International Catalog Mix Adaptation

Abstract

Striking the right balance of adaptation of the international catalog mix may be the key to profitability. U.S. catalog firms, new to international markets, have less experience in adapting than firms in more globalized industries. The literature on international marketing strategy adaptation reveals that this decision depends on the environment, industry, market, product, and characteristics of the firm. This paper examines the influence of market similarity, type of business and the firm's international experience on international catalog adaptation, and explores the effects of catalog adaptation on a firm's performance. We hypothesize that the greater the market similarity, the less likely it is that firms will adjust their catalog. We also argue than adaptation is greater for consumer catalogs than for business-to-business catalogs. A third hypothesis is that more internationally experienced firms will adapt more and a final hypothesis is that a greater degree of adaptation will increase the international catalog performance. The results did not support the association of international catalog adjustment and market similarity, experience, and type of catalog. Findings are mixed both on catalog adaptations and firm performance. We found that some but not all adaptations in the catalog lead to improved performance. We speculate that U.S. catalog firms are making adaptations to reduce the costs of international marketing operations. This cost reduction strategy may not necessarily lead to profitability, thereby discouraging other firms from entering international markets.     

Exploring the Role of Product Development Capability for Transforming Marketing Intelligence into Firm Performance

ABSTRACT

Purpose: This study examines the role of product development capability for transforming marketing intelligence activities into firm performance on industrial markets.

Methodology/Approach: The authors apply structural equation modeling to analyze survey data from 342 industrial manufacturing companies.

Findings: Results reveal that sales integration and holistic macroeconomic view are particularly important features of the marketing intelligence capability on industrial markets to gain additional insights in order to develop products successfully. Results also reveal that product development capability transforms the marketing intelligence activities into firm performance on industrial markets.

Research Implications: This study offers new insights on marketing theory by extending and concretizing the concept of market orientation to a broader concept of the marketing intelligence capability for industrial markets. Further, this research reveals that the product development capability serves as a mediator to business performance.

Practical Implications: This study’s systematic and tangible outline of the dimensions of marketing intelligence and its link to the product development capability helps firms to better understand how to capitalize on market orientation’s potential values.

Originality/Value/Contribution: This research (a) reveals the relevant dimensions of marketing intelligence on industrial markets and (b) shows how the product development capability tranforms marketing intelligence activities into firm performance on industrial markets.     

Determinants of SME International Marketing Communications

ABSTRACT

This research article discusses the factors affecting international marketing communications in small- and medium-size enterprises (SMEs). International commitment and brand adaptation in overseas markets were found significantly influencing the effectiveness of international marketing communications. The results suggest that international marketers need to have resources input, such as human and financial, to drive international marketing communications. Brand adaptation also needs to be performed in order to achieve a better international marketing communications. There are two factors affecting international marketing communications suggesting international marketers of SMEs need to be concerned with both internal resource and external factors in international ventures.     

The Internet,Strategy and Performance: A Study of Australian Export Market Ventures

ABSTRACT

This study examines the impact of the Internet, firm-specific characteristics, market characteristics, and export marketing strategy on export marketing performance. The unit of analysis was an individual product/market export venture. Data were gathered via a self-administered mail survey of 315 Australian firms involved in exporting. The findings indicate that, when the Internet was used for communication purposes and to provide the firm with a competitive advantage, it had a significant impact on export marketing performance. Firm-specific characteristics and export marketing strategy also had a significant impact on export marketing performance.     

An Empirical Investigation of Marketing Programme and Process Elements in the Home-Host Scenario

SUMMARY

The two major strategies often available to international marketers are standardisation and adaptation when deciding to operate in a foreign host market. Both strategies have pros and cons. Drawing on the findings of previous theoretical and empirical studies, this study proposes a “marketing programme/process and performance” framework. The study employed a linear multiple regression (OLS) analysis method to examine the proposed framework, based on the experience of 233 Australian and New Zealand (home markets) firms operating in the Greater China region (host markets). Factors identified as significantly associated with adaptation of programme/process include “employee” and “employer” immigrant effects, government regulations, economic development, competitive environment and product life cycle. Factors identified as influencing firm performance include product adaptation, product type and market entry mode.     

Integrated Marketing Communications and Market Planning

Abstract

This article links the integrated marketing communications (IMC) concept to the planning process in marketing. Following the current conceptualizations as a combination of various marketing communications tools, IMC strategy is applied to an established strategic market planning model named the Boston Consulting Group (BCG)'s growth-share matrix. Advertising, public relations, sales promotion, and direct marketing are defined as crucial elements for the core scheme. Alternative strategies for brands in different stages are identified from the product portfolio analysis. The view may also be thought of as the ongoing process of building and maintaining brand equity for consumers in the long-term period. Conceptual discussions are expected to help marketers think more strategically as they plan IMC programs for their products or services.     

