Marketing Concept in 1980-2010

In 1981, Boom and Bitler added 3 P, namely people (People), process (Process) and physical evidence (Physical Evidence) (Kotler et al., 2010, Marketing 3.0, Jakarta: Erlangga). This addition is to accommodate businesses in the service sector. Products from services are not visible. The business strives for the services to be seen, so that the market segment is realized by structuring the people who serve, standardizing plus the customization of the process and showing physical evidence.

In 1984, Philip Kotler added two more P in the 4 P, namely Politics (politics) and Public Opinion (public opinion) (Kotler et al., 2010, Marketing 3.0, Jakarta: Erlangga). Kotler added these two things because politics and public opinion helped determine the smoothness of sales, more so when entering foreign markets. When politics does not allow a product to circulate, however good the product, price, location and promotion, the product will not be able to reach the market. Public opinion from the association and the public in the mass media also determines the acceptance of a product.

In the 1990s, when the internet began to expand, mass media advertising was still quite strong. The internet was allegedly able to replace the role of mass media, but in 2000 many were disappointed with internet achievements. Many stock-based company website prices fall. This event was dubbed the dotcom bubble. Dotcom balloon. The impression is large, but the contents are empty, and one day it will erupt.

After 2000, the role of the internet strengthened since search engines and social media used algorithms that were able to adjust advertisements and campaigns with viewers’ interests. Algorithms are also able to detect their interest trends so that this gives input in the preparation of new products. Advertising spending on the internet is increasing. In 2004, Madison Avenue mass media advertising center experienced a decline in its advertising industry.

In 2010, the use of smart phones connected to the internet expanded throughout the world. With the popularity of smart phones, marketing through the internet is able to reach many viewers. The use of mass media is getting smaller in the community than the internet.

It is not just the transfer of marketing communication channels without changing the character of marketing. The move changes the character of marketing. The development of marketing is driven by competition between marketers themselves. They compete marketing skills. On interactive internet media, marketers compete to optimize the features that the internet has for marketing purposes. On the other side of the viewer or target market, viewers for greater authority to pay attention to or ignore marketing messages. Dynamic interaction between fellow marketers and viewers also changes the character of marketing.

Emergence of Marketing Concept

In the early 1940s Rosser Reeves revealed the secret of success in composing influential advertisements. Reeves named it unique selling proposition or unique selling point (USP). USP is delivering unique benefits from companies, services, products, brands that make it stand out from competitors. USP must have features that highlight the benefits of products that are valuable to consumers.

Then in late 1940, further developments emerged from the definition of Butler marketing. Neil Borden, Harvard Business School professor introduced the term marketing mix. He details the marketing activities so that marketing becomes a rich and systematic activity. According to Neil Borden, the marketing mix consists of:

• product planning,

• price determination

• branding,

• distribution channels,

• personal selling (personal selling),

•advertisement,

• promotions,

• packing,

• display,

• service,

• Warehouse and shipping control,

• fact finding and analysis.

After the second world war, McGarry (McGarry, Edmund D. (1950), ‘Some revised functions of marketing’, in Cox, Reavis and Alderson, Wroe (eds), Theory in Marketing: Selected Essays.p. 269) submit a list of functions new marketing namely,

• Contract

• trade

• price determination

• propaganda

• physical distribution

• cancellation.

In 1957, Howard introduced differences between things that can be controlled and things that cannot be controlled in the marketing decision-making process.

Which can be controlled, among others

• Product variation

•Marketing channel

• Price

• Promotion

• Location

Whereas what cannot be controlled in the view of the marketing manager is

• Competition

• Request

• Non-marketing costs

• Distribution structure

• Law

Finally, Jerome McCarthy (1960, pp. 45-52) offers a definition that is easy to remember, that is 4 P. namely product, place, promotion and price.

• Products include characteristics, functions and benefits.

• Location regarding how products are distributed.

• Promotion is the use of advertising, publicity, personal sales and so on.

• Price is what price is set for the product.

As a further development of differentiation, unique selling points, in 1969, Al Ries and Jack Trout formulated and popularized the idea of ​​positioning. Positioning is building a brand on the mind of a target market compared to a competing brand. Positioning itself is a common practice in businesses in America since the 1930s. It’s just that Al Ries has formulated and popularized it. Positioning is carried out on selected target markets, so that before positioning, it is necessary to market segmentation and determine market targets.

