A Marketing Mix for the 21st Century

Author(s): Michael G. Harvey, Robert F. Lusch and Branko Cavarkapa

Source: Journal of Marketing Theory and Practice, Vol. 4, No. 4 (Fall, 1996), pp. 1-15
Published by: Taylor & Francis, Ltd.
Stable URL: https://www.jstor.org/stable/40469821
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 A MARKETING MIX FOR THE 21ST
CENTURY

Michael G. Harvey
University of Oklahoma

Robert F. Lusch
University of Oklahoma

Branko Cavarkapa
Eastern Connecticut State University

As the global marketplace has become a reality, the need to expand the traditional marketing concept has become apparent
A supporting infrastructure, the marketing support system, broadens the basic 4Fs by adding an additional 5 P's, e.g., publics,
performance, politics, probability and planning. The newly conceptualized marketing concept should assist marketeers in
the 21st Century.

INTRODUCTION marketers have found the process difficult and painf

slow in arriving at a widely accepted theory of mark
The marketing discipline has been analyzed from a (Hunt 1976, 1983, 1991). There are those whose opin
variety
of different perspectives: the commodities approach
is that marketing will go through a major metamorphos
(Copeland 1923); the institutional approach (Breyer
the1934;
21st century that will expand the concepts of mark
Duddy and Revzan 1953); the functional approach beyond
(Weld the traditional dimension of the discip
(McKenna 1991). Marketing can no longer be the
1917; McGarry 1980); the managerial approach (Alderson
1957; Howard 1957; McCarthy 1960; Davis 1961);responsibility
and the of a few specialist confined in the marke
environmental approach (Holloway and Hancock, 1969).
department. Rather, everyone in the firm must be cha
with the
Each of these conceptual perspectives attempted to foster responsibility for understanding customers
an understanding of how transactions or exchangescontributing to developing and delivering value for t
developed and how they were consummated. The (Webster 1988).
development of conceptual schemata in marketing is of
There have been many breakthroughs or critical junc
continuing interest to marketers since conceptual schemata
in the
help to improve and develop theories of marketing evolution of the development of marketing thou
(van
Watershoot and Van den Bulte 1992). The need for
In more
the authors opinion, three such pivotal contribu
since and
predictive theory has stimulated a continual analysis the early 1950s appear to have altered the cour
academic investigation of marketing. These piv
classification of the marketing phenomena; however,

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since the early 1950s appear to have altered the course of conceptualization of the difference between the selling and
academic investigation of marketing. These pivotal marketing concepts.
contributions were the marketing concept, the marketing
mix, and generic marketing concept.

The Marketing Concept EXHIBIT 1

SHIFT IN FOCUS FROM SELLING TO
During the 1950s, a philosophy for the practice of MARKETING
marketing emerged at The General Electric Company
(Borch 1957; McKitterick 1957) that became known as the
marketing concept. The marketing concept viewed the
Selling Concept Marketing Concept
consumer as the focal point of all marketing activities.
Levitt, in his classic article "Marketing Myopia,11 (1960)
reinforced this orientation. Prior to this observation, the
selling orientation of marketing focused on what the
company could produce. This fundamental switch in
marketing perspective reshaped the field of marketing.
Focus : Products Customer Needs
Marketing became the linking pin between consumer
needs and the company's capabilities to satisfy those needs.
The reorientation of motivation placed marketing in a
pivotal position within organizations because,
theoretically, without marketing the company could not
produce goods/ services (in Exhibit 1). From this
reorientation of marketing emerged market segmentation, Means : Selling & Promotion Integrated Marketing
target marketing, product and message differentiation,
differential/relative advantage in the marketplace,
integrated marketing programs, as well as, the entire field
of consumer research. The "consumer is king" became the
orientation of many marketing efforts of companies in the 1 r V

United States.
End : Profits Through Profits Through
Sales Volume Customer Satisfaction

The Marketing Mix

McCarthy (1960) introduced the concepts of Product,

Price, Place and Promotion as the four major decision
elements in marketing. Presumably, because of its very
pithy and easy to remember reproduction of basic
principles of marketing, it has become the most cited and
the most often used classification system for the marketing
mix, both in the marketing literature and in marketing
practice (von Waterschoot and Van den Bulte 1992). The
conceptual framework for marketing managers has
become the essence of marketing to a generation of
academicians as well as practitioners.
In a more expanded enumeration of marketing mix
variables, Neil Borden, in a American Marketing
Association presidential address, introduced the
conceptual underpinnings of the marketing functions
(Webster 1992). Exhibit 2 shows the result of Borden's
Generic Concept of Marketing
Kotier (1972) broadened our traditional
marketing beyond for profit organization
marketing to organizations other than bus
helped to push the marketing disciplines in
Nonprofit organizations such as univer
companies, museums, churches, stat
municipalities began to undertake marketin
better satisfy their patrons1 needs. Market
legitimate function of nonmarketin
organizations and has lead to a societal mark
where customer satisfaction and long-run c

