1 Marketing's Contributions to Society

William L. Wilkie & Elizabeth S. Moore

Marketing's Contributions to SocietyAt this unique point in time, it is appropriate to step back and deliberate on the scope of the marketing field and thecontributions it offers to society. The authors adopt several perspectives to do this, looking across time, across so-cieties, and into the operations and structure of the aggregate marketing system itself, which emerges as a hugeand complex human institution. A large number of contributions to society are illustrated, ranging from aggregateinputs to the nation's economic health to individual benefits felt by some consumers. However, the system is notperiect; a range of criticisms and system problems also is summarized. The article closes with a look at lessonslearned and future challenges in the century ahead.

Our Goals for this Paper

We are honored to have this opportunity to addressthe topic: "What does marketing contribute lo so-ciety?" We originally chose to study the field of

marketing because we found it to be among the most stimu-lating, complex, and intellectually challenging of academicareas in a university setting. In curious contrast to its gener-al reputation as a "soft" area, we have found that this fieldwelcomes insights from many disciplines, including eco-nomics, psychology, history, mathematics, sociology, law,political science, communications, anthropology, and thecreative arts. Its scholarship combines elements of objectiv-ity and subjectivity, demands both quantitative and qualita-tive insights, requires persistence yet rewards creative leaps,and allows freedom of imagination and nuance yet groundsits efforts in real actions with measured consequences. Fur-thermore, marketing can be studied from several intriguingperspectives.

In the spirit of this special "Millennium Issue" of theJournal of Marketitig, we view this article as an effort toclarify, illustrate, and celebrate, but not without a criticaleye, some of the special aspects of the marketing field andits relationship to society. We did not wish lo be naïve aboutthis and so, in developing this article, have undertaken sev-eral allied efforts with regard to the history of marketingthought, shifting criticisms of marketing, and current em-

William L. Wilkie is the Nathe Professor of Marketing, and Elizabeth S,Moore is Assistant Professor of Marketing, University of Notre Dame. Themain portion of this article was completed while the second author was onthe faculty of the University of Illinois, and the authors gratefully acknowl-edge both Notre Dame and Illinois for their support of this work. In addi-tion, the project has benefited from useful comments, criticisms, and sug-gestions from many scholars. The authors especially thank their incrediblysupportive colleagues in the Marketing Department at Notre Dame, aswell as David Aaker, Alan Andreasen, Craig Andrews, Neil Beckwith, JackCalfee, Joel Cohen, Peter Dickson, John Farley, Richard Heuther, JamesHunt, Shelby Hunt, Donna Kamm, Harold Kassarjian, Gene Laczniak,Lynn Lee, Donald Lehmann, Susan Lloyd, John Malone, E. Scott Maynes,Robert Nason, Thomas Reynolds, Robert Schindler, Richard Tedlow,Hans Thorelli, and three anonymous Special Issue reviewers for their in-puts. Finally, the authors salute David Montgomery, George Day, andRobert Lusch for creating this opportunity for developmental articlesaimed al addressing important issues for the field; this project never wouldhave been undertaken without such a structure.

phases in this area, details of which are available elsewhere(Moore and Wilkie 2000; Wilkie and Moore 1997, 2000). Itis clear that the marketing system today is providing moreand different benefits than in times gone by. Formal market-ing thought has advanced much since its inception as thenew academic area of "market distribution," shortly after1900 (Bartels 1988)."

As the field nears ils 100th birthday, its focus is square-ly on firms, markets, and household consumers. Relativelyfew persons, even in the mainstream of the field, have re-cently been able to examine marketing's contributions to so-ciety. However, this subject is worthy of consideration bythe broad college of thinkers in the field. It is worthy of ex-posure to thoughtful practitioners, lo students in MBA andundergraduate programs, and to emerging scholars in doc-toral programs (likely why the Marketing Science Institutenamed it a key topic for this Special Issue). Thus, our pur-pose here is to provide a different look at marketing, onethat engages thoughtful deliberation on the larger systemand its contributions. Taken together, the issues in this do-main help us better determine both the nature of marketingand the remarkable potentials of the field.

One Hundred Years of Marketing

Three early insights we gained in this project were ihat mar-keting's contributions (1) accumulate over time, (2) diffusethrough a society, and (3) occur within the context of every-day life. This can make them hard to discern at any givenpoint in time. We begin, therefore, with an informal lookover a very long period.

A View Across Time: Marketing's Impact on DailyLife in the United States, or, "It's a Wonderful Life."Here we join Mary Bailey as she reads a diary hermother recently had given her as a family heirloom.It had been written by Mary's great-grandmotherAnne at the turn of the ceniury, 100 years ago. As shesettles under her lamp on a cold winter's evening in

'In this project, we were fortunate to be able to find and consid-er a treasure trove of books and articles from marketing thinkers,theorists from other disciplines, and critical observers from withinand outside marketing. We acknowledge our deep debt to peoplewho have addressed these issues before us and have allowed us tobuild on their thoughts here. :. ' |

198 / Journal of Marketing, Special Issue 1999Journal of MarketingVol. 63 (Special Issue 1999), 198-216

Bedford Falls, Mary is imagining her ancestor'stimes and how very much life has changed.

{Daily activities) As she reads. Mary is surprised todiscover how Anne spent her days.- Largely depen-dent on walking or horses, families centered on thehome and local community. Daily life meant physi-cal labor. Equipped with only a scruh board, the typ-ical housewife spent 7 hours a week doing laundryand carried 9000 gallons of water into the houseeach year, which she then had to boil before using(only 25% of homes had running water). Cooking,baking, and food preservation required substantialtime, some 42 hours per week! Products that nowroutinely are bought, such as clothing, often wereproduced in the home. Central heating would not ar-rive until the 1920s; Anne's family heated only thekitchen for the winter, using fuel hauled in daily byfamily members. Only 3% of households had elec-trical lighting, so most families relied on coal,kerosene, or oil to light their homes. As she reads onunder her bright lamp. Mary wonders how bright thelighting had been ibr the author whose words shewas reading.

(Health and safety improvements) Mary is readingdeeply as Anne described relief that her baby Aaronhad survived; infant mortality was common in Bed-ford Falls at the time (about one in every ten births).In checking the family tree. Mary finds that Anneherself had died at a relatively young age (life ex-pectancy in 19(X) was only 47 years of age). In con-trast, life expectancy today is nearly 80 years of age,and Mary has not had to worry seriously about infantmortality (now significantly less than 1%) or deathfrom infectious disease. Thinking more about this,Mary realizes that her family's health, safety, andability to enjoy life have been assisted by the fruitsot advances in diagnostic equipment, pharmaceuti-cals lo combat disease, pain relievers, bacteria-safefoods, safety-tested products, and so forth.

(Impacts of technology and growth of the marketingsystem) The academic field of "marketing" beganabout the time Anne was writing her diary. Duringthe ensuing century, we have experienced manychanges in daily life in the United Slates. The aggre-gate marketing system, in conjunction with the oth-er aggregate systems with which it interacts (e.g.,technology, finance, production) has delivered mostof these changes to society. For example, the avail-ability of home electricity was followed by the cre-ation of many new appliances—clothes washers anddryers, vacuum cleaners, air conditioners, dishwash-ers, music systems, television, and so forth—thatbring efficiency and enjoyment to homes today.Home refrigeration and supermarkets mean fewertrips to the store; together with use of appliances,this has allowed the average time spent on food

^Comparative numbers are from a variety of sources, especiallyLebergoti ( 1993) and U.S. News and World Report {1995*).

preparation to fall from 42 hours lo less than 10hours per week! With economic growth (gross na-tional product is 400 times greater than a centuryago), higher incomes, and technological innovationshave come new possibilities and opportunities, Avast array of goods and services is now available.Moreover, real prices for many goods (e,g,, televi-sion, autos) have fallen to the point that they are ac-cessible to almost every member of U.S. societytoday.

Mary Bailey closes her diary and begins to thinkabout other changes as well. She and her family areinformed readily about national and global eventsand easily can drive or fly from Bedford Falls topoints of interest anywhere in the world. Her fami-ly's daily life is far, far removed from that of her an-cestor's. As she ponders this, she realizes that theworld for her children will be different from hers to-day, in as yet unknown ways, as the aggregate mar-keting system continues to deliver change to theirsociety in the future,..,

The Importance of PerspectiveViewing a topic from a single perspective highlights certaincharacteristics but can hide other aspects that also may beimportant. For example, a person looks different from thefront than from the back and different again if viewed fromIhe side. To understand a topic well, it is helpful to walkaround it mentally, adopting different perspectives on it. Forexample, four perceptual barTiers in this topic involve time,system limits, culture, and personal experience. The MaryBailey illustration addresses the issue of slow diffusion ofmarketing's contributions over time by contrasting two ex-tremes. When viewed in this way, contributions the aggre-gate marketing system has delivered to society are apparent;it is clear that Americans today are living very differently,and mostly in better ways, than did their ancestors a centu-ry ago. With respect to system limits, not only is the mar-keting system vast (as we shall demonstrate shortly), but ilsoperations converge and coordinate with the operations ofother aggregate systems within a society's larger economicsystem. (In a Venn diagram, we might conceive of aggregatesystems in marketing, finance, technology, production, andso forth as partially overlapping large circles that refiect ar-eas in which activities are in common and those in which ac-tivities lie only in that field)

With respect lo culture, marketing is a social institutionthat is highly adaptive to ils cultural and political context,Thus, we can move easily around the world to locate soci-eties with very different marketing systems. In some globallocations, we would find rudimentary marketing systems of-fering none of the conveniences Mary Bailey is enjoying;people there may be living as Anne did a century ago. Else-where, as in parts of Brazil, we would find people just dis-covering installment credit and using it to obtain the firsthome conveniences they have ever enjoyed. In parts of Chi-na, we would find incredible levels of investment—one ofevery five construction cranes in tbe world is reportedly alwork just in Shanghai—to bring modern elevators, air con-ditioners, and other conveniences lo the citizenry. Thus,

Marketing's Contributions /199

coverage of aggregate marketing systems is culture-bound.We must take care to distinguish which lessons are general-izable and which are not. With regard to personal experi-ence, many marketing contributions are "behind thescenes," unseen hy those not directly involved. It is thus im-portant that we remain mentally open to discovery of newpossibilities about marketing and its relationship to society.We have come away from this project with a new and rich-er view of our field and hope that readers will as well.

The article consists of four major sections. The first sec-tion is an overview of marketing as an aggregate system,starting with an "up close" illustration of its operations. Ourseeond section profiles the range of benefits marketing of-fers to society. The third section adds balance in summariz-ing criticisms and controversial aspects of this field, and ourfourth section draws conclusions and implications for thefuture.