At that time mass media such as newspapers, magazines and television were still the dominant communication media. The advertising industry that accompanied the mass media flourished. Madison Avenue New York became the world’s advertising center.

Disruption and Marketing Strategy

With the ability to track market responses, marketing metrics develop. In the era of mass media, the marketing metrics included the number of viewers, the number of sales, and the rate of repurchase. Now in interactive media, new metrics appear, namely: the number of viewers who pay attention, the number of positive responses, the number of people who see ad impressions in seconds, the number of people who click the link, the number of people who send private messages, the number of people who click add to cart.

The difference is again with advertising in the mass media; advertising in the media now not only displays the number of people, but also can collect who they are in aggregate. Technically, information technology makes it possible to detect precisely the names and emails of viewers who react to advertisements. But if it is done, people will feel their privacy disturbed. Because of that, Facebook only provides aggregate data, about the number, location, age, occupation, but no email and name information. Thus, advertising on interactive media has more benefits, namely the collection of interested market segment data. Marketers can do funneling, which is gradually inviting people to stretch out from not knowing, knowing, liking, interest and buying.

Brands in the era of interactive media have other meanings with brands in the era of mass media. In the era of mass media, brands were built with unidirectional advertising, product and service performance. While in interactive media where communication takes place from many people to many people, the brand is formed from companies and among customers and markets. The market not only gets information from the company but also obtains information from fellow customers. Consumers can respond to products without needing permission from the company, and other consumers immediately read them. It create corporate image with more active consumer involvement. Opportunities also open, if the company succeeds in making consumers happy, then consumers willingly provide recommendations and good reviews to others.

The process of the brand changes. Previously, the company made products and brand associations, compiled evidence, conveyed to viewers. Then the following changes occur, the company studies the audience and makes a temporary hypothesis / guess about what is needed. The company makes the products needed and spreads them on the web and social media. Reactions or responses of market targets are considered and studied, both directly and with the help of artificial intelligence. The reaction of the target market becomes material to make new guesses about what is needed. So on.

That is not the only way to build brands in interactive media. There are other ways to weigh market needs for transparency. There is a trend; the market wants companies not to be merely economic animals that are looking for profit. They want to put the company as part of a big vision, for example about the environment, about fighting the status quo, about caring for future generations, about caring for the rights of women, caring for the poor. Apple computer companies, cosmetics companies are included in the example of companies that use this route. Apple emphasizes its attitude that wants to be different from previous ways. Apple emphasizes the company’s character first, the character that makes people interested. The motto, think different, is not about product quality, but about the attitude that challenges the status quo. With this approach, he can gain market sympathy through interactive media.

Background of Marketing Ideas

The marketing concept is thought out and designed to help businesses make efficiency and effectiveness in sustainable sales. Sometimes old concepts are not enough to deal with dynamic new business challenges, so marketing thinkers offer new breakthroughs to overcome deadlock. The breakthrough is not necessarily entirely new, it is often the development and redefinition, and the addition of new elements. So that the functions of the old concepts are still relevant. That is why, this chapter wants to discuss the concept of the millennium era while keeping in mind the old concepts that preceded it.

Marketing is a growing science and method. This science is growing rapidly in America, so it’s worth considering the development of marketing in America.

Manufacturers’ efforts to satisfy consumer needs are not new symptoms. Manufacturers of handicraft items open intensive personal communication with customers. Artisans get input to produce products that satisfy customers. Artisans know that in addition to production, paying attention to customers is important. The promotion was done by making a signboard on the production house and word of mouth.

Things changed after the industrial revolution of 1760-1830 in England (Geoff Lancaster, Paul Reynolds –Marketing Made Simple). In the industrial revolution, production is held in bulk. The results of mass products are not only sold to the local area, but sold out of town even to the national territory. Manufacturers no longer know consumers personally. Promotion is carried out through mass media.

The task of promotion is to compile announcements in magazines and newspapers. Tight competition makes advertisers compete in making compelling headlines, followed by big promises. Such a method will eventually make the market segment do not believe in the big promise of advertising in the mass media, advertisers make innovations by offering benefits, not features. Increasingly intense competition has led to the use of sexual attraction in advertising and product packaging improvements.

Advertising competition in the mass media is getting tighter, Competition is not only in the face of accuracy offering benefits that best suit consumers, but by doing, not just one, but a series of advertisements that are published continuously in the mass media. Ads are not designed for one time, but repeatedly in a series of campaigns.