Marketing

A Critical Textbook

Nick Ellis,James Fitchett,Matthew Higgins,Gavin Jack,Ming Lim,Michael Saren,Mark Tadajewski

• Publisher: SAGE Publications Ltd
• Year: 2010
• ISBN:
  9781446243954
• Edition: 1
• Topic: Business
• Subtopic: Marketing
• Index: Business

Written by a team of renowned experts in the field, Marketing: A Critical Textbook provides a unique introduction and overview of critical approaches to marketing.

Ideally suited to advanced students of marketing, the book uses examples and ?real world? case studies to illustrate and discuss major alternative and critical perspectives on the subject, enabling students to constructively question the conventional assumptions, concepts and models with which they are already familiar.

- Explains and debates key concepts in a clear, readable and concise manner.

- Provides practical and innovative demonstrations of abstract and difficult concepts through classroom exercises and individual and group activities.

- Includes a glossary of critical marketing terms.

- Additional material on the companion website, including a full Instructor?s Manual and free access to full-text journal articles for students.

1

Introducing the History of Marketing Theory and Practice

1.1 Introduction

The global popularity of marketing as a subject for study might suggest that those studying and teaching the subject know what it is that they are studying and how this study should be undertaken. But as we shall see in this chapter and others in this book, this has often not been the case. Marketing as a subject has proved almost impossible to pin down, and there is little consensus about what it means to study marketing. Most organisations now employ marketers. Marketing roles were traditionally found in commercial firms, but increasingly all kinds of organisations feel the need to employ marketers or to commission services from marketing consultants.

The popularity and pervasiveness of marketing is, however, a relatively recent phenomenon. Academics have only studied marketing as a discipline in its own right for just over a century, and during its short history the study of marketing has been influenced by many different academic movements, fads and priorities. This variability can be viewed as a positive state of affairs, because it means that the subject is always open to new ideas and new trends. On the other hand, it has the potential to undermine the value of marketing knowledge because there is no general consensus on what the study of marketing should be for, how these studies should be conducted, or what the outcomes should be. Before we can begin to study marketing, we need to understand something about this history and the debates and controversies that have shaped the field.

In this chapter, we shall review the origins of marketing thought, examining when the term ‘marketing’ was first used, its subsequent development, and provide an overview of the development of marketing thought and practice. Marketing, clearly, is probably as old as human civilisation itself (see Jones and Shaw, 2002; Minowa and Witkowski, 2009; Moore and Reid, 2008; Shaw and Jones, 2005). For our purposes, we will restrict our attention to the emergence of marketing as an academic discipline and business practice early in the twentieth century.

What confronts most students and academics alike when they begin to study the development of marketing is the overwhelmingly American emphasis of much of the literature. The key textbooks, for instance, often contain examples of American corporate activities, sometimes tweaked for other markets, sometimes not. In writing this introduction we will obviously be tied to some extent to the history of American marketing. Many of the earliest college courses were developed there, most of the principal thinkers in marketing throughout the twentieth century worked there, and as such it is natural that we talk about these people, institutions and their theoretical contributions.

But, in an effort to ensure that the material presented resonates with more than just an American audience, and to provide more balance to the history of marketing than is generally seen in introduction and advanced texts alike, we provide numerous examples of non-US marketing theory and practice.

As will be shown, not all countries adopted key marketing practices at the same time as they were discussed by US marketing scholars. Some countries like the UK, for example, turned to formal marketing education relatively late, even if the UK did have a number of companies and entrepreneurs who were naturally marketing oriented fairly early, such as the confectionery manufacturer Cadbury’s (Corley, 1987; Fitzgerald, 1989). Other countries, such as Spain, underwent their own ‘marketing revolution’ (Keith, 1960) even later. So, in short, we would ask that you remember that the theory and practice discussed in this and the following chapter are the result of very specific political, social, technological, and economic environments in the economies discussed. We would encourage you NOT to think ‘of marketing as a homogenous, almost universally applicable concept, transcending cultures as well as contexts’ (Cannon, 1980: 140).

1.2 The Early Development of Marketing Thought

In his important history of marketing, Bartels (1988) proposes that the term ‘marketing’ was first used ‘as a noun’, that is, as a label for a particular practice, sometime ‘between 1906 and 1911’ (Bartels, 1988: 3). Nonetheless, Bartels’ historical account has been challenged by scholars who assert that there were people writing about the subject before 1906 (Brussière, 2000). In appraising the Publications of the American Economic Association, Brussière found that the term marketing was actually used in 1897. Tamilia (2009), on the other hand, suggests that it was used even earlier than this in the Quarterly Journal of Economics.

These examples are clearly taken from the academic literature. But it was not just academics writing about the subject. For example, Shaw (1995) notes that in Miss Parloa’s New Cookbook and Marketing Guide which was published around 1880, ‘marketing’ related to buying and selling activities. This was not the only book using the term at this time or previously. Shaw says that if we look at dictionaries prior to the Bartels statement the intellectual history of the term ‘marketing’ can be extended much further, all the way back to 1561 (Shaw, 1995: 16).

