A Theory of Marketing: Outline of a Social Systems Perspective

196 Pages·2006·2.399 MB·English

by  Marius K. Lüdicke (auth.)

Marius K.LiJdicke
A Theory of Marketing
GABLER EDITION WISSENSCHAFT
Marius K. Liidicke
A Theory of Marketing
Outline of a Social Systems Perspective
With a foreword by Prof. Dr. Markus Giesler
Deutscher Universitats-Verlag
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Dissertation Universitat St. Gallen, 2006
I.Auflage April 2006
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Foreword
Marketing rules. Its enormous role in business practice and theory provides pivotal evidence.
Today small companies and global corporations, as much as individual social actors and en
tire countries are all expected to do marketing, to be market-oriented. Yet, despite endless
practical and theoretical debates over the form and function of marketing, it remains rather
unclear what marketing really is - and what it is not?
The academic discourse that seeks to define the concept of marketing and its societal and
economic resonance is still ongoing. From the late 1940s until today theories of various color
and stripe have formulated requirements for a comprehensive theory of marketing. Yet, al
though marketing research defines in great detail what marketers do or should do, the ques
tion on what truly distinguishes marketing fi-om business strategy, sales, distribution, adver
tising or corporate communications has been largely unanswered.
During the last two decades, Niklas Luhmann's unique sociological theory has earned creden
tials as a "radical antihumanist, radical antiregional, and radical constructivistic" interpreta
tion of society. In his work "Die Wirtschaft der Gesellschaft," for instance, Luhmann intro
duced an empirially consistent, comprehensive definition of the market economy as a social
system that proliferates through payments using money as a medium of communication. How
can such a lens be used to resolve some of the pressing theoretical issues marketing is cur
rently facing?
In the present study, Marius Luedicke seeks to answer this question. Using Luhmannian so
cial systems theory as a conceptual framework, and based on extensive historical evidence as
well as several small-scale empirical studies, he first cautiously analyses the 20* century
emergence of marketing and impacks core obstacles of creating a wholistic understanding.
On these grounds, he introduces one possible outline of a social systems theory of marketing.
Drawing on Luhmannian theory, Luedicke explores and develops the codes, programs, and
fundamental communications that define marketing as a social system sui generis. The con
cept builds on the brand as the pressure point of all marketing activity and the existence of
brand systems that develop through social communications about brands.
In summary, the work offers the reader a refreshing Luhmannian perspective on the market
ing phenomenon and a consistent theoretical interpretation of some of the most relevant mar
keting issues to date. Luedicke addresses and resolves a wide range of highly relevant market
ing issues that should play well in front of both practical and theoretical audiences.
Prof Dr. Markus Giesler
VII
Preface
The present work evolved during my time at the University of St. Gallen (HSG), Switzerland,
as a doctoral student and at the Schulich School of Business, Canada, as a visiting researcher.
In this preface I would like to express my appreciation, thanks and gratitude to the great
people that significantly supported my research.
First of all I thank Prof. Dr. Beat Schmid for giving me the opportunity to write a dissertation
thesis at the Institute of Media and Communication Management at the University of St.
Gallen. The school provided the greatest working environment a researcher can dream of.
I am especially grateful to Prof. Dr. Markus Giesler from the Schulich School of Business.
His extensive advice, his kind invitation to Canada, his scholarly guidance and passion for
academic research, his unlimited efforts in introducing me and my work to the North
American community of marketing researchers and his friendship were of indescribable
value.
Then I thank Prof. Dr. Dirk Baecker for introducing me to the right scholars at the right time.
I also thank him and Prof. Dr. Kai-Uwe Hellmann for guiding my thoughts at crucial points
of decisions with their extensive knowledge of Luhmannian theory.
I also acknowledge the following persons for greatly having inspired and supported my work
in various ways: Eric Amould, Claudia Bergmuller, Wolf-Christian Eickhoff, Eileen Fischer,
David Holzer, Sidney Levy, Michael Pirson, Linda Price, Heiko Spitzeck, Melanie
