The International Technology Management Review, Vol. 4 (2014), No.

1, 42-57

Networking in Marketing and Advertising Companies: A Soft System Methodology Approach

Behrouz Zarei Saeed Azizian Majid Shishehgar Setareh Sadeghi

Corporate Entrepreneurship Information Technology School of Industrial Engineering Entrepreneurship Faculty,
Department, Department, Isfahan University of University of Tehran,
University of Tehran, Tose Danesh Institute, Technology 16th St., Amirabad, Tehran, Iran
16th St., Amirabad, Tehran, Iran Mojtamae Tarbiat Moalem, E-mail: E-mail: [email protected]
E-mail: [email protected] Sanandaj, Iran [email protected]
E-mail: [email protected]

Abstract
Nowadays, the quality and diversification of the services in Iranian marketing and advertising industry are growing.
But, providing the customers with marketing and advertising services is still conducted using out-dated,
complicated and time-consuming processes. So it seems that revising these processes is necessary. Soft system
methodology (SSM) is an appropriate approach for studying complicated systems of human activities. This paper
investigates the status quo of Iranian marketing and advertising industry, determines its disadvantages and defects,
and proposes a new system that seems to be more efficient and effective, which brings numerous advantages to the
users through changing the type of communications between the involved entities.
Keywords: Specialized networking, Marketing and advertising, Business network, Soft system methodology (SSM).

1. Introduction relationships in an industrial context (Holmlund &

Törnroos 1997). Growing globalization has affected
There are some drastic changes in the marketing market relationships, and they have become more
context, in terms of physical distance, time, markets, as spread-out geographically Nevertheless, networking in
well as competition, and these changes have marketing has become a diagnostic tool for examining
fundamentally transformed the practice of marketing. A interactive systems; meanwhile one the integral parts of
research group, namely “Contemporary marketing the network is technology (Borg 2009). The focus of
practice” (CMP), has found that managers are now more newly developed networks is on relationships as well as
concerned with managing their marketing relationships continuous and sustainable development (Fava Neves
(Lindgreen & Antioco 2005). Over the past two 2007).
decades, the approach towards marketing by the When the participants in a network focus on their
businesses across all sectors through relationships, commonly shared innovative solutions, this may lead to
networks, and interactions has changed. There is a great positive spill over. The shared standards and
difference between such a marketing approach and the compatibility among partners and customers may evolve
more conventional ones based on transactions in the dynamic networks that correspond to the markets.
influencing Four Ps, ( i.e. Price, product, promotion and There are two types of cooperation and collaboration
place) (Lindgreen & Antioco 2005). networks: (1) vertical networks: established between
It has been claimed by many researchers that we are the players of different stages in term of technology,
faced with a new general paradigm shift in marketing, such as suppliers and distributors, or (2) horizontal
and the focus has changed from separate and discrete networks: competitors or suppliers of complementary
transactional exchanges to relationship management products (Fava Neves 2007). The mechanisms of
instead. Those approaches in marketing research that influencing unusual returns obtained from marketing
focus on relationships include the interaction and alliance announcements by firm networks include
network approaches, which place emphasis on

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Zarei et al.

