L7 Market studies introduction PDF

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Johan Hagberg
Markets module...

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L6 Market studies introduction “The battle of devices has become a battle of ecosystems.”

From marketing to market Marketing has been quite restreicted to what marketers do, the technical, methods and skills, but we need to understand the market. Attending to the market from a more knowledge point of view. 1. More holistic approach rather than just focussing on a single technique or marketing aspect, we look at the market in its entirety. 2. We should not limit ourselves to the view of marketers, but include consumers who are part of the market. 3. Conceptualizes to marketers what they are doing and how to act in the market 4. Attending to markets and the diversity of them is relevant. Global markets, local differences. The firm is part of the market and influences the market. The market is not separate in “producing” demand the firms adjust themselves to. (Neonen & Storbacka, 2018): Holistic view. Market as complex and adaptive systems. “Rich, systemic view”. Marketing is part of markets as such, and we need more focus on that. Venkatesh & Peñaloza, 2006. Markets located in a physical or digital space. Examples of institutions that are actors on the market. Key concepts: Institutions and actors, physical or virtual space, discourses and practices.

What is a market? Social structure for the exchange of owner’s rights, in which offers are evaluated and priced, wand in which individuals or organizations compete with one another via offers. (Aspers, 2011; Ahrne et al., 2015) Three characteristics of market (Çaliskan & Callon, 2010) 1. Perception, production and circulation of goods. Voluntary transfer of property rights attached to them. 2. Arrangement of heterogenous constituents that deploys the following: Rules and conventions, technical devices, metrological systems, logistical infrastructures, texts, discourses and narratives, knowledge (including scientific knowledge), as well as skills and competences embodies in living beings. 3. Competition and confrontation between different offerings. Competition, terms of transaction are determined by pricing mechanisms. Main elements - Who? o Exchange agents  Sellers, buyers  Intermediaries

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 Supporting organisations and actors What o Exchange objects  Goods, services  It could be anything. Art. Information. Etc. How? o Modes of exchange  Auction  Posted prices

But then, not everything is markets.

Different forms of economic coordination 1. Markets 2. Networks 3. Hierarchies Markets vs hierarchies – why do we have firms? When is it more appropriate to organise economic activity in a firm vs. in a market? Between these two is the notion of networks. Not formal organization (hierarchy). Neither is it market, where you have unknown actors separate from each other. Rather that there are more stable networks, though not part of the same formal organisation.

Markets are also organized. They can be more or less organized, but they are still organized. As organized as firms, but in a different way. What are the criteria to say that there is organization? - Membership o You belong to an organization o Licenses - There are rules o Regulation o Cannot do how you want o Rules regarding the products. Development and contains - There is monitoring o Standards o Certifications and ratings - There is sanction o Different types of rewards and penalties o Boycotts o Rewards for best whatever - There are hierarchies o The building of trade associations

o Decisions between actors. “If there is a dispute it should be handled by a certain court.”

Actor-network theory Developed by science and technology studies. In teaching sociology to engineers. Early approaches (1980s)

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Actor-network: Actors are networks o When we approach actors it’s not only humans. They are a combination of social-technical aspects. o When approaching consumers we don’t take into consideration only the human, but also the tools they and we have. Taking into account everything that surrounds us. o Companies, consumers, or whatever you treat as an actor. o Always includes humans and non-human elements Networks: Continuous process of translation o Network

Constructivist approach Reality is constructed. Social construction: The result of our collective understanding of something, for instance the market. This approach is constructivist, but not socially so. Markets are constructed, but there’s not (only?) social meaning between people, but it always includes the objects, tools, and equipment that is part of it. Collective process. Includes both humans and non-humans Sustains the idea that it could have been different. When studying an innovation or market you always sustain the idea that it could have been different. Not deterministic. Innovations don’t succeed only because they are better than the others. Things that work in one market can still fail in another. Becoming of something. Everything that we observe or explore is becoming, it’s not finished. Things are ever-changing. How? Approach is quite descriptive. Explaining how something developed or came about. To understand how something, like a market, is constructed, it is important to understand how you want to change it (va?)

Reconnecting marketing to markets Marketing as a more managerial concept.

Marketing was disconnected from other disciplines. Different subfields of business studies, from which marketing became disconnected. Many methods in marketing has not been adapted to understanding markets, how markets are performed. What people do. Marketing knowledge is to a large degree based on surveys. Since the 1960s, the conceptualization of marketing as marketing management is to blame.

Markets in marketing Markets: Markets as potential and actual buyers. CCT: markets as socially constructed sign systems Market studies: Markets as outcomes of performative practices. What is done and the resulting entity.

How to reconnect Interdisciplinary approaches Research methods that could handle complexity - Ant From “marketing management” to a broad definition of marketing practices.

Conceptualized starting points Markets are practical outcomes. Outcomes of something. A temporary result. Marketing is not outside, either. Not just observing from the outside. Marketers are part of, and influence, markets. In order for markets to work some work needs to be done in order to enable you to act in that market. Frame. If in a supermarket, it’s framed in one way, as opposed to the way it’s framed in an online store.

Outline: Markets module -

Market practices Market devices Market theories and performativity Market shaping...