The Aggregate Marketing SystemStudies have shown that the less familiar a person is with themarketing field, the more likely he or she is to equate mar-keting with advertising or selling. As a person learns more,the view broadens and he or she begins to appreciate therichness of the field of marketing (Kasper 1993*). We nowturn to the aggregate marketing system. Although originallya central theme in marketing thought, we have not foundmuch of this idea in recent years, in favor of an emphasis onmanagerial decisions. We begin with an illustration of onesmall part of the system to determine what it does. If mar-keting thinkers are to appreciate the range of contributionsour field makes, it is good to remind ourselves about thescope and details of the work that it undertakes.

The System at WorkOur illustration begins with a U.S. household at breakfast.Here, the outputs of a small number of marketing channelsare brought together for the purpose of consumption.

"Breakfast at Tiffany's." [Note: The idea for this il-lustration is based on Vaile, Grether, and Cox's(1952) classic textbook on marketing, though ourdescription is different and updated. We join TiffanyJones and her family in New York as Tiffany reach-es for her breakfast pastry and blows softly aerossher cup of coffee....]

{A cup of coffee) Although a commonplace enoughevent, a breakfast represents an interesting confiu-ence of forces from the aggregate marketing system.Let us first consider Tiffany's coffee and how it gotto this morning's meal. Tiffany has chosen a leadingbrand that delivers a consistent color, scent, and tastethat is favored by its many customers. How exactlydoes this brand's marketing system achieve this?The coffee Tiffany has prepared is a combination ofbeans grown in different countries, then brought tothe United States, and blended into a specified mix-

*Authors were limited in the number of references used in text,therefore, those references marked witfi an * are available atwww.ama.org/pubs/jm and at www.msi.org.

ture to deliver this brand's unique qualities. Becauseof different growing seasons and bean characteris-tics, the source nations for the coffee change as theyear progresses; coffee is grown in some 50 nationsaround the world.

As shown in Figure 1, Panel A, we assume that somebeans in this cup came from a Colombian hillside,handpicked {to ensure ripeness) in the grower'sfield. The process was highly structured: From bas-ket, to tractor, to truck, the beans were transported tothe coffee grower's depulping mill, where the innerbeans were separated from their cherries. Still wetand protected by a parchmentlike cellulose shell, thebeans were spread on a sun-filled patio to dry forseveral days. They then were tnilled (removing theparchment sheath to produce a green bean) andgraded against set national coffee standards. Sam-ples of the beans were sent to buyers and tbe gov-ernment coffee board to check the grading process.The beans then were put into 60 kilo (132 pound)burlap or polyester bags bearing the grower's nameand quality level and warehoused at the grower's fa-cility. Brokers and large buyers were contacted bythe grower to arrange for sale and delivery. In thecase of Tiffany's brand, this process continued along term husiness relationship with this grower,based on trust in the quality of the beans, his capa-bility to deliver needed quantities at agreed on times,and his willingness to stand behind agreements. Thisseller has similar views about buyers and will onlydeal with certain buyers. Thus, the actual agreementon these beans was sealed with a handshake.

Continuing with Panel A, the beans were loaded ontrucks and driven from the mountains to the port city(ocean humidity levels could damage the beans hadthey been warehoused there). They were loaded di-rectly into 20-ton "piggyback" containers designedto transport seamlessly among ships, trains, andtrucks. After four or five days at sea, the beans ar-rived at the port of New Orleans, were tested againfor quality, and given over to a warehouse service.This service handled custom's clearance, then un-loaded the bags into trucks driven to the coffeefirm's "silo" facility. Here, loads of different beanswere stored, then blended together into 20-ton hop-per trucks, and sent to the firm's New Orleans roast-ing plant (alternatively, they might have been sent tothe firm's Midwest or Southwest roasting plants in80-ton hopper cars). The final coffee was preparedcarefully, tested for quality, and packaged into thefamiliar red cans or bricks. As indicated in Panel A,from this point, the route depends on the purchaser.It may be shipped in large volume to one of thefirm's seven regional distribution centers, thence tobe sold to wholesalers, and then to retail outlets, or,in the case of very large national accounts, truckeddirectly from the plant in 40,000-pound loads. Be-cause Tiffany bought her coffee from the neighbor-hood IGA supermarket, it had taken the longer route.Even so, the vacuum-packed containers had kept it

200 / Journal of Marketing, Special Issue 1999

quite fresh and lent pleasure to her cup this morning.Thus, we demonstrate how one marketing systemhas operated to provide a branded cup of coffee to aU.S. family on a typical morning.

(A breakfast pastry) Although coffee provides usefulinsights, it is yet a relatively simple product. We canmove to a further level of complexity with anotherilem in Tiffany's meal: a new hreakfast pastry pro-duced hy a major food marketer to compete in thefast-growing "premium" breakfast segment. Its mar-keting system is shown in Panel B of Figure 1 (forease of communication, we have shown only por-tions of this system to complement points of the cof-fee channel; neither system is portrayed to its truecomplexity). Note at the left of Panel B that the pre-production tnarketing system is much more involvedthan the linear system for coffee, as there are 15 in-gredients in each unit of this pastry. Although notshown in the panel, each ingredient has its own sys-tem, similar to coffee's, for collection and transportto its processors. The pastry brand is similar to thecoffee hrand in requiring a high level of uniformityin the brand units sold to consumers. Thus, we findexacting product specifications for each ingredient atthe left side of Panel B.

The next set of activities focuses on product man-agement decisions. Excited by consumer researchshowing unmet demand for bakery-quality pastrythat can be stored at home and concerned by the suc-cess of competitors' new entries, this firm began amajor new product development project, Experts infood science and nutritional technologies were chal-lenged to translate this benefit concept into an actu-al food product. A king process ensued, as many at-tributes—size, icing, taste, consistency, flavoring,shelf-life, preparation, packaging, reasonable costsfor pricing, production feasibility, and so forth—needed to be brought to acceptable levels. Theprocess included consumer research on reactions toprototypes, in-home use tests, and BehaviorScancontrolled store tests of pricing and promotions (in-cluding studies of purchase substitution patterns).File firm's board of directors bad to decide whetherto launch the product. Key factors included internalrate of return over a six-year period, capital needs(new plant versus conversion), options for copack-ing or outsourcing production, and effects on thefirm's current product line. Because this would be a"bakery-quality" item, the board was concernedabout tbe system at the left of Panel B—that the in-gredients be regularly available, cost-controlled, andgeared to precise recipe quality. Tbe board gave tbegreen light, and the entire marketing mix was final-ized and implemented. The distribution system(right side of Panel B) was similar to that for coffee,as was the consumer's purchase and use system(which, we note, concludes with a disposition ser-vice purchase for trash removal). In terms of the sys-tem's dynamics, each consumer purchase feeds backinto stocking and production plans; through feed-

back derived from both internal accounting and for-mal market researcb projects, tbis finn will monitorand adapt its management of this offering. Overtime, therefore, consumers' actual use satisfactionsand repurchases will determine its success or failure.

(Further considerations) Although the illustration isgetting long, we are only a little way toward captur-ing the true scope of the aggregate marketing sys-tem. However, we now dispense with details andsimply point to key issues. We have covered onlytwo breakfast items; as shown in Panel C, the fourfamily members bave different preferences tbat theaggregate marketing system is able to accommodateeasily. Also, the breakfast depends on more tbanfood, and an entire kitchen support system is avail-able to assist this consumption epis(xle. In terms ofour broader topic, it is important to recognize that allaspects of Panel C have been brought to tbe Joneshousehold through the aggregate marketing system,some many years ago (e.g., the plumbing and thefurniture) and others more recently (e.g., the newdishwasher bought last week and the coffee, pastry,and fresh fruit bought yesterday). Also, each elementlisted in Panel C has its own complex marketing sys-tem that brought it to this point. Global sourcing wasinvolved in some systems—tbe coffeemaker fromGennany, artwork from the Far East, microwavefrom Korea, and so forth. In every case, a completesystem was planned, created, and run to deliver tbeseproducts to housebolds such as Tiffany's and, inmost cases, bad to compete and win out over others'systems to gain Tiffany's purchase. If we were to an-alyze each system, many pages would be used; tbetotal number of system interactions needed to createthis meal is truly impressive. When we further rec-ognize that the aggregate marketing system routine-ly provides breakfast for 100 million U.S. house-holds every morning and that hreakfast is only atrivial element of its total activity, we are ready toappreciate its immensity and significance.

The Scope and Size of the System

The foregoing illustration is a useful basis for summarizingsystem scope. Panel D of Figure 1 provides a partial listingof system activities tbat enabled this breakfast to occur. Sev-eral points emerge:

IThere are a surprisingly large number of entries; the aggre-gate marketing system undertakes a wide range of activitiesto provide for a simple breakfast meal.

IThere are participants other than marketers in the aggregatemarketing system. Organizational customers and ultimateconsumers are key players (buying is crucial at every .stage),and governments provide services intended to lacilitate sys-tem operations (shown at the right in Panel D, these cross allstages).

>As indicated by the keyed entries in Panel D, marketing man-agers control ( I ) only some of the activities of the aggregatemarketing system. Other necessary activities are carried outby persons who do not consider themselves marketers. Inmost of these cases within organizations, marketing managers

Marketing's Contributions / 201

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serve as influences (2) on these actions, whereas in some cas-es (3), necessary system activities may be carried out with lit-tle or no direct influence from marketers (note that this is par-ticularly apparent in the consumer realm). This property ofthe system calls for a perspective on marketing that reachesbeyond a sole focus on a manager's controllable decisions.(Note that numbers assigned to each activity are generalized.Readers may wish to consider whether they would agree.)

•The three classes of participants all engage in activities apartfrom the aggregate marketing system. TTie system is verybroad but not entirely dense. Some parts of virtually every or-ganization work on tasks only indirectly related to the mar-keting activities listed and carry these out independently(shown as "n" in the bottom right of Panel D). We would notdefine these as marketing system activities, nor would we in-clude activities of govemment agencies or consumers that aredirected entirely toward other sectors of society and life.Thus, our visual conception of the aggregate marketing sys-tem would resemble a cross-section of fine swiss cheese orsteel mesh, similar to Panels A and B, with many linkages be-tween organizations as we move across to the consumer sec-tor but with holes inside each organization to represent partswhere the work arguably is outside the marketing system,

•Finally, Panel D significantly understates system activity.Most listings have many detailed steps (e.g., advertising,promotion, merchandising, transportation, as in the leftmostcolumn).

