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Towards a
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University of
New South
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%59
#bstract
&ur'ose ( #s
s'ecialisatio
n ta!es root
in human
communities
) the
economics
of scale and
of diversit
come into
'la. *cale
leads to
'roduct
mar!ets)
s'ecialised
firms)
channels)
and to
industries.
+iversit
generates
'easant
mar!ets)
sho''ing
malls) and
business
eco-
sstems.
These
ranging from disaster
recover to
distributive justice
and ,-$ outcomes.
.ewords /ar!eting
sstems) /ar!eting
theor
&a'er t'e
0once'tual 'a'er
#da'ti
ng
slightl
the
definiti
on
suggest
ed b
$aton
1%002)
%0034)
a
mar!eti
ng
sstem
can be
defined
as
follows
.
#
mar
!eti
ng
sst
em
is5
.
a
net
wor
! of
indi
vidu
als)
gro
u's
and/
or
entit
ies6
.
emb
edd
ed
in a
soci
al
m
at
ri
x6
.
li
n
!
e
d
di
re
ct
l
o
r
in
di
re
ct
l
th
r
o
u
g
h
s
e
7
u
e
nt
ia
l
o
r
s
h
ar
e
d
'
ar
ti
ci
'
at
io
n
in
e
c
o
n
o
m
.
nomic
value
with
and
for
custo
mers)
throug
h the
offer
of6
.
assortme
nts of
'roducts)
services)
ex'erien
ces and
ideas6
and
.
that
emerge
in
res'onse
to or
antici'ati
on of
customer
demand.
#n earlier
version of this
'a'er was
'resented at
the 8orum on
/ar!ets and
/ar!eting5
9xtending *-
+ $ogic) held
in *dne in
+ecember
%003 and
benefited
from the
discussion. :t
now draws on
this debate
and on
$aton
1%009a) b4 to
restate the
basic ideas.
9uro'ean
;ournal of
/ar!eting
<ol.
=5
>o.
?/%)
%0?
?
''. %59-%26
q 9merald @rou'
&ublishing $imited
0309-
0566
+-:
?0.??03/030905
6????09569=
9
%
/ar!eting sstems are to be found
everwhere ( from 'rimitive tribal
societies to advanced western
economies. The can ta!e man
forms) from sim'le barter within
and between small grou's) to the
trading networ!s lin!ing #sia and
Aestern 9uro'e over a millennium
ago) to the com'lex networ!s of
small and large enter'rise lin!ed in
the creation and deliver of the
goods) services) ex'eriences and
ideas that under'in contem'orar
societ. The range from a single
act of exchange involving a seller
and buer) to com'lex interactions
involving multi'le sellers) man
buers) and an ever-widening range
of traded objects. The include
value chains and service sstems)
'easant mar!ets and sho''ing
malls) artisans and business eco-
sstems) networ!s for 'rivate gain
and for social benefit. :n each case)
it is acts of voluntar economic
exchange that define the core of a
mar!eting sstem. Ahile each of
these exam'les and those li!e them
can be studied from man 'oints of
view) it is the voluntar economic
exchange of single or multi'le
goods) services) ex'eriences and
ideas that is central to the conce't
of a mar!eting sstem.
/ar!eting sstems have their
origin in the trade im'erative)
where individuals realise that gains
are 'ossible through s'ecialiBation.
#s s'ecialiBation dee'ens) mar!ets
form) more 'eo'le become
involved) trade networ!s develo')
lin!ing communities and
introducing cultural change and
diversit. #s these changes ta!e
'lace) mar!eting sstems emerge)
grow) ada't and evolve. The
coo'erate and com'ete) sometimes
merging) sometimes colla'sing.
The are dnamic) rarel in
e7uilibrium. The are multilevel)
recursive in nature) with sstems
forming and reforming within
sstems) interacting with sstems at
h
i
8
o
P
1.
/
ar
!
et
in
g
s

st
e
m
s
ar
e
c
o
m
'l
e
x)
a
d
a
't
iv
e multi-level sstems.
#s such) the can be ex'ected to
show characteristics of non-
linearit in !e relationshi's) to
generate emergent order) to be
characterised b 'ath de'endence
over time and discontinuit) and to
be loosel cou'led) falling
dnamicall somewhere between
e7uilibrium and chaos) between
anarch and control.
9mbedded exchange
#s #dam *mith noted) an
immediate conse7uence of
s'ecialiBation and division of labor
is growth in both the volume and
diversit of traded goods and
services. 8or both consumers and
'roducers the decision to trade) in
'rinci'le) turns on access to an
ever-widening and diverse set of
mar!ets. 0onsumers see! to
ac7uire assortments that match
their needs) and 'roducers see! to
'ut together 'roduct combinations
that build on accessing distinctive
com'etences) rea'ing the benefits
of s'ecialiBation through increasing
returns. Aith s'ecialiBation the
trade networ!s lin!ing sellers and
buers become increasingl dense
and the emergence of macro
structures such as mar!eting
sstems becomes more li!el. *ince
exchange is not cost-free and
increasing returns are available)
further s'ecialiBation in trade related
roles and functions are also li!el.
-ver time) changing technologies
flowing from the growth of
!nowledge) combined with often far-
reaching change in culture) econom
and institutional structures) contribute
to reducing or managing transaction
and coordination costs) to facilitating
the transactions needed for the
sstem to function) and in generating
successive waves of innovation
create new sets of needs on the 'art
of consumers 1Charadwaj et al.)
%0054.
A
hat
bega
n
then
as
mor
e or
less
isola
ted
trad
e
bet
wee
n
indi
vidu
als
see!ing mutual benefit 7uic!l
evolves into increasingl com'lex
'atterns of trade involving
individuals) as well as communities)
interacting in s'ace and time to create
diversit and de'th in traded goods)
and services. These com'lex)
dnamic 'atterns in the flows of
exchange that form) grow) evolve and
sometimes disa''ear are mar!eting
sstems. Their structure and function
is dee'l influenced b the
institutional and !nowledge
environments in which the arise)
and b the immediate social) cultural
contexts im'acting the everda lives
of the 'artici'ants.
This suggests the second
'ro'osition5
P2. 9conomic exchange is
alwas embedded in a mar!eting
sstem.
This 'ro'osition establishes the first
stage in a bridge lin!ing micro with
macro mar!eting-'henomena.
*ocial matrix as context
#s noted 'reviousl) exchange
transactions involving the exchange
of economic value are alwas
embedded in a mar!eting sstem. :t
is now suggested that mar!eting
sstems are in turn alwas embedded
in a social matrix 1<arman and 0osta)
%0036 0handler and <argo) %0034.
