Generally speaking, the paper "Understanding the Market System - Unilever" is an outstanding example of a marketing case study. An efficient marketing system has been singled out as one of the most imperative requirements for businesses that intend to survive in the increasingly competitive business world. The severity of competition visible in the contemporary business world calls for companies to develop proactive strategies aimed at gaining a competitive edge over competitors. Having a well-organized marketing system ensures that the company’ s products are well distributed and that there is a clear line of communication between the company and the customers in order to effectively establish and meet their needs accordingly (Butler, 2006).
This means that a company must effectively select a good distributional channel and promotional strategies in order to ensure that the market system is successful. A marketing system is defined as a complex mechanism in which the production, distribution and consumption decisions are coordinated (Dixon & Wilkinson, 1986; Layton, 2007). It refers to how the exchange systems are coordinated such that the producer is linked with the consumer through supply chains and marketing initiatives such as advertisements (Peter & Donnelly, 2008).
The marketing system is said to have a significant impact on the social systems and is actually considered a “ differentiated sub-system of the society” (Layton, 2007). This means that the marketing system should not be considered as a channel to make profits alone but companies must seek to ensure that they make an impact in the society through their activities. McFarlane (2008) notes that the marketing system should be changed in accordance with changes in the market environment for companies to remain competitive.
Pressures for change may emanate from internal as well as external factors (Wessels, 2000). Internal factors include changes in production volume, alterations to trading patterns and commercial practices, changes in packaging methods and grading standards among others. External factors, on the other hand, include population increase and shifts, changes in government regulations such as consumer protection, quality expectations, public health and safety regulations among others. The success or failure of a marketing system is to a large extent dependent on the participants of the system, their objectives and utility goals.
These participants include producers, consumers, distributors, intermediaries, groups, organizations and facilitators all who have a different surplus, profitability and utility goals (Layton, 2009; Kotler, Denize & Armstrong, 2008; Ebner, 2008). In the event that the marketing system does not meet the specified goals of the members, the marketing system is expected to fail either in part or in whole. The company, therefore, has a duty to ensure that all members of the marketing system are satisfied in order to prevent collapsing of the same and eventual failure (Marshall & Johnston, 2010).
According to Dixon and Wilkinson (1982), there is a constant interaction of behavior among individuals in the marketing system which impacts on the company’ s success. This is because individual decisions and actions are not only determined individually but they are highly influenced by the factors surrounding them including the actions and behavior of others. The best strategy that a company can take is to ensure that it identifies the needs of the various groups in the marketing system so as to ensure that each of them is satisfied and that their goals in the marketing system are satisfied (Smith, 2008).
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