Developing Responsive Marketing System Concept: Applying System Dynamics Approach

Abstract

Marketing policies and strategies have long term effects on firm's financial indicators. Measuring these long-term effects is somehow difficult and it could be important from managers' viewpoint as well. Up to now a lot of researches have been done to disclose these effects, but the previous studies have limitation in demonstration of these long-term effects. In this article, we applied system dynamics for developing a dynamic marketing system and analyzing different marketing policies and strategies on firm's financial measurements. For this purpose, we proposed a dynamic marketing system model. The conceptual framework for dynamic model has been extracted by analyzing literature. In this regard, we studied related papers and determined the boundaries of marketing system by realizing important variables. Furthermore literatures have been analyzed for identifying relationships between marketing factors in a dynamic marketing system. As a result, most important positive reinforcement and negative balancing loops in this marketing system have been described in a comprehensive manner. In fact, the proposed marketing system can be applied in different industries and firms by customization for the firm's conditions and developing a quantitative dynamic marketing system.