The social matrix 'rovides the
context for the social contract on
which all exchange de'ends.
The origins of trade can be found
in the human talent for exchange
based on mutual coo'eration.
:nitiall grounded in !inshi') then in
reci'rocit within small grou's)
coo'eration in a wider context came
to de'end on the acce'tance and
shared understanding of an im'licit
social contract b individuals who
were not !in) not grou' members)
and most often strangers 1*eabright)
%00=4. The resulting 'atterns of
exchange reflect the culture)
environment) level) and develo'ment
'ath
of
the
com
mun
ities
invo
lved
and
will
in
'arti
cula
r be
influ
ence
d b
fact
ors
such
as
the
'osi
tion)
'ow
er)
com
mun
icati
on
lin!
s
and
ca'a
biliti
es
of
the
indi
vidu
als.
This
sugg
ests
the
third
'ro'
ositi
on5
P
3
.
/
ar!eting sstems are alwas
embedded in a social matrix.
-nce the mar!eting sstem or sstems
of interest have been identified) the
social matrix in) which the sstem
and/or its major com'onents are
embedded) can be s'ecified. 9xam'les
of embedded mar!eting sstems where
the im'ortance of the social matrix is
evident can be found in the stud b
"abo 1%0054 of traders in the souk of
#le''o) the historical analsis of the
trans-*ahara caravans b $don 1%0034
where each caravan can be thought of
as a mobile mar!eting sstem) or the
sociological insights into the D*
sho''ing mall 'rovided b Dnderhill
1%00=4. <arman and 0osta
#
the
or
of
ma
r!e
tin
g
ss
te
ms
%6?
9;/ 1%0034 highlight the im'ortance of embedding a mar!eting sstem in a social context)
=5)?/%
in a detailed stud of the Cijogarth mar!et'lace in 0alcutta) reconstructing Ethe
mar!et as a sociall embedded institution in which communit ties are formed and
sustainedF 1'. ?=?4. :n each case the social matrix sha'es and is sha'ed b the structure
and functioning of embedded mar!eting sstems.
%6%
#ssortments
:n a multi-level mar!eting sstem) assortments of goods) services) ex'eriences and
ideas will usuall arise at man 'oints in each of the different levels. #t a micro level
a sellerGs offer will often include more than one 'roduct or service) and will on
occasion be differentiated from that of another seller b a willingness to involve a
buer in the co-creation of value. #t a meso level where micro level sstems are
aggregated into com'lex se7uences of offers and acce'tances) each contributing to an
end-user assortment through the creation or co-creation of value) assortments arise
wherever sellers and buers interact. 8or the communit served b the meso level
sstem) the assortment or heterogeneous set of goods) services) ex'eriences and ideas
offered to ultimate customers is a direct indicator of the success or failure of the
sstem to 'erform. #t a macro) econom-wide level the aggregate mar!eting sstem
offers an even richer arra of goods) services) ex'eriences and ideas to ultimate
customers 10ox et al.) ?9656 8is!) ?9626 Ail!ie and /oore) ?9994. #t each level and
at an 'oint failure to meet buer needs in offered and accessible assortments will
directl affect the effectiveness of the aggregate mar!eting sstem.
The next 'ro'osition then can be stated as follows5
P4. The 'rimar function of a mar!eting sstem is to offer customers an
assortment consisting of a heterogeneous set of goods) services) ex'eriences
and ideas.
#ssortments at an 'oint in the o'eration of a mar!eting sstem ma be loo!ed at in terms
of what is offered) what customers are see!ing 1the 'otenc of an assortment noted b
#lderson in) ?9654) what is in fact accessible to 'otential customers) and then in terms of
what is ac7uired and accumulated. Ahile it is obvious that each of these assortment
conce'ts ( offered and sought) accessible) ac7uired) and accumulated ( is closel related)
the lin!s between each are not well understood. "etailing studies have loo!ed at customer
res'onses to store assortments) and in 'articular at the com'osition of the resulting
sho''ing bas!ets. *ho''ing centre design has been concerned with the o'timal mix or
assortment of stores to include in a centre) and with the mix of service attributes to be
offered. &roduct line 'olicies have been ex'lored in the mar!eting and strategic
management literatures. <ariet) in global trade) flowing from com'arative advantage) has
been considered) b economists) and) more generall) b geogra'hers. The need to move
beond one-dimensional analses of 'roduct/service offers is clear.
#lderson 1?9654 'ointed out that assortments at an 'oint in a mar!eting sstem could
be discre'ant. This ha''ens when a significant number of customers loo! for something in
an accessible assortment and do not find it) or reject what is available. :f the underling
issue is one of accessibilit then some redesign of the mar!eting sstem ma be sufficient.
However) if the cause goes dee'er and reflects 'ersisting shifts in customer 'references
and interests then the mar!eting sstem is discre'ant) leading to
innovation and thus changes in the assortment on offer. The innovations introduced in
this wa are
im'ortant
drivers of
overall economic growth 1Caumol) %00%4) res'onding to continuous or discontinuous
change in the technological and institutional environments. The abilit of a mar!eting
sstem to identif and res'ond to these shifts is an im'ortant factor in determining its
overall effectiveness.
&ro'osition five then becomes5
P5. &ersistent discre'anc in mar!eting sstems is a driver of innovation and
contributes directl to economic growth.
Aill assortments ( offered and ac7uired ( continue to ex'andI Ahile it is evident that
assortments in 'rimitive exchange or seen under conditions of 'overt) were much
more limited 1both width and de'th4 than those on offer toda) for man critics of
contem'orar mar!eting continued growth is a 'ossibilit that raises significant
concerns. *chwartB 1%00=4 writing on the 'aradox of choice as!ed wh more is often
less. He suggests that the culture of abundance robs us of satisfaction. &aul *tiles
1%0054 ex'ressed similar concerns in his ex'loration of the mar!et and communit in
contem'orar #merica. #nd man observers ex'ress growing concern at the
im'lications of an ever-ex'anding assortment for sustainabilit. However) the
contribution of assortments generated b a mar!eting sstem will usuall be 'ositive
but ma be negative and is not li!el to be uniform for each of the customer grou's
served b a mar!eting sstem. This raises im'ortant issues of distributive justice
1$acBnia! and *antos) %0034) and leads to the next 'ro'osition5
P. The assortments generated b a mar!eting sstem contribute directl to the
7ualit of life of the customer communities.
