The reason for emphasising evolutionary and revolutionary role in marketing has become important mainly because of continuous improvement in the technology of production, transportation and communication and greater development in sociology and psychology.
Marketing today has become more important because of increasing competition among business organisations, improved technology in manufacturing, and increasing chances of global trade. It is also relevant to state that highly educated personnel who continuously think of greater consumer sat satisfaction by improving quality today manage business.
NOW LET US FIRST CLARIFY THE MEANINGS OF THE TERMINOLOGIES USED:
EVOLUTION: Gradual development of something, especially from a simple to more complex form.
REVOLUTION: A dramatic and wide-reaching change in the way of something works or organised.
The process of evolution has become important because of more educated persons working in business organisations who are trying to be mole innovative in managerial functions. As far as revolution is concerned, 21st century may have more revolution in manufacturing process, transportation, communication, mainly because of the availability of Internet, not only to the executives hut also to workers.
The distinction between evolution and revolution is essential to identify changes in the organisation and its possible causes. It may also be stated that 21st century may have better evolution, which may become effective for greater efficiency in the evolutionary process of business management.
In the context of strategic marketing there seems to be continuous improvement and that promotional activities would be more expensive for improving sales and increase consumer satisfaction, which is becoming more and more challenging because of greater experience and education of family consumers, including children who may use internet for their purchase.
It may also be pointed out that consumption among children is continuously increasing and good parents care more for improving the personality of their children. For improving evolutionary process there must be improvement in consumption research not only about male members but also on family consumers.
The main reason for the success of business corporations is continuity in the overall improvement of the working system of the corporation, which may be identified as development. To be more specific we may say that development of business organisations very much depends on continuous improvement, ie the result of systematised evolution.
Systematisation today, in my opinion, is the heart of success in business and gradual development. One may also think of good evolution leading to sudden, dramatic and wide-ranging change that is revolution.
One may predict that 21st century would have greater research for enhancing the performance of strategic marketing. As we know strategic marketing forecasts for five to ten years ahead and marketing people must realise that in future there will be products with greater sophistication, mainly because of average customer will be more educated and some may even have technical knowledge as well.
In the 21st century the number of various brands, especially in the area of family consumers goods, are becoming more popular because of huge expenditure on promotion. These promotional activities are aimed at making effective competition and would require more, effective and efficient evolutionary process.
It may be clearly stated that business organisations evolution processes will improve to meet the new type of competition from such firms, which are quite new and may adopt better policies for consumers. Revolution in marketing should also match with increased production facilities.
For example in Germany some manufacturers are receiving orders in high quantities than their total production facilities. In other words countries like Germany are conducting research to improve their production methods. On the whole we can say that in 21st century there will be greater efficiency, and evolutionary process will continuously improve.
I have written this article so that marketing people may realise the importance of revolution in strategic marketing. As a matter of fact the future course in strategic marketing may be dependent upon effective evolution, semi-evolution as well increased evolution in manufacturing, marketing and finance, It is difficult to predict about revolution in dynamic business organisations.
EVOLUTION AND REVOLUTION IN SELLING/MARKETING: From Barter, Marketing activities evolved towards personal selling, producing, sales promotion, advertising, direct marketing, credit sales, institutional basis of selling - where customers buy products. Evolution in selling methods started with the showing of products/brands, final selection of product by customers, and then bargain about price.
In general bargaining methods continued for centuries and may still exist in some countries. However, retailing is becoming more systematised and one price policy is gaining as an advantage both to buyers and sellers. Consequently it has been saving time of both - the buyers and the sellers. Bata Shoe Company in the international market popularised one price policy in selling/marketing.
This was the revolution in pricing distribution methodology. However it may also be stated that a number of marketing institutions, department stores, chain stores, supermarket and retailers with lot of branches also emerged.
In my opinion direct marketing was a revolution. Marketing through internet was another revolution. During 1950-2000, increased production forced manufacturers to promote their products through branding.
The old brand technique was given greater importance and 'brand managers' were inducted who were also given the responsibilities of advertising, sales promotion, product modification, packaging and research. However, the role and responsibilities of brand managers were not the same. Each brand manager was assigned responsibilities according to the changes, including the introduction of some new products.
In Pakistan quite a large number of brand managers were appointed both in Pakistani firms as well as in multinationals. Most of the brand managers did a good job. Advertising of brands played the most important part in enhancing the sale of Pakistani products like oil, ghee etc.
Multinationals are well-known for their marketing strategy. For example, Unilevers have established themselves through a number of products like Lipton Tea, Lux Soap, Brook Bond Tea and several other brands. Branding strategy may be classified in two categories namely one brand name to all products of the company.
Some manufacturers give new brand name for each product like that of Unilevers. In the case of milk industry, (Nestle) they give only one brand name. By the end of 21st century brand names of national organisations as well as imported brands of a number of medicines would acquire strength and dominate the marketing system.
