ON THE DEVELOPMENT TRENDS OF MARKETING

On the Development Trends of Marketing

 

htpps://doi.org/10.36994/2707-4110-2023-9-36-10

 

Zhao Qiuzhe, master, "Ukraine" University [1]

 

Abstract: With the continuous development of economic globalization and information technology, as well as the rapid progress of science and technology, human life will undergo profound changes, and many aspects of economic life are also undergoing tremendous changes according to human requirements. Exploring future marketing development trends and their impact on marketing work, and proposing corresponding measures, is of great significance for the current business management work of enterprises. This article first provides an overview of marketing theory, then introduces the current situation of marketing in China, analyzes the new trends in marketing development, and finally proposes corresponding strategies to comply with the new trends in marketing development.

Keywords: Marketing Development Trends

 

At present, the world economy is developing towards the direction of global market integration, digitalization of enterprise survival, and internationalization of business competition. The rise of a new economy represented by the Internet, knowledge economy, and high-tech, with meeting consumer needs as the core, has placed marketing in a highly competitive and ever-changing environment, presenting some new marketing methods and forming a new trend in future marketing development.

1. Overview of Marketing Theory

1.1 Concept of Marketing

1.1.1 The Meaning of Marketing

The activities of transferring goods from producers to consumers. That is, a strategic activity where producers or operators try to provide the right product at the appropriate time and location. Its purpose is to meet various consumer needs and promote product sales.

Marketing is translated from English marketing. Some people translate it into marketing, marketing, and so on. In 1960, the Definition Committee of the American Marketing Association defined marketing as "the commercial activity that guides goods and services from producers to consumers or users. The Japanese business community defines marketing as a comprehensive corporate activity that considers how to adapt to market demand and provide goods or services while meeting consumer interests. Marketing is a process, the sum of a series of activities. Its content mainly includes market research, product planning and design, market positioning, product pricing, marketing strategies, sales channel design and management, advertising, public relations, etc. Marketing should prioritize consumer interests and emphasize conducting business activities based on meeting consumer needs.

 

1.1.2 Formation and Development Stage of Marketing

As an independent discipline of business management, the formation and development process of marketing can be roughly divided into three stages, the first being the embryonic stage. In the late 19th and early 20th centuries, Western countries experienced rapid economic development, and the market was basically a trend of oversupply. The focus of enterprise management was to increase production and reduce costs. Later, due to the implementation of scientific management and the use of various means to improve production efficiency. The product gradually began to oversupply, leading to sales problems. To this end, companies have started researching various marketing methods and advertising art, and conducting extensive and in-depth market research activities. The academic community has also begun to engage in it. In 1902, the University of Michigan, the University of California, and the University of Lino in the United States officially established courses in sales. In 1912, Hergertz of Harvard University in the United States published the first marketing textbook with marketing and advertising as the main content. The second stage is the development stage. At the beginning of the 20th century, the capitalist world experienced frequent economic crises and a large backlog of products, directly threatening the survival of enterprises, forcing them to pay more attention to sales issues and focus on researching how to expand product sales. In 1937, the National Federation of Marketing Teachers, the Advertising Society, and relevant market research organizations merged to establish the American Marketing Association (AMA), and established dozens of branches nationwide to engage in marketing research and training marketing talents. They published marketing and marketing research magazines, which greatly promoted the development of marketing. The third stage is the transformation stage. With the great abundance of goods and the gradual improvement of the market, the connotation of marketing concepts needs to be enriched and improved or replaced with new concepts. "Potential demand" has introduced the market, and the business philosophy of enterprises has changed from producer centered to consumer centered.

 

1.2 4P Marketing Theory

The 4P theory was first proposed by Professor Neil E. Boden of Harvard University in 1964. He believes that a company should use a systematic approach to business management, and decision-makers should optimize the combination of various market and marketing methods, including products, design, distribution networks, advertising and other promotional strategies, based on different internal and external environments, in order to coordinate, connect, and supplement each other, comprehensively maximize efficiency, and achieve the best results.

Specifically, marketing mix refers to the combination of marketing variables that can be controlled by the enterprise in order to achieve marketing goals. That is to say, enterprises optimize and combine controllable marketing variables and comprehensively apply them to achieve the best marketing effect. The marketing variables mentioned here can be summarized into four "Ps", namely product, price, place, and promotion. Due to the fact that the first letter of each English word is P, the marketing combination is also abbreviated as the combination of "4P′S".