0lassifing mar!eting sstems
Ahile there are man 'ossibilities in classifing mar!eting sstems) two will be
considered here. The first relates to the level of aggregation of the sstem that is under
consideration. The sim'lest mar!eting sstem is one involving a single seller and a single
buer. 9xtended to consider a set of similar sellers and a set or sets of buers) engaging in
exchange under conditions of 'erfect or) in 'ractice) highl im'erfect !nowledge) this is
the micro mar!eting sstem most studied in contem'orar microeconomics and micro or
managerial mar!eting. The transaction or flow of transactions ta!es 'lace within a
s'ecified social matrix and/or wider environment) and interest centres on the decision
'rocesses and their outcomes ado'ted b both sellers and buers. *ellers ma and often
will be com'lex organisations) and often mar!eting sstems in their own right. Cuers
ma be individuals) households or organiBations. The relationshi's that form between
seller and buer over time in a series of re'eated transactions ma be of central interest. :n
'articular) the basis for exchange will often) if not alwas) be grounded in service) with
value being co-created through the interactions between seller and buer) and Ealwas
uni7uel and 'henomenologicall determined b the beneficiarF 1<argo and $usch) %003)
'. 24.
#t a slightl higher or meso) level of aggregation) a mar!eting sstem ma form around
grou's or clusters of sellers 1firms4 offering similar or mutuall su''orting
'roducts/services to grou's of buers6 or a number of firms ma coo'erate for exam'le in
creating su''l chains or global commodit chains6 or sellers congregate in a
# theor of
mar!eting
sstems
%63
9;/ =5)?/%
%6=
mar!et-'lace) sho''ing stri' or mall. Here too) the 'artici'ating entities ma be micro
or meso level sstems) com'eting or coo'erating within the context of a sstem at a
slightl higher of aggregation.
#n understanding of meso level mar!eting sstems will t'icall turn on an
analsis of the interactions between and among sstems at higher and lower levels of
aggregation) something that is a continuing challenge in man of the social sciences
1$iljenstrom and *vedin) %0054. 8inall) there is a macro level of analsis) illustrated
b the wor! of Ail!ie and /oore 1?9994. Ahen the mar!eting sstem is referred to it
is usuall this level of analsis that is in mind.
The s'ecific 'ath and time ta!en in the evolution of a mar!eting sstem is dee'l
influenced b man factors) including the formal and informal rules) beliefs) and
norms held b the communit within which the mar!eting sstem is evolving
1@udeman) %00?4. :n addition there are the constraints and o''ortunities created b
religion) geogra'h) histor and 'hsical infrastructure such as distance or isolation6
ease of access b sea) river or land6 resource endowments6 and the cumulative effects
of 'ast histor. 8or the most 'art) factors such as these change slowl) establishing the
Elimits of the 'ossibleF in the growth and o'eration of mar!eting sstems at all levels
of aggregation 1Craudel) ?929) 0lar!) %0024.
# second set of factors that sha'e the develo'ment 'ath is to be found in the
changing technolog set o'en to sstem 'artici'ants. These ma change swiftl)
without warning) and have far reaching conse7uences) facilitating the evolution of
new organiBational forms) widening and dee'ening the assortments offered and
sought) lin!ing mar!ets otherwise se'arate) and changing 'erce'tions of costs) time
and distance. The develo'ment of social technologies such as the joint stoc! com'an)
mass 'roduction methods) the multi-divisional enter'rise) and networ!ed alliances)
together with 'hsical technologies such as the camel saddle) com'ass) sailing shi')
steam 'ower) railroads) tele'hone and wireless communication) air travel) com'uters)
internet and virtual worlds) would all a''ear on a list of the technologies that
significantl extended the scale and reach of 're-existing mar!eting sstems. These
two sets of factors together at an a''ro'riate level of aggregation constitute the
institutional-!nowledge 1:.4 environment for a mar!eting sstem.
Aith this in mind5
P!. /ar!eting sstems are influenced b and influence the institutional and
!nowledge environments in which the are located.
# second a''roach to the classification of mar!eting sstems focuses on structure and
dnamics. $oo!ing bac! over the exam'les of mar!eting sstems cited earlier four
broad recurring 'atterns could be identified 1$aton) %009a4. These are labelled
autarchic) emergent) structured and 'ur'oseful. Ahile it is li!el) that these will
follow a se7uence over time) beginning with autarch) then to emergent as mar!eting
sstems begin to form in flows of transactions) then to either structured or 'ur'oseful
de'ending on external 'ressures and internal forces) this is not inevitable. The
'ossibilities are illustrated in 8igure ?.
Ceginning with autarchic sstems) these are found in settings where individuals or
households are largel self-sufficient) 'oorl informed outside the immediate famil or
grou') and include barter or sharing within and between households. :n the absence of
# theor of
mar!eting
sstems
%65
8igure ?.
@rowth) emergence and
evolution in mar!eting
sstems
external change these mar!eting sstems ma be long lived) constituting a relativel
low level e7uilibrium. Ahile most exam'les are to be found in anthro'ological
studies of foraging or subsistence societies 1see ;ohnson and 9arle) %0004) it is also
'ossible that disaster) whether due to causes such as nature) war) disease) or sim'l a
conse7uence of sstemic colla'se brought about b a combination of internal
dnamics and failures in external environmental regulation or control) ma reduce a
so'histicated mar!eting sstem to something close to autarch.
#utarchic sstems ma drift towards emergent sstems as the benefits of
s'ecialiBation are ex'loited) a 'rocess that is influenced b the increasing diversit
over time of household needs and wants) 'o'ulation growth and agglomeration
1@udeman) %00?4. #s this 'rocess ta!es hold the limitations of tight social control
become obvious and com'etition is increasingl substituted for regulated or sociall
controlled outcomes. #s a basis for trust in exchange is established) trade within and
between communities grows6 assortments offered and sought widen and dee'en6 an
acce'table medium of exchange is identified and measurements standardiBed6 and
localised coherent 'rices are agreed. #s these initial ste's are ta!en) transitor
mar!et'laces located at crossroads or under trees become fixed mar!ets and trade
volumes increase6 haw!ers or street vendors and other mobile traders are established
to su''lement the fixed mar!et traders) and as lin!s between mar!ets begin to
develo') rotating or regional mar!ets emerge. #s grou's of traders form into firms)
associations or networ!s to reduce costs and ex'loit increasing returns the mar!eting
sstems become increasingl com'lex. &roduct differentiation and local brands ta!e
root6 s'ecialist sub-mar!ets develo'6 and s'ecialist roles such as those associated with
retailing) wholesaling) bro!ers or agents) the 'rovision of credit or finance)
information sources) and enforcement mechanisms emerge. Ahere and when some or
all of these 'atterns can be identified the mar!eting sstem can be called emergent.
