Marketing as a scientific discipline is concerned with the exchange processes that occur between a
firm or organization that offers products or services to the market, and the target group(s) of
potential buyers in its environment. The basic assumption is that the organization that do so most
effectively and efficiently will be most successful.
The first scientific contributions to marketing were around 1910-1920. Since then, marketing has
evolved from an emphasis on production to selling and from selling to a full-fledged marketing
operation.
In the early days of marketing, most markets were characterized by a demand potential that
exceeded product supplies and lack of money prevented consumers from buying. Many companies
focused on the physical product and efficiency (= the production concept). Marketing / distribution
efficiency was very important and an early definition of marketing was: ‘all those activities involved in
the distribution (…)’. The key issues in marketing (1910-1920) were: selling, buying, transporting and
storing.
By the 1930s, consumers were satisfied and food suppliers had to put in more efforts in stimulating
demand. The struggle for the consumers’ money became harder. The selling approach, which Kotler
defines as: ‘the selling concept holds that consumers, if left alone, will ordinarily not buy enough of
the organization’s products. The organization must therefore undertake an aggressive selling and
promotion effort’. The idea was that any product could be sold.
In the second part of this century the evolution from the selling concept towards to true marketing
concept took place. As a result of these market and marketing theories developments, marketing
management has become the dominant stream. Marketing management is: ‘the process of planning
and executing the conception, pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational objectives’. It rests on four main pillars:
market focus, customer orientation, coordinated marketing and profitability. This requires much
insight into the market structure and consumer behaviour.
Through a co-ordinated use of marketing mix instruments (= product, price, promotion and place)
the company attempts to satisfy identified customer needs. Strategic marketing planning is
becoming increasingly important.
Marketing of agricultural fresh products differs from general marketing theory due to specific
characteristics of these products and the market structure.
A well-known definition of marketing is: ‘marketing is a social and managerial process by which
individuals and groups obtain what they need and want through creating, offering and exchanging
products of value with others’. The marketing process can be understood by using some concepts of
systems thinking.
Many large companies are organized into Strategic Business Units. Objectives will have to be realized
within a marketing environment (target group, suppliers, distribution structure, government and
lobby groups).
At the level of individual products and brands, these are the instruments: which benefits do I offer to
the consumer (product) at what costs (price) by what information/persuasion (promotion) at which
place and time (place)?