In early stages of 20th century due to industrial revolution new philosophy of selling products emerged. Mass production was done, network broadcasting was proper, transport facility was nationwide and chain of retailers was established so that marketers can easily drive consumption pattern of the increasing population. By emphasizing on pricing, product, promotion and placement companies managed their customers as their production plant. They thought that consumers can be purchased as capital equipment. They use to think that they can control, repeat and replicate the process of marketing the products.
This model worked out for 50 years but as the culture and the lifestyle were changed, this model started disintegrating. Traditional marketing practices especially promotional activities started inhibiting the customers. Packaging and direct mails started inducing guilt. Advertising and merchandising got cluttered and affected consumer's privacy. Skepticism was increased for pricing policies. Distribution channels were not proper so products were not able to reach the right customers and the marketing cost shoot up though the result was not there. So the common marketing practices failed and new approach got emerged from the change. This approach was based on the relationship between the customers and the producers. Marketing practices were now started linking with the innovation. It started emphasizing on meaning, passion, experience and authenticity. It gave least preference to hype, image and intrusion. Now, even the communication was also one-to-one instead of one to many. Now consumers had more power for company's evaluation.
Culture and technology has also affected the change. Technology helped in 24/7 shopping, delivery on demand and price comparison and evaluation. Customers were not easily persuaded as they were used to earlier. Customers were persuaded by their friends, relatives and family. There was increase in the expectation of the individualism and customization and there was very small hope for the mass appeal.
|