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