Panel E of Figure I next depicts an approacb to assess-ing the scope of the U.S. aggregate marketing system. Hor-izontally, note that it extends from extraction of raw materi-als/crops at the left through many levels of value creation toend consumption and disposition in far-off locales at theright, (Again, the preceding Venn diagram analogy shouldclarify our conception that some of these activities are re-garded properly as also belonging to other intersecting ag-gregate systems.) Vertically, we first add all competing cof-fee and pastry systems, then add all other food systems, thenadd all other goods and services. In concept, this processwill include all organizations that engage in marketing sys-tem activities of the types shown in Panel D, all levels ofgovernment activities that affect this system, and all formsof consumer participation by all societal members. Our nextillustration provides estimates of the magnitudes involved.

"From Here to Eternity." Tbe aggregate marketingsystem is huge and growing rapidly.^ As we movepast the year 2000, in the United States alone, thereare some 275 million final consumers arrayed in 100million households, all on the consumption side ofIhe system. They spend $5 trillion each year, or two-ihirds of the nation's gross domestic product (GDP).To place this spending in perspective, if we were totry to count it at the rate of $1 per second, it wouldtake more than 150,000 years, or much longer than

3For a classic effort to assess magnitudes of the U.S, distributionsystem alone, see Cox, Goodman, and Fichandler ( 1965). The fig-ures reported in the illustration are from the Statistical Abstract ofthe United Slates (1996*), tables 12. 66. 685, 691. 1003. 1252.1253, 1255, 1272. 1274. 1278. 1279. and 1280. Calculated com-parisons are by the authors. The advertising spending estimate isfrom Advertising Age (1997*).

the history of civilization. Although the aggregatemarketing system in the United States may notstretch quite to "eternity," it certainly does stretch avery long way.

Furthermore, we should recall that yearly data arecompiled merely for convenience and easily can un-derstate true impacts. For example, as in Tiffany'skitchen, households accumulate many consumerdurables that continue to provide benefits to tbem foryears. As opposed to annual sales then, consider thatsome 200 million motor vehicles currently are regis-tered for road use in the United States. All of thesehave been provided through the marketing system(and many are used to carry out its functions on adaily basis). In terms of the work of marketing, a sig-nificant portion of Americans are employed entirelyor in part assisting the system to perform its func-tions. Although exact figures are elusive because ofcategorization problems, it appears tbat more than30 million Americans work directly within the ag-gregate marketing system, with salespersons ac-counting for the largest portion. There are almost 20million businesses acting as buyers, 3 million ofwhich are retailers that resell to consumers, and an-other one-half million wholesaling firms (because ofmultiple steps in the wholesale channel, total sales ofwholesalers are greater than those of retailers). Ad-vertising spending is huge and growing, now some$200 billion per year. Other areas of recent growthinclude services (now more than half of all consumerspending) and direct marketing, which has doubledin recent years.

Even though these numbers are huge, we still haveunderstated the true scope of the aggregate mar-keting system in U.S. society. Professional prac-tices (attorneys, accountants, architects) were notincluded In these counts hut must engage in ac-cepted forms of marketing to build and maintaintheir clientele. Many persons in not-for-profit or-ganizations, also not included in our formal num-bers, employ marketing actions both in garneringresources and carrying out their missions. Govern-ment workers at local, state, and federal levelsregularly negotiate contracts, buy goods and ser-vices, and monitor marketing performance. Fur-thermore, because marketing is an intrinsic func-tion in those 20 million business firms previouslynoted, a portion of the responsibilities of many po-sitions, from chief executive officer to quality in-spectors to shipping and fulfillment clerks, is in-volved with carrying out the firm's marketingactivities. Finally, the U.S. aggregate marketingsystem in no way stands alone in the world. By notincluding other nations' numbers, we have under-staled by many times the actual impacts of mar-keting around the globe. (As an aside, this analy-sis also helps us appreciate the enormity of thechallenges faced by command systems, which can-not hope to replicate the millions of allocation de-


cisions being made within a market system eachday.)

Characteristics of the Aggregate MarketingSystem

Figure 2 completes our background on the system with asummary of key properties. Propositions I, 3. and 4 havebeen discussed at length, but the others deserve brief com-ment. Proposition 2 provides a system perspective that welong have perceived as powerful: the concept of continuousflows in various modalities, including physical, persuasive,inlbmiational, and monetary. Flows occur in both directions(e.g., money Hows backward in the system in payment forgoods; information and influence How forward from adver-tising and sales efforts but also backward with marketing re-

FIGURE 2Propositions on the Aggregate Marketing System

The Aggregate Marketing System:

1. Iticorporates many activities, including tbe classic dis-tribution functions, marketers' plans and programs, andactions by consumers and government;

2. ¡s cotrtposed ofptantied and contitiuous flows amongparticipants, including flows of goods and materials, ser-vice deliveries, dollar payments, and flows of informationand influence;

3. ¡s extensive, in several respects.a. Extending all the way from the collection of raw mate-

rials through multiple intermediate processes to useand disposition at each individual household,

b. Combining materials/goods from around the globe intomarket offerings,

c. With multiple sets of marketers, acting as competitors,performing activities in parallel, and

d. In its geometric exchange activity, with multiple pro-ducers selling to multiple purchasers and multiple buy-ers purchasing from multiple sellers;

4. Is sophisticated structurally, relying on a massivephysical and communications infrastructure that regular-ly and routinely creates and delivers goods and servicesacross the society;

5 Is a key basis for resource allocation in a marketeconomy, because consumer responses to market offer-ings determine whicb goods and services are created inthe future;

6. ¡s governed by forces for efficiency, most notably self-interest, competition, and characteristics of market de-mand;

7. Is constrained by social forces, including laws, govern-ment regulations, cultural norms, and ethical codes ofbusiness and consumer conduct;

8. Relies on coordinated processes, with producers andresellers seeking interdependent purchases to fit pre-specified standards with the later expectation of pur-chase by consumers;

9. Operates through human interactions, experienceand trust as participants develop and maintain market-place relationships as a basis for conducting their systemactivities; and

10 /s an open system, geared toward growth and inno-vation, as participants seek to solve problems and pur-sue opportunities, investing witb faith in the future opera-tions of the market.

search). Some are simultaneous, but many are not; for ex-ample, the investment flow forward (in plant, labor, produc-tion, and promotion in advance of sales) represents levels ofrisk-taking and confidence in marketing activity.** Mean-while, Proposition 5 reflects that, in a market-based system,consumers' response to marketers' offerings drive supply al-locations and prices. Depending on a society's decisions onpublic versus private ownership, the aggregate marketingsystem plays a greater or lesser role in allocating national re-sources.-'' The United States has given substantial freedomsto its aggregate marketing system. Apart from certain re-strictions, a person may choose to prtxluce almost any goodor service he or she desires, in any form and name; otter itfor sale at places, prices, and terms of his or her choosing;and advertise it or not, using virtually any appeal believed tobe effective. Although restrictions exist in each of these ar-eas, they are primarily to protect the rights of competingmarketers or consumers.

Proposition 6 reflects tbat the aggregate marketing sys-tem does more than physically deliver goods and services; italso works to bring a dynamism to society that encouragescontinual growth and progress (Vaiie, Grether, and Cox1952). Marketers know that observed demand is not reallyfixed and that consumers can be highly responsive to differ-ent marketing programs. Thus, competition is the main dri-ving force, leading marketers to search for areas of compar-ative advantage that will lead to greater tmancial success.^New competitors are attracted to areas of opportunity; overtime, prices can be adjusted downward through competitionand/or production efficiencies. New buyers join in buyingthe favored offerings, and some markets grow while otherswither away. Not all marketing system programs are suc-cessful; the effort to support dynamism can lead to excess-es, failures, and sometimes unforeseen consequences.

Proposition 7 reflects this underlying tension by rellect-ing the need for controls. A market system needs a legal in-frastructure for property rights, performance of contracts,freedom of choice, and so forth. The role of gt)vcrnment associety's representative is thus central, though this can be

•*We are unsure whence Ihe concept of marketing flows originat-ed but have found It in Vaile, Grether, and Cox's (1952). Mclnnes's(1964*), and Kotler's (1976*) work. This analysis also highlightsmarketing's contributions at the firm level by demonstrating mar-keting to be the function that reaches out from a tlrm to the outsideworld (marketplace) with flows of products, information, and pro-motion activity and further shows marketing as using its learningabout that world (through an inward flow of research) to influencedecisions within the firm, Finally, marketing generates an inwardflow of dollars to sustain the firm's continued existence, whichearns it the title of "lifeblood of the business,"

^As societal boundaries become more permeable, especiallythrough immigration and trade, the linkages of production, em-ployment of human resources, and end consumption become morecomplex.

^This has been the subject of significant recent theoretical de-velopments within marketing that challenge the tradition of equi-librium economic theory (e.g., Dickson 1992, 1996*, t999*; Huntand Morgan 1995, 1996*).


contravened if politicians allow cynical, self-seeking inter-ests to circumvent either competition or desirable restraints.

Thus, the issue of governmenl achieving a proper balance toserve a society's goals best becomes a key issue for aggre-gate marketing systems.^

Propositions 8 and 9, meanwhile, refer back to the bond-ing forces that constitute the heart of the marketing effort.The existing infrastructure requires coordination in space,time, and fit, because offerings require intermarriage ofcomponents within a context of high efficiency. We havebeen impressed by the serious attention given to processquality control within this system. Furthermore, we havehccn reminded that, at its roots, this is a human institution inwhich both experience and trust play major roles, a pointthat also has emerged recently in relationship marketingthought. Even economists have recognized the role of trustwithin the system. As Kenneth Arrow (1972), Nobel Laure-ate in Economics, explained, "virtually every commercialtransaction has within itself an element of trust ... much ofthe economic backwardness in the world can be explainedby tbe lack of mutual confidence." In asking why all soci-eties do not become equally wealthy and successful, recentwork by Hunt (1997*) and otbers (e.g.. Etzioni 1988*)points to differences in societal institutions that promotetrust and personal moral codes as a key differentiator.

Finally, Proposition 10 notes that this "open system"stresses achievement, growth, and progress. These are theelements of the U.S. aggregate marketing system that havebrought huge, positive changes to the daily lives of its soci-ety's members, as was indicated in our first illustration, "It'sa Wonderful Life."^

We now turn to the system's contributions. Our discus-sion bere is presented in three sections; (I) benefits to eco-nomic well-being, (2) benefits to buyers, and (3) severalbroader perspectives on benefits.** Althougb most entrieswill not be new to marketing thinkers, we are hopeful that incombination they will prove useful in stimulating furtherthought about the field and its value to society.

Marketing's Contributions toEconomic Weil-Being

Contributions to the Larger Economic System

Whatever the political choices, an aggregate marketing sys-tem is integral to a society's economic system. In Figure 3,Part A. we list ten areas in which marketing contributes inthe United States. It offers employment and incomes for the

''Unfortunately, extensive discussion of government's role is be-yond the purview of this article. Readers may wish to access theexcellent volume by Stern and Eovaldi (1984) for discussionspointed to marketing.

