Investment in online advertising and return on sales: Does it pay to outsource the services to an advertising agency?

Abstract

The effect of investing in online advertising on a firm’s financial outcomes can depend on whether or not the development and implementation of advertising campaigns are managed by advertising agencies. Agencies may have experienced professionals or workload to perform these jobs, but the costs are greater. This paper aims to investigate the effects of investments in digital marketing on the financial outcome of a company’s services, comparing whether or not it is outsourced to advertising agencies. The secondary data relates to services advertised and marketed by a firm. We tested the possible moderating effect of outsourcing the service in the relationship between investment in online advertising (Google and Facebook) and return on sales (profit margin), by controlling the effect of covariates. Through four regression analyses, the results showed that outsourcing the service moderates the relationship. Specifically, the higher the amount of advertising investment, the more it pays to outsource the service to an advertising agency in order to generate greater profit margin. But with a low investment value, it does not pay to outsource. This study helps to identify situations in which it pays to outsource digital marketing services to an advertising agency.     

Marketing: Who's really minding the store globally?

In today's highly competitive global marketplace, firms have increasingly turned to outsourcing. In fact, it is not just “blue collar” jobs being outsourced, but “white collar” jobs, as well. Even marketing, “the window to the company's worldwide customer base,” is feeling outsourcing pressures. This article takes a look at the corporate implications of outsourcing global marketing functions and reports the findings of a telephone survey conducted among U.S. and Canadian marketing executives. U.S. firms were found to outsource marketing activities more frequently than Canadian firms, often at the expense of control and customer satisfaction.     

Ethical Issues in Outsourcing: The Case of Contract Medical Research and the Global Pharmaceutical Industry

The outsourcing of medical research has become a strategic imperative in the global pharmaceutical industry. Spurred by the challenges of competition, the need for speed in drug development, and increasing domestic costs, pharmaceutical companies across the globe continue to outsource critical parts of their value chain activities, namely contract clinical research and drug testing, to sponsors across the globe, typically into emerging markets. While it is clear that important ethical issues arise with this practice, unraveling moral responsibility and the allocation of responsibility is not so clear, considering that contracts, by their very definition transfer responsibility from the principal to the agent. This research provides a framework for exploring some of the ethical issues, including attributions of moral responsibility associated with Contract Medical Research. Using a theory of strategic and moral behavior, the research shows that both clients and sponsors in contract research have individual and collective responsibility to ensure that due care and diligence is exercised in the performance of clinical research. The research suggests some guidelines for stakeholder action.     

A Theory and Model of Business Alliance Success

Abstract

Business alliances, an important form of relationship marketing, are becoming ubiquitous. However, many alliances are unsuccessful. The authors provide an integrative model of alliance success based on sub-models that rely on the resource-based, competence-based, relational factors, and competitive advantage views of alliances. The authors then show how a theory of competition, “resource-advantage theory,” grounds the integrative model.     

Global Marketing Channels and the Standardization Controversy

Abstract

Since the early 1960s, standardization has often been viewed as an efficient strategy for global marketers while others have argued for the relative merits of adaptation. A review of the literature reveals two important points: first, relative to other areas of marketing, channels of distribution are given short shrift in the standardization versus adaptation debate; second, of the existing literature on the standardization of global marketing channels, academicians and practitioners generally concur that marketing channels cannot be standardized. This conclusion may be premature. Thus, this paper offers a conceptual framework for the possible standardization of global marketing channels. A schematic model of the domestic marketing channel development process is extended to the global arena and a framework for the evaluation of the standardization alternatives in the international marketing channels development context is presented.     

On the choice of in-house production versus outsourcing by multinationals

Abstract

The global economy is becoming more integrated with the increase in international fragmentation. This paper examines two forms of global production networks in a general equilibrium framework by building on the ‘knowledge-capital model.’ The focus is the relationship between country characteristics and the multinational firm's choice either to allocate the labor-intensive processing stage in-house to its foreign affiliates or to outsource the activity to outside contractors at arm's-length. Chinese data on the export processing trade are used to test the theory. The findings show that multinational firms with their headquarters in highly skilled-labor-abundant countries of intermediate size have a preference for outsourcing. By contrast, skilled-labor-abundant countries of small size are homes to multinational firms with subsidiary production in the host country where unskilled labor is cheap.     

