue to debate whether the holistic era represents a genuine new
orientation or whether it is an extension of the marketing
concept.[79] Grundey summarised five different periodisations in the
history of marketing, as shown in the following table, as a means of
highlighting the general lack of agreement among scholars. [80]

Marketing Philosophies or Orientations Cited in Popular Texts

Dibb & Simkin, Lancaster & Drummmond &

Blythe, 2005 [83] Morgan, 1996 [85]
2004 [81] Reynolds, 2005 [82] Ensor, 2005 [84]
1. Production 1. Production 1. Production 1. Production
1. Cost philosophy
orientation orientation orientation orientation

2. Financial 2. Product 2. Product

2. Sales orientation 2. Product orientation
orientation orientation philosophy

3. Marketing 3. Sales 3. Production

3. Sales orientation 3. Sales orientation
orientation orientation philosophy

4. Marketing 4. Customer 4. Financial

4. Sales philosophy
orientation orientation orientation

5. Customer 5. Societal 5. Marketing 5. Erratic

orientation marketing orientation philosophy

6. Competitor 6. Relationship 6. Marketing

orientation orientation philosophy

7. Interfunctional 7. Social marketing

orientation philosophy

Source: Dainora Grundey, "The Marketing Philosophy and Challenges

for the New Millennium", Scientific Bulletin Economic Sciences:
Marketing, Commerce and Tourism, Vol. 9, no. 15, 2010, p.170
Brief description of the most commonly cited periods[edit]
The general lack of agreement amongst scholars as to what constitutes
clearly identifiable periods and the orientation that characterised each
distinct period has spawned a lengthy list of orientations. Space
prevents an exhaustive description of all periods or eras. However, the
most commonly cited periods appear in the following section.
Production orientation[edit]

The production orientation is one of the oldest philosophies that guides

sellers

A production orientation is often proposed as the first of the so-called

orientations that dominated business thought. Keith dated the
production era from the 1860s to the 1930s, but other theorists argue
that evidence of the production orientation can still be found in some
companies or industries. Specifically Kotler and Armstrong note that the
production philosophy is "one of the oldest philosophies that guides
sellers... [and] is still useful in some situations." [86]
The production orientation is characterised by:[87]

a focus on production, manufacturing, and efficiency

attainment of economies of scale, economies of scope, experience
effects or all three
an assumption that demand exceeds supply
 a mindset that is encapsulated by Say's Law; "Supply creates its
own demand" or "if somebody makes a product, somebody else will
want to buy it"
limited research - and largely limited to technical-product research
rather than customer research
this orientation rose to prominence in an environment which had a
shortage of manufactured goods relative to demand, so goods sold
easily.
minimal promotion and advertising, marketing communications
limited to raising awareness of the product's existence
Selling orientation[edit]

The sales orientation, often characterised by door-to-door selling is thought

to have begun during the Great Depression of the 1890s and continues to
this day. Pictured: A Rawleigh's salesman in 1915

The selling orientation is thought to have begun during the Great

Depression and continued well into the 1950s although examples of this
orientation can still be found today.[88] Kotler et al. note that the selling
concept "is typically practised with unsought goods." [89]
The selling orientation is characterised by:

Aggressive selling to push products, often involving door-to-door

selling
Accepting every possible sale or booking, regardless of its
suitability for the business
Has a strongly transactional focus (ignores potential relationships)
The marketing orientation[edit]
The marketing orientation or the marketing concept emerged in the
1950s.
Characteristics of the marketing orientation:[90]

A thorough understanding of the customer's needs, wants and

behaviours should be the focal point of all marketing decisions
Marketing efforts (sales, advertising, product management, pricing)
should be integrated and in tune with the customer
New product concepts should flow from extensive market analysis
and product testing
The societal marketing concept[edit]
Main article: Societal marketing
Societal marketing orientation or societal marketing concept was first
proposed in the 1970s [91] by Phillip Kotler in an article published in
the Harvard Business Review.[92] The societal marketing concept adopts
the position that marketers have a greater social responsibility than
simply satisfying customers and providing them with superior value.
Instead, marketing activities should strive to benefit society's overall
well-being. Marketing organisations that have embraced the societal
marketing concept typically identify key stakeholder groups including:
employees, customers, local communities, the wider public and
government. They ensure that marketing activities do not damage the
environment and are not hazardous to broader society. Societal
marketing developed into sustainable marketing.
Characteristics of societal marketing:[93]