The transition from an emergent sstem to one that is structured or 'ur'oseful is one
that transforms traditional mar!et structures in emergent mar!eting sstems into sstems
ca'able of ra'id growth and sustained transformation. The critical driver in this
transformation is the emergence of cor'orate entities. :nitiall tried in an emerging
9;/
=5)?/%
%66
mar!eting sstem as a famil or coo'erative res'onse to an o''ortunit to fill a
mar!et ga') reduce costs) co'e with uncertaint or 'erha's to ex'loit an accessible
resource or s!ill set in ma!ing or selling) the benefits of a cor'orate form 7uic!l
became a''arent to 'artici'ants. Aith the 'assage of time) dealing with an
increasingl com'lex institutional environment) or ex'loiting new technologies) often
re7uired increased scale in cor'orate activities. >ew organiBational forms then
emerged based on alliances or networ!s of coo'erating enter'rises that would further
enhance a fit between organiBational design) com'etitive strateg and environment. :n
this wa) emergent mar!eting sstems mor'h into structured or 'ur'oseful sstems.
*tructured mar!eting sstems t'icall com'rise man cor'orate entities) each of
which in isolation could be considered a 'ur'oseful or a structured sstem) which
ma range in siBe from small to ver large) and include single firms) as well as
alliances or networ!s of firms coo'erating in 'roduction) distribution) or innovation.
# structured mar!eting sstem ma sim'l com'rise a vertical or horiBontal networ!
of collaborative relationshi's lin!ing individuals and entities in the mar!eting sstem
1@ranovetter) ?9356 >ormann and "amireB) ?9936 Ail!inson) %00?) %0034 The
strength of each relationshi' reflects the economic and social investment made in the
relationshi' b the 'arties involved. The networ! as a whole 1the individuals and
entities that act as nodes and the lin!s or ties between these nodes4 has a structure
where 'ower or authorit flows from 'osition within the networ! and which is an
im'ortant determinant of overall ca'acit to res'ond to external challenge or change.
0oo'eration and com'etition ma coexist in structured exchange as individuals and
entities see! to build on existing lin!s or to form new lin!s with current or 'otential
'artici'ants. :n some situations com'etition develo's into h'ercom'etition where
com'etitive advantage is 7uic!l eroded b forces such as disru'tive technologies)
unex'ected shifts in customer 'references) the entr and exit of new 'artici'ants)
deregulation and the invention of new business models.
9xam'les of structured mar!eting sstems range from salaula) the multi-
'artici'ant mar!eting sstem for second hand clothing in Jambia) where small scale
networ!s of #frican agents and merchants com'ete in local cit mar!ets 1Hansen)
%0004) to the broader a''arel industr in man countries where small and large scale
networ!s of firms have existed for hundreds of ears. -ther exam'les of structured
mar!eting sstems include sho''ing malls) medinas) or baBaars) the wholesale
mar!ets on the outs!irts of most large cities) man of the business networ!s studied
b the :/& grou' 1Ail!inson) %0034) and at a macro level the aggregate mar!eting
sstem.
:n a 'ur'oseful mar!eting sstem the distinguishing characteristic is the use of
economic or 'olitical 'ower to direct flows of transactions in was that contribute to
the goals of the entit exercising 'ower. /ost vertical mar!eting sstems fall into this
grou') from sim'le structures involving a direct manufacturer/retailer relationshi' to
the com'lex su''l chains established b leading retailers such as Aal-/art in the
D*#. -ther exam'les include the international franchising activities of brands such as
*tarbuc!s or /c+onalds) the manufacturing/distribution structures created b the
large automobile com'anies and 'harmaceutical firms) or the integrated resource
networ!s of com'anies such as C& and CH&-Cilliton.
*omewhere
between 'ur'oseful and structured mar!eting sstems) de'ending on the degree of
centraliBed control) are the business ecosstems discussed b /oore 1?9964 and
:ansiti and $evien 1%00=4) and the service ecosstems or value networ!s studied b
$usch et al. 1%0094. # business ecosstem can be thought of as a large number of
loosel connected 'artici'ants) often individuall 'ur'oseful) acting as a communit)
each reling for mutual effectiveness and survival on each other through a com'lex
web of interde'endencies. # service ecosstem has been defined b $usch et al.
1%0094 as a Es'ontaneousl sensing and res'onding s'atial and tem'oral structure of
largel loosel cou'led value 'ro'osing social and economic actors interacting
through institutions) technolog and language to5
.
co-'roduce service offerings6
.
exchange service offerings6 and
.
co-create valueF.
Ahile a business ecosstem is a broadl descri'tive label) the conce't of a service
ecosstem is more focussed) em'hasising value-creating outcomes brought about
through service. Coth blend elements of 'ur'oseful and structured mar!eting sstems
and both are exam'les of mar!eting sstems.
The growth of business ecosstems illustrates the shifting boundaries between the
two 'atterns. # need to increase access to essential resources) a drive to widen offered
assortments) to ac7uire new s!ills) or to reduce costs ma lead managers in a
'ur'oseful sstem to trade control for coo'eration) to outsource non-core activities) to
engage in cost-sharing collaborative research) all of which will move the sstem
towards a more structured 'attern. The o'en business models ex'lored b 0hesbrough
1%0064 'rovide exam'les. #lternativel) conflicts as to direction) 'erceived ine7uit in
the allocation of rewards across a networ!) and external 'ressures related to scarce
resources are all factors that might combine to lead managers to see! overall control)
moving the sstem towards a more 'ur'oseful model.
These considerations lead to the next two 'ro'ositions5
P". The entities com'rising a mar!eting sstem ma themselves be mar!eting
sstems.
P#. /ar!eting sstems are inherentl dnamic and often unstable.
The elements of a mar!eting sstem
The major structural and functional elements of a mar!eting sstem are shown in
8igure %. These are the exchange logics and contexts found in the mar!eting sstem)
sstem flows and roles) networ! structure and governance) the assortments created
and delivered and the man customer grou's 1intermediate and final4 whose needs are
served b the o'eration of the mar!eting sstem. :t is the interaction of all these
# theor of
mar!eting
sstems
%62
8igure %.
