structural:reformatting
Acceptance and further elaboration

The theory of oral tradition would undergo elaboration and development as it grew in acceptance. While the number of formulas documented for various traditions proliferated, the concept of the formula remained lexically bound. However, numerous innovations appeared, such as the "formulaic system" with structural "substitution slots" for syntactic, morphological and narrative necessity (as well as for artistic invention). Sophisticated models such as Foley's "word-type placement rules" followed. Higher levels of formulaic composition were defined over the years, such as " ring composition ", "responsion" and the " type-scene " (also called a "theme" or "typical scene"). Examples include the "Beasts of Battle" and the "Cliffs of Death". Some of these characteristic patterns of narrative details, (like "the arming sequence;" "the hero on the beach"; "the traveler recognizes his goal") would show evidence of global distribution.

At the same time, the fairly rigid division between oral and literate was replaced by recognition of transitional and compartmentalized texts and societies, including models of diglossia (Brian Stock Franz Bäuml, and Eric Havelock). Perhaps most importantly, the terms and concepts of " orality " and " literacy " came to be replaced with the more useful and apt " traditionality " and " textuality ". Very large units would be defined (The Indo-European Return Song) and areas outside of military epic would come under investigation: women's song, riddles and other genres.

The methodology of oral tradition now conditions a large variety of studies, not only in folklore, literature and literacy, but in philosophy, communication theory, Semiotics, and including a very broad and continually expanding variety of languages and ethnic groups, and perhaps most conspicuously in biblical studies, in which Werner Kelber has been especially prominent. The annual bibliography is indexed by 100 areas, most of which are ethnolinguistic divisions.

Present developments explore the implications of the theory for rhetoric and composition, interpersonal communication, cross-cultural communication, postcolonial studies, rural community development, popular culture and film studies and many other areas. The most significant areas of theoretical development at present may be the construction of systematic hermeneutics and aesthetics specific to oral traditions.