What Constitutes A Marketing System?

There are different points of view on what constitutes a marketing system. It is considered both at the level of economic management as a whole, in the framework of the organization’s interaction with its external influence groups, and at the level of individual business entities.

Moreover, it can be argued that a single approach to the definition of the concept of “marketing system” does not exist. This suggests that the theoretical aspect of the “marketing system” is not well understood and requires additional research.

Elements And Subsystems Of The Marketing System

The system is understood as “a set of elements united by a common purpose of functioning.” It seems that the marketing system is a combination of elements of strategic and operational marketing in their relationship, the purpose of which is to make an effective marketing decision.

The concepts of strategic marketing and tactical marketing got a reasonably wide circulation in the literature on marketing. In all aspects of marketing activity, it is possible to single out both strategic and tactical, operational tasks. Attributing strategic and operational marketing to individual types is not justified. ”

In my opinion, it does not mean the division of marketing into two types. It is about a two-pronged, complementary approach to marketing, and the elements of the marketing system reflect, to a greater or lesser extent, signs of key aspects of the approach.

So, research of needs, markets, customers, competitors are conditionally referred to strategic marketing and the choice of the target segment, marketing plan, marketing mix, marketing budget, plan implementation, and control – to the operating room.

As a result, marketing can be characterized by a two-part and complementary process of gaining knowledge about the market, about the company through marketing research, internal reporting, and active influence on the market by the company using marketing tools, both price, and non-price tools.

This approach is the main conceptual feature of modern marketing. The marketing system has an input impact, a processing system, results, and feedback.

Considering marketing from the system, that is, an integrated set of jointly and dependently functioning subsystems, we can say that the marketing system consists of three subsystems:

  • Sources of information
  • Marketing research system
  • Marketing planning

Highlighting or ignoring any of the subsystems causes damage to the marketing system. For example, it is inefficient to conduct marketing analysis without collecting reliable information, as well as marketing planning without analyzing marketing information.

A marketing system is a set of interconnected elements that are united by a unity of purpose and functional integrity, and the property of the system itself is not reduced to the sum of the properties of the elements.

The use of the marketing system is to develop effective marketing solutions.

Marketing System Features

The functions of the marketing system are as follows:

  • Comprehensive market research, including market analysis and forecasting
  • Analysis of the supply value of the enterprise
  • Development and preparation of a marketing program
  • Implementation of a set of marketing activities
  • Organization of marketing activities
  • Control of marketing activities and evaluation of its effectiveness

The property of organizing the system is manifested in the fact that the sources of information, the system of marketing research, and marketing planning can exist separately from each other, and only by uniting into a marketing system do they acquire qualities that they did not have before the merger.

The interaction of these elements allows you to carry out management activities and achieve high results effectively. In the framework of a systematic approach, relying on the dominant role of the whole with respect to the parts of the elements, the nature and specificity of the features that make up the marketing system are determined.

Based on the content of the concept of “marketing,” the marketing system should reflect: the process of the company’s activity, the process of expert and analytical tracking of the processes of promotion and circulation of goods, the process of price management, the influence of factors of external and internal environments, as well as a changing market situation.

Since expert analysis requires information, the marketing system reflected in the subsystem “Information Sources,” the process of analyzing factors influencing marketing reflected in the subsystem “Marketing Research System,” and the formation of a strategic program based on which the behavior of the company is formed in the given conditions, it is reflected in the subsystem “Marketing Planning.”

In the developed marketing system, we found a place “Marketing measures (actions)” and “The reaction of the marketing environment to the actions of the enterprise,” as well as goals and objectives at different stages of the system.

Marketing System Properties

The marketing system has the basic properties of systems, such as integrity, organization, functionality, structure. The marketing system is a large type system, as it is a set of subsystems of a constantly decreasing complexity level up to elementary subsystems that perform basic primary functions within the framework of this vast system.

Therefore, in addition to the basic properties, the marketing system has the features of emergence, synergy, and Multiplicativeness. The integrity of the marketing system implies that a change in any element affects other elements and leads to a change in the entire system.

So, when a competitor’s new proposal appears, a number of additional studies are carried out, changes are made to the provisions of the supporting strategies, new action programs are formed in the important areas, the developed measures are carried out, and the reaction of the marketing environment is monitored.

That is, a change in the state of one element of the marketing system leads to a change in the entire system.

The property of emergence is that the properties of a marketing system are not reduced to the sum of the properties of its subsystems. The properties of the marketing system itself do not include the listed properties of the subsystems.

As a result of the interaction of all subsystems, the marketing system acquires new properties, such as the ability to carry out strategic activities, the connection of goals and objectives with results, and feedback. The synergy property for the marketing system is that the actions in the system are unidirectional, which leads to the strengthening (multiplication) of the final result.

The multiplicative property for the marketing system is that the effects, both positive and negative, have the property of multiplication.

The marketing system is artificial, as it is created to implement the intended programs or goals; open, as they are characterized by a wide range of connections with the external environment, a strong dependence on it; stochastic system since it is characterized by difficulty predicted input influences of the external and internal environment and output results.

Conclusion

Thus, the study of marketing from the point of view of a systematic approach made it possible to present the marketing system graphically, identify the main subsystems, identify key elements, the relationship between them, and also describes its main properties and characteristics.

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