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Marketing theory history and development of marketing

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Requirements of a good theory (Scientific Approach): A. It must provide the means of classifying, ... practitioners are becoming increasingly disillusioned with ... – PowerPoint PPT presentation

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Title: Marketing theory history and development of marketing


1
Marketing theory - history and development of
marketing
  • Macro marketing
  • Theme 1, topic 1

2
Marketing Theory Some Management
Terminology/Frameworks
  • Planning
  • Creativity
  • Market Research
  • Anticipation
  • Satisfaction
  • PLC/Portfolio Matrix
  • Market Structures

3
Marketing Theory Some Social Science
Terminology/Frameworks
  • Science/Art
  • Prediction
  • Explanation
  • Causation
  • Theory
  • Laws
  • Generalisations

4
Marketing 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)
5
Social Science/Marketing Management
Compatibilities
  • Science/Art
  • Prediction
  • Explanation
  • Causation
  • Theory
  • Laws
  • Generalisations
  • Planning
  • Creativity ..
  • Market Research ..
  • Anticipation ..
  • Satisfaction
  • PLC/Portfolio Matrix
  • Market Structures .

6
Marketing Theory
  • THEORETICAL
  • Conceptualising
  • Thinking
  • Broadening
  • Awareness
  • Theoretical on its own-
  • - Only theoretical
  • PRACTICAL
  • Doing
  • Performing
  • Achieving
  • Practice on its own-
  • - Danger of failure

7
Marketing 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

8
Theory
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
9
Theory
  • Basic requirements of any theory-
  • Clear and precise definitions
  • Law like generalisations
  • Hypotheses
  • Empirically testable

10
Theory 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)

11
Theory 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
12
Theory 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

13
Theory 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
14
Reasons 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)

15
Theory 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
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