An attempt to balance corporate commitments to groups and

individuals in its environment, including customers, other
businesses, employees and investors.
 Companies must include social and ethical considerations into their
marketing practices
Consideration is given to the environment includes problems such
as air, water and land pollution
Consideration is given to consumer rights, unfair pricing and ethics
in advertising
Relationship orientation[edit]
Main article: Relationship marketing
Starting in the 1990s, a new stage of marketing emerged called
relationship marketing. The focus of relationship marketing is on a long-
term relationship that benefits both the company and the
customer.[94] The relationship is based on trust and commitment, and
both companies tend to shift their operating activities to be able to work
more efficiently together.[95] One of the most prominent reasons for
relationship marketing comes from Kotler's idea that it costs about five
times more to obtain a new customer than to maintain the relationship
with an existing customer.[96] A relationship marketing approach seeks to
maximise the value of all the potential exchanges an organisation could
have into the future.[97]
The characteristics of relationship marketing include:[98]

A focus on the relationship between seller and buyer

An investment in the lifetime of relationships (customer lifetime
value) rather than single transactions
An orientation on product benefits and/or customer value
High customer service; high customer commitment; high customer
contact
Quality is the concern of all
All activities are coordinated with the customer interface, including
the customer's involvement in the firms processes
Customised offerings, where practical
Empirical support for relationship marketing as a distinct paradigm is
very weak. One study suggests that relationship marketing is really a
sub-component of large scale movements of the value-added process
rather than a separate era or framework.[99] Some theorists suggest that
marketing is moving from a relationship marketing paradigm and
towards a social media paradigm where marketers have access to a
more controlled environment and are able to customise offers and
communications messages.[94][100]

History of marketing thought[edit]

Dating the history of marketing thought is just as problematic as the
history of markting practice. Marketing historians cannot agree on how
to date the beginnings of marketing thought. Eric Shaw, for instance,
suggests that a period of pre-academic marketing thought can be
identified prior to 1900.[101] Other historians, on the other hand, suggest
that the theory of marketing only emerged in the 20th century when the
discipline began to offer courses at universities.[102] Nevertheless, the
birth of marketing as a discipline is usually designated to the academic
year, 1904-1905, when a "marketing course" appeared at the University
of Pennsylvania.[103]
Prior to the emergence of marketing courses, marketing was treated as
a branch of economics and was often called applied economics. Early
marketing theories were described as modifications or adaptations of
economic theories. [104]
A periodisation approach[edit]
Several scholars have attempted to describe the evolution of marketing
thought chronologically and to connect it with broader intellectual and
academic trends. Bartels (1965) sketched an account of marketing's
formative periods, and Shah and Gardner (1982) briefly considered the
development of the six dominant schools in contemporary marketing.
However, these initial attempts have been described as descriptive.
(Savitt, 1980). One of the first theorists to consider the stages in the
development of marketing thought was Robert Bartels, who in the The
History of Marketing Thought, used a periodisation approach, he
categorised the development of marketing theory decade by decade
from the beginning of the 20th century:

1900s: discovery of basic concepts and their exploration

1910s: conceptualisation, classification and definition of terms
1920s: integration on the basis of principles
1930s: development of specialisation and variation in theory
1940s: reappraisal in the light of new demands and a more
scientific approach
1950s: reconceptualisation in the light of managerialism, social
development and quantitative approaches
1960s: differentiation on bases such as
managerialism, holism, environmentalism, systems,
and internationalism
1970s: socialisation; the adaptation of marketing to social change
A 'schools of thought' approach[edit]
Other marketing historians have eschewed the periodisation approach,
and instead considered whether distinct schools within marketing reflect
different facets of common theory and whether a more unifying
intellectual structure has emerged. These approaches tend to identify
distinct schools of thought. A school of thought refers to an intellectual
tradition or a group of scholars who share a common philosophy or set
of ideas. [105] Marketing historians, Shaw and Jones, define a school of
thought as one that has "a substantial body of knowledge; developed by
a number of scholars; and describing at least one aspect of the what,
how, who, why, when and where of performing marketing activities." [106]
Of those who identify schools, there is no real agreement about which
schools were dominant at different stages in marketing's development.
It should be noted that two or more schools of thought can co-exist at
the same time. In the following section, a brief overview of the
contributions of key thinkers will be outlined with respect to the
prevailing schools that have dominated marketing thought. To a certain
extent, there is some agreement that in early marketing thought, three
so-called traditional schools, namely the commodity school, the
functional school and the institutional school co-existed. [107]Marketing
historians such as Eric Shaw and Barton A. Weitz point to the
publication of Wroe Alderson's book, Marketing Behavior and Executive
Action (1957), as a break-point in the history of marketing
thought, [108] moving from the macro functions-institutions-commodities
approach to a micromarketing management paradigm. Following on
from Alderson, marketing began to incorporate other fields of
knowledge besides economics, notably behavioral science, becoming a
multidisciplinary field. For some scholars, Alderson's book marks the
beginning of the Marketing Management Era.
Hunt and Goolsby, identified four schools of thought that have
dominated marketing, namely; the commodity school, the institutional
school, the functional school and the managerial school. [109]

