Before Marketing Concept
Before human history knows about marketing concept, business has two division, production and sales distribution. Production is all about making goods. While this distribution is the task of intermediaries, including taking risks, transporting goods, financing, making advertisements, selling, assembling, selecting, and shipping to buyers. If the sales department has problems with sales, that is sales problem.
In the time, there are small factor that determine market demand. The thought at the time said, the price determines the demand for an item. The influence of prices on demand depends on the level of elasticity of an item. This is a well-known explanation in economics until now. The name is law of supply and demand.
Based on name of organizational structure, they also aware about accessibility. They call sales department as distribution department. It shows that they are aware that distribution is a factor that determines demand.
Born of Marketing Concept
In 1914, Butler made a new concept. He named it marketing. Butler defines marketing as the plan behind a campaign or series of promotions. Butler is a sales manager at the Protect and Gamble Company. The concept is different from distribution and sales. He think this concept because based on experience, there are many problems that need to be solved first before making advertisements in the media and sending salespersons to the streets. Companies need to make decisions about products, distribution channels or how to reach the desired market. (Kazuo Usui, 2008, Development of Marketing Management, Ashgate).
The Butler has idea to include product planning as part of marketing management. The idea is brilliant. That make business cost more efficient. That is an extraordinary idea in that day. The marketing idea has a different scope and orientation than sales management. Marketing has a new meaning. At that time, production decisions were part of production management, not part of marketing that was still synonymous with sales. With the marketing concept, the marketing department participates in managing the production aspects that determine the success of the sales campaign program.
Until now, there is many people who can not differentiate marketing and sales promotion and advertising. Indeed, from the outside, the marketing job promotion. Its contribution in production planning is not visible, even though it is very important to adjust products and market needs.
Butler formulated marketing job in product policy to ensure the product achieved technical quality that was in line with consumer preferences, before the product was launched into the market. Before becoming part of marketing, production does not think about the suitability of products with consumer preferences.