Neoclassical economics has provided guidelines for marketing systems’ functionality for many decades. Marketing systems are plagued with micro-level bias, economic actor preference, and variance discrimination advanced by the conventional market definitions (Vargo et al., 2017). According to neoclassic economists, markets are systems that facilitate the transactional aspects of goods and services between sellers and bias to optimize utility and profits. The definition is flawed because it overemphasizes price and product mechanisms, neglects the broad social structure, and does not account for time. Market resources are a dynamic new marketing model that focuses on the mobilization of resources to enhance community change.
Modern-day economists assert that it is imperative to change the medieval designation of markets as tools of enhancing the exchange of services and goods for personal utility. Instead, markets should be viewed as a whole system that comprises complex stakeholders (Vargo et al., 2017). Therefore, there is a need to examine the role of relationships in creating marketing models. Economists should research on the new market shift from quantity to quality that consumers and sellers are adopting. Additionally, economists should conduct research on ethical, social, and environmental issues that affect markets through various actors. Finally, economists should research broader market relationships, such as buyers who purchase products from buyers and suppliers’ sellers.
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There is a collaborative value creation by firms that employs a multidisciplinary approach with stakeholders. Integrative value creation in markets is resulting in vanishing market boundaries where specific actors had unique responsibilities. Actors are embracing new roles, such as new attention shifting from transaction to relationship and product to process. Finally, economists must research the roles, norms, practices, symbols, and meanings of relationships to understand market dynamics.
References
Vargo, S. L., Koskela-Huotari, K., Baron, S., Edvardsson, B., Reynoso, J., & Colurcio, M. (2017). A systems perspective on markets – Toward a research agenda. Journal of Business Research , 79 , 260-268. doi:10.1016/j.jbusres.2017.03.011 https://www.sciencedirect.com/science/article/pii/S014829631730098X