Value‐driven relational marketing: From products to resources and competencies

Marketing from a relational perspective, or relationship marketing, requires that a firm offers more resources and activities than a core product (goods or services) in order to satisfy the long‐term value needs of its customers. In the present article a value‐driven approach to how such long‐term needs are fulfilled is discussed. The analysis goes beyond the product concept and develops a resources‐and‐competencies approach to the market offer. However, a relational approach to marketing can be expected to be successful only if the firm adopts a true relational intent and the customer is in a relational mode. Therefore, the concepts of relational and transactional intent and relational and transactional mode, respectively, are also introduced and discussed.     

Performance implications of market orientation,marketing resources,and marketing capabilities

Abstract

Drawing on the competitive capability theory, this paper examines how market orientation, marketing resources, and marketing capabilities contribute to firm performance. The empirical results show that being market oriented influences the level of marketing resources firms possess and the capability to deploy such resources. The findings show marketing resources and marketing capabilities are significant drivers of firm performance, and their impact is greater when they are complementary to each other.     

Global marketing Myopia

The objective of this paper is to expand the concept of global marketing strategy beyond its current myopic focus on product positioning and branding. Emphasis on these issues lends to lead to the conclusion that standardisation is the most desirable global strategy. However a successful global marketing strategy needs to be developed and evaluated within the broader context of the overall strategy of the firm, rather than being based purely on customer‐market considerations. This calls for examination of resource allocation across countries, market segments and products, the integration of sourcing activities and production, management and logistical systems into global marketing strategy.     

Cross-border marketing ecosystem orchestration: A conceptualization of its determinants and boundary conditions

The authors propose that the current trends and developments in the international marketplace call for a new theoretical concept-based approach to inform and guide cross-border marketing strategy. Specifically, the authors label this approach marketing ecosystem orchestration (MEO). The marketing ecosystem is defined as connected, interdependent, and co-evolving sets of actors, activities, and institutions enabling the marketing of an offering that has value for customers, clients, partners, and society at large. MEO is a new strategic approach for an internationalizing firm to achieve sustained value creation, value appropriation, and growth in a host market. Orchestration involves developing and/or coordinating the ecosystem’s interdependent – but independent actors, resources, information, processes, and services to create, co-create, and appropriate value from firms’ market-based assets. The authors theorize three components of MEO – the orchestration of supply chains and fulfillment networks, marketing communications, and transactions and payments sub-ecosystems – and develop a conceptual framework and propositions influencing the determinants of MEO adoption by the focal firm. This paper concludes with managerial implications and offers several new directions for international marketing research.     

Painting Your Point: The Role of Color in Firms' Strategic Responses to Product Failures via Advertising and Marketing Communications

Color plays a significant role in firms' strategic marketing communications and advertising. This research examines how color (red versus blue) in advertising and marketing communications that follow a firm's failure dynamically influences consumers' interpretations of negative firm information and sensitivity to the firm's response to the failure. We find that the color red used in postfailure advertising and firm marketing communications narrows the scope of consumers' conceptual attention on the firm failure and makes consumers less sensitive to a firm's response to the failure. In contrast, exposure to the color blue expands the scope of consumers' conceptual attention and makes them integrate the firm's response in their firm evaluations. In addition, the negative effect of red is mitigated via the use of a more benign cue, leading to the broadening of the scope of conceptual attention and integration of a firm's response that are consistent with blue cues.     

A Pilot Study Testing Aspects of the Integrated Marketing Communications Concept

This article describes a pilot study testing some aspects of the integrated marketing communications concept. The study is timely and relevant to the field because it employs an empirical approach to addressing the heated controversy over the validity of the integrated marketing communications concept. This controversy is based upon doubt about the theoretical basis for integrated marketing communications and the lack of empirical research in the field identified in the integrated marketing communications literature. In an effort to address the conceptual validity controversy directly, the study adopted the first use of an experimental approach in the integrated marketing communications field. The results of the experiment suggest that messages employing some of the key aspects of an integrated marketing communications strategy (i.e. messages with a common theme that are executed across multiple media in a visually consistent manner) may prompt a stronger attitude towards the brand level than the same messages employing a more traditional strategy (executions with less visual consistency), although other dependent measures were not similarly impacted upon. The study is limited in its scope, but is intended to stimulate more empirical research in the integrated marketing communications field.     

The moderating effect of brand orientation on inter-firm market orientation and performance

Abstract

While prior research has shown that market and brand orientation are key contributors to successful business performance, research to date has not fully explored how inter firm collaboration for these two key orientations can enhance business performance. The purpose of the paper is to investigate the relationship between inter-firm market and performance; to test for the moderating role of brand orientation in that relationship. A total of 169 completed pairs of surveys were collected of small and medium enterprises operating internationally in a variety of industries in Switzerland. The results show that inter-firm market and brand orientation are two antecedents of marketing and financial performance. The impact of inter-firm market on marketing and financial performance is significant when the brand orientation is favorable. This study extends previous research by examining the moderating role of brand orientation on inter firm market orientation, which is important, especially for firms wanting to increase their brand reputation by entering into partnerships with other firms. Further research is indicated, to identify the key moderators of the driving force of inter-firm market in relation to business performance and the reason why maintaining a strong brand presence is important in the international marketplace.     

