A marketing mix model for a complex and turbulent environment

R B Mason,G Staude

doi:10.4102/ac.v7i1.34

Abstract

Purpose: This paper is based on the proposition that the choice of marketing tactics is determined, or at least significantly influenced, by the nature of the companys external environment. It aims to illustrate the type of marketing mix tactics that are suggested for a complex and turbulent environment when marketing and the environment are viewed through a chaos and complexity theory lens. Design/Methodology/Approach: Since chaos and complexity theories are proposed as a good means of understanding the dynamics of complex and turbulent markets, a comprehensive review and analysis of literature on the marketing mix and marketing tactics from a chaos and complexity viewpoint was conducted. From this literature review, a marketing mix model was conceptualised.Findings: A marketing mix model considered appropriate for success in complex and turbulent environments was developed. In such environments, the literature suggests destabilising marketing activities are more effective, whereas stabilising type activities are more effective in simple, stable environments. Therefore the model proposes predominantly destabilising type tactics as appropriate for a complex and turbulent environment such as is currently being experienced in South Africa. Implications: This paper is of benefit to marketers by emphasising a new way to consider the future marketing activities of their companies. How this model can assist marketers and suggestions for research to develop and apply this model are provided. It is hoped that the model suggested will form the basis of empirical research to test its applicability in the turbulent South African environment. Originality/Value: Since businesses and markets are complex adaptive systems, using complexity theory to understand how to cope in complex, turbulent environments is necessary, but has not been widely researched. In fact, most chaos and complexity theory work in marketing has concentrated on marketing strategy, with little emphasis on individual tactics and even less on the marketing mix as a whole. Therefore, this paper can be viewed as an important foundation for a new stream of research using chaos and complexity theory to better understand marketing mixes and the choice of marketing tactics for complex and turbulent business environments.

Highlights

The environment of business on a global basis is becoming extremely complex and has been experiencing unprecedented continuous, rapid change (Ahmed et al, 1996:562; Gilmore & Pine, 1997:91; Doherty & Delener, 2001:66; Burnes, 2005:73 and Yadav, Swami & Pal, 2006:57).This escalating rate of change is being experienced in South Africa to an equal and probably greater extent than elsewhere (Forsdick, 1995:11; Lamb et al, 2004:xvii and Harris, 2005:24).Traditional methods for handling change, such as strategic planning, scenario planning, strategic visioning, market research and forecasting, are becoming inadequate to cope with the speed and volume of continuous change and with the unpredictability of discontinuous change (Wall & Wall, 1995:7; Lane & Maxfield, 1996:215; Edgar & Nisbet, 1996:8; Siggelkow & Rivkin, 2005:101 and Aktouf, Chernoufi & Holford, 2005:181)
In order to address the problem outlined above, this paper reports on a secondary analysis of literature covering the application of chaos and complexity theory in the marketing field, and the development from this analysis of a marketing mix model that proposes marketing tactics suitable for complex and turbulent marketing environments
This paper demonstrates that chaos and complexity theories can help to better understand the market environments and the applicable marketing tactics being experienced by companies in complex and turbulent environments, typically experienced in developing countries

Summary

Introduction

The environment of business on a global basis is becoming extremely complex and has been experiencing unprecedented continuous, rapid change (Ahmed et al, 1996:562; Gilmore & Pine, 1997:91; Doherty & Delener, 2001:66; Burnes, 2005:73 and Yadav, Swami & Pal, 2006:57).This escalating rate of change is being experienced in South Africa to an equal and probably greater extent than elsewhere (Forsdick, 1995:11; Lamb et al, 2004:xvii and Harris, 2005:24).Traditional methods for handling change, such as strategic planning, scenario planning, strategic visioning, market research and forecasting, are becoming inadequate to cope with the speed and volume of continuous change and with the unpredictability of discontinuous change (Wall & Wall, 1995:7; Lane & Maxfield, 1996:215; Edgar & Nisbet, 1996:8; Siggelkow & Rivkin, 2005:101 and Aktouf, Chernoufi & Holford, 2005:181). Understanding and finding new ways of coping with such continuous and unpredictable changes have, become necessary. One way of finding new ways to cope with this volatility is by applying theories from outside the field of marketing in order to obtain a fresh insight into the problem (Coffey & Atkinson, 1996:158). An ever-increasing number of authors believe that the new sciences, chaos and complexity theories, can provide a better understanding of the current

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Conclusion