Marketing Theory and Practice: Evolving through Turbulent Times

The macro-environmental changes brought about by technological advances and globalization in the last decade had significant influences at all levels: the economy, industries, markets and the consumer. The article reviews developments in marketing theory and practice over the last two decades against the backdrop of these macro-influences which led to borderless, connected knowledge economy, globalizing, converging and consolidating industries, fragmenting and frictionless markets, active, connected, informed and demanding customers and a complex, distinctly different competitive scenario. Organizations' attempts to adapt to these changing environmental realities have effected changes in the focus (value distribution to value creation), emphasis (customer acquisition to customer retention) and scope (immediate customer to value-chain) of marketing. Changes in marketing practice have brought about fundamental theoretical shifts in marketing. The shifts are from a goods-centred view to service-centred view and co-creating valued customer experience; attention to social processes in consumption/marketing than the economic processes alone; and from firm perspective to customer perspective in understanding marketing/consumption phenomena. The dominant marketing mix paradigm was found inadequate in incorporating these theoretical shifts and this led to the development of the relationship marketing paradigm in marketing. The research areas, relationship marketing, services marketing, market orientation and marketing productivity received increased attention from the research community during the last decade.