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68-437: Obsolescence frequently occurs because a replacement has become available that has, in sum, more advantages compared to the disadvantages incurred by maintaining or repairing the original. Obsolete also refers to something that is already disused or discarded, or antiquated. Typically, obsolescence is preceded by a gradual decline in popularity. Driven by rapid technological changes , new components are developed and launched on

136-474: A "breakthrough" technology. This is often included in the process of product development and relies on research. This can be demonstrated in the invention of the spreadsheet software . Newly invented technologies are conventionally patented. Diffusion pertains to the spread of a technology through a society or industry. The diffusion of a technology theory generally follows an S-shaped curve as early versions of technology are rather unsuccessful, followed by

204-619: A business or organization. Any company that sells products or services to other businesses or organizations (vs. consumers) typically uses B2B marketing strategies. The 7 P's of B2B marketing are: product, price, place, promotion, people, process, and physical evidence. Some of the trends in B2B marketing include content such as podcasts, videos, and social media marketing campaigns. Examples of products sold through B2B marketing include: The four major categories of B2B product purchasers are: Business-to-consumer marketing, or B2C marketing, refers to

272-406: A communications-type approach. Rogers proposed that there are five main attributes of innovative technologies that influence acceptance. He called these criteria ACCTO, which stands for Advantage, Compatibility, Complexity, Trialability, and Observability. Relative advantage may be economic or non-economic, and is the degree to which an innovation is seen as superior to prior innovations fulfilling

340-498: A competitive advantage". For instance, the Chartered Institute of Marketing defines marketing from a customer-centric perspective, focusing on "the management process responsible for identifying, anticipating and satisfying customer requirements profitably". In the past, marketing practice tended to be seen as a creative industry, which included advertising , distribution and selling , and even today many parts of

408-637: A competitor has bought them out and effectively killed off their products to remove competition. It is rarely worth redeveloping a product to get around these issues since its overall functionality and price/performance ratio has usually been superseded by that time as well. Some products become technologically obsolete due to changes in complementary products which results in the function of the first product being made unnecessary. For example, buggy whips became obsolete when people started to travel in cars rather than in horse-drawn buggies. Items become functionally obsolete when they can no longer adequately perform

476-488: A concrete process that can be followed to create a marketing plan . The "marketing concept" proposes that to complete its organizational objectives, an organization should anticipate the needs and wants of potential consumers and satisfy them more effectively than its competitors. This concept originated from Adam Smith 's book The Wealth of Nations but would not become widely used until nearly 200 years later. Marketing and Marketing Concepts are directly related. Given

544-488: A general agreement on the importance of social context and communication. According to this model, technological change is seen as a social process involving producers and adopters and others (such as government) who are profoundly affected by cultural setting, political institutions, and marketing strategies. In free market economies, the maximization of profits is a powerful driver of technological change. Generally, only those technologies that promise to maximize profits for

612-432: A given capital-to-labour ratio. A technological innovation is Harrod neutral (following Roy Harrod ) if the technology is labour-augmenting (i.e. helps labor); it is Solow neutral if the technology is capital-augmenting (i.e. helps capital). Marketing Marketing is the act of satisfying and retaining customers . It is one of the primary components of business management and commerce . Marketing

680-408: A managerial approach that covered analysis , consumer behavior , market research , market segmentation , and planning . Phillip Kotler , popularised this approach and helped spread the 4 Ps model. McCarthy's 4 Ps have been widely adopted by both marketing academics and practitioners. One of the limitations of the 4Ps approach is its emphasis on an inside-out view. An inside-out approach

748-412: A market. In addition, a great deal of advertising and promotion is designed to show how a given product's benefits meet the customer's needs, wants or expectations in a unique way. The two major segments of marketing are business-to-business (B2B) marketing and business-to-consumer (B2C) marketing. B2B (business-to-business) marketing refers to any marketing strategy or content that is geared towards

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816-657: A model-building perspective, the 4 Ps has attracted a number of criticisms. Well-designed models should exhibit clearly defined categories that are mutually exclusive, with no overlap. Yet, the 4 Ps model has extensive overlapping problems. Several authors stress the hybrid nature of the fourth P, mentioning the presence of two important dimensions, "communication" (general and informative communications such as public relations and corporate communications) and "promotion" (persuasive communications such as advertising and direct selling). Certain marketing activities, such as personal selling, may be classified as either promotion or as part of