increasing alliance benefits, facilitating its compliance situation and conceptual models of related systems of
and quality (Swaminatham & Moorman 2009). purposeful activity (Checkland 1992). Daily events are
As a free business association, the company network perceived differently by the individuals participating the
can create the structures and processes not only for joint system. SSM allows the individuals stances and
decision-making, but also for integrating the members' assumptions regarding the world to be brought to light,
endeavors for designing and manufacturing goods and to be challenged and examined. The traditional SSM
services, reducing the required time for entering the model is comprised of seven distinctive stages that can
market or creating innovation, and creating new be taken as iterative or sequential processes (see Figure
processes and information exchange. The opportunities 1) (Por 2008). Developments in systems thinking in UK
for the businesses provided by the network include: were no longer based on the biological models that had
interdependence among various systems and their prevailed earlier systems thinking (Stowell 2009), "Hard
complementary promoted by relationship investment. It systems thinking" is based on the idea that these
should be noted that in a network, every cooperative systems exist and are centered on engineering a solution
process could have an influence on every other to an established requirement (Checkland 1981). It is
company in the same network. supposed that the system’s nature is not problematic,
A network can concludes of with a series of junctions, that the system’s objectives can be defined, and that the
such as people or groups of companies and arches that alternative tools can be modeled and these tools can be
have relationships (Trequattrini et al. 2012). The compared using some clear and apparent criteria, which
process of business networking involves management of allow an appropriate selection to be made from among
applications unique for various conditions. It has some the most preferable forms of the system (Delbridge &
advantages, including providing a balance and extensive Fisher 2007). Regarding the hard systems, the problem
basis for relationship network, creating repeated is well structured and clearly defined, and as we already
transactions, creating a synergistic effect and achieving had apparent algorithms for finding the solutions.
the results that cannot be realized by businesses Moreover, these problems producible again.
separately, creating jobs and finding access to On the other hand, Soft systems are ill-structured,
information and opportunities (Klerk & Kroon 2008) have many interacting factors, have randomness and
It feels that these developments which were discussed more evaluating standards. Moreover, we must
should approve on Iranian marketing and advertising frequently think about human intervention into systems.
industry (hereinafter, “MKT & Ads”). To design a These problems are almost unique (Pesl and Hrebicek
business network in Iranian marketing and advertising 2003). Hard systems problems have clearly-defined
industry by means of SSM method, this paper has been desirable objectives (e.g., to manufacture a motor
structured as follows. After this introductory section, the vehicle) and are characterized by these objectives
next section presents an explanation regarding hard and (Nidumolu et al. 2006). Checkland and Scholes (1990a)
soft systems and describes SSM method. Then, our case maintain that conflicts in technology and organization
study has been presented, which is accompanied with are not of technical per se, but are related to human
the research methodology and applies the SSM stages factors (Saad et al. 2006).
on the case under study. Finally, the paper is concluded The so-called ‘hard methodologies’ (such as
with the Conclusion. operational research) are directed towards structured
issues and objectives, while ‘soft issues’ of social
Background systems, most of the time, present unclear and poorly
Hard vs. Soft Systems established objectives (Ferrari et al. 2002). While the
soft systems (problems) have the goals that, they may be
The study conducted by Checkland et al. (1992) both ambiguous and unrelated, if they can ever be
places more emphasis on the distinction between ‘hard’ identified, hard systems may give rise to a project with
and ‘soft’ systems thinking (Kayaga 2008). SSM is an clearly defined objectives and deliverables and a
ever-developing methodology that has been grown into defined project completion deadline (Nidumolu et al.
a systemic process of enquiry. It has been designed 2006).
based on a comparison between real-world problem

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 Networking in Marketing and Advertising Companies

