Economics Analysis On The Development And Theory Dilemma Of Marketing

Traditional transaction theory had proved Adam Smith's theorem of "invisible hand ", but basing on some rigorous hypotheses. Actual transaction was abstracted as a process of "auctioning " or "re-contracting". At the turn of 19th century to 20th century, the changes of American macro-economy and the deterioration of transaction condition encountered by firms challenged traditional transaction theory, resulting in the emergence of marketing. As a practical subject, marketing developed rapidly, combining with management, but departing from economics gradually. Up to now, marketing is totally different from economics with respect to analytical framework and analytical method. Practical can hardly provide convincing argument on many marketing phenomena because of its weak theory strut. The reason is that it has lost its economics brace. A conspicuous character of the new development of economics in the last 30 years is a series of breakthrough of the research on actual transaction, which puts forward a excuse and a condition for marketing to re-find its economics strut. The essence of marketing is a firm-activity to promote transaction, and will lend marketing to re-find its economics strut.