884-416: A more consumer-orientated version of the 4 Ps that attempts to better fit the movement from mass marketing to niche marketing . Consumer (or client) The consumer refers to the person or group that will acquire the product. This aspect of the model focuses on fulfilling the wants or needs of the consumer. Cost Cost refers to what is exchanged in return for the product. Cost mainly consists of

952-479: A multiplicity of new markets. Market segmentation can be defined in terms of the STP acronym, meaning Segmentation, Targeting, and Positioning . Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes. Commonly used criteria include: Once a segment has been identified to target, a firm must ascertain whether the segment is beneficial for them to service. The DAMP acronym

1020-399: A period of successful innovation with high levels of adoption, and finally a dropping off in adoption as a technology reaches its maximum potential in a market. In the case of a personal computer, it has made way beyond homes and into business settings, such as office workstations and server machines to host websites . Underpinning the idea of a technological change as a social process is

1088-501: A process known as digital obsolescence . In many cases, a new technology does not totally replace the old technology because the old technology is still useful in certain applications. For example, transistors replaced vacuum tubes in TV and radio receivers in the 1960s, but vacuum tubes were still used for powerful transmitters because transistors for these power levels were not available. Even today, one has to use multiple transistors for

1156-403: A purpose that used to require just one tube. Products may also become obsolete when supporting technologies are no longer available to produce or even repair a product. For example, many integrated circuits , including CPUs, memory and even some relatively simple logic chips may no longer be produced because the technology has been superseded, their original developer has gone out of business or

1224-432: A section to the marketing mix. The 4Ps refers to four broad categories of marketing decisions, namely: product , price , promotion , and place . The origins of the 4 Ps can be traced to the late 1940s. The first known mention has been attributed to a Professor of Marketing at Harvard University, James Culliton. The 4 Ps, in its modern form, was first proposed in 1960 by E. Jerome McCarthy; who presented them within

1292-568: A shrinking user base becomes unprofitable. This causes scarcity of spare parts and skilled technicians for repairs and thus escalates maintenance costs for obsolete products. This ultimately leads to prohibitive expense in keeping old technology functioning. The term "obsolescence" was first applied to the built environment in 1910 in an attempt to explain American skyscrapers' sudden loss of value. New York engineer Reginald P. Bolton attributed this phenomenon to "something new and better out-competing

1360-416: A specific type of food (e.g. Got Milk? ), food from a specific area, or a city or region as a tourism destination. Market orientations are philosophies concerning the factors that should go into market planning. The marketing mix, which outlines the specifics of the product and how it will be sold, including the channels that will be used to advertise the product, is affected by the environment surrounding

1428-490: Is a subset of marketing research. (Avoiding the word consumer, which shows up in both, market research is about distribution, while marketing research encompasses distribution, advertising effectiveness, and salesforce effectiveness). The stages of research include: Well-known academic journals in the field of marketing with the best rating in VHB-Jourqual and Academic Journal Guide, an impact factor of more than 5 in

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1496-407: Is adopted. The structure of the social system affects technological change in several ways. Social norms, opinion leaders, change agents, government and the consequences of innovations are all involved. Also involved are cultural setting, nature of political institutions, laws, policies and administrative structures. Time enters into the acceptance process in many ways. The time dimension relates to

1564-455: Is based on both better and more technology. In its earlier days, technological change was illustrated with the ' Linear Model of Innovation ', which has now been largely discarded to be replaced with a model of technological change that involves innovation at all stages of research, development, diffusion, and use. When speaking about "modeling technological change," this often means the process of innovation. This process of continuous improvement

1632-422: Is conducted for two main purposes: better allocation of a firm's finite resources and to better serve the more diversified tastes of contemporary consumers. A firm only possesses a certain amount of resources. Thus, it must make choices (and appreciate the related costs) in servicing specific groups of consumers. Moreover, with more diversity in the tastes of modern consumers, firms are noting the benefit of servicing

1700-412: Is defined as to the activities that are undertaken to mitigate the effects of obsolescence. Activities can include last-time buys, lifetime buys, and obsolescence monitoring. Technological change Technological change ( TC ) or technological development is the overall process of invention , innovation and diffusion of technology or processes . In essence, technological change covers

1768-420: Is diametrically opposed to the popular concept of B2C or Business- to- Consumer where the companies make goods and services available to the end consumers. In this type of business model, businesses profit from consumers' willingness to name their own price or contribute data or marketing to the company, while consumers benefit from flexibility, direct payment, or free or reduced-price products and services. One of

