CAEE 5131 - Agricultural Marketing and Price Analysis
Conclusion
The Input- output system, power
system, communication system, and adaptive behavior system are all components
of the operation of the marketing system at any one time. Keeping these in mind
may help explain actions which, when viewed only the context of one of the
systems, seem irrational or unintelligent. A firm may forego the ultimate in an
input – output solution because its communication system has broken down or
because of considerations of its power situation. For example, a firm may
choose to acquire another related firm and integrate its activities in order to
improve its internal communications problems or to enhance its power in the
market place. Or in another instance it may acquire another firm because it
thinks it foresees changes coming, and the purchase of the knowhow and
management of the acquired firm may present the most feasible method of
adapting to the new conditions.
The analytical view of multiple
behavior systems adds the important dimension of decision makers and their
differing goals to the rather impersonal functional and institutional analysis.
It points up sharply, that market analysis is not the province of economics
alone. Each of the social sciences as well as the physical sciences can
contribute to the understanding of marketing problems.
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This module was developed by Moi University, Department of Economics and Agricultural Resource Management with support from OER Africa and Bill & Mellinda Gates Foundation