î̂ Any aggregate system will bring serious issues as well. For ex-ample, probing questions can be posed about destruction of natur-al resources, social inequality in lile chances, the nature of growthin aflluence. and others. We discuss these in our section on contro-versies and criticisms.

^Although the aggregate system includes marketers, customers,and public policymakers, given the purpose of this article, we con-centrate on contributions emanating from the marketing sector ofthe system.

FIGURE 3Marketing's Contributions to Economic

Weil-Being

A. Ten Contributions to the Larger Economic System

—Employment and personal incomes

—Freedom of choice in consumption

—Delivery of a standard of living

—Assistance in infrastructure development (e.g., trans-portation, communications, financial sector)

—Tax payments for public purposes

-Mass-market efficiencies

—Diffusion of innovations

—Enhanced balance of trade accounts

—International development

—Integral to economic growth and prosperity

B. Insights on Marketing and Economic Development

—Marketing employment/gross domestic product rela-tionship

—Roles depend on stage of development:•Traditional subsistence: assure prices•Transitional: Infrastructure j•Market-oriented: financing, credit

—Roles depend on government policies ' '

—Roles depend on consumers and culture

—Marketing expertise and systems are key

—Marketing's development functions:•Organization of networks •Spatial connectivity•Speculation in time •Capital accumulation•Equalization »Entrepreneurial entry

millions of persons engaged in this field, enabling them tobe productive and earn money needed for consumption. Asnoted, consumers' exercise of freedom of choice means thatthe preferences of society's members largely are rellected inthe system's goods and services, which should mean thataggregate satisfaction is enhanced in this sector of life. AsAdam Smith pointed out in his classic Wealth of Nations(1776*, p. 385), "Consumption is the sole end and purposeof all production." In this regard, the aggregate marketingsystem is involved directly in delivering the standard of liv-ing enjoyed by society's members. Furtbermore, private in-vestments for tbe marketing system bave been important inassisting national infrastructure development in such areasas distribution facilities, transportation, communication,medical care, and the financial sector. Related to this,monies gathered by governments (sales and excise taxes)actually are gathered by operations of the marketing systetii.Together with income taxes paid by firms and individualsengaged in marketing, these represent substantial sources ofthe tax payments to fund public programs.

With respect to consumption, the system's mass-marketefficiencies have led to lower costs, lower prices, and in-creased total consumption for citizens. The system's dy-namic character also fosters diffusion of innovations, bring-


ing new benefits to consumption. Internationally, the aggre-gate marketing system is a crucial contributor to the nation'sbalance of trade and, in seeking new areas of opportunity, isa force for international development. Overall, then, inmany significant and positive ways, the aggregate market-ing system has played an Integral role in the economicj-'iowth and prosperity of the United States.

Although obvious in the abstract, marketing's contribu-tions to economic well-being actually have not been recog-nized by many businesspersons or, indeed, by many econo-mists. This is probably because they are not factors in theclassic macroeconomic equations (KInnear 1994). Here, ag-gregate supply depends on the stock of capital, labor, rawmaterials, and technology; Kinnear asserts that marketing'simportance would be more clear if efficiencies and skills inwholesaling, retailing, and logistics were Included in thisequation. Similarly, aggregate demand is a function of ex-penditures for consumption, investment, govemment, andnet foreign trade. However, marketing does affecl aggregatedemand; if economists'equations were to identify effects ofmarketing programs (on autonomous consumption and mar-ginal propensity to consume, on prospects for success of aninvestment in a new product, and on the volume of exportsand imports), the value of marketing efforts in the econom-ic system would be more starkly obvious. Furthermore, thiswould stimulate interest in calibrating the magnitudes ofthese contributions.

Marketing and Economic Development

The societal benefits that fiow from the aggregate market-ing system are nowhere more apparent than in the area ofeconomic development. Peter Drucker, the noted businessthinker, raised this issue years ago in a stirring speech at aParlin Award dinner, reprinted by the Journal of Marketingas "Marketing and Economic Development" (Drucker1958*). His view of marketing as an entrepreneurial "mul-tiplier" and organizer of resources casts a quite differentlight on our field. Subsequent work has done much to ex-plore and refine this view. The points in Figure 3, Part B, i l -lustrate several key insights about marketing's roles andcontributions."^

First, the role for marketing in economic development isreal. Nations with higher proportions of their populations inmarketing also have higher GDPs. Development of the mar-keting system is necessary for this to occur (e.g., Preston1967*; Wood and Vitell 1986). However, the specific rolestor the marketing system differ by stage of economic devel-opment. In a subsistence economy, production is barely suf-ficient for self needs and is not separated in time or distancefrom consumption. The immediate priority is incentives toincrease production, with price assurance being most signif-icant. In economies just becoming urbanized, the prioritiesare to develop distribution infrastructure (i.e.. transport,storage, and selling networks). In market-oriented systems,all marketing functions are important, with investment fi-

'"Much of tiie discussion to follow is based on overviews pro-vided hy Batra (1997), Moyer (1965), Nason and White (1981),Thorelli ( 1996), and Wood and Vitell ( 1986).

nancing and consumer credit as primary lools for marketgrowth (U.S. Department of Agriculture 1972*),

Second, as noted in Figure 3, Part B, a host govern-ment's policies help determine opportunities for marketing'scontributions to the society (e.g., Thorelli 1996). However,governments typically pursue five possibly contradictorygoals—growth, fuller employment, income distribution,price control (infiation), and balance of payments—and maydo so with too few tools to handle the task (Slater 1978).Treatment of the aggregate marketing system is thus part ofa complex political context. As a social institution, the mar-keting system must be embedded in the society's culture,and this can be problematic in some societies because as-pects of the culture are not welcoming of some features ofthe U.S. marketing system (e.g., Ger 1997*). Where aU.S.-style system is desired, moreover, certain consumerbehaviors (e.g., handling of finances, planned saving andchoice processes, defenses to persuasion) must be learnedfor the system to work well. With regard to linkages amongefficiency, consumer behavior, and culture in developingmarketing systems. Slater identifies literacy, achievementdesires, cooperativism, fatalism, mass media, and innova-tiveness as key dimensions (cf. Nason and White 1981).Marketing experts working in the "transitional economies'*(i.e., those moving from centralized planning to market-based systems) of Eastern Europe, tbe former Soviet Union,and China note that entrepreneurial risk-taking, marketingmanagement expertise, and the use of strong business plan-ning and control systems are crucial in determining success(e.g., Batra 1997). Tbese experts differ as to ease of transferof such knowledge, but the large number of internationalstudents educated in business schools in recent years doesprovide cause for optimism.

Third, Figure 3, Part B's "Marketing's DevelopmentFunctions" rellect marketing's roles in more basic settings(modified from Moyer 1965). Marketing encourages in-creased production by conceiving, organizing, and operatingnetworks for communication and exchange. Speculationacross time is needed to bring future production and con-sumption using entrepreneurial risk of capital and effort.Equalization of supply and demand occurs across distance(transport), time (storage), and quantity (price), whereasspacial connectivity joins diverse locales in a larger market-place to offer efficiencies of scale and lower prices to con-sumers. Over time, these can grow into a center for capitalaccumulation (investment) and serve as a springboard formarketing entrepreneurs' entry as industrialists. For exam-ple, some years after its nationhood, nearly half the leadingindustrialists of Pakistan were found to have come from themarketing sector (Papenek 1962*). Here they had learned,in Adam Smith's words, "the habits ... of order, economy,and attention" that characterize success in market distribu-tion (Smith 1776*, p. 385).

Contributions to Buyers fromSpecific Marketing Activities

We now focus on marketers' actions that benefit buyers. Be-cause there are millions of competing firms in the aggregatemarketing system, at any time a huge number of these ben-


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efits are being offered in parallel. Across time, these bene-fits accumulate through billions of purchase occasions to be-come truly formidable. Our framework in Figure 4 will beiamiliar to marketing thinkers, but persons outside the fieldlikely will be surprised at the scope of contributions offered.We begin wiih the economic concept of utility.

Marketing's Bundle of Utilities

l-conomisis traditionally employ utility to represent value.As a prominent economist observed nearly 80 years ago,"marketing and advertising are interested primarily in thecreation of value" (Moriarty 1923*). Identification of mar-keting's special utilities, shown in Figure 4, Part A, provedhelpful to economists who argued that distributive servicesadded value beyond that of production, ' ' Of the five utilitieslisted, note that only elemental utility, which refers to culti-vation or extraction of crops and raw materials, is arguablybeyiïnd marketing's purview. The second, form utility,comes primarily from operations, but marketing activitiescontribute here by (1) physically supplying essential inputsto the production process and (2) providing insights fromthe marketplace (e.g., market research) thai help decide spe-ciftc attributes for goods and services. Place utility is clear-ly in marketing's province, representing the value added byproviding goods where buyers need them. Marketing addstime utility through preplanning, inventory, and promotionactivities lo ensure customers can obtain goods when need-ed. Finally, possession utility is offered through marketingtransactions and enables customers to use goods for desiredpurpose.^.

The Eight Classic Functions of MarketDistribution

Our appreciation of marketing's contributions is enhancedby thought on ihe "functional approach" to marketing,which arose early in the twentieth century in reaction tomainstream economists' lack of attention to the value of dis-tribution. It became a ba.sic approach tor the study of mar-keting ior nitire ihan live decades, describing marketers' ac-tivities and reasons for them. With the rise of the managerialapproach, however, this descriptive view of marketing hasalt but disappeared (Hunt and Goolsby 1988),

Among many trameworks, the eight functions listed inFigure 4, Part B, arc widely accepted (Maynard, Weidler,and Beckman 1927). With the then-emphasis on agricultureand manufacturing, functional frameworks stressed physicalsupply services, beginning with transportation. Closely al-lied, storage helps nullify timing discrepancies in supply anddotnand, .smooths pnxluction schedules to lower costs, andenables mixing of ingredients or stock (as in our coffee beanexample). Innovations in these areas (consider refrigerationand free/Jng) have brought major improvements to societyduring the past century. The next of marketing's classicfunctions, financing, receives little attention by marketing

"The recent emphasis on supply chain management incorpo-rates a systems approach to the provision of these utilities aimed atenhancing efficiencies. Although this may alter marketing's identi-ticalion within a firm, these clearly remain as activities within theaggregate marketing system.

scholars today but is still a key topie in economic develop-ment settings. A firm must finance the time gap betweenstart of the productive process (when machines, material, la-bor, marketing, and so forth must be paid for) and later re-ceipt of money from sales. Such investment financing maybe undertaken directly by marketers or, when stakes arehigh, by financial institutions. Within the overall system, fi-nancing has fostered entry by many small businesses, andconsumer credit has enabled purcha.ses of millions ofhomes, autos, and so forth. It thus has been a key factor insociety's prosperity. Assumption of risk reflects transactionsand arises out of uncertainty. In marketing channels, for ex-ample, risk comes with ownership of goods for which futuredemand may be less than expected (e.g., negative pricechanges, demand shortfalls, improved designs, deteriorationin quality, credit problems with repayments). Risk is sub-stantial throughout the aggregate marketing system, a factapparent to those who forecast demand.

