Organization-Market (OM) Composite: Beyond the Reflexive Approach for A Theory of Market and Marketing

Abstract: Organizational decisions and actions are a balance between two interacting forces; an entrepreneurial aspiration and market dynamics. Marketing is the strategic interface and a function for market engagement. Theorization in marketing has been addressing specific organizational issues, but falls short in conceptualizing a unified marketing theory. This research examines objectives of marketing research, relationships and questions if they are grounded in a foundational understanding of ‘what the market is?’, the very environment to which organizations are inherently tied. We derive basic characteristics of market reflexively from the current theorization around market and marketing, where marketing has been a seller-oriented function and market is a mix of discrete parts and activities. Beyond these concepts, we identify and redefine market as a three-dimensional domain. Accordingly, we conceptualize market-based perspective of organization and its marketing function. The three-dimensional market enables an environment through ‘Marketing Objectives of Interaction’ consisting of guiding principles for interaction between the market and the organization. Organization and the objectives of interaction, together create an ‘Organization-Market’ composite making the organization a participant, along with many other participants who constitute the market environment.  The composite presents the dynamic nature of organization’s marketing and its complexity in dealing with the multitude of market variables. Together these concepts evolve a new approach for theoretical advancements in understanding market, various facets of marketing and relationships in a dynamic organizational context. This framework offers a novel approach for marketing research, facilitating integration with organizational studies on design, strategy and management.

market theory, market dimensions, market space, knowledge, value exchange, marketing objectives of interaction, organization-market composite

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