Due to various factors in the marketing environment that are difficult or basically uncontrollable for enterprises, they must adjust and combine controllable marketing variables in order to adapt to changes in the marketing environment, meet customer needs, and achieve business goals. However, simply considering a certain variable cannot guarantee the achievement of marketing goals. Because the four variables do not function separately or in isolation from each other. In addition, the adjustment of various variables is not unrestricted. Due to the constraints of the enterprise's resource conditions, all variables and individual variables cannot exceed the possible resource conditions within a certain period of time. Therefore, in conducting a marketing mix, it is necessary to make overall arrangements.

 

1.3 4C Marketing Theory

In 1970, renowned American futurist Alvin ToHler predicted in his famous Futureshock that "the future society will not provide limited and standardized goods, but the largest and most diverse and non-standard goods and services in history." Mass customization is a modern production and management model that combines mass production and customized production, Produce and sell products and services that meet customer personalized requirements to diversified segmented markets at low costs, ultimately forming an integrated model of "sales production service". In order to achieve the goal of providing low-cost and high-quality personalized customized products and services to customers, mass customization production must quickly discover and accurately capture personalized customer demand information in segmented markets, and communicate directly with customers. The traditional marketing approach centered on sales promotion is no longer suitable for the requirements of mass customization production mode. In order to achieve the goal of providing low-cost and high-quality personalized customized products and services to customers, mass customization production must quickly discover and accurately capture personalized customer demand information in segmented markets, and communicate directly with customers. Mass customization, as a new production and management model, inevitably requires a new marketing approach to correspond to it. Mass customization marketing needs to start from the market, discover and explore the personalized needs of customers, and develop a comprehensive marketing mix strategy to achieve a win-win situation of customer value and enterprise benefits.

In 4C marketing, 4C refers to Customer, Cost, Convenience, and Communication, respectively. Marketing theory is guided by consumer demand and redefines the four basic elements of marketing mix: targeting consumer needs and expectations.

1.4 4R Marketing Theory

Don Schultz proposed the 4R marketing theory based on the 4C marketing theory, which includes Correlation, Reaction, Relationship, and Distribution. The 4R theory takes relationship marketing as its core and focuses on building customer loyalty. It is a more practical and effective marketing strategy that takes into account both the interests of manufacturers and the needs of consumers.

1.5 4S Marketing Theory

Now some scholars have proposed the 4S marketing model of satisfaction, service, speed, and sincerity. It mainly emphasizes starting from consumer demand and establishing a "consumer possession" orientation. It requires enterprises to continuously improve their products, services, and brands based on consumer satisfaction, in order to achieve optimal service quality and maximize consumer satisfaction, thereby enabling consumers to develop a sense of loyalty to enterprise products.

 

2. Current situation of marketing in China

Affected by economic conditions and marketing technology, there are many problems in China's current marketing. If enterprises do not explore new marketing methods for innovation, it will seriously hinder their development. The main problems are manifested in the following aspects.

2.1 Lagging business concepts, weak innovation awareness, and weak innovation ability

Firstly, the management concept of Chinese enterprises lags behind. Although years of exploration have led to a certain marketing concept, the concept of applying theory to practice in the business process is not strong. Secondly, Chinese enterprises generally have a weak awareness of marketing innovation. We cannot make breakthroughs in deep-seated issues such as marketing concepts, marketing models, and marketing planning based on the actual situation of the Chinese market. Many enterprises cannot adapt to the current trend of knowledge economy, believing that they cannot engage in international marketing until they reach a certain scale, and still strictly distinguish domestic marketing from international marketing. The third innovation ability is insufficient, and the marketing innovation methods of enterprises are mostly focused on form and following the trend.

2.2 Weak brand and intellectual property awareness

A brand establishes the image of a company's products in the minds of consumers, reflects the company's business philosophy and business philosophy, and is a banner of the company. In addition to product quality factors, it also includes factors such as the company's image and commitment to consumers. The establishment of a corporate brand is a long process of accumulation. However, our companies either do not attach great importance to brand image, or their understanding of the brand remains focused on "implementing brand strategies is to increase advertising investment". Some of us are good at utilizing media, but neglect product structure adjustment, long-term development, and do not pay attention to maintaining the image of the company's brand.