Assembly refers to the broader buying process, seekingout sources of supply and deciding on goods and servicesto be purchased. Buying is pervasive across the aggregatemarketing system and leads to successive changes in own-ership that end in final consumer purchases. On the otherside of a purchase is another's sale. Although much ina-ligned, selling harnesses the forces of competition to im-prove the value of offerings and brings about the exchangesthat enable the system to operate. Standard-setting often isunseen and quite underestimated. Once set by a society,standards serve as buying guides in a vast range of businessand consumer categories. In essence, they provide assur-ance for critical "credence" attributes such as safety,strength, or other elements of an offering that may be diffi-cull to determine through inspection, and they aid in priceand value comparisons as well. Marketers are importantusers of standards in our society and also participate in theircreation. (In contrast lo general perceptions, the vast ma-jority of standardization is a voluntary activity in the Unit-ed States, as opposed to standards being imposed by gov-ernment.) Finally, the gathering and use of marketinformation is quite fatniliar. Inputs can come fromsources—experts, government, customers, the sales force,library—beyond tbrmal market research projects. As a keyactivity in marketing, tbis function increasingly stimulatesimprovements in the benefits we now discu.ss.

Benefits from Product and Service Offerings

A tiiarketing exchange relies on both transacting parties' ex-pectations to be better off. Because sellers benefit from pay-ments for purchases, il is not surprising to find marketers'focus on purchase processes. However, it is important to re-call that beneftts received by customers accrue from use orconsumption. As indicated in Figure 4, Part C, this has an in-teresting itiiplication: Each single-use occasion creates anopportunity for another benefit delivery from the system.Furthermore, because products and services are "benefitbundles," users are deriving multiple benefits (e.g.. Green,Wind, and Jain 1972*). For example, toothpaste attributes,such as decay prevention, whitening, tartar control, andgood taste, can be combined to create multiple sources ofvalue in a single-use occasion. Extensive product variation


further enables closer fits with users' preferences. In theU.S. system, frequent new offerings and improvements tocurrent offerings also are pursued. Furthermore, we shouldrecognize that much of the care taken by marketers in de-sign, creation, and delivery of offerings remains unseen and,thus, is underappreciated by the general public. This careaids a brand's competitive success by providing an intend-ed, identical service or use experience expected by loyalcustomers. Finally, the marketing system generally standsbehind its offerings, with buyers often protected by guaran-tees or warranties.

To verify our impression of this system stress on quali-ty, we checked ratings in some 200 product and serviceclasses. Ratings were given in 1996 and 1997 in ConsumerReports, published by Consumers Union, an independenttesting organization that accepts no advertising or otherfunds from the marketing community. Our tabulation ofscores showed that, of 3028 ratings, only 51 items (1.7%)were rated as "poor" in quality. Including "fair" as a passinggrade, 98% of marketers' offerings received satisfactory rat-ings; 88% received ratings of "good," "very good," or "ex-cellent."'^ Clearly the system is delivering quality offeringsto its public.

Benefits of Branding/TrademarksUnique identification is not only significant to marketers(Aaker 1991), but also benefits buyers in four ways.'^ Asshown in Figure 4, Part C. unique source names assist (I) inorganizing future behaviors, because if problems are en-countered, the source can be recontacted, but if satisfied, fa-vorable attitudes can direct future decisions; (2) efficiencyin locating favored sellers (though it appears innocuous,summed across producís, time, and competing demands,this efficiency actually is quite significant in total); (3)rapid, confident choices in self-service settings (the averagetime for a single choice in a U.S. supermarket aisle is only afew seconds); and (4) in deriving symbolic benefits frompurchase, ownership, or use. Symbolic benefits can be pub-lic (driving a high-status car) or private (enjoying a finelycrafted product). Although at times a target for criticism,symbolic benefits' mechanisms are varied and subtle, in-volving sustaining personal identity as well as communicat-ing about the self (e.g., Belk 1988,* 1989*; Cohen 1989*;Levy 1959*).

Benefits from Market Distribution

As noted in the first entry of this section in Figure 4, Part C,the key benefits in this area are captured in our discussion ofmarketing's eight classic functions. Because it is performedlargely out of the sight of nonparticipants, however, the per-

quality test rating that used the five-point"excellent-poor" scale given by the organization was considered.Ratings by members were not included, nor were relative scales inwhich distributions were forced.

'•'Branding is being used in a broad sense, because price and val-ue are relevant issues as well. Health insurance firms, for example,are pushing for "debranding" (generic drugs) to obtain lowerprices.

formance of distribution easily can be underappreciated. It isuseful to recall that the marketing system performs thesefunctions repetitively and routinely, millions of times daily,each time offering benefits to receivers. Beyond this, whole-sale and retail activities offer additional benefits, as noted inthe remaining listings of Figure 4, Part C, The first five ofthese are well recognized and need no amplification. The fi-nal four entries, however, deserve sepárale discussion.

One powerful aspect of the U.S. marketing system is fa-cilitating the transaction process, which saves consumerstime and effort and maximizes purchase opportunities. Con-sider, for example, the benefits of extended store hours, con-venient locations, free parking, stocked shelves, postedprices, displays, fast and smooth checkout, advertising pricespecials, salespersons' pleasant and efficient completion oftransactions, and so forth. (Consumers from some other cul-tures express surprise and delight on this discovery of theU.S. retailing system.) Furthermore, processes forextendingconsumer credit enable some expensive purchases to occurthat otherwise would have been delayed, and bank creditcards have eased transaction processes for buyers and sell-ers alike. That stores pay significant fees, approximately3%, for bank card charges is a good indicator of how muchthe system desires to facilitate purchase transactions. Whena durable-good purchase is made, moreover, consumers en-ter a use phase that can last for many years. During this time,the marketing system offers a postpurchase support struc-ture with benefits such as delivery, installation, repair ser-vices, and liberal return policies. Our final entry is quite dif-ferent but has done much to improve the lives of everyonein U.S. society, in that channels of distribution serve as theentry point (gatekeeper) for new products and services. Re-ceptivity by wholesalers and retailers to offerings that pro-vide better value or new benefits has made this dynamicwork for societal gain. Similarly, government actions to re-duce barriers to entry serve to enable innovations and pricecompetition to work to the benefit of a society's consumersand competitors.

Benefits from Salespersons and Representatives

Sales representatives facilitate flows within the aggregatemarketing system. Although advertising receives more pub-lic attention, marketers frequently rate personal selling asmore important for business success. In one study, execu-tives rated selling five times more important than advertis-ing for industrial goods and almost twice as important forconsumer durahle goods; for consumer nondurablcs, thetwo were rated approximately equally important (Udell1972*). An estimated 20 million sales representatives are atwork daily in the system, 9 million in business-to-businessselling, and II million others dealing directly with con-sumers. Roles vary widely, as does level of performance. InFigure 4, Part C, we list some contributions offered inbusiness-to-business sales, in which the salesperson is aprofessional representative who deals with generally well-informed buyers and with current users who may need tohave problems resolved. To start, salespersons may becalled on to consult on large programs (e.g., plant con-struction, advertising campaigns), often as part of account


teams that include specialists. During this process, a repre-sentative may help crystallize client needs, educate aboutalternatives, introduce new entries, and customize the of-fering when feasible. He or she then works to facilitate theentire transaction, payment, and product delivery or projectcompletion. During this process, which could extend foryears, the sales representative provides access to technicalsupport and offers personal service to ensure customer sat-isfaction and a continuing relationship. Our final entry,feedback from the field, refiects the reports back to the firmabout opportunities to enhance its offerings.

Benefits from Advertising and Promotion

Each year, an incredible amount of money is spent on ad-vertising and sales promotion: Advertising is a major indus-try in its own right, accounting for approximately 3% ofU.S. GDP, Due to its high visibility, advertising is likely themost criticized facet of the aggregate marketing system,though it provides important benefits. In their classic studyAdvertising in America, Bauer and Greyser (1968; also seePollay and Miltal 1993) asked consumers about this institu-tion. Their findings fit four of the five entries in Figure 4,Part C. Appreciation for the information advertising pro-vides on products and prices was expressed by a majority ofconsumers.!^ Few consumers noted our second benefit;clearly, however, advertising can enhance consumer deci-sions through lower search costs. (Pnxíuct proliferation,however, raises search costs. ) The consumers mentioned en-larging market demand and noted special appreciation foradvertising's contribution to lowering prices. Less obviousare three related benefits in tbis category: reducing distribu-tion costs, aiding entry by new competitors, and fosteringacceptance of new innovations by a society. The consumersampie also recognized tbe final entries in Part C, applaud-ing advertising's role in subsidizing media and expressingpleasure with advertising's creative offerings.

Summary: Marketing's Key Benefits to BuyersBecause our detailed listings risk "losing sight of the forestfor the trees." in Figure 4, Part D, we abstract what we be-lieve arc 14 of the key benefits consumers derive from mar-keting activities. There is marketing's role in driving theproduction of offerings most desired in the marketplace. Intiiany organizations, marketers act as internal advocates whorepresent the customer in decisions on what to produce, thenitther elements of the aggregate marketing system advancetbe creation of those offerings by carrying out their func-tions (e.g., assembly, transport) at all intermediate stages,leading to final production. Tbe marketing system then man-ages tbe delivery of products and services to consumers. Italso expends funds to provide for market learning using.sales representatives, advertising, brochures, specializedbrokers, and so forth. The persuasive aspect of these vehi-

'^Several leading marketing thinkers believe that firms wouldbenefit from increased attention to providing consumer informa-tion/education programs that would assist consumers to make bet-ter decisions, as opposed to simple emphasis on persuasion/enter-lainment in advertising.

cles serves to stimulate market demand, which creates salesand can lead to lowered costs and prices. Through competi-tion, the system offers a wide array of choices, which en-ables consumers to judge how best to satisfy their needs toobtain desired quality, In this regard, it is interesting to real-ize that every available good and service is being purchasedby some fellow consumers. The system's variety enablessome marketers to offer close or even customized fits with auser's needs. The system also is designed to facilitate pur-chases, easing acquisitions of benefits tor buyers. Variouselements of time-saving are offered in both products andpurchasing, which increase societal members' efficiencyand leave time for more total activity. Also, tbe marketingsystem offers a postpurchase support structure to enablecontinuing benefits over time.

