Saturday, October 10, 2015

History of Marketing and Reintroduction of Personalized Marketing

            Marketing over the course of the 20th century has transformed as technology has advanced. Today it continues to evolve as further advances are achieved. Originally, marketing was as much as someone standing in one place, talking to people as they walked by. Then print media came to be a new way of marketing with posters and the newspaper. Then came radio and television, and now there is web marketing. Web marketing, though it is vastly different than what has been seen in other marketing ways, has similar traits to an older way of marketing that pre dates the technology era that is known today.
Traveling Salesman
            Marketing in the late 1800’s and early 1900’s saw a face to face type of marketing. Salesmen would travel from city to city trying to sell products to consumers, acting like a moving marketing platform. The salesmen would either set up on a street and talk to people about the product that was being sold, or he would go door to door, making sales pitches to people in their own home. In 1900 “there were an estimated 350,000 traveling men doing business in America,” making it a popular way to try and advertise products to consumers [1]. By going up to people, interrupting what they are doing and talking to them directly, salesmen were able to get consumers to actively be engaged in what was trying to be sold to them. It was more personable in the sense that there was a one on one interaction, and the salesmen knew for sure that people were informed about what was being sold because they were personally giving the information directly to the potential customer. By providing the information directly to the potential customer, salesmen were able to adjust their selling strategy to make the product something that the person wanted. This tactic later became a problem because salesmen ended up lying to people about the product. This situation happened enough that guidelines were later put in place as to how marketing should be done.
            Around the same time, newspapers and other print media were used to also market and
1930's Poster Ad
advertise products to consumers. However, print media were not as personable as the salesmen were, and led to the advancement of mass marketing [2]. Newspapers were able to reach many people at one time, while posters did the same, just in different locations. Mass marketing was revolutionized when the radio was introduced [1]. The radio gave way for new ways to market and advertise to people, since people who listen to the radio also have to listen to the advertisements. Instead of reading advertisements, people were able to leisurely listen to them through the radio, making it easier to reach people.
            The marketing business was revolutionized once again when televisions came out. Now there was yet another way to have mass marketing reach many
Family watching TV on an early set
people all at once. In the late 1940’s television ads were limited to major cities with local content. Then in the early 1950’s three major networks started to broadcast nationally, and ads were nationally transmitted. The short, local only advertising era was over, and soon mass marketing to the masses once again prevailed as the way to market. In 1956 Wendell Smith, who worked for the research firm Alderson & Session, published an article that discusses how marketing needs to be narrowed down into smaller segments, a tactic called market segmentation. Smith advocated for segmentation because “segmentation had become a feasible strategy in the mid-1950s for two reasons: the development of more flexible production techniques and the conditions of prosperity that allowed consumers to pay a little more to get closer to what they wanted [2].” While segmentation was being used, the end result was still mass marketing, just to a smaller group of people who had similar preferences. Towards the end of the 20th century product placement in “television, movies, and sporting events” became popular. Product placement used segmentation to determine what types of movies, television shows or sporting events would best fit a certain type of product for a certain audience [1]. Still, mass media was used to communicate the advertisement as it reached homes with televisions. Segmentation can also be seen now in cable TV or satellite TV. For example, “Home and Garden channel viewers get advertisements for paint and other building products while Travel Channel viewers see ads for airlines and vacation spots [1].” While the selected audience is narrowed down, this is still mass marketing because of how many people watch certain channels, and because the advertising isn’t just meant for one individual, and their specific needs.
            Web marketing is meant for one individual, and surprisingly has similarities to the personal ways of the salesmen. Web marketing uses information that is gathered by each individual to make a personal advertisement on the screen for them. For example, based off of search history web marketing can adjust what it displays to people on websites, making it completely unique. This is similar to the marketing before the discovery of all of the technology that is known today. The salesmen “adjusted his pitch to the needs and interests of his audience” just as web advertising today adjusts to each individual person [1]. While the two ways of marketing are very different, the idea in personalizing it for everyone is the same.
            Personalizing marketing advertisements by salesmen back in the early 20th century made people question the way marketing was done. Today this is also seen in web marketing. Once again there is a clear relationship between personalizing web marketing and personalizing face to face marketing. Today people are questioning how marketers are obtaining and using information gathered from consumer’s past internet search results and so forth. The question of how is this information being obtained is being asked by consumers [3]. Skepticism is therefore entering the minds of individuals, just as it did in the early 20th century. It seems that personalization is questioned when it comes to marketing ethics, due to it possibly invading privacy or not being entirely truthful.  Only time will tell if the way marketing is done will change again in terms of an ethical concern.
            Marketing over time has changed drastically as new technologies are invented and then used as marketing tools. In the beginning of what is known as marketing today, salesmen pitched sales to individuals on an individual, personal level. Then came new types of media, like newspapers and posters, opening the door to mass marketing. This mass marketing passed up the personalized way of marketing with the introduction of radios and televisions. While it may seem that eventually television made its way back towards the strategy of personalized marketing, in the end it is still mass marketing reaching many people at the same time who have similar interests. It is not until web marketing comes into existence that marketing is reintroduced to personalized marketing, where everyone has advertisements that suits their specific interests and wants. Web marketing also comes with the same problems of skepticism that is seen with personalized marketing. While there may be problems and questions as to how web marketing is done, it seems to be successful and seems to be here to stay, unlike the traveling salesmen.


[1] William M., O'Barr," A Brief History of Advertising in America.
[2] Katherine E. Jocz and John A., Quelch, " Milestones in Marketing,” pg. 829-830
[3] Jan H. Schumann, Florian von Wangenheim, & Nicole Groene, " Targeted Online Advertising: Using Reciprocity Appeals to Increase Acceptance Among Users of Free Web Services,”
pg.59-60.

Image Sources:
http://design.tutsplus.com/articles/satisfy-your-sweet-tooth-with-these-delicious-vintage-advertisements--psd-11704

            

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