Soft System Methodology in which the problem is arisen. This expression should
be done to minimize the effect of understood structures,
SSM was first established by Peter Checkland and taking into account that stages 1 and 2 will be integrated
his colleagues at Lancaster University and was used as a with the “real-world” context (Ferrari et al. 2002).The
method for studying systems with certain features and first stage, in the real world, is to accept, investigate
high intervention by human factors. One of the first and define the situation in one way or another. Here, we
cases in which this system was employed was health are not defining the problem but assessing the general
care system, and this was done by Checkland himself. area that favors us (Williams 2005). At this stage, the
Scientists and engineers have frequently been collected data gives an informal picture of the issue
trained on the principle of reductionism, because (Checkland & Scholes 1990b), while, in the next stage,
analysis of a problem focuses on its structure and we provide a rich picture of the status quo, which is a
decomposition that shows how things work. This flexible graphical technique representing the situation,
process centres on decomposition, explanation and problem or concept (Horan 2000). The situation of the
synthesis of the problems (Warwick 2008). SSM is a problem is expressed by means of the rich picture
tool for modeling, learning and meaning development provided in stage 2. The rich pictures are diagrammatic
(Williams 2005). It is an empowering approach for illustrations of entities, structures, processes,
participants for finding their ways to agree upon the relationships and issues of the given situation (Por
action which they think will ‘improve’ the problem 2008). There is no established technique or typical form
situation (Checkland & Winter 2006). This vision will to present the rich picture, i.e. it is usually shown as an
lead to the evolutionary process of analysing the flow of ordnance survey map, mind map, and etc (Nagi et al.
information, definition of databases, encoding 2012).
knowledge and finding the requirements of online Stage 3: The third stage of the methodology
observation (Sørensen et al. 2010). SSM approach involves describing the suitable and related systems.
clearly presupposes that different people and groups These systems have been introduced as the central
have different worldviews, which concern them as definition (Checkland & Scholes 1990b). At this stage,
human activity systems (HASs) consisted of a set of the methodology moves to the field of systemic thought,
interrelated activities in a logical structure which make applying the concepts of an outstanding system to
a purposeful whole (Tajino et al. 2005). describe how the system is (Ferrari et al. 2002). At this
There are four types of activities, which form the stage, basic definitions are compiled by assembling
learning cycle, i.e. SSM: CATWOE elements, as described in Table 1.
1. Understanding a problematic situation
2. Selecting determined models of activities
3. Finding more information about the situation Table 1: Elements of CATWOE and their definition (Source:
Mingers, Liu & Meng 2009)
4. Defining the actions, which make the situation
better (Delbridge 2008).
HAS is defined as a collection of activities in which C Customer: direct beneficiary or victim of the
people are employed and the relationship between those system's output
activities are established purposefully (Platt and A Actors who carry out the activities of the system
Warwick 1995). SSM process is illustrated in Figure 1; T Transformation that produces the output as a
it does not involve a concrete process to be followed transformed version of the input
(Tajino et al. 2005). The methodology creates a way W Weltanschauung / worldview that makes the
activities of the system meaningful
through which the complexity of the humans’
O Owner of the system. a wider system that can
interactions can be examined, described and made sense create or destroy it
of (Warwick 2008). E Environment of the system, especially constraints
Stages 1 and 2: These two stages are reported given that the system must accept
together, since both of them are parts of the process of
explanation by which we search for the richest would-be CATWOE is usually used to enrich both the "Root
“panorama,” not of the problem, but of the real situation Definition" and the "Conceptual Model", but it can also

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Zarei et al.