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 EXHIBIT 2
CONCEPT OF MARKETING FUNCTIONS*

1. PRODUCT PLANNING - Policies and procedures relating to

(a) product lines to be offered - qualities, designs, etc.
(b) the markets to sell - whom, where, when and in what quantity.
(c) new product policy - research and development program.

2. PRICING - Policies and procedures relating to

(a) the level of prices to adopt
(b) the specific prices to adopt (odd-even, etc.).
(c) price policy - one price or varying price, price maintenance, use of list prices, etc.
(d) the margins to adopt -for company; for the trade.

3. BRANDING - Policies and procedures relating to

(a) selection of trademarks.
(b) brand policy - individualized or family brand.
(c) sale under private brand or unbranded.

4. CHANNELS OF DISTRIBUTION - Policies and procedures relating to

(a) the channels to use between plant and consumer.
(b) the degree of selectivity among wholesalers and retailers.

5. PERSONAL SELLING - Policies and procedures relating to

(a) the burden to be placed on personal selling and the methods to be employed in (i) the
manufacturer's organization, (ii) the wholesale segment of the trade, (iii) the retail
segment of the trade.

6. ADVERTISING - Policies and procedures relating to

(a) the amount to spend, i.e., the burden to be placed on advertising.
(b) the copy platform to adopt - (i) product image desired, (ii) corporate image desired.
(c) the mix of advertising - to the trade; through the trade to consumers.

7. PROMOTIONS - Policies and procedures relating to

(a) the burden to place on special selling plans or devices directed or through the trade.
(b) the form of these devices for consumer promotions, for trade promotions.

8. PACKAGING - Policies and procedures relating to

(a) formulation of package and label.

9. DISPLAY - Policies and procedures relating to

(a) the burden to be put on display to help effect sales.
(b) the methods to adopt to secure display.

1 0 . SERVICING - Policies and procedures relating to

(a) providing services needed.

1 1 . PHYSICAL HANDLING - Policies and procedures relating to

(a) warehousing.
(b) transportation.
(c) inventories.

12. FACT-FINDING AND ANALYSIS - Policies and procedures relating to

Xa) the securing, analysis, and use of facts in marketing operations.

♦(Borden, N., 1964)