The Commodity School: A focus on different types of goods in the

marketplace and how they are marketed. [110]

The Institutional School: Emphasised the functions of middlemen

(or intermediaries); similar to the functional school, but with a focus
on channel flows. [111]

The Functional School: A focus on the characteristics of marketing,

identifying the functions and systems of marketing; adopts a
systems approach.[112]

The Managerial School: A focus on the problems faced by

marketing managers; focuses on the perspective of the seller.[113]

Some marketing historians like Jagdish Sheth have identified the

modern "marketing schools" as: [114]
 The Managerial school emerged during the late 1950s and became
arguably the predominant and most influential school of thought in
the field
The Consumer/buyer behavior school, which dominated the
academic field in the second half of the twentieth century (apart
from the Managerial school), features theories emerging from
behavioral science
The Social exchange school, which focuses on exchange as the
fundamental concept of marketing
Yet other commentators identify a broader range of schools. O'Malley
and Lichrou, for example, document the schools as: [115]

Functional: What activities does marketing perform? Focus on

intermediaries and value adding.

Commodities: How are goods classified? Focus on classification of

goods; trade flows

Marketing Institutions: Who performs marketing functions on

commodities? Focus on retailers, wholesalers, intermediaries,
distribution channels

Marketing Management: How should marketers and managers

market products and services to consumers? Business firm as
seller/ supplier

Marketing Systems: What is a marketing system and how does it

work? Channels of distribution and aggregate systems,

Consumer behaviour: How and why do consumers buy?

organisational buyer and consumer buyer

Macro-marketing: How do marketing systems impact on society?

Industries, channels, consumer movement, environmentalism

Exchange: What are the forms of exchange? Who are the parties to
the exchange process? Aggregations of buyers and sellers

Marketing history: When did marketing practice and ideas emerge

and evolve? Marketing thought and marketing practice
Brief description of the dominant schools of
thought[edit]
The following sections briefly outlines the schools of thought as
conceptualised by key thinkers in the discipline.
Marketing management[edit]
The marketing management school, which emerged as the dominant
school in 1960 following the publication of Basic Marketing: A
Managerial Approach, written by E. Jerome McCarthy, replaced the so-
called functional school which had been the dominant for the first part of
the twentieth century. In the words of Hunt and Goolsby, the publication
of McCarthy's text, sounded the "beginning of the end for the functional
school." [116] However, Hunt and Goolsby note that the 1960s was a
transitional period in which both the functional school and the
managerial school co-existed. [117] Shaw and Jones have described the
emergence of the managerial school in the mid twentieth century as a
"paradigm shift." [118]