For a long time, Chinese enterprises have neglected to respect and protect intellectual property rights, and their understanding of intellectual property rights remains at a relatively early stage. The situation internationally is completely different. Therefore, it is urgent for Chinese enterprises to follow international rules and embark on a path of intellectual property internationalization that is suitable for China's national conditions to participate in international competition.

2.3 Insufficient emphasis on online marketing

In the era of the network economy, the marketing space has become seamless, and the concept of exchange has undergone significant changes. The market space is larger, and can transcend national borders and penetrate every inhabited place. Exchange can be conducted 24 hours a day, greatly improving transparency. But many enterprises in our country only focus on product production, unplanned, and aimless sales of products, without putting any effort into the market network. This not only wastes marketing resources, but also fails to achieve good marketing performance.

2.4 Unreasonable construction of marketing organization

Functional, departmental relationships lack communication and coordination, and coordination relies on rules and regulations, as well as the hierarchical structure of power. The organizational activities are characterized by stability, repetition, and singularity. The main structural unit is the functional department, with a high degree of division of labor and specialization. The concentration of power is highly concentrated, emphasizing authority, and there are multiple levels of management. The middle management layer is relatively large and cumbersome, and the scope of management is relatively narrow, The flow of information is mainly vertical.

 

3. New Trends in Marketing Development

3.1 Trends in changes in the marketing environment

The current world economy is developing with an unstoppable trend towards global market integration, digitalization of enterprise survival, and internationalization of business competition. The new economy, represented by the Internet, knowledge economy, and high-tech, is rapidly developing, and the characteristics of the new economy and demand are increasingly reflected in informatization, networking, differentiation, and personalization. The marketing of the new century is precisely in such a highly competitive and rapidly changing macro environment.

3.1.1 Information technology is undergoing rapid changes

The rapid changes in information technology today have surpassed the adaptability of many companies, and the infrastructure of information technology has reached a satisfactory level in terms of technology and compatibility. The next wave of change, including mobile e-commerce and the widespread movement of application software from personal computers to internet-based platforms, can provide enterprises with timely and sufficient information resources, The application and decision-making level of information technology and information will undergo qualitative changes.

3.1.2 The intensification of internationalization of enterprise operation and competition

The competition between enterprises in the last century was mostly between enterprises in one country, and the competition rules often did not meet the requirements of standardization. Unfair competition factors were often mixed in, and small actions, connections, and the support of a certain person in power could enable enterprises to have an advantage and easily obtain differential benefits. In the new century, enterprises from all over the world are entering each other, competition rules are becoming increasingly standardized, and the level and intensity of competition are increasing. Therefore, enterprises must follow standardized and competitive rules that meet the marketing requirements of the new century to adapt to the internationalization of enterprise operations.

3.1.3 "Environmental Protection" has increasingly strict requirements for enterprises

Environmental issues have been placed in a very important position by the international community and various countries, as they are the key to sustainable economic development. Therefore, environmental regulations and policies have increasingly strict requirements for enterprises, and some enterprises have been eliminated due to non-compliance with environmental requirements, especially in the new century. Therefore, enterprises in the 21st century must consider environmental protection issues, have foresight, predict changes in the operating environment of their products in terms of environmental protection, update equipment as early as possible according to environmental requirements, adjust production and operation. If enterprises timely produce products that meet the requirements according to environmental policies and standards (in cases where other enterprises have not done so in a timely manner), they seize the opportunity and can obtain rich profits, which can quickly promote the development of the enterprise.

3.1.4 Discretization, diversification, and upscalization of market demand

With the improvement of people's economic and cultural living standards, the dispersion, diversification, and upscale of people's needs are becoming increasingly prominent. In the future, there will be an increasing number of consumers who are innovative and distinctive in their consumption, which creates opportunities for enterprises to effectively segment the market, find special consumer groups, and produce personalized products with targeted production and operation. This requires enterprises to be personalized and diversified in conceptualizing, designing, producing, and promoting products and services, forming a situation of operating and serving multiple target markets and customer groups. In the future, there will be an increasing number of people pursuing high-end and luxury goods in consumption, with many low-end products disappearing and high-end products entering the mainstream of consumption. Many foreign companies in China have clearly seen this and have begun to create momentum, promote, and guide the production and consumption of high-end products for enterprises.