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While it could be argued that other conceptual frameworks parties' needs, i.e., multiple consumer populations wit
transformed the marketing discipline more, it would be varying needs, various governmental groups with differe
difficult to argue that the trinity of concepts mentioned laws and a wide variety of special interest groups wit
events did not significantly alter the field of marketing. unique expectations of the marketing delivery system
These impacts will be felt for years to come and the their environment. It becomes obvious that the
significance of each is immeasurable. unidimensional classification system needs to be
augmented with a marketing mix support mechanism to
Nonetheless, as the three concepts have been applied permit adaptation of the marketing mix in various market
certain inherent weaknesses have been uncovered. This contexts. Rather than discarding the 4P's schema, it is
article suggests that marketing cannot be broadened unless necessary to conceptualize a supportive system that allows
we have a broader marketing concept. In this regard for adaptation of the marketing mix in various
something more than the needs of customers should to be environments simultaneously. We are now at the point in
considered. At the same time, we believe that the the marketing discipline where we have generally agreed to
marketing mix can be strengthened if a supporting broaden the concept of marketing but academicians have
infrastructure is added that enhances marketing decision not yet broadened the marketing concept. Since the
making in the environment marketers are facing today in marketing concept, as the dominant philosophy on how to
our global marketplace. The new concept we introduce to practice marketing, will give direction for scholarly
help to solve some of these problems is the marketing research, we are in a precarious position. In short, as
support system concept. The focus of this article is to Stidsen (1979) seems to suggest, we have broadened the
detail the need for such a marketing support system and to concept of marketing but not marketing theory. We believe
highlight the elements in such a system. we can contribute to attempts to broaden marketing theory
by introducing a new macro-concept to implement the
COMPLEXITY OF MARKETS AND micro-marketing concept.
ORGANIZATIONAL STRUCTURES
Those who criticize the marketing concept are basically
arguing that the concept is myopic since it deals with the
The marketing support system concept is needed because
of the growing complexity of markets and organizationfirm and the customer-it is only micro. The marketing
structures. The evolution of marketing thought concept
and is a customer support concept. It is assumed that
practice has been paralleled by a growing complexity the consumer's needs are more basic than products and
of the
environment into which marketing functions interact. therefore
The are instrumental in the development of new
products
intricacies of the environment suggest that marketing is at (McGee and Spiro 1988). The business firm
should behave in such a way so as to support the marketing
another "critical juncture" in its evolution. Predictably,
efforts of consumers. Under the marketing concept, the
therefore, a wider marketing concept is needed to reflect
consumer
the nature of marketing in a global marketplace with a is king and the practice of marketing is held
hostage
variety of publics to satisfy (van Waterschoot and Van den by the king. This is myopic. If we view marketing
Bulte 1992). Because of the changing nature of
broadly, it involves more than the buyer and seller: it
comprises all parties involved in the entire marketing
organizational relations, others have suggested
system (manufacturers, wholesalers, retailers, consumers,
reorientating the focal point of marketing from consumer
transporters, banks, advertising agencies, employees, and
satisfaction to the analysis of transactions between varying
so on). All of these parties have a vested interest in the
organizations' relationships. These more flexible
organization structures include: networks (Miles marketing
and system and, therefore, we not only need a
Snow 1986; Thorelli 1986); value-added partnerships
customer support marketing concept, but also, a marketing
support
(Johnson and Lawrence 1988); alliances (Ohmae 1989); system marketing concept. There are those who
even
"Shamrocks" (Handy 1990); and most commonly, strategic agree that the marketing concept has damaged
American
alliances (Harrigan 1986; Boyrs and Jemison 1989; Ohmae business due to the dearth of true product
1989; Lei and Slocum 1990; Slocum and Lei 1992).innovation
The and development (Bennett and Cooper 1981).
This position
interrelations between organizations, as well as their is supported in the marketplace in that
research has continued to be developed in the United States
multimarkets, heightens the need to modify the existing
unidimensional market perspective of the but 4P'sthe applications of new technology to products has
classification schema. shifted to other countries.

Exhibit 3 depicts the difficulty of applying the 4P's

classification system to multiple markets and the
adaptations necessary to adequately meet the various

4 Journal of Marketing THEORY AND PRACTICE

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 EXHIBIT 3
EVOLUTION OF ENVIRONMENTS AND IMPACT ON MARKETING MATRIX

Traditional Mega Marketing

Marketing Environment Environment

Market

one dimensional multi-dimensional

domestic environmental constraints global environmental constraints

less m
complexity complexity

A individual
second reason why consume
the marketing
world of
that it offers guidelines marketin
for how se
marketing
toward the consumer mix
(buyer), or
but no
should behave toward the seller. It is
only one spouse inItlove.
should be noted
concept is a macro
with individual-or
The marketing support system conc
individual firms individual
and consumer
consumers shoul
to benefit the marketing
total marketingsystem
system
the marketing Burnett
support 1982).
system concept
a modified conceptual paradigm for m
Also, before we for
The modified system
conceptual concept,sug
paradigm we
of our ladder wethe concept
have "what is
is new
m
proceed to a indirectly refers
macro-normative concep
support system practicing the philo
concept) which c
before firms
"how should individual the conce
and
marketing to marketing
benefit disciplin
the total market
move to a firms practice
micro-normative conceptthe
concept) which support
addresses system con
the questio
individual firm practice marketing to

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 EXHIBIT 4
A MODIFIED CONCEPTUAL PARADIGM FOR MARKETING

Concept Focus of Concept Type of Concept

Concept of Marketing What is Marketing? Positive

Marketing Support How should individual firms Macro-Normative

System Concept and consumers practice
marketing to benefit the total
marketing system?

Marketing Concept How should an individual firm Micro-Normative

practice marketing to benefit
itself and the individual
consumer?

Marketing Mix What are the individual firm's Micro-Positive

or 4-P's controllable marketing
decisions?

Let us now formally present the marketing support system administratively, and operationally so that their marketing
concept. efforts will support the marketing system.