be looked at as a method for assessing the perfectness of concepts to describe how the outstanding systems
such definitions and models (Bergvall-Kareborn et al. should be for the given context. Such description can be
2004). CATWOE shows a mechanism or checklist for done at different levels of detail, through making use of
examining the principal definitions and ensuring that the the hierarchical concept of the systems. After having
selected terms are as clear as possible and that they created the conceptual models, they should be validated
represent the best choice for the meaning they take on through comparison with a formal system and/or with
other systemic conceptions. A formal system has the
following components:
1. Purpose/assignment
2. Performance assessment
3. Process of decision-making
4. Interrelated subsystems
5. Interaction with the periphery
6. Physical and human resources
7. Continuity (Ferrari et al. 2002).
The conceptual model identifies which activities
need to be contained in those special HASs. This model
is not concerned with how these activities will be
performed; instead, it will be compared with the real
Fig. 1. The conventional seven-stage model of SSM (Source: world to highlight possible changes in the real world.
Checkland & Scholes 1990) All elements of CATWOE must be included somewhere
in this model; otherwise, it will be incomplete (Platt &
(Nagi et al. 2012). There are six elements, which Warwick 1995).
constitute a well-formulated root definition making use Stage 5: Stage 5 is the stage that refers back to the
of the mnemonic CATWOE (Por 2008). Root definition real world. At this stage, the conceptual model, which is
is normally thought of as a restricted explanation of created at Stage 4, will been compared with the real
what systems have to do, who is going to perform it and world expressed at Stage 2 (Por 2008). The most
who is in charge of doing it (Por 2008). Root definition common method for this purpose is to create a matrix
can be presented as ‘a system to do X by means of Y in that considers each part and asks: ‘Does this process
order to achieve Z’, where Y and Z are related to the have any profits?’
owners’ long-term objectives, and there must be an Stage 6: Having referred to the real world again,
arguable connection, which makes Y, an appropriate stages 6 and 7 are analysed together. In these stages,
means for doing X (Checkland & Scholes 1990b). based on the comparisons from stage 5, changes in the
It should be explained that in both CATWOE and processes, structures, and viewpoints are suggested
the root definition, we have an overview of the ideal (Ferrari et al. 2002). Stage 6 is used to identify the
situation. This overview within the elements of various possible changes in terms of desirability and
CATWOE and the root definition is expressed too possibility (Por 2008). The conceptual model will be
generally. Some more details about the ideal situation compared with the real world to make prominent the
are presented in stage 4 and also in the Conceptual possible changes in it. These modifications may be
Model. those activities in the conceptual model, which do not
Stage 4: SSM makes a clear distinction between the exist in the real world (Platt and Warwick 1995).
messy and complex bit of the 'real world,’ which is the Stage 7: Stage 7 is the last stage in which the most
subject of some forms of investigation, and a reference favorable and possible changes distinguished at Stage 6
(conceptual) model, which is used to structure the are practiced (Por 2008). Here, recommendations for
investigation (Wilson & Haperen 2009). Stage 4 is change will be given. It is important to understand that
intended for creating a conceptual model, which allows when these changes have been done, the problem
us to reach the transformation explained in stage 3. Still situation will be modified (Platt & Warwick 1995). The
in the systemic field, this stage makes use of systems'

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 Networking in Marketing and Advertising Companies

last stage completes the process and may begin a new Stage 1 and 2: The Definition of the Situation
procedure (Williams 2005). In these stages, in order to describe the processes of
In this paper, we investigate the current and the ideal information exchanges and demand for receiving MKT
situations in Iranian MKT & Ads industry. Therefore, & Ads services, special symbols and cycles have been
we present the whole status quo in one sheet by used. In SSM method, there is no limitation for the
providing a comprehensive rich picture including all types of presentation. Researchers are free to use any
actors, their roles and the relationships between them. preferable ways to express their opinions and
From third stage to seventh, we define and design the viewpoints. Figure 2 shows these processes. Our aim is
ideal situation, generally and develop this design. to investigate the status quo of MKT & Ads industry
Finally, we finish the paper by discussion and and the processes and information exchange between
conclusion. the involved actors and entities that can be divided into
6 groups:

Case Study 1. Customers: individuals and companies

who demand MKT & Ads services from
There is a growing trend in quality and
MKT & Ads companies.
diversification of the services in Iranian MKT & Ads
2. Marketing companies: the individuals and
industry. However, providing the customers with such
companies who supply marketing services
services is still conducted using outdated, complicated
like marketing consultation, marketing
and time-consuming processes. Nevertheless, there are
strategies, marketing and market planning,
thousands of MKT & Ads companies; about 90 percent
market research, competitors' and market
of advertising market share is owned by only 10 percent
situation monitoring, etc.
of the leading companies and there is an intense
3. Advertising companies: advertising
competition.
agencies and companies that supply
There are only 259 newly issued licences for
advertising services. Advertising has
advertising agencies and 389 ones also have been
various types and extended ranges. In our
extended by Informatics and Advertisement Office,
definition, advertisers include designers and
Ministry of Culture and Islamic Guidance; meanwhile,
executors.
the highest number of issued and extended licences
4. The sextet organizations: there are six
belong to Tehran province followed by Isfahan,
main organizations, namely Islamic
Khuzestan, Fars and North Khorasan Provinces.
Republic of Iran Broadcasting,
According to IA office, there are currently 6604 active
Municipality of Tehran and Organization of
advertising agencies in 32 provinces of Iran, 1949 of
Tehran Beautification, newspaper &
them are based in Tehran. As presented in Table 2,
magazine offices, Bus-driving organization,
according to the IA office, the advertising expenses by
Taxi-driving organization, and Subway
10 superior companies on TV, newspapers and
media, each with urban and provincial
magazines have been totally $27,155,200 in Jan 2012.
centres. As advertising plans administrator,
Table 2: Advertising expenses in Jan, 2012
they all play a basic role in execution of
advertising.
Companies TV (USD) Newspaper Magazine 5. Government: Ministry of Culture and
(USD) (USD) Islamic Guidance as a governmental
10 superior 16,255,600 2,279,200 337,200 organization is responsible for issuing
companies advertising licences, supervising
Other 7,662,400 625,600 282,400 advertisements to comply with Islamic
companies rules and executing methods of advertising
plans.
Refrence : http://www.ad.gov.ir/research/19
6. Audiences: the people who are exposed to
advertising products and services and the