The marketing system continually brings new entries forcustomers to consider and actively works on behal f of prod-uct innovations and improvements, some of which will en-hance a society's quality of life over the long run. Further-more, it enables buyers to engage in larger totalconsumption than they would otherwise be able, throughcredit, price specials, discount versions of goods, and/orbundled attributes. Most sellers seek long-term repeat pur-chases from patrons, so customer satisfaction is a real goalof the system. Finally, the marketing system often offerspleasant environments witbin which consumers can act, adistinct benefit in itself (as those experienced with somemonopolists or government agencies can attest).

Two Broader Views of BenefitsContributions from improvements in MarketingSystem Activities

In our analyses to this point, it has become clear that the sys-tem's current level of performance is based on its emphasison a continual search lor improvement. Thus, our interest isin not only kinds of benefits, but also increased levels ofbenefits emanating daily from individual firms and people,as indicated in the following:

"Bacic to tiie Future." The constant press for im-provements characterizes the world of the aggregatemarketing system. Many efforts do not work out,some yield minor advances, and a few lead to normsof tbe future. In Figure 5, Part A, we display a few i l-lustrative cases of recent breakthroughs. For exam-ple, trucking firms now combine onboard computersand satellite tracking systems for real-time tiionitor-ing of their cargo. One firm uses tbis system to co-ordinate routes and communicate with all 10,000trucks in its fleet, thereby adapting instantly toweather or traffic delays. Tbe result is better deliveryservice with lower costs for the firm. Similarly, con-tainerization bas added efficiency in shipping andhandling; our coftee beans, for example, shifted eas-ily from ocean to ground transport and were less sus-ceptible to damage, spoilage, and Iheft. As distribu-tion channels have embraced relationship marketing,order processing systems have saved time and costs.


FIGURE 5Some Broader Views of Benefits

A. Contributions from Improvements in Marketing System Activities

Transportation- e.g., real-time monitoring

Materials handling- e.g., containerization

Distribution- e.g., order processing systems

Assembly• e.g., global sourcing

Retailing• e.g., checkout scanners

Product design- e.g., match or better

Promotion programs- e.g., loyalty clubs

Product management• e.g., brand equity

Market segmentation- e.g., mass customization

Database marketing• e.g., personalized offerings

Marketing research- e.g., expert systems

Packaging innovations- e.g., environmental impacts

Pricing programs- e.g., value/bonus packs

Services marketing• e.g., consumer satisfaction

B. Contributions to Quality of Life '

/. illustrative Social/Psychologicai Benefits to Marketing Participants (Opportunities for):- Achievement - Creativity - Beauty- Success - Humor , - Morality- Growth - Invention - Interpersonal relationships- Action - Influence - Understanding- Discovery - Service - Trust

//. litustrative Social/Psychologicai Benefits Created by Consumers Engaged Within the System:- Accomplistiment- Beauty- Safety- Health- Nurtu ranee- Joy- Gift-giving

///. Emerging Areas of Study:• Quality of life (QOL)- Social marketing

BondingBelongingExcitementPrestigePleasureSelf-enhancementEscape

- Socializing- Learning- Authority- Control- Status- Play- Leisure

For example, two firms may use electronic data in-terchange, in which inventories (e.g., a drugstore'sentire stock in a line) automatically are replenishedas sales movement data are transmitted to the whole-saler; people are limited to oversight of the system.Also, improvements in communications, transport,and technology have enabled marketers to move in-creasingly worldwide to obtain materials at muchlower costs. Although global sourcing has generatedlegitimate criticisms, it also has provided consumerswith quality goods at lower prices and added to theaggregate marketing systems of other societies aswell. In retailing, checkout scanners brought a revo-lution. Computerized pricing enabled stores to low-er labor costs, better manage inventory, and promotemore effectively through information on what worksbest with each store's customers. For food manufac-turers, this technology speeds adjustments to devel-opments in the marketplace, which enables in-creased responsiveness to consumers.

In product development, "match or better" means asearch for value parity on most key attributes, andadvantage on the others. For example, in the earlyI98ÜS, Ford Motor Company had lost $3 billion

when it created "Team Taurus," a group of mar-

keters, designers, engineers, and plant personnel

charged with developing a new car to rescue the

firm. The team relied on consumer research, choos-

ing 700 features for the new car from this source. In

addition, the team bought models of popular com-

peting cars, then tore them apart to analyze their best

features (over 400 were "borrowed" in this process).

The net result of Team Taurus's efforts? One of the

most popular cars ever produced and a turnaround

for Ford, whose market share rose from 16% to 29%

(Wilkie 1994). The general lesson? Marketers know

that demand is highly responsive to advantages con-

sumers perceive a product to have (or lack) and can

be quite responsive to price as well (e.g.. Day and

Wansink 1994*). At this point, we need not detail the

remaining items in Figure 5, Part A, because mar-

keting readers easily can appreciate the potentials of

each. As previously noted, pressure for improve-

ments in the system are relentless, and the positive

benefits of this force should be appreciated.


Contributions to Quality of Life

In this final section on contributions, we shift away from theeconotnic calculus that reports on the system as if it were arelentless machine spewing out streams of utiles. Instead weexamine briefiy the aggregate marketing system as a humaninstitution composed of people living their lives on a varietyof fronls. Our effort here is illustrative, intended to raise thistopic as worthy of further attention by marketing scholars.We first examine benefits in the work of marketing, inwhich aggregate effects eould be very large.

Social/psychological benefits to marketing participants.In the first set of entries in Figure 5, Part B, we have listed sev-eral social and psychological benefits we believe are offeredto persons who work in marketing. Drawing on the system'sstress on competition, achievement is highly rewarded in thisfteld. This is one reason for steep increases in incomes in ear-ly years of a marketer's career, in contrast to accounting or en-gineering, in which salaries begin at higher levels but increasemuch more slowly. Because of the marketing system's open-ness to change, opportunities abound for feelings of personalgrowth and individual autonomy. Whether pursuing clearerunderstanding of the consumer marketplace, creating a newadvertising campaign, managing a retail store, closing an im-portant sale, or planning a new product launch, marketing of-fers challenges to creativity and ingenuity, as well as opportu-nities to inlluence others. Marketers in many areas can offerservice to others, and those in the arts can foster aesthetic val-ues within society. Many marketing positions require team-work to achieve a comtnon goal, which can provide valuedgroup affiliations. It is common for sellers to develop friend-ly relationships with their clients as a consequence of ongoingexchange activities. In our breakfast illustration, for example,the large transaction between the coffee buyer and majorgrower was scaled with a handshake. To marketing scholars,tnany of whom who have cotne to the fteld from other disci-plines, these attributes are well understood. Furtbeniiore, withglobalization of markets, tbese opportunities are expanding.

Social/psychological benefits created by consumers.Since the study of consumer behavior entered marketing'smainstream during the 1950s and 1960s, consumers' goalsand tiiotivations have been studied extensively. Most re-search has been instrumental (e.g., what can we learn aboutconsumers so that we can sell more effectively to them?),but some reveals interest in deeper human issues. Examplesinclude two older books by well-known marketing consul-tants, Daniel Yankelovich (1981), who revealed concernsabout society's direction at the time, and Arnold Mitchell(1983), who designed the VALS (values and lifestyles) sys-tem using Maslow's hutnanistic need theory.

More recently, the intcrpretivist orientation (e.g.. Sherry1991) has honed our appreciation of goods' meanings inconsumers' lives. A carelully cultivated lawn and flowergarden can give a homeowner a sense of accomplishment, ora parent may derive special satistaction from selecting food,clothing, or furniture for a safe, healthy home. Gift-givingcan involve significant emotional and symbolic dimension.s.Movies, sporting events, or theatrical productions can leadto feelings of belonging, prestige, escape, or excitement.

Consumer activities enable learning, socializing, and .self-enhancement (listening to music, playing tennis); benefitsare emotional, subjective, and experiential (Holbrook andHirschman 1982*). Spending money can bring feelings ofachievement, status, control, and even play. Shopping is anenjoyable activity for many. Although intangible and diffi-cult to express, our treatment of the marketing system's con-tributions to consumers would be incomplete without dis-cussion of these sometimes meaningful consequences.

Two emerging areas of study on marketing's broader con-tributions. During the 1960s and 1970s, literature on market-ing and society raised questions about ( 1 ) how well society it-self was faring and (2) how it might be improved. Thesequestions spawned two different subareas: research on "qual-ity of life" (QOL) and "social marketing." Marketers inter-ested in QOL faced three special issues: ( I ) marketing is on-ly one of many forces that combine to yield overall litcstylcs,(2) daunting conceptualization and measuretiient issues onexactly what QOL is, and (3) difficulty in communicatingacross fields. Economists defined issues to fit their terms andresearch forms, as did psychologists, sociologists, ecologists,and political scientists (Sirgy, Samli, and Meadow 1982). TheInternational Society for Quality of Life Studies now carrieson this work. Recent work on the American Consumer Satis-faction Index shows promise in reflecting market-based per-formance of the system at various levels of aggregation (For-nell et al. 1996), as does work on the Index of ConsumerSentiment Toward Marketing (Etzel and Gaski 1999).

Social marketing differs from traditional marketing byaiming to benefit the target audience directly (e.g., AIDSawareness or childhood imtnunization) or society as a whole(e.g., recycling programs, blood donations) rather than thefirm sponsoring the progratn (Andreasen 1994*). It has,however, faced academic difficulties on two fronts: (I ) it hastended to be an "action" field in which primary emphasis ison successful intervention and (2) value judgments are madeon desirable behavioral changes, so the area is also "activist"in tbis sense. There is potential to add to knowledge in thissphere, and an expanding set of researchers has been movinginto the area (e.g., Andreasen I99I;Goldberg 1995*). Mean-while, useful field work has been progressing for some time,applying marketing tools in health and safety, education,charitable giving, politics, the arts, and the environment.

In light of the topic for this article, these two fields ofstudy are significant in pointing out that the aggregate mar-keting system is composed of more participants than justbusiness marketers. Private marketing i.v the mainstay of thesystem in the United States, but government, the entire con-sumer sector, and many individuals in the not-for-profit sec-tor are also participants. The system's issues extend to soci-etal concerns and, in turn, are affected by them as well.