The marketing support system concept
suggests that the parties involved in an
exchange or potential exchange should
develop exchanges that support each
other's marketing activities and the
marketing activities of other publics
which may be affected by the change.
The marketing support system concept can be
implemented if the parties involved in the exchange
identify all publics which will be affected, identify the
performance objectives of each public, and assess the
politics of relating to each public. In addition, parties
involved in an exchange relationship must recognize that
uncertainty is pervasive in the marketing system;
therefore, they should assess the probability that an action
on their part may create an unintended result. To reduce
the harm caused by the probability of an unintended result
occurring, organizations must plan strategically,
We are not proposing that an organization engaged in
marketing disregard practicing the traditional marketing
concept. It should: (a) still make consuming publics a
focal point (but not ignore other publics); (b) still get
departments within the organization to cooperate in
designing the optimal marketing mix (product, price,
promotion, place), but it also must recognize the politics
of relating to other publics in the design of the optimal
marketing mix; and (c) be concerned with its profit but
should not ignore other performance measures and the
performance expectations of other publics. In short, we
are suggesting that firms do not disregard their micro
philosophy but also adopt a macro philosophy which will
serve as a check and balance on the micro philosophy.
To further explain and elaborate on the marketing support
system concept we need to recognize that it deals with
five additional Ps: (1) Publics;, (2) Performance; (3)
Politics; (4) Probability, (5) Planning. Let us now

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examine the marketing support system concept in the developer of human resources within the
context of the five added P's of marketing. organization (p. 36).

Publics The second level of the human concept

concerns the relationship of the
A public has been defined by Kotier (1975, p. 17) as a enterprise to its consumers, competitors,
"distinct group of people and/or organizations that have an suppliers, and distributors, that is, the
actual or potential interest and/or impact on an proximate environment (p. 36).
organization." The marketing concept suggests that the
only public marketing need concern themselves with is the The third level concerns the relationship
consuming public. of the enterprise to society in general,
that is, the ultimate environment. At this
If we organize our policies around those level, the human concept commits the
factors which are mutually important to firm to involvement in a v market1 far
the customer and to our profits, we will more significant and vast than the
find a real community of interest markets for toothpaste, television sets,
between the producer and the consumer. or cars. This is the market for human
(Borch 1957, p. 16) fulfillment (p. 36).

So the principal task of the marketing Essentially, the marketing support system concept
function in a management concept is not advocates an open systems view. An output (product
so much to be skillful in making the and/or service) of a firm will be an input into a larger
customer do what suits the interests of system, and therefore, the impact of the firm's output on
the business as to be skillful in other publics should not be ignored (Reidenbach and
conceiving and then making the business Oliva, 1981). Feldman (1971) reinforces this view:
do what suits the interests of the "There has been a failure to recognize that these products,
customer. (McKitterick 1957, p. 78) which are marketing outputs designed for individual
satisfaction, are simultaneously inputs to a larger
environmental system and as such may affect the well-
The marketing support system concept is not at odds with
being of society." But more than society is impacted ~ so
the philosophy that consuming publics should be the focal
are it
point of the organization. It is, however, broader in that a firm's suppliers, intermediaries, and employees.
suggests that other publics should not be ignored.
The notion that a firm should be concerned with its
Specifically, the marketing support system concept requires
relations
that parties involved in an exchange analyze the impact of with multiple publics has also been advanced by
Kotier and Mindale (1978) when they discuss the role of
the exchange on the performance of its publics and attempt
to enter into exchanges that not only benefit the parties,marketing
but and public relations in an organization. Kotier
revisits relationship marketing and contends that
also support the marketing activities of its publics. The
other key publics, in addition to consuming publics, companies
that need to practice "wrap-around" marketing, i.e.,
need to be considered are: (1) supplier publics, getting
(2) and retaining customers through relationships
(Kotier 1992). Also, a major behavioral theory of the firm
intermediary publics, (3) internal publics (i.e., employees
developed by Pfeffer and Salancik (1978) is based on the
or groups of employees within the firm), and (4) general
publics (i.e., society). formation of coalitions within and external to the
organization. In this framework, each coalition can be
Writing in Business Horizons in 1969, Leslie Dawson
viewed as a public and the organization is dependent upon
these publics for resources. Pfeffer and Salancik (1978)
recognized the need for firms to relate to the multiple
speculate that "to describe adequately the behavior of
publics that are implied in the marketing support system
concept. Dawson (1969) developed what he called a organizations requires attending to the coalitional nature of
organizations and the manner in which organizations
"human concept" of business, in which he suggests that
respond
firms devote their attention, resources, and energies to to pressures from the environment." Effective
meeting human needs at three levels: communications requires a dialogue between buyer and
seller linking them together in a mutually beneficial
The first level is internal in nature, and relationship (McKenna 1991). Finally, Anderson (1982)
pertains to the role of the enterprise as a develops a "constituency-based theory of the firm." This
theory deals with the firm's relationships with multiple

