| Abstract: | Most marketing managers still function as if challenges such as scarcity of resources and “social responsibility” were simply temporary phenomena. But our “private” market system is evolving into a “public” system. Public policy and the goals of society play an expanding role in making strategy decisions. Traditional efficiency is when a manager attempts to achieve the greatest output for a given combination of inputs. Under a contemporary definition of efficiency, each firm must produce and allocate goods and services in such a manner that the maximum possible societal utility is achieved. The marketing function is to be the “change agent.” Marketing today is in a transition from a “passive” to an “active” phase of its ability to deal with the changes taking place. As traditionally, the marketing manager will make decisions within several areas: product offering, price, distribution and promotion efforts, including advertising and sales. The basic concept of the product will be changed to include not only physical goods, but also services, organizations, people, plans and ideas. Exchange will take place between two parties and will no longer be measured simply by a straightforward calculation of costs. Environmental quality, political considerations, consumer welfare, etc., must be evaluated along with profits in order to properly understand how well marketing is satisfying the needs of society. |