It would be fair to say that branding strategy in marketing has brought revolution in the minds of consumers/customers. Consequently, it has become inevitable to popularise consumption goods with providing good brand name and sufficient publicity for consumers.
In the 21st century marketing departments were very well organised and almost all the new technology of marketing namely continuous improvement of the quality of product, change in size, change in colours, better packaging are quite common even among middle size manufacturers. The emergence of supermarkets could be termed as a revolution in retailing.
I honestly feel that the role of marketing in 21st century shall not only be well planned but will also be dynamic in finding new kinds of marketing mixes/sub-mixes. Another revolution in marketing is continuous increase in sale through internet (online), especially in USA, Europe and Japan and to some extent, in some of the developing countries like Malaysia, India, Pakistan, Saudi Arabia, and Dubai etc. Dubai is now internationally known and a number of new investors are being attracted for business and development in Dubai may be stated as a revolution.
The new marketing technology would be emerging to provide latest consumer satisfaction to customers. This will be a new role of marketing with continuous research as well as promotion activities for introducing new products and/or improved products with the main objective of enhancing consumption of new products/brands throughout the world. Marketing strategies stil1 be more challenging and the future predictions for 5-10-15 years would be essential for greater success in business development.
EVOLUTION AND RESOLUTION IN THE AREA OF PRODUCT: As a result of improving technology a number of changes were introduced which was another kind of revolution in marketing. For example manufacturers of durable goods introduced new technology, continuous supervision over the retailers of durable goods. It may be pointed out durable goods are generally sold on the basis of guarantee and warranty.
For supervision of durable goods manufacturers faced much greater competition than before. It may also be stated that the leading technology is facing much more competition. In the last few years of 20th century the total number of durable goods, which were directly sold to retailers by manufacturers have enhanced - a revolution in distribution system.
The marketing methodology of manufacturers of technological goods introduced several new marketing techniques, which may be called a revolution in marketing. The retailing system in most of the countries continues to change. Especially retail markets selling only one kind of product continue to increase. Not only there was a change in retail markets but even wholesale markets were also established on a bigger scale.
It may be pointed out here that the revolution in retailing and wholesaling is the main reason for hiring better and some qualified marketing personnel. Before Second World War marketing people were neither highly educated nor intelligent. Their job was mainly to attend customers for selling.
Today almost in every country, marketing people are more intelligent, hardworking and perform various kinds of functions to promote business of the company under tough competition. In my opinion this is one of the most important revolution in the history of marketing.
To give specific example I would like to state that quite a large number of new kinds of retailers emerged like Agha Super Market in Karachi, Department Stores, Food Street (like in Lahore) also emerged. This kind of specialisation in retailing is really a revolution.
Retailers today are trying to provide maximum facilities to customers, which may be stated as under: Return privilege, long-term credit, and minimum effort by salesmen in a number of shops. System of wholesaling is also changing.
Wholesalers deliver goods to retailers on credit and manufacturers are also directly organising sales to retailers. New revolutionary processes are enhancing business development on scientific basis. Product development with scientific research is becoming revolutionary if compared to nineteenth century.
EVOLUTION AND REVOLUTION IN BUSINESS SERVICES: Services include both business and personal services. Tailoring and hair dressing are part of business institutions. On the other hand sellers of products also promise for warranty and guarantee of service, which may be provided at the time of selling product. In this portion we are concentrating on services.
For example hairdresser provides direct service to the customer. In the case of services new kinds emerged every now and then and made some kind of advancement in the nature of services. For example hair cutting for men and beauty parlours for women.
Parlours may be termed as revolution in human services. Similarly government regulations for income tax payment initiated tax practitioners. Greater economic development implied big size manufacturing, distribution and advertising firms. Greater domination of business organisations in the economy and legal aspects led to establishing of business and selling of shares of stock exchange market.
Big business implies business transaction of higher value. These organisations required legal help. As a result of these conditions legal advisors emerged government regulations required auditing or private and public corporations. Consequently professional auditors became of great importance.
In the discussion of evolution and revolution in services two kinds of revolutions emerged. With the establishment of construction companies and real estate developers emerged. For centuries in Indo-Pakistan subcontinent house construction was undertaken by individual senior members. Thus we can say it is a kind of revolution.
For a long time houses were constructed by individuals. Recent changes in big cities encouraged house building corporations. Today we find greater investment in construction of shopping complexes, flats, hospitals, schools, and colleges. This kind of revolution in construction industry is a good revolution for solving the problems of shelters of various kinds.