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publics. Anderson's (1982, p. 21) theory divides an
organization into both internal and external coalitions (i.e.,
publics). Anderson states (1982, p. 21) that "from a
resource dependence perspective, the task of the
organization is to maintain itself by negotiating resource
exchanges with external interests. Over time the internal
coalitions within corporate organizations have adapted
themselves to enhance the efficiency and effectiveness
performance measures for the firm, the organization should
also recognize the performance objectives of its key
publics. Fisk (1973) states that: "Social indicators must be
holistic, embracing the entire social system, rather than a
single purpose as are measures of profit and market share."
Besides the firm and society, there are the performance
expectations of suppliers, resellers, and employees within
the firm.

with which they perform these negotiating functions."

For example, Kumar, Stern, and Achrol (1992) identify
Performance eight facets of reseller performance as viewed from the
perspective of the supplier. These facets of performance
Another "P" of the marketing support system concept isrelate to the reseller's contribution to profits and sales,
performance. All marketing activity is directed at reseller competence, reseller loyalty and compliance,
achieving certain levels of performance. We all know thatreseller adaptability, reseller contribution to growth, and
the marketing concept is concerned with performance, but reseller contribution to customer satisfaction. In addition,
it is myopic because it only concerns itself with profit a key underlying concept of performance enhancement is
performance of the selling firm. The marketing supportbuilding retention of customers and evolving the selling
system concept broadens the marketing concept by dyad into a permanent buyer-seller relationship (Kotier
recognizing that profit is only one of many measures of 1992).
performance that should be considered. McKitterick
(1957), one of the early writers on the marketing concept, The notion of considering multiple performance objectives
recognized the inadequacy of profit as a sole measure ofessentially involves multiple criteria decision making, and
performance. some pioneering work has been done in this area by Zeleny
(1981). More notably, Peter F.Drucker (1974, p. 100) has
Certainly, anyone who carefully said that: "To manage a business is to balance a variety of
subtracts out of the total expenses of a needs and goals. And this requires multiple objectives."
modern business all of the sums
expended on preparation for the future ~ Politics
ranging from research and advertising to
new plant and training of personnel - is Politics is another "P" that is included in the marketing
bound to discover that profit is a feeble support system concept. Actually, politics is included in a
measure of the current day's battle with limited fashion in the traditional marketing concept. That
competition, and is certainly concept recognized the need for different departments
meaningless if not considered with within the firm to work together to reduce conflict and
reference to accompanying changes in increase cooperation in order to serve the customer and
market position. With many companies make a profit for the firm. Therefore, the need for
today operating in conditions of intraorganizational politics was recognized. The marketing
oligopoly, it is small wonder that support system concept, however, requires that the firm
enlargement of the market and relate to internal and external publics and, thus, concern
competitive share held in that market with interorganizational politics becomes a necessity.
have become matters of management Again, we see that the marketing support system concept
concern at least equal if not prerequisite does not disregard the marketing concept but merely
to profit (p. 77). broadens it.

Unfortunately, as the marketing concept became Arndt (1979), in his article "Toward a Concept of
popularized, the conventional wisdom became that profit Domesticated Markets," recognizes the role of politics in
should be the orientation of the marketing activity. The marketing ~ in fact, he identifies politics as the fifth "P" of
concern for liquidity, working capital management, and marketing. Consider the following quotes from Arndt's
market share was ignored until relatively recently (Fogg article:
1974; Buzzell et. al. 1975; Drucker 1980; Lusch and
Serpkenci 1982). The market domestication perspective
extends this viewpoint further to all
In addition to a recognition of the need for multiple exchanges between an organization and