Consumer Interests and the Ethical Implications of Marketing: A Contingency Framework

The increasing efforts by marketers to target diverse groups of consumers call for a closer examination of the ethical implications of market segmentation and differentiated marketing. Previous research suggests that marketers and consumers often differ in their perceptions of marketing ethics. Based on contingency theory, this research proposes an integrated framework—which includes the nature of the product, consumer characteristics, and market selection—to analyze the ethical complexities of the marketing exchange. Interactions among these factors lead to various contingencies with different ethical implications for marketing managers and public policy makers. Marketers should assess consumer interests and the ethics of marketing programs before their implementation     

Outsourcing,Intellectual Property Rights and Corporate Hollowing Concerns

ABSTRACT

As lower priced competition continues to grow in the global arena, firms are increasingly turning to outsourcing, both in the manufacturing and service sectors. This article explores the long-term costs which may occur as a result of outsourcing: a firm's loss of control of its intellectual property, and even more debilitating, the loss or dilution of the core competencies which made the firm a success. Outsourcing of numerous key functions can actually lead to a “hollowing” of the corporation, which is a difficult phenomenon to reverse. Additionally, this article takes a look at how intellectual property protection is becoming a competitive advantage for those countries trying to attract outsourcing contracts. Finally, the authors suggest ideas for future research.     

Social marketing theory development goals: an agenda to drive change

ABSTRACT

Environmental, health, and social change is complex and frequently is framed as a problem(s) to be solved. This framing focuses effort on delivery of solutions designed to change systemic environmental, health, and social problems. Theory, an organising framework for effort, remains under-utilised in behavioural and social sciences. An individual psychological lens dominates and emphasis is placed on explaining and predicting individual behaviour and not behavioural change. It is time to break free and deliver frameworks that extend focus beyond individuals to all citizens, and apply new evaluation approaches that assess individual and structural changes. Ten Social Marketing Theory Development Goals (goals) categorised in three groups: (i) research design; (ii) building social marketing theory; and (iii) methodological innovation are outlined to assist social marketers to develop new ways of thinking that will deliver the theory and evidence base needed to outline what practitioners and policy makers should do to effect change.     

The rebuilt marketing machine

Since its conception, the marketing mix has been the marketer's tool kit for success. A firm's marketing plan is basically comprised of the 4 Ps of the marketing mix tool kit, with practitioners and academicians segregating a marketer's tasks into product, place, price, and promotion. A decade of company-based research suggests, however, that it is time to rebuild the marketing machine by focusing upon the key strategic issues that companies, and marketers, face in today's rapidly evolving, digitized marketplace. If marketing is to become a way of doing business rather than merely one of several organizational functions, marketers must recognize that the marketing mix tool kit is truly an implement for success, just as an engine and wheels are necessary for successful navigation of an automobile. Only after we, as marketers, recognize and conceptualize marketing as a bigger machine than just the 4 Ps will we be able to bring a market orientation to the forefront of strategic thought.     

Stakeholder management and the stakeholder matrix: Potential strategic marketing tools

This article examines how marketers may be able to apply the stakeholder management process and the stakeholder matrix to marketing strategy formation. Existing marketing theory does not utilize the stakeholder management process when undertaking strategic marketing planing, although most marketing theory implicitly identifies the need to develop strategies that address the needs of multiple groups or stakeholders. By understanding and applying stakeholder theory, marketers should be able to develop more effective marketing strategies. While there is extensive management literature examining stakeholder theory, there is little marketing literature in this area, and this article attempts to partially fill this gap.     

To globalise or not—a managerial decision framework

Globalisation of marketing strategy is attractive to international marketers because it offers the opportunity for large scale economies in marketing and production. Yet, experts disagree markedly as to the extent to which a global strategy can be implemented in specific situations. This paper introduces some elements of objectivity into the choice between globalisation and individualisalion by evaluating five elements; the environment, market characteristics, the product, cost and financial factors, and the internal corporate environment. Although the decision on globalisation will always be fairly subjective, a careful attempt to weigh various factors will add elements of reason to the decision.     

Narrowing the Concept of Marketing

SUMMARY

The misapplication of marketing to major American social institutions-education, religion, health care, the media, government and the legal system-has frequently undermined the fundamental purposes of those institutions, to the point that Laczniak and Michie's (1979a; 1979b) worst fears about marketing as a force for social disorder may have become a reality. Even more perplexing is a deeper question that marketers have yet to address adequately: Is the customer metaphor, which is so central to business and consumer marketing, fundamentally incompatible with the nature of a productive social institution?     