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Zarei et al.

main target of advertising production. and the customers will be responsible of all issues
These are consumers and potential buyers related to their purchase.
and customers (MKT & Ads consumers) (3) The advertising company directly concludes
for goods and services. contracts with suitable companies and earns profit
MKT & Ads consumers, who are referred to as through receiving more money from customer or paying
"customers" in this paper, contact the advertising less money to the advertising company.
companies in order to get them advertise their goods or Moreover, performing advertising depends on its
services, after their companies' marketing consultant type, and often depends on related organization such as
recommendations or after receiving consultation from Islamic Republic of Iran Broadcasting (IRIB),
marketing companies. So they look for suitable municipalities, newspapers, etc, or requires cooperation
companies that can perform this in some ways: (1) they among several advertising companies. What happen in
may directly know someone in their communication this inefficient system is that advertising companies, in
network; (2) someone can be introduced by their order to win in the competitive market, pay a portion of
relatives, friends, colleagues and employers; (3) they the charged fees gained from the sextet organizations –
may meet someone through their advertising; (4) they such as Islamic Republic of Iran Broadcasting or
hold bidding process for their advertising demands and newspaper – to the customers to steal the job from their
select someone or a company due to the lower price or colleagues. Therefore, the criterion for selection of the
upper quality etc., this method is adopted only by bigger companies is paying back more commission rather than
companies. Obviously, they are more sensitive to the their services quality. This means that advertising
quality, tariff, honesty etc. in the second and third agencies and companies not only cannot earn suitable
methods. Sometimes, their marketing consultation income from the customers for creating teaser, but also
companies may offer some advertising companies they have to pay some portion of their commission
instead of receiving a commission from marketing received from Islamic Republic of Iran Broadcasting.
companies for such preferences. Subsequently, the Likewise, the status quo lacks enough efficiency and
advertising companies will compile advertising effectiveness to deliver good quality, on-time and
campaigns for them and will get help from marketing effective MKT & Ads services. The communications
companies if needed, which happens rarely; then after among entities are discrete and there is no centralization
confirmation of the campaigns by the customers, the for information exchange among the entities and no
campaigns will be executed. room for evaluating the activities of the companies and
In this step, customers may look for suitable creating free and positive competition. The whole of the
advertising companies by themselves or may assign all process, from finding suitable advertising and marketing
of such duties to that advertising company that has companies, to execution of advertising campaigns and
compiled the advertising campaigns, and advertising increasing sales is traditional, time-consuming and is
company will become the customers’ advertising accompanied by high risks. In addition, the lack of
consultant. Advertising companies perform those parts companies’ integrated cooperation with each other leads
of the works they are experienced at and assign other to wasting a lot of time, energy and resources for
parts to other companies, as a result: companies and creates opportunities for abusive
(1) The advertising company finds the suitable behaviour by scant companies who can earn huge
companies, negotiates with them, determines the terms profits in this process and are not committed to
and conditions, and finally the customer concludes a transparency of information. Consequently, a massive
contract with them and the advertising company will be number of MKT & Ads with better and more effective
responsible of all duties as the advertising consultant, it services cannot obtain high class and expensive
has its own revenue and in addition, will be given a advertising market share. In such situation, MKT & Ads
commission from the referred companies to customer industry will not develop and grow up sufficiently.
(this is common especially for renting billboards from Moreover, most of such activities require physical
companies possessing them). presence and communications in real world.
(2) The advertising company only introduces the Figure 2 presents a comprehensive description of the
suitable companies and gets its commission from them, status quo of processes and information exchange