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 its environment (not only the relations PLANNING
between personnel in sales and
purchasing positions). The approach The marketing support system concept also includes
also focuses on the long-term planning as another "P" of marketing. When the
relationship in which each transaction is marketing concept was initially discussed (Borch 1957), it
embedded (rather than on each was observed that: 'The price of the wrong decision is
individual transaction) (p. 27). growing at as fast a rate as the opportunity to make the
wrong decision." To reduce both the probability of error
In a wide sense, the marketer is and the harm caused by the error, firms must plan their
performing political activity because of marketing efforts.
his strategic position at the boundary
between the organization and its The suggestion that firms should plan their marketing
environment (p. 72). efforts is not novel. In fact, the marketing concept is
basically a planning concept. In principle, the marketing
In addition, Stern and Reve (1980) adopt a political concept suggests that firms engage in strategic planning.
economy framework for analyzing marketing channels The marketing concept says that firms should analyze the
and, thus, explicitly recognize the role of politics in the wants and needs of their consumers in order to identify
marketing channel system. significant opportunities. The company should then
employ its resources to serve that need or opportunity, in
Probability order to achieve organizational objectives (i.e., profit).
However, the marketing support system concept argues for
The marketing support system concept views uncertainty a broader form of strategic planning. Opportunities do not
as pervasive in the marketing system. It is important, emanate only from the consumer environment. They may
therefore, for organizations to assess the probability that also arise in the technological environment, the physical
an action on their part will create an unintended result. environment, or the legal environment.
Another "P" of marketing is thus probability. Essentially
this is the risk function in marketing which has been The marketing support system concept argues that the firm
identified for many years (Converse 1 93 1 ). In fact, early should assess all external environments to identify
writers on the marketing concept recognized risk as an strategic opportunities. The support system would be
important variable. Borch (1957, p. 52) stated that "...the similar to a matrix approach to planning at the Boston
most rapidly growing feature of business is our opportunity Consulting Group, General Electric, and Texas
for error in planning how to please our ever-changing Instruments (Varadarajan, Clark and Pride 1992). In
customer." Thus, risk, uncertainty, or probability of error short, it suggests that the best opportunities may not be
was recognized; but, it was recognized only on the demand only in serving consumer needs but, also, in capitalizing
(consuming public) side of the market. on such things as a new technological breakthrough, a
change in legislation, etc. Obviously, capitalizing on
One needs to reflect only briefly on the experience of U.S. changes in these other external environments should
businesses since the 1970s to recognize that uncertainty is ultimately allow us to better serve the consumer.
pervasive and goes beyond the consumer. There is However, the search for opportunities in these
uncertainty about the price and availability of supplies; environments helps to prevent technological myopia and
about the actions of local, state, and federal governments; thus can be a major stimulus to product innovation, as
about the behavior of intermediaries in the marketing suggested by Bennett and Cooper (1979), Riesz (1980),
channel; about the state of technology, about labor; and so and Hayes and Abernathy (1980).
on. The role of marketing research becomes very
important in reducing the probability of error in decisionThe marketing support system concept also recognizes the
making. One of the biggest opportunities in the future is need to go beyond strategic planning, to administrative
for firms to apply marketing research to understanding and operations planning. Administrative planning is
suppliers, employees, and intermediaries as well as the process of obtaining the resources necessary to execute
consumers. Not understanding these key publics will a strategic plan. An organization may have the
result in an inefficient use of marketing resources and a best strategic plan possible, but if it cannot acquire
lowering of productivity for the total marketing system. the right type and quantity of human and financial
resources to execute the strategy then
the strategy is worthless. Similarly, a firm