Wallendorf and my dear family.
St. Gallen, January 19*, 2006 Marius K. Ludicke
IX
Abstract
This dissertation rethinks one of the most exciting socio-economic phenomena of the
emerging 21'* century: the concept and reality of marketing. Since 1946, marketing scholars
have been trying to capture the field with a comprehensive general theory as a consistent
framework of analysis. This study advances this ongoing project by theorizing and defining
marketing as a unique form of social system.
To conceptually and coherently define, situate, and legitimate marketing as an organizational
function, research domain, and linguistic expression, the thesis chose Luhmannian social
systems theory as the key conceptual framework. The approach enabled an inquiry into the
reasons for society to develop and proliferate marketing systems and unveiled their basal
operations, codes, programs, and structures. The study rigorously employed historical and
hermeneutical content analysis as well as rhetorical methods. Data was derived from five
sources; extensive literature research, an interview-study with 5 leading global companies, a
content analysis of 500 marketing job descriptions, 51 consumer interviews, and a qualitative
study on brand systems.
Findings unveil marketing as a social system that communicates through and about brands to
influence observers' preferences on behalf of a host system. Preferences are ephemeral orders
of desires that refer to observers' budgets of money, time, or attention. A brand is defined as a
form in the medium of brands that is manifested in the dimensions of output, value, access,
and marking. Brand systems are conceptualized as social systems that embed brand-related
communications and enrich, for an observer, the brand with meaning. The primary code of all
marketing systems is "preference/no preference towards a brand." A secondary constituting
code of marketing systems is adopted from the particular host system, for instance,
"payment/no payment" if the host is an economic organization or "truth/no truth" in a science
context. The basal operation which marketing systems utilize to induce preferences is brand-
related communication. It comprises communication through brands in the medium of
money, and communication about brands in the medium of meaning. As budgets are spent,
preferences are manifested, e.g., in payments for brands and acceptance of brand systems.
For the first time in marketing history, this thesis consistently defines the boundaries, codes,
and basal operations of marketing systems, structures marketing theories in a coherent
framework, and provides researchers with a macro-level mode of observation, the marketing
systems analysis.
XI
Contents
Foreword V
Prefece VII
Abstract IX
Contents XI
Figures XV
1 Introduction 1
1.1 Overview 2
1.2 What is Marketing? 3
1.3 What is the Dilemma and Why Should it be Addressed? 6
1.4 How Can these Challenges be Approached? 11
1.5 What Shall be Expected of a Theory of Marketing and this Thesis? 13
2 Theory 17
2.1 Marketing 17
2.1.1 Theory of Marketing 17
2.1.2 Theory in Marketing 21
2.1.3 Theory with Marketing 24
2.2 Branding 26
2.3 Sociology 29
2.3.1 The Social, Systems, and Marketing 30
2.3.2 Sociological Theory 31
2.3.3 Social Systems Theory 33
2.3.4 Economic Systems 42
2.3.4.1 Payments and Money 43
2.3.4.2 Price 43
2.3.4.3 Instability 44
XII
2.3.4.4 Markets 45
2.3.4.5 Profit 45
2.3.4.6 Control 46
2.3.4.7 Competition and Conflict 46
2.3.4.8 Balance 47
2.3.4.9 Critique 47
2.4 Summary 49
3 Critique 51
3.1 Exchange 51
3.1.1 Organizational Issues 53
3.1.2 Functional Issues 54
3.1.3 Communicational Issues 55
3.1.4 Observational Issues 56
3.1.5 Individual Issues 58
3.1.6 Managerial Issues 59
3.2 Change 60
3.3 Reflection 65
3.4 Summary 66
4 Methods 69
5 Marketing as a Social System 75
5.1 Introduction 75
5.1.1 Emergence 77
5.1.2 Historical Background 77
5.1.3 Over-Complexity 77
5.1.4 Advertising and Brands 78
5.1.5 Institutionalization 80
XIII
5.1.6 Reflection 81
5.2 General Properties 83
5.2.1 Brands and Brand Systems 84
5.2.2 Communication 87
5.2.3 Codes 88
5.2.4 Programs 92
5.2.5 Media 97
5.2.6 Not For Profit 98
5.2.7 System and Environment 99
5.2.8 Open- and Closeness 101
5.3 Communication 102
5.3.1 Observation and Information 104
5.3.1.1 Organizations 105
5.3.1.2 Society 108
5.3.1.3 Science 110
5.3.2 Messages 113
5.3.2.1 Media 114
5.3.2.2 Forms 119
5.3.3 Understanding 124
5.4 Evolution 129
5.4.1 Evolution of Marketing Systems 130
5.4.2 Evolution in Marketing Systems 132
5.5 Differentiation 135
5.5.1 Marketing Systems in Organizations 136
5.5.2 Marketing Systems and Society 142
6 Discussion 147