The essential
com'onents
9;/
=5)?/%
%63
elements within and between com'onent mar!eting sstems at differing levels of
aggregation and their interde'endence on the environmental drivers of institutions and
!nowledge that are 'rimar determinants of the micro-macro interface in mar!eting
'henomena.
Ahile the stor begins with s'ecialiBation and ends with economic growth and
contributions to societal well being) and 7ualit of life) it is the interactions between
the elements shown 'reviousl that will determine both the efficienc and
effectiveness of a mar!eting sstem. T'icall) each of these elements will include a
heterogeneous mix of com'onents. 8or exam'le) the mar!eting sstem in an
:ndonesian town that su''orts dail life in the household sector will include exchange
logics ranging from barter) to bargaining to outright sale) in settings that range from a
central mar!et'lace to a su'ermar!et. The transactions that occur might involve
credit) 'erha's credit cards) in the su'ermar!et settings) or mixtures of cash and
barter6 logistics range from lorries to beca!s) and biccles6 information flows might
be intense and localiBed or wides'read and electronic based. *imilarl) roles are
diversified) differing between a formal) mar!et-based set of s'ecialiBations and the
informal) da to da exchanges in central and local mar!ets. Aithin an overall
networ!) localiBed networ!s with differing degrees of centraliBation and densit will
be found. @overnance 'rinci'les will range from the abstract rule of commercial law
to situations where trust based on 'ersonal !nowledge is a determinant feature.
#ssortments will arise in man locations wherever trade occurs 'erha's between
individual households where the width and de'th of the assortment offered will be
restricted) to the assortments offered b wholesale merchants) to those found in
central mar!ets or su'ermar!ets. 0ustomer grou's will include man who are
illiterate or innumerate) as well as the well educated and affluent. :n most mar!eting
sstems structural and functional heterogeneit is an inevitable feature.
$%&han'e lo'i&s and &onte%ts
The exchange logics and contexts associated with a transaction set at the core of a
mar!eting sstem can range from sim'le 'lanned or un'lanned choices a!in to those
made in a su'ermar!et sho''ing tri') to com'lex multi-'art negotiations.
Transaction costs) both fixed and variable) 'erceived b 'artici'ants) ma be trivial)
but will often be substantial) and lin!ed to the flows of ownershi') 'ossession) ris!)
finance and information that are associated with the exchange 'rocesses involved in
the transaction set.
The wider 'hsical contexts within which these exchanges ta!e 'lace are also often
im'ortant and for a mar!eting sstem of interest ma range from sim'le o'en-air
mar!ets to cbers'ace settings) from so'histicated offices to sho''ing malls. The
social ex'erience associated with exchange) sim'le or so'histicated) is often
'leasurable and a valued 'art of the transaction. This can be seen) not onl in a
'easant mar!et'lace) but also in contem'orar sho''ing malls where owners strive to
ma!e sho''ing more than a necessar household activit) 'roviding meeting 'laces
and facilities for communit activit 1-ldenburg) %00?4. *afet) hgiene) access and
communication are all im'ortant factors influencing the viabilit of an exchange
context.
The content of these exchanges centre on the value 'ro'ositions made b sellers)
ex'ressed
through
'roducts) services) ex'eriences and ideas) often bundled together) which will usuall
re7uire close coo'eration between buers and sellers in the co-creation of value
outcomes. The values sought b the 'artici'ants in exchange ma be economic and/or
non-economic in nature6 the exchange ma be full or 'artiall informed) legal or
illegal) bilateral or multilateral. /uch ma de'end on whether the exchange is seen as
a once-off event or as 'art of a long-term 'attern or relationshi'.
# mar!eting sstem then will both define and be defined b the transaction set) the
exchange logics that will a''l and the exchange contexts within which the transactions
are carried out. Dnderling this s'ecification 'rocess is a choice of a level of aggregation
and a characteriBation of the sstem boundaries that are a''ro'riate in an analsis of the
mar!eting sstem under consideration. This will often be an iterative 'rocess involving
consideration of both higher and lower level sstem s'ecifications.
(lows
8or a mar!eting sstem to function effectivel in the creation and deliver of
assortments) several 'arallel) coordinated) and mutuall su''orting economic flows
must ta!e 'lace. These include a flow from sellers to buers of s'ecified ownershi'
rights to the economic values transferred6 a flow of 'ossession from sellers to buers
where each in turn gains acce'table access to) or 'ossession of the economic value
inherent in the 'roducts) services) ex'eriences and ideas being exchanged6 a flow over
time and s'ace of mone or e7uivalents in the form of a 'aments sstems that can be
used to ma!e 'ossible the com'letion of the underling transactions6 a flow of ris!)
shifted from sellers to buers as exchange ta!es 'lace) that are !nown and understood
b the 'arties concerned6 and finall an accessible flow of the information needed to
bring buers and sellers together) and to allow informed exchange to ta!e 'lace.
Dnderling these flows are the economic) social) cultural and 'hsical
characteristics of the social matrix in which the mar!eting sstem is embedded) in
turn reflecting the wider evolving or changing environments of institutions and
!nowledge. :n contem'orar mar!ets the 'roblems associated with the transfer or
'reservation of intellectual 'ro'ert are well !nown. 0odes of conduct) cultural norms
and legal rules are essential elements in defining ownershi'.
&ossession ma or ma not coincide with ownershi' and) for 'hsical 'roducts)
adds a s'atial and logistics dimension 1location of mar!ets) trans'ort) storage)
transformation) dis'la and des'atch4 to the o'eration of a mar!eting sstem. &hsical
infrastructure is an essential element in the flow of 'ossession and does much to
determine both the efficienc and effectiveness of a mar!eting sstem.
"is! is inherent in the o'eration of a mar!eting sstem and dee'l influenced b the
social matrix in which the mar!eting sstem is embedded. Ahen sellers and buers are
!nown to each other) 'erha's as members of a communit) 'erha's through re'eated
exchange) the ris! of a failed transaction is low) and subject to communit sanctions. #s
transactions shift towards the im'ersonal and com'lex) 'erformance ris! increases for all
'arties) and is governed b emerging norms) rules and laws. The elaborate) high-level
'rotections needed to facilitate internet mar!ets illustrate the challenges.
#nd then there is mone. The inefficiencies of sim'le barter soon 'ersuaded sellers
and buers to agree on a common measure of value. Ahile initiall culturall
# theor of
mar!eting
sstems
%69
9;/
=5)?/%
%20
determined) cash in one form or another soon too! over and now the flows of cash or
cash e7uivalents are an essential element in the functioning of a mar!eting sstem.