3.2 Trends in changes in marketing concepts

The changes in marketing will inevitably lead to changes in marketing concepts, and the following marketing concepts are beginning to form in the new century:

3.2.1 Social marketing concepts

Nowadays, how corporate marketing activities align with the long-term interests of consumers and society has been put on the agenda. Western scholars have proposed the concept of "green marketing". In the new century, enterprises lacking environmental awareness will lose opportunities for development. Conversely, if they seize environmental opportunities in a timely manner and develop pollution-free green products, they will surely win numerous marketing opportunities for enterprises. In the new century, taking responsibility for the long-term interests of consumers should be the focus of the company, and the goal of the company should shift from facilitating more transactions to long-term loyalty to customer interests. In the future, the company's social responsibility should be implemented from the perspective of marketing, coordinating the relationship between enterprises, society, and consumers, and forming a concept and behavioral approach aimed at achieving the long-term interests of society and consumers.

3.2.2 Service Marketing Concept

In today's society, service marketing will become increasingly important. Previously, services were mostly dependent on pre-sales and after-sales services of products. In the future, services should run through the entire process from product conception and design to product sales and after-sales, as well as all stages of the product lifecycle. For example, when designing products, enterprises determine the maximum failure rate, diagnosis time limit, and repair time limit of the product, striving to improve its reliability and minimize the total cost for customers to use the product. Nowadays, some enterprises have established independent departments that serve customers in parallel with production, sales, and other departments, providing all services to customers, including maintenance, consultation, guidance, training, and solving customer requirements related issues. Some enterprises have established dedicated telephones and computer networks to serve customers. In the new century, marketing services have become the most effective way for enterprises to establish a good image, create new customers, and retain old customers.

3.2.3 Marketing Concept for Creating Customer Needs

In the past, marketing was about giving customers what they wanted, where companies first figured out what they wanted, and then found effective ways to satisfy it. The main assumption was that the buyer knew what they wanted, and the company discovered it again, which was essentially a discovery behavior. The future marketing perspective is different from this, because with the rapid development of technology and rapid changes in demand, marketers will find that consumers initially did not know what they wanted. For example, many rural consumers in China are unaware of their need for flat screen color TVs (including farmers who have reached this consumption level). In fact, consumers' needs are learned (through their own observation, influence from others, media promotion, guidance from enterprises, etc.), and their understanding and preference for a certain product is the result of learning.

In view of this, future marketing will not passively adapt to customers, nor wait for customers to learn certain needs and enterprises to discover them before meeting them. Instead, it will actively teach customers what they need, guide them what they need, and enable them to recognize their needs early and meet them in a timely manner. This is to guide and create needs.

3.2.4 Experience marketing concept

The era of experience economy has arrived, and it has gradually become the fourth stage of economic development after the service economy. More and more consumers are eager for an experience, and more and more companies are meticulously designing promotional experiences. Top companies in various industries will find that the future competitive battlefield is experience.

What exactly is experience? The so-called experience is that enterprises use services as a stage, goods as props, surround consumers, and create activities worth consumers' memories. The goods are tangible, the services are intangible, and the experience created is unforgettable. Experience is internal, existing in an individual's heart, and is the result of their physical, emotional, and intellectual participation.

Experience is not just entertainment, as long as it allows consumers to feel, enjoy, and leave a deep impression, it is providing an experience. Example: There is a shoe polishing king in Chongqing who sells not only the service of shoe polishing, but also the art of shoe polishing. When he polished his shoes, he accompanied beautiful music, and his movements resembled dance with a strong sense of rhythm, providing customers with beautiful and joyful enjoyment. Many customers came not for polishing their shoes, but for experiencing, and his business was very prosperous. Marshall, former general manager of British Airways, pointed out that "the mentality of commodity economy believes that enterprises only play a role, that is, to transport passengers from A to B at low prices and on time, but our airlines need to go beyond functions and compete in providing experiences. The company adheres to the principle of perfect service and always provides passengers with comfortable rest and entertainment services, making flight a comfortable resting time for passengers in their busy lives.

The concept and behavior of experiential marketing will be reflected in more and more enterprises in the new century.