1836-420: Is highly important to implement and operate an active management of obsolescence to mitigate and avoid extreme costs. Technical obsolescence usually occurs when a new product or technology supersedes the old one, and it is preferred to use the new technology instead. Historical examples of new technologies superseding old ones include bronze replacing flint in hand-tools, DVDs replacing videocassettes , and

1904-495: Is most prevalent for electronics technology, wherein the procurement lifetimes for microelectronic parts are often significantly shorter than the manufacturing and support life cycles for the products that use the parts. However, obsolescence extends beyond electronic components to other items, such as materials, textiles, and mechanical parts. In addition, obsolescence has been shown to appear for software, specifications, standards, processes, and soft resources, such as human skills. It

1972-489: Is no longer desirable because style trends have moved away from the flared leg cut. Because of the "fashion cycle", stylistically obsolete products may eventually regain popularity and cease to be obsolete. An example is " acid-wash " jeans, which were popular in the 1980s, became stylistically obsolete in the mid to late 1990s, and returned to popularity in the 2000s. Obsolescence management, also referred to as "Diminishing Manufacturing Sources and Material Shortages" (DMSMS),

2040-420: Is often modeled as a curve depicting decreasing costs over time (for instance fuel cell which have become cheaper every year). TC is also often modelled using a learning curve , ex.: Ct=C0 * Xt^-b Technological change itself is often included in other models (e.g. climate change models) and was often taken as an exogenous factor. These days TC is more often included as an endogenous factor. This means that it

2108-489: Is taken as something you can influence. Today, there are sectors that maintain the policy which can influence the speed and direction of technological change. For example, proponents of the Induced Technological Change hypothesis state that policymakers can steer the direction of technological advances by influencing relative factor prices and this can be demonstrated in the way climate policies impact

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2176-401: Is the traditional planning approach where the organization identifies its desired goals and objectives, which are often based around what has always been done. Marketing's task then becomes one of "selling" the organization's products and messages to the "outside" or external stakeholders. In contrast, an outside-in approach first seeks to understand the needs and wants of the consumer. From

2244-531: Is typically conducted by the seller, typically a retailer or manufacturer. Products can be marketed to other businesses ( B2B ) or directly to consumers ( B2C ). Sometimes tasks are contracted to dedicated marketing firms, like a media , market research , or advertising agency . Sometimes, a trade association or government agency (such as the Agricultural Marketing Service ) advertises on behalf of an entire industry or locality, often

2312-410: Is used as criteria to gauge the viability of a target market. The elements of DAMP are: The next step in the targeting process is the level of differentiation involved in a segment serving. Three modes of differentiation exist, which are commonly applied by firms. These are: Positioning concerns how to position a product in the minds of consumers and inform what attributes differentiate it from

2380-654: The Social Sciences Citation Index and an h-index of more than 130 in the SCImago Journal Rank are These are also designated as Premier AMA Journals by the American Marketing Association. Market segmentation consists of taking the total heterogeneous market for a product and dividing it into several sub-markets or segments, each of which tends to be homogeneous in all significant aspects. The process

2448-423: The invention of technologies (including processes) and their commercialization or release as open source via research and development (producing emerging technologies ), the continual improvement of technologies (in which they often become less expensive), and the diffusion of technologies throughout industry or society (which sometimes involves disruption and convergence ). In short, technological change

2516-515: The sales process engineering perspective, defines marketing as "a set of processes that are interconnected and interdependent with other functions of a business aimed at achieving customer interest and satisfaction". Some definitions of marketing highlight marketing's ability to produce value to shareholders of the firm as well. In this context, marketing can be defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating

2584-456: The telephone replacing the telegraph . On a smaller scale, a particular product may become obsolete when a newer version replaces it. Many products in the computer industry become obsolete in this manner. For example, central processing units (CPUs) frequently become obsolete in favor of newer, faster units. Singularly, rapid obsolescence of data formats along with their supporting hardware and software can lead to loss of critical information,

2652-423: The basis of "distinct needs, characteristics, or behaviors who might require separate products or marketing mixes." Needs-based segmentation (also known as benefit segmentation ) "places the customers' desires at the forefront of how a company designs and markets products or services." Although needs-based segmentation is difficult to do in practice, it has been proved to be one of the most effective ways to segment

2720-399: The case of services marketing . Other extensions have been found necessary in retail marketing, industrial marketing and internet marketing. In response to environmental and technological changes in marketing, as well as criticisms towards the 4Ps approach, the 4Cs has emerged as a modern marketing mix model. Robert F. Lauterborn proposed a 4 Cs classification in 1990. His classification is