Criticisms and Probiems of theAggregate Marketing System

Our focus in this article has been on accomplishtiients, butbalance calls on us to acknowledge also that the aggregatemarketing system long has been controversial in some re-spects. In Figure 6, we summarize many of the most promi-


nent criticisms, controversies, and problems that have beenraised. Space limitations preclude an extended analysis, butit is available elsewbere (Moore and Wilkie 2(XX)). We be-gin with critiques of system values. These usually are madeby persons speaking from vantage points outside tbe systemand raising philosophical points about its nature. These crit-

icisms tend to say little directly about tbe practice of mar-keting but instead focus on broader issues such as the "con-sumer culture" and the economic system that sustains it. Po-litical theory is the root of some of these critiques, but notall. These are not simplistic arguments, and we do not wishto do them an injustice in such a brief summary. Readers

FIGURE 6Criticisms and Problems of the Aggregate Marketing System

Broad Socialand Economic Concerns

Critiques of System ValuesPromotes materialism

- Stresses conformity- Social competitiveness, envy- Exacerbates pain of poverty

Negatively affects cultural values- Creates insidious cycle of

work and spend- Discourages participation in

noneconomic activities (e.g.,arts, community, leisure)

- Undermines families, alterssocialization

Is fundamentally persuasive/ma-nipulative in character

- Creates artificial wants andneeds

- Invokes imbalance betweenmarketer and consumer

Cultural imperialism- Cultural impacts- Natural resource depletion- global warming

Prc^oses limitless, unsustainableaggregate consumption levels

Capitalist system promotes in-equality in benefit distribution(fairness versus allocative effi-ciency)

Emphasis on private consump-tion leads to deterioration In qual-ity of public goods

Pervasive commercialism

System is inherently self-serving,directed toward no broader socialpurpose

"Classic" Social and EconomicDebates

- Does distribution cost toomuch?

- Is there too much advertis-ing? Is it wasteful?

- Advertising: information ormarket power?

- Advertising: good taste andmorality?

- Subliminal advertising?- Is price related to quality?- Is deliberate product obsoles-

cence good?

Views of the ConsumerMovement

The Consumer Bill of Rights• The right of safety- The right to be informed- The right to choose- The right to be heard

Consumerism's Three Majoreras: Key Issues[.Turn of the century

- Food and drug safety- Regulation of competition

11.1920s and 1930s- Objective information- Consumer representation

III. 1960s and 1970s- Product safety- Advertising's social impact- Avenues for redress

Economic Imperfections: TheAsymmetric Power ofMarketing

- Difficult product quality as-sessment

- Incomplete or biased informa-tion

- Too few sellers in some localmarkets

• Uncaring civil servants- Too little time for considered

decisions- Underrepresentation of con-

sumer interest- Ineffective regulatory agen-

cies- Consumers' deficiencies

Some ContinuingControversies

- Dangerous products (e.g...cigarettes)

-Vulnerable groups (e.g.. chil-dren, elderly)

- Emerging problems with mar-ketplace encroachment- Intrusiveness of advertising- Concerns regarding inva-

sion of privacy- Restrictions on database

usage- Selling as marketing re-

search- Exploitation by price dis-

crimination

Continuing Challenges forMarketing Practice

Limits to Information endPersuasionAdvertising content

- Limits to persuasion- Themes, executions, and

Lupy- Intrusiveness: environmental

clutter- Ad approval processes

Sales, pricing, and after-salespractices

- Limits to persuasion- Control of sales abuses- warranties and guarantees- Retailer and distributor pric-

ing practices

Information disclosure- Limits to disclosure- Effective warning labels- Use of disclaimers

The Broader EnvironmentEnvironmental concerns

- Natural resource depletion- Threats to ecology- Reusabilty and disposition

Product safety- Hazardous products- Regulatory approval process-

es- Product failure and liability

Anticompetitive practices- Effects of quotas/trade barri-

ers- Antitnjst issues

Responsible CorporateCitizenshipConsumer dissatisfaction

- Rumors and negative wordof mouth

- Complaint handling- Problem resolution systems

Corporate actions- Incorporating ethical con-

cerns- Role of consumer affairs de-

partments- Criteria for evaluating busi-

ness performance- Industry self-regulation- Community involvement

Problem Episodes ThroughDeliberate Behaviors

Marketing Sector- Deceptive advertising- High-pressure sales tech-

niques- Misrepresentations of sales

intent- Inferior products and services- Bait and switch- Price fairness: high-low pric-

ing- Price fixing- Predatory pricing- Franchise abuses- International: Bribery- Gray-market goods- Counterfeit goods- Internet fraud

Consumer Sector- Uninformed decisions- Consumer fraud (e.g..

shoplifting, credit abuse)- Bankruptcy- Product liability: Frivolous

lawsuits- Compulsive consumption

Government Sector- Errors of omission- Errors of commission

1 I

1

1

u '

1

I

1

1

' 1

1


will find writings by Galbraith (1958) of interest, as well asthe Pollay (1986*, 1987*) versus Holbrook (1987*) adver-tising debate and the recent collection by Goodwin, Acker-man, and Kiron(I997).

Classic social and économie debates are next in Figure6. These have a long history, though they have evolved overtime. For example, the distribution cost debate of the earlyl9()0s had fanners questioning why they received only alow percentage of the consumer's food dollar; today, buyers(and fanners) ask why cereal brands are priced so high rel-ative to ingredient costs. Also, much attention has been di-rected to advertising, as reflected in four of the eight de-hates. These debates likely persist because ( I ) strongproponents on each side will not concede; (2) generaliza-tions are, at times, based on episodes; (3) decisive empiricalevidence has not been available because of severe measure-ment difficulties; and (4) the underlying issues actually arecomplex.

The second column reflects the views of the consumermovement. These tend not to be antagonistic to the aggre-gate marketing system itself (recall the high ratings Con-sumer Reports gives system offerings) but are aimed at hav-ing the system serve consumers' interests rather than onlythose of marketers, Thus, President John F. Kennedy's 1962proclamation of the "Consumer Bill of Rights" was regard-ed as crucial in placing the power of government squarelyon the side of consumers in the four basic ways listed (thatis, it affirmed that U.S. society would pass laws, restrictingmarketers if necessary, to ensure consumers received theirrights). During the past century, there have been three eras(Mayer 1989) of high public receptivity to consumer move-ment issues. Consumer issues have shifted over lime as ear-ly concerns largely have been attained (e.g., food processingsafety). A root belief sustaining the consumer movement,however, is that major economic imperfections persist with-in the system, especially reflecting pricing and value re-ceived per dollar. These arc listed in the next entries of thissection (Maynes 1997). Some debates continue in part be-cause consumers themselves disagree. Again, our treatmenthere cannot do justice to the arguments' sophistication, butexcellent readings are available, including Aaker and Day(1982), Maynes and colleagues (1988), Mayer (1989), andBrobeck (1997).

The third column of Figure 6 highlights difficult is-sues that arise naturally in marketing and must be ad-dressed.'-'' Handling by some marketers may spark legiti-mate criticisms, whereas others may merit commendationfor efforts lo be responsible. Also, problems may arise inbalancing goals of different stakeholders. Illustrative is-sues are organized in three topics. First, limits for per-suasive influence arise in both advertising and selling; afirm must focus on both policy and daily control levels toaddress these. Second, specific problems arise from cer-tain products or from markets that pose societal external-ities i f only short-term sales and profits are pursued. We

'••The essential point here—that social issues shape aspects ofmarketing practice—is based on Day's (1994) framework, whichwe have modified lo reflect our purposes in this section.

expect increasing conflict here if societies' controls ofmarketer actions are challenged by further globalization.Third, consistently responsible actions by all members ofan organization are needed. Efforts here include designof systems to assist customers with problems and formal-ization of the presence of influential "voices'* for allstakeholders, including employees, consumers, and thebroader society. The right-hand column of Figure 6 thenshifts to deliberate problem behavior, as in our final i l -lustration.

"Ruthless People." On rare occasions, a participantin the aggregate marketing system chooses to act inways that injure others. This occurs in all systemsectors, as indicated in the following reports (Wiikie1994).

(Marketing slippage) "Creating a consumer want"has a cynical meaning among a certain stratum ofmarketers who first alter a consumer's product, thenpoint out the problem to gain a sale. Gas stations oninterstate highways, for example, have been caughtplunging ice picks into tires and placing chemicalsinto batteries to cause adverse reactions. "Termite in-spectors" have been caught placing the bugs inhouses, then informing frightened residents of animminent home collapse unless repaired immediate-ly. Some traveling "tree surgeons" thrive by pointingout imagined diseases in large trees over a house,then removing the trees at high prices. A classic caseof this fear selling, however, was used hy the Hol-land Furnace Company, which employed 5000 per-sons in its 500 U.S. offices. Its sellers were to intro-duce themselves as "safety inspectors," go down tothe furnace and dismantle it, and then condemn it as"so hazardous that I must refuse to put it hack to-gether. I can'i let myself he an accessory to murder!"Senator Warren Magnuson (Washington) called theselling "merciless." One elderly woman was soldnine new Holland furnaces in six years, which costmore than $ 18,000 at the time.

(Consumer slippage) We have pointed out Chat onehallmark of the marketing system is emphasis onproviding satisfaction after sale, including liberal re-turn policies. Some consumers abuse this service, asthis quote shows: "Mark is a soccer player whoneeds new shoes frequently. He has developed a sys-tem to get them from a local store that takes back de-fective shoes. Once or twice a year, Mark removesthe sole, slices off a cieat, or places a rip in thetongue, each in a way that is hard to detect. He thenbrings the shoes to the store to exchange .,, at lastcount he'd received eight new pairs this way. Markis sure to go to a different clerk on each visit, and ...probably won't get caught."

(Government sector) Government abuses are harderto identify hecause of the few legal cases and diffi-culty in observation. Errors of omission (failure toact when warranted) may be more common than er-rors of commission because of tbe incentive struc-


ture of a bureaucratic system. For example, NewYork City's health department discovered that a dis-pute between two laboratory managers had led to de-lays of up to one year in reading cancer test resultsfor women using city clinics. Of 3000 delayed Papsmear readings, 500 abnormalities called for imme-diate follow-up, 93 more appeared malignant, and 11were clearly malignant. On discovery, the commis-sioner denounced his department for "betrayal of thepublic trust" as he demoted four people (evidently,none could be fired).

Severa! points remain. This is a complex area in-volving the law; it may not be clear that an act wasdeliberate or that a certain party was responsible. Al-so, criticisms usually are aimed at marketers, but allsystem participants have responsibilities, includingpublic policymakers and consumers, and negativeacts occur in each sector regularly. In addition, someacts deserve to be criticized by all participants. TheU.S. system is designed for dealings tobe open, hon-est, and well-informed. Deceptive and irresponsiblebehaviors injure honest competitors or consumers.Thus, it is disingenuous to simply defend actions offellow marketers or consumers because system rolesare shared. It is not clear why anyone would wantdisreputable persons' actions to define either thestandards or image for the system overall.