3.3 Trends in changes in marketing methods

What kind of marketing concept there is, what kind of marketing methods should be generated. The changes in marketing concepts ultimately need to be implemented in the changing marketing methods. The changes in marketing methods in the new century are first reflected in the following aspects:

3.3.1 According to the characteristics of the new century economy, marketing methods will be formed to develop and maintain customer resources

The economy of the new century is built on information technology, which can fully and universally understand the needs of consumers and pursue personalized and differentiated consumption characteristics. The new economy itself is supported and developed by a strong customer base. In marketing, it places greater emphasis on the lifelong value of customers, emphasizes people-oriented approach, strives to maintain and expand customer resources, establishes long-term relationships with customers, and achieves lifelong satisfaction with the enterprise. This requires enterprises to not only focus on the value of tangible assets, but also on the value of intangible assets. The individual needs of consumers are increasingly reflected in intangible value, so they not only provide products to customers, but also highly personalized products with obvious intangible value, ultimately providing users with solutions to some problems.

Many companies have established a specialized customer database, which includes the performance and special needs of a certain customer in business activities. These data are used to provide customers with customized products according to their requirements. Competitors will find it increasingly difficult to obtain new customers, and most companies are spending more time finding ways to sell more goods and provide more services to customers. Many companies are focusing on building consumer share rather than market share. Many companies are exploring ways to increase sales to each other and to higher-level companies. They are using updated and more effective data mining techniques to obtain new methods for departments and customers from their databases.

3.3.2 With the rapid development of computer networks, online marketing methods will be formed

With the rapid development of the internet, many online stores have been established, and online product prices are more open and convenient for consumers. Therefore, traditional storefront distribution faces strong challenges, with many companies competing to announce their product prices online. In the era of the internet, every company is not only a seller, but also a buyer. With the development of e-commerce, companies and consumers do not need to go to stores, and all products can be purchased. Consumers can obtain pictures of any product from the Internet, read the product manual, and then obtain the product through convenient and fast channels provided by the company (such as mailing, delivery, vending machines, etc.).

The application of network technology can change the company's business direction and become an online exchange for goods required by the entire industry and related units. For example, information technology product companies can no longer solely produce the equipment required for information technology, but can provide a large amount of advice on how to fully utilize information technology to improve productivity.

3.3.3 Marketing tools for organizational structure will be established according to knowledge management needs

In the future, many companies will make significant progress in knowledge management to maximize the utilization of their knowledge assets and create benefits for the enterprise. The success of the company in the future requires foresight and the ability to adjust the organizational structure according to knowledge management needs. In the future, information technology managers will become chief information officers, creators of major revenue, and experts with modern management theories and skills will become chief knowledge officers. They will be able to effectively balance centralized command and decentralized management of organizational operations, making the knowledge created in one place within the organization owned by all units and individuals who can benefit from it.

 

4. Strategies to keep up with new trends in marketing development

4.1 Integrating New Marketing Trends with Enterprise Management Systems

Integrating new marketing trends into the entire process management of enterprises, starting from research and development, is the key to adjusting and adapting to new trends. Only by establishing an organizational management system that matches the new trend can we comprehensively manage and evaluate the economy, controllability, and implementation progress of the new trend. The organizational system here not only includes the organizational structure and decision-making formation and support system, resource allocation mechanism, but also the corresponding budget system, responsibility system, training system, monitoring system, processing mechanism, and performance evaluation system The procedural system and operating procedures for the activity. For example, when implementing CRM, enterprises can establish specialized departments or committees to analyze and consider the relationship between the enterprise and consumers, society, and the environment.

4.2 Establish a consumer preference management system

4.2.1 Information Management Strategy

Consumer preference information is the foundation for enterprises to implement marketing innovation activities. Adequate, timely, and accurate consumer preference information plays a crucial role in market forecasting and marketing decision-making for enterprises. It can enable marketing personnel to enhance the clarity, accuracy, and foresight of marketing innovation work. Therefore, enterprises must strengthen the management of consumer preference information, establish a rapid response mechanism for relevant information, that is, collect, organize, and analyze market supply and demand information, product information, technical information, competitor information, etc. through multiple channels, and then analyze it by specialized departments and personnel, excavate the implicit consumer preference information, and make trend predictions, in order to facilitate product development, technological transformation Provide scientific basis for innovative decision-making and marketing strategies.

4.2.2 Information feedback strategy

In order to guide consumer preferences, enterprises should establish information disclosure systems and provide comprehensive, detailed, and timely product, marketing, and service introductions to consumers and potential customers through various channels, in order to attract more consumers.

 

5. Conclusion

In today's increasingly commercialized world, marketing has become an important link in enterprise operation and management. The development of the new economy requires marketing methods in the new century to meet the needs of market development. Therefore, enterprises must conduct in-depth analysis and research on the development trend of marketing to ensure the healthy and orderly development of enterprises.

 

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