Marketing Evolution: From Production to Social Responsibility

Posted on Mar 30, 2025 in Spanish

Marketing Evolution

Stage 1: Production Orientation

In this initial stage, factories were central, with many people living nearby, allowing easy access for purchasing goods directly from the factory. The focus was on production; manufacturers decided what to produce without considering consumer needs. For example, Henry Ford’s Model T was identical for everyone and sold at the same price.

Stage 2: Sales Orientation

As purchasing power increased and populations spread out, people were no longer as close to factories. Companies realized the importance of distribution channels. The focus shifted to sales, with efforts concentrated on creating effective channels for consumers to purchase products. In Spain, this era is exemplified by the introduction of the Seat 600. Telemarketing and home shopping channels also emerged, driven by the desire to sell.

Stage 3: Marketing Orientation (Short-Term)

With the rise of numerous manufacturers and brands, supply began to exceed demand. Consumers had countless options to satisfy their needs. Manufacturers could no longer dictate what to produce; they had to consider consumer preferences. Competitive pressures forced companies to understand and meet market needs. This shift was not altruistic but a realization that companies failing to adapt would disappear. The focus centered on the consumer and satisfying their needs, marking the era of short-term marketing orientation or marketing philosophy.

Stage 4: Social Marketing (Long-Term)

In the post-industrial era, companies recognized the negative consequences of prioritizing quantity over quality. Overzealous efforts to satisfy needs led to abuses of power, poor quality of life, and significant pollution. This realization spurred the development of electric and hybrid cars, reflecting a growing awareness of the negative impacts of economic growth. This stage is classified as long-term marketing orientation or social marketing.

Distribution Channels

  • EXCLUSIVE (Lamborghini)
  • The intermediary gets the exclusivity to sell the product in a particular geographic area and may not sell competing products.
  • Limited number of intermediaries:
  • Stronger distributor selling support
  • More control over product
  • Enhance brand image
  • Allow higher markups
  • Exclusive dealing arrangements
  • SELECTIVE (Apple)
  • The manufacturer selects a limited number of shops in which the product will be sold.
  • The selection must be based on objective criteria.
  • Maintain relative control
  • Expect a better-than-average selling effort
  • INTENSIVE (Hacendado products)
  • The producer uses as many outlets as possible specialized in the product category to provide:
  • Maximum brand exposure
  • Consumer convenience
  • EXTENSIVE (Kit Kat)
  • The producer uses as many outlets as possible (of any category) to provide:
  • Maximum brand exposure
  • Consumer convenience