Modern Marketing System This CTR corresponds to Figure 1-3 on p.11 and relates to the material on p. 10. The Marketing System A modern marketing system consist of four levels of activity. In a very real sense, each level influences the other levels. Each level adds value to the system. Discussion Note: Consumers add value to the system when they buy products. Their purchase price in turn funds the efforts (as profits) of each of the other layers to create more value as the system continues the cycle. Suppliers. This level provides the inputs to the production of goods and services. Company and Competitors. Each company adds value to supplies to create the products (goods, services, or both) offered to various markets. Marketing Intermediaries. Because of specialization, one or more other firms can get products to consumers more efficiently than most producers can (though there are important exceptions). End User Market. The consumer is the “final cause” of the efforts of each level of the marketing system. Discussion Note: Ask students to comment on whether the schematic should have “dotted line” feedback connection from the end user to each level of the system. What form of communication does that feedback take? Purchase? Satisfaction level? Brand loyalty? Brand switching? You might encourage students to remember this system perspective throughout the course and relate examples back to this CTR from time to time. Economic Environment This CTR relates to the material on pp. 79-82. The Economic Environment The Economic Environment consists of factors that affect consumer purchasing power and spending patterns. Key considerations include: Economic Development. Nations vary greatly in their levels of and distribution of income, often as a result of their stage of economic development. Typical distinctions include: Subsistence Economies. These consume most of their own agricultural and industrial output. These countries are poor targets for mo
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