Describe the first two stages of marketing.

The first two stages of marketing are:

1. Production-oriented Stage (1869–1930):

• The motto in this stage was 'sell what can be produced.'
• There was acute shortage of goods and there was no need to create demand.
• Product was the focus of attention and communication with the buyer was not needed.
• This was based on Say's Law: 'Supply creates its own demand.'
• Production and engineering departments shaped the company's goals and strategy.
• There were no separate marketing departments — only sales departments.
• Firms made efforts to make their products inexpensive and widely available through mass production and mass distribution.
• The philosophy was that customers buy products which are low-priced and easily available.
• This stage lasted till the Great Depression.

2. Sales-oriented Stage (1930–1950):

• The Great Depression resulted in changed buying habits and a need to actively sell.
• The focus shifted from production to selling and the new motto was 'get rid of what you have.'
• Producers realised consumers will not buy enough unless approached with substantial selling and promotional efforts.
• The focus was on increasing sales rather than on consumer satisfaction.
• This stage was characterised by hard selling, and at times unscrupulous practices occurred.
• Salesmanship became the focus of marketing activities.
• The customer's importance was realised but only as a means of disposing off the goods produced.
• The selling philosophy is still used in insurance, charity fund raising and other unsought products/ideas.