Sample Solution
Both the meaning and the mindset in marketing have continuously changed and developed in the light of changing competitive conditions in recent decades. The following phases can be distinguished: During the production-oriented phase consumer demand is high and consumers are still lacking many products that are affordable. In this market situation the optimization of production and distribution efficiency are in the foreground. During the product-oriented phase consumers favor products that offer the most quality, performance, and features. Companies focus on variations of established products. In the selling-phase, the first signs of market saturation were emerging and task was selling products using more promotional efforts. In the phase of marketing orientation, companies start to differentiate according to the principle of market segmentation. In the phase of societal marketing orientation, companies seek to balance the company’s need for profit along with consumers’ and society’s long-term interests.
The changes in market development at "Bell AG" can be traced back to these development phases as follows: Phase of production orientation: In the 1950s a household hardly had a TV. The range of different models was small - there was only black and white television. The "Bell AG" had to satisfy the significant demand for televisions by expanding the production capacity and ensuring a smooth production. This phase was a typical seller's market. That's why companies were successful with mass production and succeeded in cost-effectively meeting the needs of as many consumers as possible. Stage of product orientation: At this stage (1960s) the focus of the "Bell AG" shifted from the production to the distribution of the TV: First this is made clear by the modernization of the logistics system. For another new distribution channels (primarily price-oriented forms of distribution) opened up, to increase the degree of distribution. Phase of market orientation: In the 1970s the market became a buyer's market. The "Bell AG" shifted now from sales to the customer as a decisive bottleneck factor. A differentiated marketing orientation to meet the specific needs of a customer became important. At "Bell AG" comprehensive market segmentation was carried out. By differentiating the range of services (e.g. color TV, Computer screens for business and home use) was targeting lucrative market segments (e.g. private households as well as small and medium-sized households). Phase of societal marketing orientation: The marketing in the 1990s aimed at building a strategic competitive advantage over its competitors to enforce and defend on the market position. The marketing of "Bell AG" worked intensively at this stage to achieve a USP (Unique Selling Proposition), to create clear consumer preferences for their own products. This was, for instance, by a clear profiling strategy with services through the introduction of a full-time service and exceptionally long warranty periods. That helped the company to position itself as a responsible company, an image that was even enhanced later by projects to reduce waste and their participation in building the circular economy in the consumer electronics market, a market that is characterized by constant new product introductions and short innovation cycles.