Conclusions and ImplicationsOur goal has been to stop at this unique point in time, con-sider the larger picture of tbe marketing field, then fairlyportray its structure, activities, and benefits to society. Thesystem is huge and dynamic. Its imperfections stand as chal-lenges for improvement, and it is appropriate for partici-pants to vk-ork to rectify them. Beyond this, the aggregatemarketing system offers much that is impressive.

In SummaryThis article began by comparing daily life today with that atIhe turn of the last century. It is evident that tbe aggregatemarketing system has brought many improvements to soci-ety. An illustration of a breakfast then showed the conflu-ence of marketing systems, which highlighted the physicalside of marketing and the wide range of system activities.Together, these explain why the aggregate marketing systemis so ubiquitous within U.S. society: It employs approxi-mately one in five adults and includes several million firms,several hundred million consumers, and many others whodeal with marketing in their work in government, the pro-fessions, services, and not-for-profit sector. In tbe next sec-tion of the article, we summarized a three-set series of con-tributions the aggregate marketing system offers to society.We examined benefits to the overall economy, as well as foreconomic development, in the first set. Tbe second set com-piled an impressive array of direct benefits to buyers, andtbe third noted continual enhancements in system perfor-mance and an array of noneconomic contributions to thequality of life of a society and its members. We followed this

with a summary of criticisms of the system. As previouslynoted, tbe aggregate marketing system emerged from thisoverall analysis as a worthy testament to those who haveshaped it over time.

Interesting insights from the Project

Some substantive lessons learned. This project has beenilluminating, and five "lessons learned" stand out for us (de-pending on background and interests, other readers mighthave drawn different insights).

size, power, and practiced performance of the aggregate

marketing system has emerged in (his project. Several pointsaccompany this realization: {I ) There is a real need to appre-ciate conceptually the magniludes involved in this system; (2)many "hidden aspects of marketing" may be being excludedfrom thinking about the Held; and (3) those marketing clc-ment.s the public experiences directly, such as advertising andretail selling, are likely receiving disproportionate weight init.s view of the field.Not all lessons are entirely positive: future developments like-ly will place marketers at the center of further controversies."Society," as referenced in Ihe article's title, may be losingcohesion, and global marketers can be described as assistingthis process (though this might not be intentional). Considerchallenges to ethical systems (e,g,. bribery), religious belietsand customs (e.g., interest rates), or govemment protectionsfor home industries and workers (trade barriers) and growingneeds for adaptations in national antitrust policies (FederalTrade Commission [FTC] 1996). Meanwhile, not only doesthe Intemet seamlessly cross societal boundaries, but the in-credible efficiency of its reach otïers huge potentials tor mar-keting fraud. In one recent FTC (1997) case, an Internet pyra-mid scam promised investors $60,000 per year lor an initialinvestment of $250: 15,0(X) consumers had bought in beforeit was stopped. Overall, concems are increasing about mar-keter intrusions in privacy ot" records, security of financial re-sources, and selling to children.

This article has concentrated on benefits and system poten-tials. However, al this special point in lime, it is reasonablefor every marketing person to ask whether the current aggre-gate marketing system actually represents "the he,U of allworlds." Our emphasis here is not critical but philosophical.The system is very powerful, and marketers are at work tohelp it achieve its ends. That society has granted marketer^substantial freedoms, and that these serve to allocate much olthe nation's resources, is a key statement about a societal pur-pose of the aggregate marketing system. To what extent domarketing managers view themselves as having reponsibilityfor improving the public interest or acting as stewards of iisociety's resources? What implications do these views havefor the field as presently constituted?"*The central role for innovation in improving a society's qual-ity of life became more evident to us. The contributions frotiiinnovations and improvements are striking. Conceptually,this underscores the value of dynamism in an aggregate mar-keting system, as well as the key role of competition in pro-viding the system's impetus. In turn, the societal importanceof a government's policies to foster and protect both innova-tion and competition—antitrust, patents, trademarks, and soforth—becotne clearly apparent, but global differences mayimpede future progress. We also find the system's twin re-liance on competition as a driver and trust as a bonding agent

thank an anonymous reviewer for suggesting this is.sue boraised for the field's consideration.


lu be impactful yet somehow paradoxical. Finally, it is clearthat achievement of success in discoveting. developing, andmanaging new products is a central issue for the field, whichcalls for closer ties with other areas, such as more joint pro-grams for science and marketing.

^Tremendous poientials exist for marketing contributions toeconomic development, which can literally "change theworld" for citizens of developing nations. Each aggregatemarketing system is specific to its own society and time. Al-though a society's choices will constrain options, develop-ment also proceeds in identifiable stages. Thus, there is a po-tential to transfer knowledge, products, and methods founduseful in prior stages of advanced systems. Aggregate mar-keting systems are in tlux daily across the globe. Will the"transitional" nations trying to move from command to free-market systems be successful? Strong linkages between mar-keting, public policy, and aggregate marketing system perfor-mance are starkly clear in these cases.

Implications for marketing scholarship. Overall, we areoptiiîiistic: This project has convinced us that adoptitig theperspective of the aggregate marketing system helps a per-son "see" the field of tnarketing in its true expanse and com-plexity. Hovi'ever. this perspective largely has disappearedfrom the marketing mainstream in recent years (Wilkie1997; Wilkie and Moore 2000). Four insights address di-mensions of this issue:

^Prospects for contributions from many scholarly traditionsare bright if differing perspectives are pursued. One wonder-ful aspect of the academic life is its freedom to speculate. Be-yond specific topics in marketing and society research, it ishelpful to recognize how employing dif'terent perspectives onthe aggregate marketing system could enable a much broaderset of contributions to marketing thought. To wit. the goals forthis journal issue directed our focus toward "marketing." "contributions." and "society," and we examined the worldfrom this vantage point. A slightly dilTerent mandate, howev-er, might have led us to. say. "the aggregate consumption sys-tem." In this case, consumer behavior, consumer economics,and public policy would have joined marketing on centerstage, though the larger phenomenon would not differ much.Thus, this project has highlighted more generally for us thepotentials of higher "levels of analysis" aggregated beyond asingle firm, market, or household. Although not a new insightin itself, its potential to be meshed with differing perspectivesopens many opportunities for useful investigations.

^Of particular note, the "value of marketing" offers specialpotential as an organizing framework for new contributionsto marketing thought. Following on the preceding point,much current research in marketing is actually quite usefulfor understanding the aggregate marketing system if we in-voke only a slightly different frame of reference. "Value ofmarketing" will work well. A multiuniversity project with thistitle was begun by Yoram Wind at the Wharton School in theearly 1990s and led to some of the insights cited in this arti-cle. Support for Wind's project is warranted, as is a generalrecognition of this framework's potential. For example, as-sessing the value of marketing activities is congenial to muchcurrent research in marketing management (e.g.. new productdevelopment), marketing science (e.g.. long-term value ofpromotion versus advertising), and consumer research (e.g..consumer information). Furthermore, value can be assessed ata firm level, across firms, or for society. Thus, efforts at de-veloping theory and calibrations of the value of various mar-keting actions will contribute to a better understanding of theaggregate marketing system.

Ir/if e.xisting infrastructure for thought on "marketing and so-ciety" offers inviting opportunities. Many interesting researchissues exist, and interested scholars should know that the pre-sent infrastructure eases entry to this area. Nearly 300 acade-mics have joined the American Marketing Association's re-cently formed "Marketing and Society" special interestgroup, and allied professional groups exist in such areas asmacromarketing, marketing and public policy, marketingethics, the consumer interest, marketing history, and theaforementioned areas of QOL and social marketing, each ofwhich offers periodic meetings. Many publishing outlets ex-ist, including the Journal of Macroniarketing, Journal of Pub-lic Policy & Marketing. Journal of Consumer Policy, andJournal of Consumer Affairs, which are among those that spe-cialize in publishing research in this area. Mainstream jour-nals long have welcomed manuscripts as well.

M.Ï a final note, it is troubling to realize that knowledge doesnot necessarily accutnulate in a field; knowledge can disap-pear over time if it is not actively transmitted (e.g.. Wilkie1981*). One responsibility of academia is to place a field ofstudy into proper perspective. We believe the aggregate mar-keting system should come to occupy a central position in re-search in the marketing field. However, this issue will not re-ceive due consideration unless current scholars are willing toconsider that important knowledge is being lost from the ac-tive body of marketing thought. As research specialization hasproceeded, with good reason, this risk has increased. Knowl-edge outside a person's specialty first may be viewed as non-instmmental. then as nonessential. then as nonimportant, thenfinally as nonexistent. Our concern is not for today's scholars,who may opt to make an informed choice, but for later gener-ations of scholars who may not gain enough background to re-alize that a choice is available to them. To examine this risk, asurvey of Doctoral Consortium participants was run as part ofthis project (Wilkie and Moore 1997). In brief, the.se concernsappear justified. Although two-thirds of current doctoral can-didates repon having a personal interest in learning about mar-keting and society, less than one in ten has taken even onecourse in the area at any level, and self-rated expertise is low.Doctoral programs sorely need to reconsider this issue, asmight MBA and undergraduate programs.

Into the Future

Having begun this article by looking back over a long time,we now know not to look forward very far. As just one ex-ample, new information technologies clearly will changeour world in the future, though exact impacts are unknown.Some firms will gain new efficiencies, others will developnew offerings, and all will need to adapt to new competitiverealities. Richard Tedlow (1998), Harvard historian of busi-ness, offers the view that the future of the Internet dependson its treatment within the aggregate marketing system:

the word on everyone's lips is "Internet." A century ago[it| was "radio." When radio came along, everyone knewthat a device of profound significance was now available... but for all its magic, how was radio to be commercial-ized? ... It took decades to find the answer for radio. Howlong will it take for the Intemet?

And what happens if the Internet changes consumers'buying behaviors in basic ways? Whereas "I(x;ation, loca-tion, location" was long the retailing mantra for success, theInternet means that geographic location can be removed asa factor (sellers can be anywhere in the world), time can beshortened and shifted through computer access, new formsof information (with advice from neutral experts) can be


consulted, and lower prices might be negotiable. How willtoday's fixed marketing system—malls, retailers, whole-salers, manufacturers, suppliers, shippers, advertising agen-cies, and salespersons—adapt, and to what extent will it benecessary? It is interesting to realize tbat some readers ofthis article will be responsible for the successful adaptationsthat will change the marketing systems of the future.

In closing, we reiterate that we teel privileged to havehad this opportunity to step back, explore, and recognize theachievements of the aggregate marketing system. Throughthis process, we have gained a better understanding of thenature of the field, the challenges tbat it faces, and the con-tributions it makes to societal welfare.

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Free Press.and George S. Day (1982), Consumerism: Search for the

Public interest, 4th ed. New York: The Free Press.Andreasen, Alan R. (1991), "Consumer Behavior Research and So-

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