The micro-finance offered b the @rameen Can! in Cangladesh and elsewhere) the
develo'ment of bond mar!ets) and the ra'id growth of mar!ets in financial
derivatives) are exam'les of the innovations that have under'inned the evolution of
com'lex) multilevel mar!eting sstems.
8inall) in order for exchange to ta!e 'lace buers and sellers must be brought
directl or indirectl into contact. -f necessit there must be a flow of information
under'inning the exchange. #s with the flows of mone or cash) intermediaries) and
s'ecialist 'roviders soon emerged) as mar!eting sstems grew more com'lex. These
'roviders toda include both 'ublic and 'rivate sector sources of information.
9xam'les include advertising agencies) mar!et research firms) consultancies) and
s'ecialists in s'ecific mar!ets or mar!et sectors. #s for each of these flows essential
to the o'eration of a mar!eting sstem) information flows are dee'l influenced b
the economic) social and cultural factors in the social matrix) and these in turn are
de'endent on longer run 1but occasionall abru't or discontinuous4 change in the
institutional and !nowledge environments. #n exam'le of these changes is the ra'id
shift towards customer 'ower occurring in man mar!ets) brought about b the new
digital technologies of i&ods) mobile 'hones) Clac!berries and other devices) lin!ed
through social networ!ing sites such as 8aceboo!.
Ahere there are subsets of the transaction flows in which one or more of these flows
are absent) or unbalanced 1e.g. inade7uate access) information asmmetries) lac! of
customer feedbac!) brea!down in trust) limited abilit to find finance) fraud) infrastructure
failures4) a mar!eting sstem will lose in efficienc and in the effectiveness with which it
meets communit needs and interests. Here) external events such as war) natural disaster)
or economic brea!down) ma be determining factors and it becomes im'ortant to reinstate
or rebuild each of the com'onent flow sstems.
9ach of these flows) of ownershi') 'ossession) finance) ris! and information) ma
generate role s'ecialiBation based on distinctive resources) learned s!ills) and
ac7uired networ! ca'abilities and ma lead to the emergence of com'lementar or
secondar mar!eting sstems focussed on the 'rovision of the services and facilities
needed to sustain the flows in the 'rimar sstem or sstems. 9xam'les include the
emergence of financial and insurance mar!ets) the growth of the facilities and event
management industries) and of com'lex trans'ort networ!s. :t is also 'ossible for
growth in these secondar mar!eting sstems to lead to a disconnect with the 'rimar
mar!eting sstems) where value in exchange evolves se'aratel from value in use)
something that occurred in the %009 EbubbleF in global financial mar!ets) and in the
resulting need to re-establish wor!ing lin!s between the mar!eting sstems involved.
)oles
The 'artici'ants in a mar!eting sstem range from individuals or households) to entities
1e.g. firms) agencies) coo'eratives4) to mar!eting sstems 1mar!ets) clusters) networ!s)
alliances) 'artnershi's) etc.4 and will usuall include the entities 'roviding the essential
su''ort services associated with each of the flows of ownershi') 'ossession) finance) ris!
and information. 9ach 'artici'ant fills one or more roles in the o'eration of a mar!eting
sstem ( households and firms ma act as sellers or buers
or both6 individuals and agencies ma 'artici'ate in information and ris!/insurance
flows as
gate!ee'ers)
'roviders) controllers6 others will s'ecialiBe in storage or trans'ort) and others will fill
the roles of regulator) adjudicator or enforcers.
Networks
The definition of a mar!eting sstem highlights the networ!s that lie at the core of an
mar!eting sstem. The 'artici'ants or actors in the networ! range from individuals)
households or famil grou's) social or communit grou's) to entities such as firms)
agencies) and in man situations de'ending on the level of aggregation involved) lower
level mar!eting sstems. The 'artici'ants in a mar!eting sstem ma include intermediate
sellers and buers) as well as ultimate customers. These individuals) grou's or entities are
lin!ed directl or indirectl through se7uential or shared 'artici'ation in exchange
transactions) jointl creating economic value) through the offer of assortments of 'roducts)
services) ex'eriences and ideas) 'rovided in res'onse to customer demand.
:n man situations a mar!eting sstem can usefull be thought of as a networ! of
networ!s where the interactions between networ!s at higher and lower levels of
aggregation are li!el to be of major interest. :t ma be im'ortant to locate a focal
sstem in a context of 'arallel) com'eting or coo'erating sstems) lin!ed se7uentiall
with other mar!eting sstems) and interde'endent with com'lementar sstems)
'erha's concerned with flows of mone or finance) ris! or information. :t ma also be
im'ortant to ex'lore the lin!s with micro or lower level sstems where seller-buer
exchanges are ta!ing 'lace. :n each case a sstem-environment analsis will hel' to
identif !e forces driving or sha'ing networ! 'erformance.
9ach seller or 'rovider 'artici'ant brings to a mar!eting sstem) ex'erienced
histor) a growth dnamic) resource endowments and ca'abilities) assortments and
customer grou's 1Hunt) %0004) and will coo'erate or com'ete) directl or indirectl)
on one or more of several dimensions including 'rice) 7ualit) availabilit)
information and assortment 1Caumol) %00%) '. ??4 #s <argo and $usch 1%0034 note
both sellers and buers are resource integrators.
The lin!ages between and within 'artici'ants in a 1multi-level4 mar!eting sstem
are im'ortant factors influencing function and sstem dnamics. T'icall) the
lin!ages are multi-dimensional) based often on direct trade relationshi's) but also
involving 'ower) influence) trust) and resting on bases including ex'ertise and
!nowledge) networ! access) mutual understanding) !inshi' and famil relationshi's)
'uan%i or obligation. Here again the social matrix in which the mar!eting sstem is
embedded is an im'ortant determinant of networ! structure and dnamics.
*overnan&e
The fourth element in a ma''ing of a mar!eting sstem is concerned with the overall
governance of the sstem. -ne of the best !nown classifications is that due to &olani
1&olani et al.) ?9524 who suggested that the social 'roblem of 'roviding 'eo'le with
desired assortments could be solved in one of three was5
(1) "eci'rocit) usuall involving families) !inshi' grou's or neighbourhoods) in a
Egive and ta!e of e7uivalent value over timeF 1;ohnson and 9arle) %0004.
(2) "edistribution) usuall through allocations made b a central authorit.
(3) 9xchange) in which distribution is achieved through 'rice ma!ing in mar!ets.
# theor of
mar!eting
sstems
%2?
