Fundamentals of Marketing: From Barter to Modern Consumerism
Mercadologia – Lesson 1
Presentation
- Professor’s introduction
- Course objectives and menu overview
- Student presentations
The Market: Key Characteristics
According to Economic Science, needs constantly increase while resources remain scarce.
- Even with sufficient resources, unmet demand for specific products/services leads to price increases (e.g., Brazilian telephony before privatization).
- Supply surplus or shortage indicates economic anomalies.
The Exchange System
The exchange system requires at least two parties: one with a surplus and another with a need/desire, considering price and opportunity.
- Exchanges began in antiquity with bartering surplus goods.
Phases of the Exchange System
Subsistence Swapping
- Early humans extracted food for survival.
- Exchange emerged as a way to fill gaps in resources (e.g., exchanging meat for fruit).
Unintended Exchange Gain
- Direct exchange (barter) without intermediaries.
- Complexity grew with trade, leading to valuation challenges and the desire for future value (stockpiling).
Currency Emergence
- Non-perishable, storable items with exchange value emerged as currency.
- Currency: a recognized payment method, store of value, and common denominator (e.g., shells, salt, metals, coins, paper money).
Exchange for Ruling Classes
- Trade growth led to capital accumulation and the rise of a ruling class.
- Capitalist society emerged, focusing on production for the ruling class’s needs and desires (luxury items).
- The bourgeoisie (traders, farmers, manufacturers) rose to prominence.
Exchange for Profit
- The bourgeoisie became the ruling class, aiming for wealth through commerce.
- Production expanded to supply a growing population and new social classes, leading to mass production and lower costs.
- Late 17th century: pre-industrial large-scale production.
Exchange and Industrial Production
- From 1700, urban growth spurred production for immediate consumption (no stock).
- Initial scarcity of producers ensured sales, attracting new entrants and eventually leading to surplus production.
- 1800-1850: speculative production in the U.S., anticipating demand.
- Industrial Revolution (second half of 19th century): mass production to reduce costs, increase profits, and meet growing demand.
The Product Era
Focus shifted to product quality, design, utility, and performance.
- Product management emerged, overseeing products from conception to market withdrawal.
- Marketing campaigns emphasized product superiority: “We make the best products.”
- The flaw: focusing on the product more than consumer needs/desires.
The Sales Era
Shifted focus from product to sales due to oversupply.
- Emphasis on increasing sales volume, especially for export (1930-1932).
- Developed sales techniques without considering consumer needs.
The Marketing Era
Focus on meeting customer needs and desires.
- Understanding consumer behavior.
- Developing products that meet individual needs while providing profit opportunities for the company.