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Understanding marketing system
The world is rapidly developing in most aspects of human life. In the aspect of economy, companies or firms nowadays pursue global plans so as to introduce and develop their products as well as their services in other countries, instead of only focusing on business in their nation. However, the companies’ success depends not only on their own activities but also other factors from outside. Therefore, people have widely adopted marketing systems as a tool to obtain their goals. Some interesting articles and books address this issue. Layton, a professor of marketing at the University of New South Wale in Australia, in his articles “Marketing Systems: A Core Macromarketing Concept” in 2007, examines the relationship between marketing systems with macromarketing, and “On Economic Growth, Marketing Systems, and Quality of Life” in 2009, mentions the role of marketing systems in the economic growth and quality of life. In addition, Dixon and Wilkinson, in the chapter 1 “Marketing: a behavior system” of their book, named “The Marketing System” in 1982, explore marketing as the behavior of subjects that have mutual relationships to make market transactions. Layton (2007, p.230) states ‘Marketing systems is a network of individuals, groups, and/or entities linked directly or indirectly, through sequential or shared participation in economic exchange but creates, assembles, transforms, and makes available assortments of products, both tangible and intangible, provided in response to customer demand’. The main point of Layton’s article in 2007 is that the concept of marketing systems is considered as the main point in thinking about macromarketing. In other words, marketing systems can be found by the diversity of contexts. The writer provides a broad understanding about marketing systems by making a list of samples of the marketing system concept of other authors which help readers to understand in depth. In addition, the author states that the variety of the levels of aggregation might shape a marketing system. Furthermore, it may be engaged in the coordination and control, in the broader exchange and in the identification of system boundaries and components. Additionally, the writer shows that assortments are the results of marketing systems. There are two assortments, namely accessible assortment and desired assortment which their difference can impact the effectiveness of the marketing system. Moreover, Layton stresses five flows, including ownership, possession, finance, risk and information, which are quite important to the marketing systems’ operation. On the other hand, Mick (cited in Layton 2007, p.351) point out that ‘marketing system is as a complex set of multi-layered, near and far relationships in which the choices and actions of market participants have long-term consequences beyond their firms, partners and customers’. In addition, Layton (2011, p.259) finds that ‘ marketing systems are multi-level, path dependent, dynamic systems, embedded within a social matrix, and interacting with institutional and knowledge environment’ According to the different definition of marketing systems from the difference articles, marketing systems can be define as a network between two or more parties called transaction. There is also an exchange between those parties with knowledge, skill, information, and monetary to get the outcome which called assortment. Assortment is the whole range of product which happens in the organization. Marketing system can be considered as network creating to get more sustainability of the organization. Depend on Layton’s view, marketing systems is a link creating network between individuals or group to participant in economic exchange with both tangible and intangible product. In contrast, Mick has very different view that marketing system is a complex relationship between the choices of customers and the actions of market. These two points are correlative with each...
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