The Birth of Marketing Ideas
In 1914, Butler formulated marketing as a management discipline. Butler (1914, p. 1, 1917, p. 3) was the sales manager of the Protec and Gamble Company. Butler defines; marketing is a plan behind a campaign or promotion series. Before that, experts did not know marketing, only knew production and sales / distribution. This distribution is an intermediary task, covering risk, transportation of goods, financing, sales, assembly, selection, and shipping to the next buyer.
Butler makes a new definition because based on experience, there are many problems that need to be resolved before making advertisements in the media and sending salesmen to the streets. Companies need to determine decisions about products, distribution channels or how to reach the desired market. (Kazuo Usui, 2008, Development of Marketing Management, Ashgate).
Butler’s idea that incorporating product planning as part of marketing management or plans behind the campaign was a remarkable idea in his day. The idea separates marketing management from sales and distribution 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 distribution.
Until now there are still many people who equate marketing as a sales promotion and advertising. Indeed from the outside, marketing work that looks invisible is promotion, while its contribution to production planning is not visible, even though it is very important to adjust the product and market needs.
Butler formulated the marketing work in product policy is to ensure that the product achieves technical quality in accordance with consumer preferences, before the product is launched into the market. Before becoming part of marketing, production does not think about product conformity with consumer preferences.
Bartel (1962, p. 213) considered Bartel’s idea to participate in shaping what is now called the marketing mix. Butler emphasized the importance of separating the planning and implementation functions not only in personal sales promotion and advertising but also in marketing activities in a whole.
The great depression era (1929-1930) pressured the print media business finances. Media distribution has dropped dramatically; print media income from advertising has declined.
Entrepreneurs turn to advertise on radio. Radio is a famous entertainment center. Entrepreneurs sponsor radio plays. Radio plays are growing rapidly.
Amid advertising costs slumping while advertising competition is also tight, advertising costs are no longer an option; a breakthrough has emerged to attract viewers’ attention by differentiating. Advertisers focus on how products differ from competitors.
In 1933, Edward Chamberlin described the practice of differentiation in the form of theory. This theory states that consumers have a variety of preferences for products available in the same industry. Price is not the only consideration. This theory adds new treasures, considering that the theory that is commonly used is price is the balance between demand and supply. Consumers choose the lowest price and achieve a balance between demand and supply.
This conceptual contribution from Edward Chamberlin adds a new dimension and new traits in the marketing mix. Products do not have to be cheaper or superior, to be able to compete. More different and according to special group needs also allows the product that suit to the market.