On a related point, Dixon argues that ‘The Oxford English Dictionary traces the use of this term [marketing] to the sixteenth century; it certainly did not originate in the United States between 1906 and 1911’ (Dixon, 2002: 738). Nor should we think that marketing education originated in the United States. In actual fact, the first courses were found in Germany at the turn of the twentieth century (Jones and Monieson, 1990). Having said this, the American Marketing Association and American marketing educational system has obviously been very important in terms of the development of marketing thought. As an anchor for the rest of the chapter therefore, consider the changing definitions of marketing in the Box below. These definitions illustrate how marketing as we know it has taken the shape it has.

Voices – The American Marketing Association and the Changing Definitions of Marketing

Wilkie and Moore (2006) tell us that there is one important issue that we should acknowledge in the changing definitions of marketing inasmuch as the definitions become more managerial over time. That is, less attention is paid to the influence of marketing in and on society and more attention is devoted to articulating the management function that marketing performs inside an organisation.

So, from the first definition of marketing provided in 1935, through to the 1985 and 2004 modifications, the definitions change from marketing being: ‘the performance of business activities that direct the flow of goods and services from producers to consumers’ (1935). [To marketing as] ’the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives’ (1985); [to marketing as] ‘an organizational function and set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and stakeholders’ (Wilkie and Moore, 2006: 227).

The problem with the last definition is that attention is focused on marketing as an organisational activity – there is no mention of marketing’s role extending beyond those activities most closely associated with the firm. Thus, by removing the societal emphasis that earlier scholars demonstrated in their desire to improve marketplace efficiency, distributive justice, standards of living and the distribution of products at lower prices, later definitions in effect encourage people not to think about such improvements in the marketing and distributive system as a whole, but simply focus on those aspects relevant to an individual firm. It also assumes that individual firm activities will in the aggregate be unproblematic.

As far as one of the most recent definitions is concerned, marketing activities do not actually impact on wider society. It was the excessive managerial emphasis of this definition that led to a series of heated exchanges both online and in the Journal of Public Policy and Marketing. Ultimately, the American Marketing Association went quickly back to their drawing board, bringing out a new, updated definition that responded to the criticism by scholars, so that the latest definition reads: ‘Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large’ (Lib, 2007).

1.3 The First Courses in Marketing in the Early Twentieth Century

As was mentioned above, some of the first courses in marketing appear to have been delivered in Germany. There is, unfortunately, little detailed discussion of these in the marketing literature. Studies of early courses in marketing in USA are far better documented. Dr E.D. Jones is often credited with offering the first course in marketing in 1902 at the University of Michigan (Maynard, 1941). This course was not actually called marketing at all when it was first offered, but ‘The Distributive and Regulative Industries of the US’ (Bartels, 1951a). The first course actually called simply ‘Marketing’ was delivered some nine years later by Ralph Starr Butler at the University of Wisconsin. In the intervening period, other universities had nevertheless started providing their own courses on distribution, advertising, salesmanship and related subjects.

At a general level, we can consider marketing as a form of ‘applied economics’ (Shaw and Jones, 2005). Its emergence is often attributed to the fact that despite the variety of academics working in the various sub-disciplines of economics in the late nineteenth and early twentieth century, there was still a great deal of concern that economic reflections on the marketplace were not used to formulate guidance for practising managers (Kemmerer et al., 1918).

Furthermore, the information that was available was often found in relatively obscure academic sources that few, if any, actually managed to access and read (Ashley, 1908). These access issues were compounded by the fact that: ‘The greater part of the economic world has not yet been surveyed descriptively and realistically’ (Ashley, 1908: 188). It was here that marketing scholars and consultants had the opportunity to contribute to knowledge about the functioning of the economic system. They could help practitioners understand the marketplace and help investigate consumer needs and desires which had largely been ignored by economists (Mason, 1998).

In the very beginning, early marketing academics focused their attention on ‘describing, explaining, and justifying prevailing marketing practices and institutions, particularly newer ones’ (Bartels, 1988). Early scholarship was partly written with the intent of modifying ‘misconceptions held among the public, such as the belief that the wholesaler was parasitic and would disappear from the distributive system, [the] fear of [the] annihilation of small stores by chain organizations, and dismay at the plight of consumers before the ruthless practices of vendors’ (Bartels, 1988: 29).

To effectively understand the rapidly expanding industrial economy of the US, these practically minded researchers refused to spend their time theorising in their ivory towers, preferring instead to study the practice of marketing, charting the passage of goods through the distribution system (Weld, 1941). What is interesting is the reference made by Bartels above to the justification of marketing activities, on both the basis of its efficiency and in terms of the utilities created.

1.4 Marketing, Efficiency and Utility Creation

When we talk about justifying marketing, what we mean is that scholars wanted to demonstrate that marketing did perform a useful and valuable role in distributing goods and services to where they were needed, at appropriate price points and in so doing, enhancing the quality of life experienced by consumers. They wanted to justify the value of marketing in this way for the reason that many people living in the early twentieth century were concerned about the rising cost of distribution. People could appreciate that there were a variety of intermediary steps involved in distributing goods from the manufacturer to the wholesalers and onto the retailer and they quite rightly asked the question: Were these middlemen adding value or just cost? Were middlemen adding value to their offerings by getting the right product to the right plac...