TABLE OF A FEW TYPES OF SERVICES:
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Professional Services Personal Technical Service Communication
Services Transport Services
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Income Tax Practitioners Beauty Parlours Automobile Services Post
Legal Advisors Boutiques Plumbing Services Couriers
Clearing/Forwarding Tailors Electrical Repairs Telephone
Brokerage Houses Cobblers Electronic Repairs Telegraph
Auditors Barbers Bicycle Services Cell phone
Estate Agents Launderers, etc Electricians Television
Construction Consultants Gardeners, etc -
Logistics -
Leasing Roadways
Medical Practitioners Railways
Advertising Agencies Airways
Research Organisations Seaways
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As a part of an on-going research project at Hamdard Institute of Management Sciences, a comprehensive research survey of Karachi's retail structure was conducted. This survey was conducted in 865 localities of 171 union councils in all the 18 towns of Karachi.
THE FOLLOWING ARE FEW TYPES OF RETAIL SERVICES OBSERVED DURING THE SURVEY:
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Hakim's clinic Car jump/axils repair Carpenter Interior decoration Coaching center
Book binding Car seat repair Cinema Muraqba hall Children play land
Car A/C repair Car service station Cobbler Motor cycle repair Body Fitness Center
Car body repair Car mechanic Cyber cafe Notary public Kitchen Appliance Repair
Denting/painting Catering Decoration Barber Phone repair Motor Rewinding Service
Car decoration Dental clinic Hospital Photo studio Bride's Car Decoration
Auto electrician Gents tailor Hotel Private post offices Railway Booking Agents
Rent-a-car Ladies tailor Jarrah Pir-faqir/sanyasi baba Newspaper Ad. Agents
Silencer repair Hemming/peco Laundry Radio/TV repair Palmist
Estate agency Zari-gota Stitching Rangraze Travel agency Photo Copying
Tuition center Puncture repair PCOs Welding shop Wheel alignment
Watch repair Private university
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EVOLUTION AND REVOLUTION IN THE AREA OF PRICING: The first revolution in the area of marketing with reference to pricing was the introduction of 'fixed price system' for each product and no bargaining. Big corporations mainly introduced this.
Some corporations organised their pricing system in such a way that same price was charged to wholesalers and retailers in all parts of the world. This new pricing strategy proved successful in increasing the overall sales of their products as well as expected profits.
For a number of consumer products price of products were printed on packages. As a result of this consumer satisfaction with reference to pricing increased and housewives were successful in planning their family budget.
Printing of price on the product by manufacturers greatly attracted customers who may not have any idea about the price. This can also be termed as a revolution in pricing.
With the greater application of online selling techniques the consumer can easily find prices of similar products among big retailers. Pricing system in this way is becoming more systematised and that it is useful in planning marketing strategy as well as sufficient consumer satisfaction.
Another big change in pricing strategy is 'annual sales' which is becoming common even in Pakistan and this may be treated as a revolution because one of the research studies has proved that more customers preferred to buy things during annual sales announced by department stores.
Some leading corporations introduced 'return privilege' to the customers according to which the customers, who felt unsatisfied, could return the purchased goods within a specified period and get back the amount paid.
Marketing revolution in fact started after opening of the Suez Canal and the depression of 1930. The trade area in the world increased and European goods were being sold in Asian countries. With the passage of time England, France and Scandinavian manufacturers started branding of their products.
At that time branding was not a tradition expecting that when trade marks were advertised, and then TN became the brand name. The great revolution in advertisement and sales promotion was only due to popularising their brands started in 20th century when competition among European countries continued to increase and the brands also continued to increase.
This brought a revolution in advertising. Another revolution in marketing was the introduction of credit sale by various firms in a bigger scale. The consumers were much influenced by credit sale facility and I sincerely hope that the consumption pattern will improve. Biggest revolution in industrialisation was realisation of importance of 'selling' in 'marketing'.
EVOLUTION AND REVOLUTION IN PROMOTION: "Advertising is basically non-personal presentation aimed at promotion of products, especially brands and some kind of services by manufacturers, wholesalers, retailers etc."
Twenty-first century will be known for promotional activities by business firms, has been there for more than two centuries. It may be pointed out that promotion on small scale had been quite common by business organisations.
However, development in newspapers and journals acquired greater importance in the last fifty years of past century. Although some kind of advertising existed for a long time but increase in the number of newspapers, journals, and TV greatly enhanced promotional activities.
On the whole the revolution process improved the development of promotion. In my opinion promotional activities will require greater expenditure in future. As far as revolution in the area of promotion is concerned we may mention here two more revolutions in advertising through TV and Internet.
Thus we can say that evolution as well as revolution play an important role in the greater development of industry using more sophisticated technology. As far as I can say, promotional activities would require more investment for popularising present good quality products as well as new products of the future.
(The author is Life Research Professor, Faculty of Management Sciences, Hamdard Institute of Management Sciences, Hamdard University. Also Professor Emeritus, IBA, Karachi.)
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