Marketing Theories #5

Summary #5

Marketing School of Thoughts                                                                              

1. Non-interactive

Balance of power, in which one party in the marketing process (usually the producers), was portrayed as an action agent who has impact on the behavior of buyers in the market place. In 1960s and 70s, the positions were reversed and focused on the consumer as the primary party of importance and action in the marketing process.

Conclusion

Persuasion or selling (buying) becomes the primary focus in this study.

2. Interactive

Forces the theorist to think of reactions to a marketing activity by one party and counter-reactions by the other party.

Banoma, Bagozzi and Zaltman (1978) summarized the distinction between the interactive (dyadic) vis Noninteractive (unit) perspective, P21:

1.      Behavior cannot be explained independently of the context

2.      To reduce explanations into constructs which violate the structure of interaction will cause confusion

3.      Adopt social perspective for marketing analysis

Four main variables (P21):

1.      Relational variables – nature of connections between the actors in the dyad

2.      Social structural variables – Conditions of the situation the dyad occurs and social positions the dyad occupy

3.      Social actor variables – Characteristics of individuals contribute or hinder the dyad relationship

4.      Normative variables – regarding how people ought to behave.

Conclusion:

Interactive perspective of marketing thought is more concerned with the interdependent relationship between marketing actors. Exchange or relationship becomes the focus of study.

3. Economic P22

Actions of marketing actors were considered to be driven by economic values

·         Marketing system objective was to fulfill basic consumer needs in the most efficient ways to max. profits by the producers, channel members and consumers

Conclusion

·         Narrow perspective about buyers and sellers’ behavior

·         Tends to be normative

·         Relates back to the origins of marketing as a subdiscipline of economics assoiated with a distinct domain of human behavior.

4. Non-economic P22

·         Focus on the social and psychological factors that may influence the behavior of marketing actors

1.      Producers strive for long term stability and survival

2.      Distribution channel structure is the result of the interplay between power, conflict and channel norms

3.      Consumer behavior is the result of complex psychological motivations and pervasive social pressures

Conclusion

·         Tends to be descriptive

·         Basic philosophies of human motivation and human behavior is the key values and orientation