Introduction

Both the functional and institutional approaches are useful in analyzing the existing marketing activities. However, the marketing process is continually changing in its organization and functional combinations. How to understand and predict change is a major problem. Either a particular marketing firm or an organization of firms, such as the marketing channel, can be viewed as a system of behavior. Each is composed of people who are making decisions in an attempt to solve particular problems. If these problems and their behavioral systems for solving them can be classified and a greater understanding of changes that may be forthcoming can be obtained. In either the firm or the organization of firms four major types of problems with their associated behavioral systems can be identified: Input- output system, Power system, communication system, and Adaptive behavior system.