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 Networking in Marketing and Advertising Companies

between users, companies, audiences and other involved information from various resources and then present
entities. The aim of presenting this rich picture is to them for users in an integrated manner. The system will
clarify information cycle and relationships between change the method of information and communication
involved entities in MKT & Ads industry from the start exchange between components using new technologies
point to the end of supplying services. in comparison with the old one. Table 3 present the
definition of CATWOE’s elements in the proposed
Stage 3: Root Definition system.
Root definition: The specialized network of Iranian
MKT & Ads companies is a system that can receive,
collect, store, classify and organize MKT & Ads

Fig. 2. The rich picture of the current situation of the MKT & Ads industry (source: developed for this study)
Zarei et al.

Table 3: The basic elements of CATWOE in the proposed connects the best MKT & Ads companies and
system (source: developed for this study)
customers to each other. For wider services that several
Elements Definition companies are needed, the system offers a small
Customers (C) Marketing companies, advertising network of companies to the customer. Moreover,
companies, customers. customers can find their desirable companies by
Actors (A) The sextet organizations, searching based on defined criteria such as location,
government and any related type of services, working field, the class of people the
influential organization, Marketing services are presented to, price etc. and can contact
companies, advertising companies, them. In addition, the companies who tend to cooperate
customers with other companies that are related to or support their
Transformation As the centralized reference
needed services are suggested by the specialized
process (T) centre, receives unorganized and
diffuse MKT & Ads information network to each other and can create a small network
from various information between them. Therefore, the customers can look for the
resources, processes and makes networks and groups of MKT & Ads companies that
the balance between them and cover all MKT & Ads needs and demands by
presents the organized and themselves rather than search for each of them. In
coherent information to users. addition, all tenders and bidding processes (for example
Weltanschauung The best information flow
for billboards of the municipality and Organization of
(W) between different entities and
users in a conjunct manner is done Tehran Beautification) can be conducted online without
by this system that causes physical presence in the system.
decreased costs, increased quality, In ideal situation, the sextet organizations and
saving time and energy, Ministry of Culture and Islamic Guidance or other key
improvement of system structure organizations will login to the proposed system and
and processes and creating free perform information and financial exchange with MKT
and positive competition. & Ads companies through the network. In addition,
Owner (O) Everyone who provides the prime
audiences of advertising goods and services including
investment of the system including
the companies or individuals the public may enter into information cycle by
Environmental The most important environmental commenting about advertising products such as teasers,
constraint (E) constraints are out-dated and packaging of customers’ goods and services, etc. and
traditional existing system, users’ can play an important role in ranking of MKT & Ads
habits and profits due to companies involved in the process of creating and
unorganized structure and execution of advertising services. Their feedback,
processes, lack of interest and therefore, will be helpful both for the customers and for
desire to change and use of new
market research and monitoring companies. Purchasing
systems and technologies,
complicated and difficult structure by the audience will complete the cycle and compensate
of MKT & Ads industry in Iran. customers’ expenses.
The various subsystems of the proposed system
Stage 4: Developing the model defined based on legal, structural, technological and
In ideal situation, the network makes a good data financial requirements are listed in Table 4.
flow among involved entities. MKT & Ads companies Figure 3 depicts the conceptual model of the
announce their accurate and detailed information such proposed system and shows the activities required for
as their CV, working fields, working samples, achieving the desirable system in four phases.
The first phase is devoted to performing studies and
customers, contact etc. and also their fields of expertise
preliminary design of the system including software,
and interest. Customers - MKT & Ads consumers - hardware, processes, structures and etc. and also the
declare the accurate information of their demands and
needs and also the attributes and criteria of their
desirable MKT & Ads companies, too. Here, the
network plays the role of information exchange, and