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should have an operations plan to help insure that publics have differing performance objectives and this
resources are properly scheduled and controlled on a day- leads to conflict in the organizational buying process (Ryan
to-day basis. If an organization has a good strategic plan and Holbrook 1982). Strategic partnering among channel
and a good administrative plan but no operations plan, then members illustrates the political nature of the industrial
nothing will get done and all prior planning efforts will be purchaser. In the past, close relationships did not allow for
wasted, and thus, productivity of the firm and the total the flow of confidential data and technology among closest
marketing system will be damaged. allies. Due to the need to maintain a competitive
advantage, suppliers and customers are banning together to
The preceding statements suggest that for marketers to be gain this initial market advantage. The entire cooperative
maximally effective they need to do more than think and relationship underscores the need for a marketing support
act strategically. They must acquire the resources from system concept for both buyers and sellers.
external publics to capitalize on strategic opportunities and
then must manage those resources on a day-to-day basis in MANAGERIAL IMPLICATIONS
order to get optimal market performance. The marketing
concept stops at strategic planning, but the marketing In effect, the marketing support system concept is a m
support system concept suggests that the firm follow marketing concept. It matters little whether we call
through with administrative and operations planning. new concept or a reconceptualization of the market
concept. In Exhibit 5, we contrast the roles of
Comment marketing concept and the marketing support syst
concept in the context of the 5P's. For example, in Exh
In our prior discussion of the 5P's that are implied by the 5 we see that marketing managers adjust the perspec
marketing support system, we focused on examples dealing of the marketing concept in the following ways:
with sellers. Importantly, the marketing support concept
suggests that both buyers and sellers operate under the 1. The marketing concept focuses on
same philosophy. Thus, consumers or buyers, as key consuming publics whereas the
members of the marketing system, should also look at the marketing support system concept
5P's as a way for organizing their marketing efforts. As focuses on consuming publics,
Kotier and Levy (1973) have suggested, buying is intermediary publics, supplier publics,
marketing too. Ultimately consumers have become aware internal publics, and general publics
of the political aspect of marketing and have begun to ban (i.e., society). Therefore, marketing
together to make demands of those selling goods and managers must expand their perspective
services. Examples of consumer involvement range from to insure satisfying these varying
class action suits against some of the country's major publics.
producers to political action groups to curb violence in
children's programming on television. Consumers have 2. The marketing concept is concerned
also become involved in assessing the goods and services with intraorganizational politics,
that make up their standard-of-living, thereby measuring whereas the marketing support system
the performance of the marketing activities in society. concept is concerned with intra- and
Product assessment goes beyond price and performance interorganizational politics. The
with many consumers as they also value recycling marketing manager must address
potential, safety of the product during use and after it has conflict among their organization's
been disposed of by the consumer as well as the general marketing effort and their distributors,
environmental impact of purchasing one product over wholesalers, retailers and the like.
another. One could argue that the popularity of wholesale
buying clubs are the result of consumers planning their 3. The marketing concept is concerned
purchases in advance so they can buy in large quantities with only one measure of performance -
and assume the responsibility for storing the products until profits, whereas the marketing support
they are consumed. Consumers can also be included in the system concept is concerned with the
market support system.

The marketing support system concept can also be applied

in an industrial buyers context. Ryan and Holbrook (1982)
have discussed the role of politics in the organizational
buying process. Politics arise because multiple internal

10 Journal of Marketing THEORY AND PRACTICE

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 EXHIBITS
THE MARKETING CONCEPT VS. THE MARKETING SUPPORT SYSTEM CONCEPT

MARKETING
MARKETING CONCEPT SUPPORT
SYSTEM CONCEPT

consuming publics,
PUBLICS intermediary publics,
consuming publics supplier publics,
internal publics,
general publics (society)

intraorganizational
POLITICS intraorganizational and
interorganizational
politics

PERFORMANCE profit of organization performance requirements

for all publics and the
organization

uncertainty or error uncertainty or error

PROBABILITY probability about probability
the customer about all publics and
external environments

strategic planning,
PLANNING strategic planning administrative planning,
for the target market operations planning,
of the total marketing effort

