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
• distribution channels,
• personal selling (personal selling),
• 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,
• price determination
• physical distribution
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
Whereas what cannot be controlled in the view of the marketing manager is
• Non-marketing costs
• Distribution structure
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.