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 Networking in Marketing and Advertising Companies

Table 4: Subsystems and the relevant tasks in the proposed emails, SMS, invitations, etc.
system (source: developed for this study) Financial All financial exchanges and
operations including earnings,
Subsystem Activity payments, exchanges etc. will be
Receiving This subsystem receives and collects performed in the safe environment of
information the information from different the system.
sources such as MKT & Ads Updating Some duties of this subsystem
companies, customers and other include: removing old and out-dated
involved entities in the processes. information, entering new and
Processing and The subsystem processes and updated ones and performing
classifying classifies received information necessary changes.
information related to demand and supply of Training Training the users and involved
MKT & Ads services, based on entities for the processes.
various criteria like location, work Filtering This subsystem is responsible for
field, experience, price etc. and activities studying and following users’
presents them for certain users. activities to be in compliance with
Sending This subsystem sends out the the Islamic rules, and for granting
information requested information in various necessary permits.
types according to the demands of Research and Studying world's MKT & Ads
users. development industry and its evolutions,
Cooperation This subsystem suggests the best performing necessary changes,
suggestion choice of MKT & Ads companies developing the system performance,
and customers to each other and also improving the structures
the most suitable partner companies continuously, and adding new
to each other based on their defined services to system are among the
criteria. tasks for this subsystem.
International This subsystem broadens the Events & news This subsystem presents the national,
cooperation cooperation boundaries by world news, and events related to
suggestion connecting the customers and MKT MKT & Ads industry and sends them
& Ads companies to international to the users.
ones. Support This subsystem is responsible of
Rating by This subsystem makes commenting supporting the system constantly and
audiences possible about advertising products for responding to the users.
and also the rating of the advertising
companies. initial planning for marketing and attracting users. In the
Ranking of The MKT & Ads companies will be second phase, the prototype of the system will be
users ranked based on their past records,
implemented in a monitored and limited scale and
experiences, financial turnover by
this subsystem and also with the help attracting the users will take place, which include
from rankings by the audience. customers and MKT & Ads companies in order for
Storing Users' data including the information testing the pilot system and understating its deficiencies.
information entered by themselves and their Based on the identified defects and second phase’s
records, reports etc. will be stored in feedbacks, the system will be improved or changed in
the system safely. It should be the third phase. In the fourth phase, the required
mentioned that revealing and making activities will be done in order for developing and
the information public can be done
promoting system services to provide users’ needs and
with only specific permission.
Reporting Statistical reports of the performed updating the system and its compliance with the
activities and operations of the environment.
system, users and any other The ideal systems model is the result of studying
performance of the system at sources of information, relevant documents, and
different times. interviews with companies’ managers, practitioners and
Marketing This subsystem supports the beneficiaries of the information cycle of MKT & Ads
marketing activities such as sending
services as well as the professionals and experienced

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Zarei et al.

