Marketing entails three traditional stages: production, sales and marketing. This can be added to other stages- product and societal marketing stages which some argue belong to production and marketing stages respectively. These staged are discussed below:
production stages: During this stages, emphasis was on increased production. It was a production oriented stage. During this stages, sales department existed with the major task of selling whatever was produced. marketing was not yet recognized, this stage existed in the United State of America around 1900’s.
Sales (selling) stage: Emphasis here was on how to sell what was produces. Two major reasons, among others, were responsible for low sales experienced in the product stages. Firstly, because of high quality of products, people no longer come to buy as often as possible. Secondly, the great depression in the 1930’s affected the demand for product inspite of their qualities.
Meanwhile TWO significant changes occurred during these stages:
- All marketing activities were grouped under one manager still called a sales manager.
- Activities formally located in other department were now put in the sales department.
At this stage, companies employed all strategies to hard sell the products to customer. This stage lasted from 1920 to 1950.
Marketing stage: The concept of coordinated marketing was embarked upon at this stage, directed toward the twin goal of customer orientation and profitable sales volume. It was an era of marketing orientation, business now decided to stem the tide of increasing failures by resorting to find out what market wanted before producing the products.
Attention under this stage shifted from selling to marketing. Several activities which were in the hand of other executives were placed under a marketing manager.