9;/ =5)?/%
%2%
:n !ee'ing with the transitions noted earlier) reci'rocative and redistributive 'atterns
are more li!el to be found in autarchic or earl emerging mar!eting sstems) where
trade shifts from a situation in which each individual is more or less self-sufficient)
'erha's with some barter between 'roducers) to one where 'atterns emerge in roles)
location in s'ace or time) and relationshi's 1an emergent sstem4. These in turn
facilitate the formation of firms) grou's or alliances and concentration of mar!et
'ower begins to develo' 1see 0arroll and Hannan) %0004. Aith this concentration of
mar!et 'ower comes an increasing variet of goods) services) ex'eriences and ideas
as firms ca'italise on economies of sco'e as well as scale.
+usto,ers
The remaining two elements to be considered in the ma''ing of a mar!eting sstem
are the customers or customer grou's and the assortments that bring 'roducers and
consumers together. The 'rocess begins with an identification of the customers or
customer grou's associated with a mar!eting sstem. These will often not be just end
users but de'ending on the s'ecification of the boundaries of the mar!eting sstem of
interest) ma also include intermediate 'urchasers of both goods and services and ma
on occasion be broadened to include sta!eholders as well. #t one level) customers
ma be thought of as individuals) households) managers or buing grou's and centres)
and at another be considered in aggregate as segments) grou's) communities or
regions.
The heterogeneit of the resource endowments or ca'abilities of 'urchasers)
including ca'acit to 'a) will be an im'ortant determinant of sstem functions and
structure. :n a negative sense) the conse7uences of lac! of ca'abilit) such as might be
ex'erienced b illiterate or disabled 'urchasers are also im'ortant factors in sstem
design. This leads directl to a review of demogra'hics and of decision 'rocesses both
at the individual and grou' level.
Assort,ents
#s noted earlier) for most buers/customers within a mar!eting sstem) it is the abilit
of the sstem to 'rovide assortments that enable them to fulfil their needs and wants
that will determine the 'erceived success or failure of the sstem. #t the macro or
aggregate level characteristics of the assortments offered will often be economicall)
sociall and 'oliticall im'ortant. "estricted access to goods) services) ex'eriences
and ideas ma lead to social disru'tion. #ssortments that 'rovide access to drugs)
alcohol) or 'ornogra'h are often unacce'table) leading to 'roscri'tion of the
mar!eting sstems that generate these assortments. #ssortments that encourage
obesit) unsustainable energ use) or which ma distract a 'o'ulation from the 'ursuit
of sociall im'ortant ends ma also be discouraged. :n each of these exam'les the
assortments generated b mar!eting sstems are highl visible indicators of the nature
of a societ) its values and its commitments. #s such) over the ears) man
communities have sought to control or limit the assortments on offer) sometimes
restricting access to mar!ets) sometimes banning s'ecific categories 1often then
creating blac! or underground mar!ets for the goods or services4) sometimes using
taxation to raise 'rices beond those which some 'eo'le can 'a) or 'erha's through
controls or regulations im'osed on the mar!eting sstems which have generated the
assortments in 7uestion.
:n summar then) the following 'ro'ositions emerge5
P1-. The
s'ecif
icatio
n of a mar!eting sstem re7uires detailed consideration of exchange logics
and settings) roles) flows) networ!s) governance) customer grou's and
assortments.
P11. The effectiveness of a mar!eting sstem will be determined b its ca'acit to
'rovide accessible assortments in res'onse to changing customer needs for
each of the customer grou's it is intended to serve.
Here accessibilit reflects s'atial) time) communication) affordabilit and continuit
considerations in the exchanges ta!ing 'lace within the sstem as customer grou's
see! to satisf individual and/or collective goals. :f this is to be achieved) attention
must be given to the heterogeneit within each element of the mar!eting sstem) and
to their interactions within the sstem) with higher) 'arallel and lower level sstems)
with the external social matrix) and with the wider institutional and !nowledge 1:.4
environment.
Ahile effectiveness can be thought of in terms of customer outcomes) efficienc is
more difficult to 'in down. /uch de'ends on the extent to which a mar!eting sstem
has evolved as the efficienc of the full sstem is dee'l bound u' with the efficienc
of each sub-sstem. :n the short term) the incidence and extent of the transaction costs
facing sellers and buers is tied to the nature and coverage of su''orting
infrastructure) and influenced b the stage of develo'ment overall and in each critical
sub-sstem. 0onflicting incentives and inade7uate) decentraliBed information add to
the difficulties to be resolved. 9fficienc in the short term is enhanced when some or
all of these transaction costs are minimised.
:n the longer term some of the institutional barriers to efficienc ma change (
standards shifted) contract enforcement im'roved) regulator sstems modified) new
or changed infrastructure constructed) and incentives carefull structured to su''ort
a''ro'riate decision ma!ing b each 'artici'ant. :n 'articular) an efficient mar!eting
sstem must be ca'able of innovative res'onse to emerging o''ortunit. #s Telser
1?9324 'ointed out) both coo'eration and com'etition are essential if real world
mar!ets are to move towards efficient outcomes. >alebuff and Crandenburger 1?9964
too! the analsis further in a strategic management setting asserting the relevance and
im'ortance of co-o'etition.
These considerations 'oint to the last of the ?% 'ro'ositions5
P12. #n efficient mar!eting sstem will in the short term see! to minimise
transaction costs) and in the longer term to res'ond in an innovative and
timel fashion to internal and external change with a balanced blend of
coo'eration and com'etition.
$oo!ing forward
The exam'les of mar!et 'rocesses ex'lored here raise im'ortant 7uestions for our
understanding of mar!eting both in a 'ositive and a normative sense. The highl evolved
mar!eting sstems found in the develo'ed countries stand in shar' contrast with the
'rimitive sstems in which man 'eo'le live everda. :n the develo'ed world a mriad of
entities interact over time and s'ace) dealing with each other in was
# theor of
mar!eting
sstems
%23
9;/
=5)?/%
%2=
that 'resume commercial order and trust) across national and cultural borders. :n
man of the under-develo'ed countries or regions within countries) it is just these
'resum'tions that cannot be made and the aggregate mar!eting sstems remain
dsfunctional) lac!ing the institutional and cultural 'reconditions for the evolution of
functioning multi-level mar!eting sstems.