experts in marketing. It also requires holding of businesses, and thereby increases the country's
information systems and network training courses and development and national manufacturing. This paper,
conducting debates and polls regarding both the current through designing a specialized network of MKT & Ads
and ideal situations, and also problems of the existing companies using SSM method, tries to facilitate the
system and their unsatisfied needs and issues. realization of this objective by improving the process of
Moreover, studying the information sources related to providing MKT & Ads services, from the customers’
SSM theory and the case studies conducted using this demands to the companies’ supply.
theory will broaden our horizons and provide good Information technologies have made numerous
inspiration, especially for the four-phase conceptual progresses (Ghapanchi et al. 2012a), (Ghapanchi et al.
model. 2012b), (Khakbaz et al. 2010), (Ghapanchi and Aurum
Since the SSM does not specify any limitation in 2011). Several research have been conducted on various
expressing opinions, we have shown our proposed areas of technology (Ghapanchi et al. 2012a),
model in figure 3 and 4, which indicate to our (Ghapanchi et al. 2012b), (Ghapanchi et al. 2008),
viewpoints. Figure 3 presents the formation of a (Ghapanchi et al. 2011), (Ghapanchi et al. 2012c),
desirable system and its requirements in 4 phases. (Merati et al. 2010) including networked marketing.
Figure 4 shows the working process of a desirable After a brief survey of the literature and SSM, we
system in a general design in which MKT & Ads investigated different dimensions of Iranian MKT &
companies and customers are connected with each other Ads industry and expressed the status quo and its
and also with the network and can exchange their problems. Then, the desirable model of the system was
information. Advertising companies can easily do their designed, explained and compared with the current
financial and information exchange with the sextet situation. In order to confirm that this network is
organizations through the network. MKT & Ads practical and usable, some interviews were performed
companies provide a comprehensive and complete with MKT & Ads companies’ managers, experts,
continuum of MKT & Ads services required by their beneficiaries and entities involved in the current system.
customers by creating a small network with each other. All of them confirmed the proposed system’s
Such specialized network connects the most appropriate effectiveness and performance.
continuum of supplying services to the most appropriate
customers according to the received information. The • Summary of key findings of the research
role of the audience has been also considered in terms of Some of the important features of this paper include:
giving feedback to the customers and MKT & Ads 1. Studying the structures and processes and
companies regarding the provided MKT & Ads relationships between the components
services. involved in the process of presenting MKT &
“Insert Figure 3 about here” Ads services to the customers.
“Insert Figure 4 about here” 2. Defining the status quo including entities,
Stages 5-7: their relationships and existing problems by
At this step, a comparison between the real world means of SSM language.
and the ideal model will be conducted and some ideas 3. Presenting effective strategies for solving
for the development of system will be proposed. Table 5 problems and determining the new improved
presents this comparison. structures, processes and relations for the best
information flow among components
“Insert Table 5 about here” involved in the processes.
4. Designing a specialized network as a new and
Conclusion desirable system with the capabilities
• Summary of the research including centralization of information and
financial exchanges between involved
The MKT & Ads industry is traditional, inefficient entities, creating some small networks
and slowly-growing in many developing countries. between MKT & Ads companies among each
However, it plays a vital role in the growth and survival other to integrate customers’ needed services,

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 Networking in Marketing and Advertising Companies

and inclusion of the audiences in the system

as an important element for providing
feedback to

Figure 3: The Conceptual model of the specialized network of MKT & Ads companies (source: developed for this study)

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Zarei et al.

Figure 4: The sophisticated design of information cycle of the proposed system

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 Networking in Marketing and Advertising Companies

Table 5: Evaluating various aspects of the conceptual model (Source: developed for this study)

improve the MKT & Ads companies’

performance.
5. Defining necessary subsystems required for
implementing the system by considering the

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Zarei et al.

probable problems and obstacles that lies governmental organs and the sextet organizations,
ahead, such as training users to enter and use restrictions imposed on internet use and the threat of
the system according to their knowledge and disclosure of the confidential business information of
skills levels. the companies.
This creates a win-win relationship for all • Limitations and future directions
components of the system. Customers will achieve
extensive sources of independent and networked MKT Some suggestions that can be the basis for future
& Ads companies by spending less money or even free researches include:
of charge. MKT & Ads companies will save their cost - The legal status of such systems in comparison
and resources and also a greater number of customers with the traditional ones
from international businesses can be attracted and more - Studying and designing a business model of this e-
profits can be made. Additionally, access to other business proposal
partners and the sextet organizations will become easier. - Studying and researching the approaches for
Government and the sextet organizations can adopting appropriate and effective MKT & Ads
monitor the performance of the companies more easily methods for such a system to attract the MKT &
and more accurately, and can communicate with them. Ads companies.
Such a system will reduce or eliminate the illegal The implementation of the specialized network of
benefits of some components that make use of such MKT & Ads companies may be faced with difficulties
conditions for their own advantages and prevent the and obstacles, and this can be a new subject for future
customers from finding competent and creative researches.
companies.
It is necessary to mention that we only conducted References
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