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The evolution of marketing thoughts
Over a century has passed since the formal study of marketing emerged as a separate fi eld from
economics. Marketing took shape as a recognized discipline by the mid-twentieth century
(Bartels 1983). The growth of marketing as a discipline corresponds to the development of
marketing as a business function and philosophy. Early efforts to track the evolution of marketing
concept documented that marketing scholars used to view marketing as a simple activity, as the
coordination of a group of activities, as a business process undertaken from the customer's point
of view, as an economic function of production, but have increasingly viewed marketing as a
social phenomenon (Bartels 1965).
In a similar vein, Kotler (1972) suggested that the focal point of marketing progressed from a
commodity focus (e.g. farm products, manufactured goods, services), an institutional focus (e.g.
producers, wholesalers, retailers, agents), a functional focus (e.g. buying, selling, promoting,
transporting, storing, pricing), a managerial focus (e.g. analysis, planning, organization, control),
to a social focus (e.g. marketing effi ciency, product quality, and social impact). Correspondingly,
Kotler and Amstrong (1999) concluded that the practice of marketing management has gone
through fi ve generations of philosophies, evolving from focusing on the improvement of
production and distribution effi ciency (the product concept) in early days, to now delivering
'superior value to consumers in a way that maintains or improves the consumer's and the society's
well-being' (1999: 20). From the marketing function perspective, Sheth
et al
. (2000) proposed
that the second half of the twentieth century has witnessed a shift from mass marketing to
segmented marketing, with a further movement toward customer-centric marketing (i.e. serving
the needs of each individual customer) on the way.
As for research, marketing studies have gone through at least four phases (Vargo and Lusch
2004a). The origins of marketing can be traced back to classical and neoclassical economics, as it
was initially founded as a branch of applied economics studying distribution channels (Kotler
1972). In its formative period, owing to a traditional 'concern for agricultural markets and the
processes by which products were brought to market and prices determined' (Webster 1992: 1-2),
early marketing scholars focused on commodities exchange, the role that marketing institutions
played, and functions these institutions performed. Starting in the 1950s, the marketing management
school dominated the fi eld, 'which was characterized by a decision-making approach to managing
the marketing functions and an overarching focus on the customer' (Vargo and Lusch 2004a: 1).
The well-known marketing mix model (or, 4Ps) also appeared during this period. New marketing
theories surfaced in the 1980s, which broke free from the traditional 4Ps framework and challenged
the dominant microeconomic profi t-maximization worldview (Webster 1992). During the process
of unifying these separate theoretical streams, a new paradigm was estimated to be emerging,
characterized by the belief in marketing as a social and economic process (Vargo and Lusch 2004a;
Webster 1992).
Changing environment
For an applied discipline boasting a traditional emphasis on 'empirical research', 'applied thought
development', and 'occupational concern' (Bartels 1983: 33), external environment is critical in
directing its future. The recent emergence of new marketing thoughts has been externally
determined by demographic changes, technological development, as well as dissatisfaction with
existing marketing productivity (Sheth, Sisodia and Sharma 2000). Thus, the on-going discussion
on marketing's future direction should be regarded as a response to the changing environment,
rather than a conceptual artefact.