Fall 1996 11

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 performance requirements of all publics
as well as the organization's
performance requirements. The
requirements of multiple measures of
marketing performance from various
publics necessitates the marketing
manager to develop measures of success
of the marketing effort among these
publics.
4. The marketing concept recognizes the
probability of error in assessing the
needs and wants of consuming publics,
whereas the marketing support system
concept recognizes the uncertainty about
all publics and external environments.
Therefore, the marketing management
must devise data collection and analysis
methods to constantly monitor the
environment for possible risks to the
present marketing efforts.
5. The marketing concept is concerned
with strategic planning for the target
market but the marketing support system
concept is concerned with strategic,
administrative, and operations planning
of the total marketing effort. An integral
component of the marketing managers
efforts should be developing an effective
planning system.
The broadening of the marketing concept should serve as
a stimulus for broadening marketing research and theory,
such as in the following areas:
1. Behavioral research and theory in
marketing need to be broadened from its
current emphasis on consumer behavior
to include the behavior of all publics:
consuming publics, reseller publics,
supplier publics, internal publics
(employees), and general public
(society). The research used to develop
effective marketing programs by
marketing managers should incorporate
data from various research sources.
2. Marketing profitability research and
theory need to be broadened to multiple
performance measures; not only does the
marketing manager need to understand
the profit impact of marketing strategy
(PIMS) but also the liquidity and
12 Journal of Marketing THEORY AND PRACTICE
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working capital impact of marketing
strategies, and similarly for other
performance measures. Also the
marketing manager needs to understand
how to meet the performance objectives
of multiple publics.
3. Marketing organization research and
theory need to focus not only on intra-
organizational issues but also on
interorganizational research, especially
as they relate to marketing channels.
The means to influence and control
channel members becomes of paramount
importance in the marketing support
system concept.
4. Research and theory about uncertainty in
consumer environments need to be
broadened to include uncertainty about
all external environments and publics.
The marketing manager must plan for
environmental constraints when
developing a marketing plan.
5. Finally, marketing managers need to
continue our relatively recent emphasis
on strategic planning, but also give
similar enthusiasm and energy to
researching and theorizing about
administrative and operations planning
in marketing.
Although this list is not all encompassing, it does serve
highlight the need to broaden the marketing concept and/
have a macro-normative marketing concept an
consequently, the need to broaden our research and theor
in marketing as marketing managers.
In closing, let us reflect back on one of the most quote
articles in the marketing discipline, "Marketing Myopia"
Theodore Levitt (1960). In this classic article, Levit
argues that firms define their business in terms of custom
needs. This is a logical extension of the marketing conce
where the customer is king.
In a vivid example, Levitt suggests that if the railroads h
not been myopic they would have defined their business a
transportation. Consequently, the railroads would hav
seen opportunities for growth in motor transportation, a
transportation, etc. Unfortunately, this suggests that t
railroads only needed to be concerned with one public
the customer. It further implies that they could have
ignored the needs of employees, suppliers, bankers, t
railroads only needed to be concerned with one public ~
the customer. It further implies that they could have
ignored the needs of employees, suppliers, bankers, the
people living in small railroad towns, etc. Now that is
myopia.
Is it reasonable to believe that noncustomer publics could
have been ignored by the railroads? Would the federal
government have tolerated the railroads, to whom they
gave millions of acres of land, devoting their resources to
air or motor transportation? Or what about the
impossibility of retraining railroad conductors to fly
airplanes? Alternatively, would society have let the
railroads fire railway employees? Would the bankers who
lent money to the railroads have been willing to take such
a bold risk? And what about all the suppliers and small
towns that were dependent on the railroad industry?
Strategically, the motor and air transportation business
was an opportunity. Unfortunately, administratively and
operationally it would have been impossible for the
railroads to become motor and/or air transport companies.
Yes, Mr. Levitt, we do agree that the railroads were
myopic. They were myopic because they did not view
themselves as being in the marketing support business.
Their basic business, and the business of all business, is to
support the marketing activities of the multiple publics
they interact with. If the railroads had viewed themselves
as being in the marketing support business, they may have
built warehouses or distribution centers in selected small
towns and rail centers. These distribution centers could
have been used to store goods, sort goods, break bulk,
package goods, and assemble subcomponents. Further,
they could have been linked by highways so motor carriers
could have taken merchandise in smaller quantities to its
final destination. Similarly, some of these distribution
centers could have been located near major airports to help
support air transportation where necessary. These steps
and others to support the marketing system would have
provided sufficient growth for the railroads and would
have helped meet the needs of more than the final
customer ~ also those of governments, society, employees,
suppliers, bankers, and so on.
CONCLUSION
We believe that since the marketing concept is micr
normative in focus, it fosters conflict and suboptimizat
in the marketing system. Essentially, the market
concept does not advise the organization on how to use
marketing system to its advantage and how to behave in
actions to the advantage of the marketing system. I
short, the marketing system has not been used
resource by most organizations. Zimmerman (1951)
that substance is not a resource until we learn how to u
it. Oil has been in the core of the earth for thousands of
years but it was not until 100 years ago that it became a
resource. Similarly, the marketing system has been in
existence in the U.S. for many years but, until firms learn
how to use and support the marketing system, it will not
be a resource for society.

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AUTHOR BIOGRAPHY

Michael G. Harvey, (Ph.D., University of Arizona), is Puterbaugh Chair of American Free Enterprise
Division. His personal interests are in the areas of global strategy and marketing strategy.

AUTHOR BIOGRAPHY

Robert L. Lusch, (Ph.D., University of Wisconsin), is Helen Robson Walton Chair in Strategic Marketing
of Oklahoma. He is currently editor of Journal of Marketing. His research interests are in the area
distribution and marketing strategy.

AUTHOR BIOGRAPHY

Branko Carvarkapa, (Ph.D., University of Sarajevo), is assistant professor of marketing at Eastern Conn
University. His research interests are in the areas of marketing strategy and international marketing.

Fall 1996 15

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