#re these legitimate concerns for mar!etingI 8or mar!eting as a management
science the concerns are real) but difficult or even im'ossible to address starting from
a micro 'ers'ective. 8or mar!eting as a 'rovisioning technolog 18is!) ?9364 the
concerns are also real) but the answers 'rovided) often in the form of aid 'rograms
focussed on micro structures in the 'ursuit of social and economic develo'ment) are
little !nown in the mar!eting literature and largel disconnected from the Emar!eting
as management scienceF world. 8or mar!eting as a social disci'line) focussed on the
stud of mar!eting sstems) from both a micro and a macro 'ers'ective) and drawing
on a develo'ing set of insights into the micro-macro interface) the concerns are real
and to an increasing extent resolvable. :f so) then develo'ing a theor of mar!eting
sstems ma be an essential ste' to widening and dee'ening the sco'e of mar!eting
thought) offering new horiBons for our disci'line.
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an extension of *-+ logic to distributive justice and macromar!etingF) 'a'er 'resented at
8orum on /ar!ets and /ar!eting5 9xtending *-+ $ogic) *dne.
$aton) ".#. 1%0024) E/ar!eting sstems5 a core macro-mar!eting conce'tF) 5ournal of
/a&ro,arketin') <ol. %2 >o. %) ''. ?93-%?3.
$aton) ".#. 1%0034) EThe search for a dominant logic5 a macro-mar!eting 'ers'ectiveF)
5ournal of /a&ro,arketin') <ol. %3) '. 3.
$aton) ".#. 1%009a4) E-n economic growth) mar!eting sstems and the 7ualit of lifeF)
5ournal of /a&ro,arketin') *e'tember ?.
$aton) ".#. 1%009b4) E/ar!eting sstems) macromar!eting and the 7ualit of lifeF) in
/aclauran) &.) *aran) /.) *tern) C. and Tadajews!i) /. 19ds4) Sa'e =and9ook of
/arketin' 2heory) *age) "iverside) ''. =?=-=%.
$iljenstrom) H. and *vedin) D. 1%0054) /i&ro, /eso, /a&ro1 Addressin' +o,4le% Syste,s
+ou4lin's) Aorld *cientific &ublishing) *inga'ore.
$usch) ".8. 1?9324) E@eneral theories) fundamental e%4lananda) and fundamental axioms of
mar!etingF) in *udharsan) +. and Ainter) 8. 19ds4) Pro&eedin's of the 12th Paul ..
+onverse /arketin' Sy,4osiu,) #merican /ar!eting #ssociation) 0hicago) :$) ''.
25-93.
$usch) ".8.) <argo) *.$. and Tanniru) /. 1%0094) E*ervice) value networ!s and learningF)
5ournal of the A&ade,y of /arketin' S&ien&e.
$don) @. 1%0034) E0ontracting caravans5 'artnershi' and 'rofit in nineteenth-centur trans-
*aharan tradeF) 5ournal of *lo9al =istory) <ol. 3) ''. 39-??3.
/oore) ;.8. 1?9964) 2he .eath of +o,4etition 7 6eadershi4 and Strate'y in the A'e of
0usiness $&o8Syste,s) ;ohn Aile K *ons) 0hichester.
>alebuff) C.;. and Crandenburger) #./. 1?9964) +o8o4etition) Har'er0ollins Cusiness) $ondon.
>ormann) ". and "amireB) ". 1?9934) .esi'nin' ;ntera&tive Strate'y1 (ro, :alue +hain to
:alue +onstellation) ;ohn Aile K *ons) 0hichester.
-ldenburg) ". 1%00?4) +ele9ratin' the 2hird Pla&e) /arlowe and 0om'an) >ew Lor!) >L.
&olani) ..) #rensberg) 0./. and &earson) H.A. 1?9524) 2rade and /arkets in the $arly
$,4ire) Henr "egner 0om'an) 0hicago) :$.
"abo) #. 1%0054) A Sho4 of <ne@s <wn1 ;nde4enden&e and )e4utation a,on' 2raders
in Ale44o) :.C.Tauris) $ondon.
*chwartB) C. 1%00=4) 2he Parado% of +hoi&e1 Why /ore ;s 6ess) Har'er0ollins) >ew Lor!) >L.
*eabright) &. 1%00=4) 2he +o,4any of Stran'ers1 A Natural =istory of $&ono,i& 6ife)
&rinceton Dniversit &ress) &rinceton) >;.
# theor of
mar!eting
sstems
%25
9;/
=5)?/%
%26
*tiles) &. 1%0054) ;s the A,eri&an .rea, ?illin' AouB =ow C2he /arketD )ules <ur 6ives)
Har'er0ollins) >ew Lor!) >L.
Telser) $.@. 1?9324) A 2heory of $ffi&ient +oo4eration and +o,4etition) 0ambridge
Dniversit &ress) 0ambridge.
Dnderhill) &. 1%00=4) 2he +all of the /all) *imon *chuster) >ew Lor!) >L.
<argo) *.$. and $usch) ".8. 1%00=4) E9volving to a new dominant logic for mar!etingF)
5ournal of /arketin') <ol. 63 >o. ?) ''. ?-?2.
<argo) *.$. and $usch) ".8. 1%0034) E*ervice-dominant logic5 continuing the evolutionF)
5ournal of the A&ade,y of /arketin' S&ien&e) <ol. 36) ''. ?-?0.
<arman) ".;. and 0osta) #. 1%0034) E9mbedded mar!ets) communities) and the invisible hand of
social normsF) 5ournal of /a&ro,arketin') <ol. %3 >o. %) ''. ?=?-56.
Ail!ie) A.$. and /oore) 9.*. 1?9994) E/ar!etingGs contributions to societF) 5ournal of
/arketin') <ol. 63) s'ecial issue) ''. ?93-%?3.
Ail!inson) :.8. 1%00?4) E# histor of networ! and channels thin!ing in mar!eting in the
twentieth centurF) Australasian /arketin' 5ournal) <ol. 9 >o. %) ''. %3-5%.
Ail!inson) :.8. 1%0034) 0usiness )elatin' 0usiness) 9dward 9lgar) 0heltenham.
#bout the author
"oger #. $aton is 9meritus &rofessor in the *chool of /ar!eting) #ustralian *chool of Cusiness)
Dniversit of >ew *outh Aales 1D>*A4. He was a''ointed 8oundation &rofessor of /ar!eting at
D>*A in ?962. His 'ublications have a''eared in the 5ournal of /a&ro,arketin', 5ournal of
/arketin' )esear&h. He has twice won the 0harles *later /emorial #ward for /acromar!eting.
He was awarded the -rder of #ustralia for his services to mar!eting and is an Honorar 0itiBen of
@uangBhou in 0hina in recognition of his contribution to higher education in 0hina. "oger #. $aton
can be contacted at5 r.latonMunsw.edu.au
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