Marketing has most definitely evolved over the past 5 decades, with new ideas and theories developing yearly from a variety of different academic scholars and strategists alike. It is for this reason that identifying which tools are best suited for your marketing message are crucial. This article seeks to explain what traditional marketing theories exist and which contemporary marketing theories you should consider.
What is Traditional Marketing?
Traditional marketing is an umbrella term that covers the wide array of advertising channels we see daily. These may include print media, billboard and TV advertising, flyer and poster campaigns and radio broadcast advertising. They are not necessarily outdated, however, research has shown those companies that have abandoned simply using these channels, and adopted contemporary marketing channels proposed in this article, have remained prosperous and in fact seen an increase in leads, sales and traffic to web content.
Traditional marketing theories include Ansoff's Matrix, a theory that proposes products/services fall into one of four categories depending on the market and the product released. New Product- New Market is considered as diversification. This theory recommends that businesses should try to diversify their product portfolio so as to spread risk amongst their product range. An example of this would be when apple created the first iPhone released in 2007. This product was new and introduced into a new market. Apple soon reaped the benefits of introducing this hugely popular phone. Their product range grew from accommodating for designers on the Apple Mac, to mobile devices, tablet devices, watches and beyond.
Another marketing theory that's considered to be traditional is the marketing mix. Made up of the 7 P's. These include product, place, promotion, price, packaging and positioning. All these components, when combined, create a solid marketing proposal. However this theory as well as Ansoff's, can be drastically improved with the use of contemporary marketing strategies.
Traditional Marketing seeks to pull customers to a product, whatever the cost. It is, for this reason, considered to be fairly outdated as it does not consider the customer they are selling to, more the market that the company operates within. There are however channels that have developed from traditional marketing, including digital, that aim for the same goal, however, use more subtle and approachable mediums so as to capture their target audience. This may include Pay-Per-Click Campaigns, social media posts, search engine optimisation and email marketing.
What is Contemporary Marketing?
Contemporary Marketing refers to theories that stress the importance of customer orientation versus the traditional market orientation. They are strategies that, when implemented, offer greater support for their client base with a product range that varies depending on what the target market desires. Rather than what the company wants them to have.
Products including the vast array of kitchen appliances with built in failure components attracting their customer base back to them for further purchases are an example of product orientation. Traditional marketing theories are said to favour this ideology. Though somewhat devious, it is most definitely effective. Attracting customers to their product range has become more difficult because consumers have become more literate in technology and, therefore, can research items before purchase. This allows them to make a conscious and informed decision to avoid companies with this ethos.
Contemporary marketing theories include Co-Creation. This theory suggests creating a bridge between customer and business through gamification. A practical example would be attracting customers through social media content relevant to their needs or writing article blog posts that have useful information. Research conducted by Harvard business school and London school for business found that businesses that utilised the contemporary marketing strategy and incorporating both co-creative and shared value ideas, over the long run prospered far more than those companies who hadn't chosen this avenue.
Another popular contemporary marketing theory is shared value. This theory considers the market that the company is wanting to penetrate and seeks to offer perks in said market. A successful example of this would include Tesla. They have invested millions of dollars building charging stations for electric cars across North America, Europe and Asia. The stations can be used by many different branded electric cars. They have actively tried to improve the market whilst simultaneously attract more customers to them. For B2B companies, this may include creating events where companies in the same industry can be invited and discuss amongst themselves offers they can give each other.
Can these Strategies be used Eclectically?
Both traditional and contemporary have advantages and disadvantages in their application. The former works greater for companies who wish to diversify their product portfolio, attracting customers to their product rather than their brand. Contemporary looks to build a trusting relationship with their customer base through co-creative strategies and gamifying their market plan. As well as information attained through market sensing research. However, both can be used in tandem. Contemporary marketing strategies can be used to build the relationship with the client. Through market sensing and identifying categories for your clientele. Bridging the gap via the use of digital inbound marketing techniques. A tool JDR Group can help with.
How can JDR Group help?
At JDR, we are dedicated to creating content for you. With a variety of different blog posts, Ebooks and podcasts designed to help you to understand digital, traditional and contemporary marketing strategies that, when employed, will help you to improve your marketing department, your value proposition and your company brand image. For a full list of what free content, follow onto the JDR website: www.jdrgroup.co.uk