Title: Marketing theory history and development of marketing
1Marketing theory - history and development of
marketing
- Macro marketing
- Theme 1, topic 1
2Marketing Theory Some Management
Terminology/Frameworks
- Planning
- Creativity
- Market Research
- Anticipation
- Satisfaction
- PLC/Portfolio Matrix
- Market Structures
3Marketing Theory Some Social Science
Terminology/Frameworks
- Science/Art
- Prediction
- Explanation
- Causation
- Theory
- Laws
- Generalisations
4Marketing Theory
Requirements of a good theory (Scientific
Approach) A. It must provide the means of
classifying, organising and integrating
information relevant to the factual world of
business B. It must provide a technique of
thinking about marketing problems and a
perspective for practical action C. It must make
available an analytical tool-kit to be drawn
on as appropriate in the solution of marketing
problems D. It must provide a basis for the
explanation, prediction and perhaps even the
control of marketing processes and events E. It
should, in time, permit the derivation of a
number of principles, possibly even laws,
of marketing behaviour
(Rodgers, in Baker P27)
5Social Science/Marketing Management
Compatibilities
- Science/Art
- Prediction
- Explanation
- Causation
- Theory
- Laws
- Generalisations
- Planning
- Creativity ..
- Market Research ..
- Anticipation ..
- Satisfaction
- PLC/Portfolio Matrix
- Market Structures .
6Marketing Theory
- THEORETICAL
- Conceptualising
- Thinking
- Broadening
- Awareness
- Theoretical on its own-
- - Only theoretical
- PRACTICAL
- Doing
- Performing
- Achieving
- Practice on its own-
- - Danger of failure
7Marketing Theory
- Misconceptions-
- Too theoretical is difficult to understand
- Too theoretical is conjectural rather than
factual (Thats just a theory, not a fact) - To theoretical is not practical enough (Its
all right in theory but not in practice) -
Hunt 1991
8Theory
Definition of theory- A scheme of system of
ideas or statements held as an explanation of a
group of facts or phenomena The nature of
theory- DESCRIPTIVE-------------------------
ANALYTICAL
9Theory
- Basic requirements of any theory-
- Clear and precise definitions
- Law like generalisations
- Hypotheses
- Empirically testable
10Theory Further Definition
- HYPOTHESES Working guesses with a
probability of success - THEORY Hypotheses with an accuracy greater
than that achieved by random guess may be a
THEORY - LAW A theory that yields accurate
predictions every time it is used will take on
the status of a LAW - The usefulness and quality of marketing theory
will depend - upon the way in which definitions, assumptions
and - hypotheses are combined together (Baker 1995)
11Theory Complexity
Theories often deal with abstract concepts and
complicated relationships and thus they may be
difficult to comprehend Simplicity is a
desirable characteristic of theory but reality
is often complex and theoretical constructions
used to explain reality must often be
complex
Hunt 1991
12Theory and the Real World
- All theoretical constructions MUST be related to
the real world - All theoretical constructions MUST be PRACTICAL
- since the explanation and prediction of
real-world phenomena must rank high on any list
of practical concerns
13Theory Related to the Real World
Rather than- Its all right in theory but not
in practice The truth of the matter is- If
it is not all right in practice, it cannot be
all right in theory
14Reasons for Developing a General Theory of
Marketing
- The marketing discipline, as it gains more
breath and sophistication, is becoming
increasingly fragmented - Marketing is undergoing an identity crisis.
Consider how difficult it is to answer, in
brief and comprehensive fashion, the simple
question What is Marketing? - Marketing is experiencing a credibility crisis.
Marketing practitioners are becoming
increasingly disillusioned with the advice
offered by their academic counterparts and often
regards the knowledge generated by academic
researchers as irrelevant to their concerns -
Sheth et al (1988)
15Theory The Need for Understanding
- It is important to know theory aspects as a
foundation for justification of
work/dissertation - Understanding of theory will enable
justification - If a dissertation is to have credibility it must
be supported by theoretical foundation. This
means understanding the meaning of theory - Thus, answer the question What is Theory?
The answer to this question enables good
development of logical argument