On Economic Growth, Marketing Systems, and the Quality of Life

Abstract

In addition to favorable institutions and knowledge accumulation, there is a third significant set of factors that could and should be taken into the analysis of economic growth. Where there is specialization there must also be trade, and, overtime, where there is trade there will also emerge the specialized roles and market structures needed to handle trade efficiently. These specialized roles and market structures, identified as marketing systems, together with institutions and technology constitute the three essential sets of factors needed for growth to occur. While institutional change tends to be long term, and technological change is often discontinuous and medium term, marketing system changes leading to improvements in either or both of effectiveness and efficiency in trade have a much more immediate impact on the well-being of the community. If the marketing systems that play such a central role are poorly adapted to the environments in which they operate, or lack in health, resilience or responsiveness, for structural or functional reasons, then growth and ultimately the quality of life will be directly affected. An understanding of marketing systems, their emergence, and their role in influencing economic growth is a necessary first step toward the ‘‘constructive engagement’’ of marketing with society envisaged by Shultz.