2788-404: The centrality of customer needs, and wants in marketing, a rich understanding of these concepts is essential: Marketing research , conducted for the purpose of new product development or product improvement, is often concerned with identifying the consumer's unmet needs . Customer needs are central to market segmentation which is concerned with dividing markets into distinct groups of buyers on

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2856-428: The competitor's products. A firm often performs this by producing a perceptual map, which denotes similar products produced in the same industry according to how consumers perceive their price and quality. From a product's placing on the map, a firm would tailor its marketing communications to meld with the product's perception among consumers and its position among competitors' offering. The promotional mix outlines how

2924-408: The consumer to attain the product, thus making them more likely to do so. Communication Like "Promotion" in the 4Ps model, communication refers to how consumers find out about a product. Unlike promotion, communication not only refers to the one-way communication of advertising, but also the two-way communication available through social media. The term "marketing environment" relates to all of

2992-450: The definition of marketing has evolved over the years. The AMA reviews this definition and its definition for "marketing research" every three years. The interests of "society at large" were added into the definition in 2008. The development of the definition may be seen by comparing the 2008 definition with the AMA's 1935 version: "Marketing is the performance of business activities that direct

3060-457: The factors (whether internal, external, direct or indirect) that affect a firm's marketing decision-making/planning. A firm's marketing environment consists of three main areas, which are: Marketing research is a systematic process of analyzing data that involves conducting research to support marketing activities and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge

3128-723: The flow of goods, and services from producers to consumers". The newer definition highlights the increased prominence of other stakeholders in the new conception of marketing. Recent definitions of marketing place more emphasis on the consumer relationship, as opposed to a pure exchange process. For instance, prolific marketing author and educator, Philip Kotler has evolved his definition of marketing. In 1980, he defined marketing as "satisfying needs and wants through an exchange process", and in 2018 defined it as "the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return". A related definition, from

3196-454: The function for which they were created. For example, while one could theoretically adapt an Avro Lancaster to deploy modern JDAM bombs, the situations in which it could actually succeed at doing so against modern air defenses would be so few that it would be essentially useless. Manufacturers and repair companies will typically cease support for products once they become obsolete as keeping production lines in place and parts in storage for

3264-440: The innovativeness of an individual or other adopter, which is the relative earliness or lateness with which an innovation is adopted. In economics , technological change is a change in the set of feasible production possibilities . A technological innovation is Hicks neutral , following John Hicks (1932), if a change in technology does not change the ratio of capital 's marginal product to labour's marginal product for

3332-415: The major benefit of this type of business model is that it offers a company a competitive advantage in the market. Customer to customer marketing or C2C marketing represents a market environment where one customer purchases goods from another customer using a third-party business or platform to facilitate the transaction. C2C companies are a new type of model that has emerged with e-commerce technology and

3400-428: The market with increasing speed. The result is a dramatic change in production methods of all components and their market availability. A growing industry sector is facing issues where life cycles of products no longer fit together with life cycles of required components. This issue is known as obsolescence, the status given to a part when it is no longer available from its original manufacturer. The problem of obsolescence

3468-506: The marketing environment. To overcome the deficiencies of the 4P model, some authors have suggested extensions or modifications to the original model. Extensions of the four P's are often included in cases such as services marketing where unique characteristics (i.e. intangibility, perishability, heterogeneity and the inseparability of production and consumption) warrant additional consideration factors. Other extensions include "people", "process", and "physical evidence" and are often applied in

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3536-418: The marketing process (e.g. product design , art director , brand management , advertising, inbound marketing, copywriting etc.) involve the use of the creative arts. However, because marketing makes extensive use of social sciences , psychology , sociology , mathematics , economics , anthropology and neuroscience , the profession is now widely recognized as a science. Marketing science has developed

3604-426: The means by which a source conveys a message to a receiver. Information may be exchanged through two fundamentally different, yet complementary, channels of communication. Awareness is more often obtained through the mass media , while uncertainty reduction that leads to acceptance mostly results from face-to-face communication . The social system provides a medium through which and boundaries within which, innovation

3672-474: The monetary value of the product. Cost also refers to anything else the consumer must sacrifice to attain the product, such as time or money spent on transportation to acquire the product. Convenience Like "Place" in the 4Ps model, convenience refers to where the product will be sold. This, however, not only refers to physical stores but also whether the product is available in person or online. The convenience aspect emphasizes making it as easy as possible for