The pursuit of HR outsourcing in an emerging economy: The effects of HRM strategy on HR labour costs

The study examines the relationships among six types of HRM strategies with three categories of outsourcing HR activities to reduce HR labour costs. The data were gathered from a survey questionnaire of 232 manufacturing organizations of which 113 organizations engaged with HR outsourcing. We found that no organization outsourced transformational HR functions and that organizations that espouse cost efficiency, commitment, and conventional HRM strategies tend to outsource traditional HR functions, whereas quality conscious and commitment HRM strategies tend to outsource transactional HR functions. Transactional and traditional HR functions show a significant relationship with a reduction in HR labour costs. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

A marketing perspective on the rise of China: monopoly,politics and value

Abstract

As researchers in the social sciences seek an understanding of the spectacular rise of China, the seemingly counterintuitive stance of an autocratic regime attaining such sustained economic performance challenges multiple analytical frames. The relatively ponderous responses of the United States and Europe to recent global conditions, and the democratic uprisings in Arabic states, further represent a glaring contrast. While the marketing literature is rich in the particulars of specific management issues in the China market, no analysis from the discipline has attempted to provide a broad, distinctly marketing contribution to the China phenomenon. Choice is a fundamental construct underpinning theories of politics, economics and marketing, though it is notably absent from Chinese politics. The changing relationship between markets, business and government reveals a question that is clearly important to marketers, and China is a challenging boundary case for marketing management.     

Interact with me on my terms: a four segment Facebook engagement framework for marketers

Abstract

Facebook is used by over 1 billion highly heterogeneous users each month. However, there exists little guidance for marketers when it comes to actionable consumer engagement strategies for this social media platform. The purpose of this article is to profile key segments of Facebook users and build an implementable marketing strategy framework that can help marketers better target their Facebook consumers, and better craft their marketing mix and Facebook campaigns. Based on focus group interviews and a qualitative survey, four distinct types of Facebook users are identified and profiled: attention seekers, devotees, connection seekers and entertainment chasers. Correspondingly, a four-segment marketing strategy framework is proposed to guide content creation and engage consumers in thriving Facebook brand communities.     

零售商抵御消费市场寒流的营销方略

全球金融危机危及到国内消费市场,严重影响消费者购买信心,造成零售商销售业绩下滑。为了激发消费者购买信心,零售商应尽快调整营销战略,为低迷的消费市场注入活力。即建立供零联盟,降低商品成本;加强供零合作,让利消费者;发展零售商自有品牌实现商品低价。通过全新的营销方略,提升零售商的市场竞争力。     

Gender Entrepreneurship and Global Marketing

ABSTRACT

The purpose of this article is to redirect attention to the role of gender entrepreneurship in global marketing. The value of gender in global marketing through the use of words and behavior is discussed, which helps to integrate the disparate gender, entrepreneurship, and global marketing streams of research. The article suggests that a more gender neutral stance in global marketing is required due to the more fluid and changing understanding about the meaning of gender in society. This enables increased dialogue about gender stereotyping in global marketing to be examined as a way to keep up to date with global trends. Global marketers must confront gender biases as a way of enhancing a more open and inclusive society. The trends in gender and marketing are addressed that help to raise awareness for how to improve global marketing standards.     

Can deunionization lead to international outsourcing?

We analyze unionized firms' incentives to outsource intermediate goods production to foreign (low-cost) subcontractors. Such outsourcing leads to increased wages for the remaining in-house production. We find that stronger unions, which imply higher domestic wages, reduce incentives for international outsourcing. Though somewhat surprising, this result provides a theoretical reconciliation of the empirically observed trends of deunionization and increased international outsourcing in many countries. We further show that globalization - interpreted as either market integration or increased product market competition - will increase incentives for international outsourcing.     

基于S-C-P理论的我国期货公司成功因素研究

基于结构-行为-绩效(S-C-P)产业组织理论,以及波特竞争优势理论、资源基础理论分析,是找到期货公司成功关键因素(CSF)的有效方法之一。通过运用所构建的理论分析框架,对我国期货市场的环境的变化进行分析,找出影响我国期货公司成功的关键因素,并对我国期货产业发展提出政策建议。