According to J.A. Morton –“A system is an integrated assembly of specialized parts acting together for common purpose.”
According to Fremont E. Kast and James E. Rosenzweg –“A system is an organized, unitary whole composed of identifiable boundaries.”
According to S. A. Sherlekar –“A system is a set of interacting or independent components or groups co-ordinated to form a unified of objectives.”
- Open system: In an open system, there are interactions between the system and its environment. Open system responds to change. All marketing organizations are open systems.
- Closed system: A closed system is one, which does not interact with its environment. It is self-sufficient entity. Automatic machinery system is an example of closed system
According to S. A. Sherlekar -“A system is a set of interacting or independent components or groups co-ordinated to form a unified of objectives. Likewise marketing system is also an integrated assembly of interrelated and interacting parts to achieve organization’s marketing objectives.”
According to W. J. Stanton –“Marketing system consists of two interacting elements – the marketing organization and its target market. These two elements are connected by two sets of flows. One the distribution of product/service to its customers in exchange for some kind of payment and the other flow is an information flow from the market to the organization.”
|System Approach in Marketing|
- Objectives: Objectives consist of profit matching products with markets, etc.
- Inputs: Inputs consist of capital, raw material, physical assets, human resource, information, machines and technology, management tools and in general, marketing mix elements.
- Processing: Processing consists of product planning and development, pricing, distribution and promotion.
- Outputs: Outputs consist of products, services, profit, customers’ satisfaction, social responsibility, goal integration etc.
- Feedback: Besides these, system approach also includes feedback which provides information to redesign inputs and processing.