Key innovations that influenced marketing

practice[edit]
1450: Gutenberg's metal movable type, leading eventually to mass-
production of flyers and brochures [119]
1600s: Paid advertising in Italy
1605: World's first newspaper published in Germany [120]
 1600s and 1700s: Posters and handbills used for promotion in
England [119]
1665: The Oxford Gazette first published in England (later renamed
the London Gazette and still published today) [121]
1700s: Widespread emergence of newspapers and magazines in
England (a future vector of niche marketing)
1719: The Daily Post first published; early instance of a periodical
dedicated to business, science and innovation
1836: Paid advertising in a newspaper (in France) [119]
1839: Posters on private property banned in England [119]
1864: Earliest recorded use of the telegraph for mass
unsolicited spam
1867: Earliest recorded billboard rentals
1876: Films produced by French film-makers, Auguste and Louis
Lumiere, made at the request of a representative of Lever Brothers
in France and feature Sunlight soap, are thought to be the first
recorded instance of paid product placement. [122]
1880s: Early examples of trademarks as branding
1905: The University of Pennsylvania offered a course in "The
Marketing of Products"[123]
1908: Harvard Business School opens - Harvard was an early
influence on marketing thought [124]
1920: The magazine, Variety, reports that 50% of cinemas show
advertising programmes [125]
1920s: Radio advertising commences
1940s: Electronic computers developed
1941: First recorded use of television advertising
1950s: Systematization of telemarketing [126]
1970s: E-commerce developed
1980s: Development of database marketing as precursor to CRM[127]
1980s: Emergence of relationship marketing
1980s: Emergence of computer-oriented spam
1984: Introduction of guerrilla tactics
1985: Desktop publishing democratizes the production of print-
advertising (precursor to consumer-generated media and content)
1991: IMC gains academic status [128]
Mid 1990s: Modern search engines started appearing in the mid-
1990s, with Google making its debut in 1998 [119]
1990s CRM and IMC (in various guises and names) gain
dominance in promotions and marketing planning,[129][130]
1995-2001: The Dot-com bubble temporarily re-defines[citation needed] the
future of marketing
1996: Identification of viral marketing
2000s: Integrated marketing gains widespread acceptance with its
first dedicated academic research centre opened in 2002[131][132]
2003 -2006: Emergence of social media. MySpace and LinkedIn
emerged in 2003, Facebook in 2004 and Twitter in 2006.[119]

See also[edit]
Advertising - article is primarily about the history of advertising
Branding - article contains short history of branding
List of the oldest newspapers
Market economy - article provides a brief history and background to
key thinkers
Marketing
Marketing research -article discusses the history of marketing
research
Market segmentation - article provides a brief history of
segmentation
Market (place) - history of marketplaces from antiquity to present
day
Psychological pricing
Retail - contains a short history of retailing
Early marketing theorists[edit]
 Al Ries - advertising executive, author and credited with coining the
term, 'positioning' in the late 1960s
Arch Wilkinson Shaw (1876-1962) - early management theorist,
proponent of the scientific approach to marketing
Charles Coolidge Parlin(1872-1942) - pioneer of market and
advertising research methods
E. Jerome McCarthy - developed the concept of the 4 Ps
Edward Filene (1860-1937) - pioneer or modern retailing methods
Ernest Dichter (1907-1991) - pioneer of motivational research
Henry Grady Weaver (1889-1949) - developed the survey
questionnaire for use in market research
Jack Trout - advertising executive, author and partnered with Al
Ries in popularising the positioning concept
John E. Jeuck (1916-2009) - early marketing educator
Henry Charles Taylor (1873-1969) - the agricultural marketer
Henry Grady Weaver (1889-1949) - pioneer of consumer research
Neil H. Borden (1922-1962) - coined the term, 'marketing mix'
Philip Kotler (1931-) - popularised the managerial approach to
marketing, prolific author
Theodore Levitt (1925-2006) - former editor of Harvard Business
Review, prolific author of marketing articles and famed for his
article, "Marketing Myopia"
Wroe Alderson (1898-1965) - proponent of marketing science and
instrumental in developing the functional school of marketing
Jerry (Yoram) Wind - editor in chief of the Journal of Marketing and
other leading journals; educator and author

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Further reading[edit]
Adage, 'History of Marketing' from the Great Depression of the
1930s, featuring highlights
 from AdAge articles, http://adage.com/article/ad-age-graphics/ad-
age-a-history-marketing/142967
Wright, John S. and Parks B. Dimsdale, Pioneers in Marketing: A
Collection of 25 Biographies of Men Who Contributed to the Growth
of Marketing Thought and Action," Georgia State University, 1974
Marilyn Lavin and Thomas J. Archdeacon (1989) ,"The Relevance
of Historical Method For Marketing Research", in Interpretive
Consumer Research, Elizabeth C. Hirschman (ed.), Provo, UT,
Association for Consumer Research, pp 6068,
<Online: http://acrwebsite.org/volumes/12176/volumes/sv07/SV-
07>