3740-438: The more complex an innovation, the slower its acceptance. Trialability is the perceived degree to which an innovation may be tried on a limited basis, and is positively related to acceptance. Trialability can accelerate acceptance because small-scale testing reduces risk. Observability is the perceived degree to which results of innovating are visible to others and is positively related to acceptance. Communication channels are

3808-458: The nature of a firm's marketing environment and to attain information from suppliers. A distinction should be made between marketing research and market research. Market research involves gathering information about a particular target market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Market research

3876-446: The old" and calculated the average architectural lifespan of varying building types in order to formulate a rough estimate for their impending obsolescence. For example, he suggested that hotels' obsolescence will occur faster than banks due to their ever-changing functions and tastes. Sometimes marketers deliberately introduce obsolescence into their product strategy , with the objective of generating long-term sales volume by reducing

3944-406: The owners of incoming producing capital are developed and reach the market. Any technological product that fails to meet this criterion - even though they may satisfy important societal needs - are eliminated. Therefore, technological change is a social process strongly biased in favor of the financial interests of capital. There are currently no well established democratic processes, such as voting on

4012-417: The place (i.e., distribution) element. Some pricing tactics, such as promotional pricing, can be classified as price variables or promotional variables and, therefore, also exhibit some overlap. Other important criticisms include that the marketing mix lacks a strategic framework and is, therefore, unfit to be a planning instrument, particularly when uncontrollable, external elements are an important aspect of

4080-420: The precise nature of specific concepts that inform marketing practice, the most commonly cited orientations are as follows: A marketing mix is a foundational tool used to guide decision making in marketing. The marketing mix represents the basic tools that marketers can use to bring their products or services to the market. They are the foundation of managerial marketing and the marketing plan typically devotes

4148-653: The product, the results of marketing research and market research , and the characteristics of the product's target market. Once these factors are determined, marketers must then decide what methods of promoting the product, including use of coupons and other price inducements. Marketing is currently defined by the American Marketing Association (AMA) as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large". However,

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4216-471: The risks of products becoming obsolete and have a detrimental effect on the organisation's cash flow . Companies may address this problem alongside a periodic stock count by assessing which of their stock items are slow-moving or not selling at all. When a product is no longer desirable because it has gone out of the popular fashion, its style is obsolete. One example is flared leg jeans ; although this article of clothing may still be perfectly functional, it

4284-440: The same needs. It is positively related to acceptance (e.g. the higher the relative advantage, the higher the adoption level, and vice versa). Compatibility is the degree to which an innovation appears consistent with existing values, past experiences, habits and needs to the potential adopter; a low level of compatibility will slow acceptance. Complexity is the degree to which an innovation appears difficult to understand and use;

4352-530: The sharing economy. The different goals of B2B and B2C marketing lead to differences in the B2B and B2C markets. The main differences in these markets are demand, purchasing volume, number of customers, customer concentration, distribution, buying nature, buying influences, negotiations, reciprocity, leasing and promotional methods. A marketing orientation has been defined as a "philosophy of business management." or "a corporate state of mind" or as an "organizational culture." Although scholars continue to debate

4420-493: The social or environmental desirability of a new technology prior to development and marketing, that would allow average citizens to direct the course of technological change. Emphasis has been on four key elements of the technological change process: (1) an innovative technology (2) communicated through certain channels (3) to members of a social system (4) who adopt it over a period of time. These elements are derived from Everett M. Rogers ' diffusion of innovations theory using

4488-460: The tactics and strategies in which a company promotes its products and services to individual people. Traditionally, this could refer to individuals shopping for personal products in a broad sense. More recently the term B2C refers to the online selling of consumer products.< Consumer-to-business marketing or C2B marketing is a business model where the end consumers create products and services which are consumed by businesses and organizations. It

4556-440: The time between repeat purchases. One example might be producing an appliance which is deliberately designed to wear out within five years of its purchase, pushing consumers to replace it within five years. Inventory obsolescence occurs when retailers and other vendors hold stocks for anticipated future sales which turn out to be too slow to materialise. Holding excessive levels of stock or over-predicting potential demand increase

4624-549: The use of fossil fuel energy, specifically how it becomes relatively more expensive. Until now, the empirical evidence about the existence of policy-induced innovation effects is still lacking and this may be attributed to a variety of reasons outside the sparsity of models (e.g. long-term policy uncertainty and exogenous drivers of (directed) innovation). A related concept is the notion of Directed Technical Change with more emphasis on price induced directional rather than policy induced scale effects. The creation of something new, or

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