Internet marketing capabilities and international market growth

The Internet has been shown to facilitate elements of internationalisation such as information accumulation and network opportunities. However, there is limited understanding of how the Internet combined with marketing capabilities drives international market growth. This study, based on a sample of 224 Australian firms, develops and tests, using structural equation modelling (SEM), a conceptual model of Internet marketing capabilities and international market growth. Results indicate that firms deploying Internet marketing capabilities will benefit due to the reduction of information uncertainty and increased capacity to develop international network capabilities. Moreover, Internet marketing capabilities indirectly lead to international market growth when the firm has a high level of international strategic orientation and international network capabilities. Overall, Internet marketing capabilities enhance the firm's ability to generate other internal capabilities within the firm, which in turn have a positive impact on the international market growth of the firm.     

代指在创名牌产品中的应用

本文认为,对换位思考的本质认识不清,对顾客代指标感知规律及如何进行有效传播的研究不足,是导致我国品牌建设落后的重要原因。有效的营销传播策略,第一,要研究本土化的代指标体系是什么,不同类型产品顾客使用的代指标是什么及顾客如何使用代指标这些影响到产品形象的基本问题;第二,一定要在研究不同产品的顾客代指标感知规律重要性的基础上,根据营销传播的协同作用,设计出有效的营销传播策略。     

Adaptation of Marketing Mix Elements in International Markets

ABSTRACT

This research identifies the extent to which individual marketing mix elements are adapted for international markets and how company, industry, and market factors influence the level of adaptation. The study is based on a survey of executive-level managers in U.S.-based companies that market products internationally. The survey obtained information on the extent of adaptation across the marketing mix elements and on company, industry, and market factors that influence this process. The results indicate that adaptation is greatest for distribution, followed by price, promotion, and product. Product adaptation is influenced by market factors, price adaptation is influenced by market and industry factors, promotion adaptation is influenced by market factors, and distribution adaptation is influenced by company factors. The results of the research can be used to both understand and manage the extent of adaptation necessary for products in international markets.     

The role of seeding in multi-market entry

Firms introducing new products into multi-markets often face the dilemma of how to dynamically allocate their marketing resources during penetration. The aim of this study is to examine which responsive allocation strategy is more effective for these firms. We explore three major resource allocation strategies: uniform strategy, in which the firm distributes the marketing efforts evenly among its regions regardless of market development; support-the-strong strategy, under which the firm invests its efforts proportional to the number of adopters in that region (at least up to a certain market coverage); and support-the-weak strategy, in which the firm invests its efforts proportional to the remaining market potential.Using both formal analysis and complex systems simulations, we find that strategies that disperse marketing efforts, such as support-the-weak and uniform strategies, are generally superior to support-the-strong strategy. Not only is this finding surprisingly robust to market conditions and variations on these strategies, but it also runs counter to conventional wisdom prevailing in international marketing. The conditions under which support-the-strong policy might become more effective include: (a) fixed entry or operation costs above a certain level; and (b) substantial variance between regions in responsiveness to marketing efforts. However, variance in intrinsic innovativeness between regions does not imply the superiority of support-the-strong strategy.     

Understanding consumer decision making in grocery markets: does attitude-behaviour consistency vary with involvement?

The paper reports on an empirical study of purchase decision making in grocery markets. Against the central research question, 'Does decision making become more extensive with more involved product purchases?', measurements of attitude- behaviour consistency were made in three product fields which are known to engender significantly different levels of consumer involvement. The extended Fishbein model was used as the metaphor for purchase decision making and models were estimated for each product field using LISREL VII to determine the fit between product and normative beliefs, behavioural intention and actual purchasing behaviours. The results of our analysis are consistent with prior theory and support the hypothesis that the efficacy of the model in grocery markets increases as the purchase involvement increases. The implications for marketing communications within each market are discussed and the limitations of our research design are highlighted.     

Change in international market strategy as a reaction to performance decline

While a great deal of research has explored how international marketing strategy influences performance, researchers have paid scant attention to understanding changes to international marketing strategy resulting from firm reaction to past performance. In this study, organizational learning theory addresses when and how international marketing strategy will change. Employing data from over 500 exporters, the results, which are consistent with theoretical predictions, indicate that (1) firms are generally not prone to inertia and do, in fact, change their international marketing strategy when facing declines in performance, and (2) that the direction of change depends on the level of competition in the specific foreign market, with firms adapting their international marketing strategy in low competitive markets and standardizing their international marketing strategy in highly competitive markets. The paper includes implications for academics and practitioners.     

Two hearts in three-quarter time: How to waltz the social media/viral marketing dance

The concept of viral marketing has been discussed in the literature for over 15 years, since Jeffrey Rayport first introduced the term in 1996. However, the more widespread use of social media has recently pushed this idea to a whole new level. We provide insight into the relationship between social media and viral marketing, and illustrate the six steps executives should take in order to dance the social media/viral marketing waltz. We define viral marketing as electronic word-of-mouth whereby some form of marketing message related to a company, brand, or product is transmitted in an exponentially growing way—often through the use of social media applications. We consider the three conditions that need to be fulfilled to create a viral marketing epidemic (i.e., giving the right message to the right messengers in the right environment) and present four different groups of social media viral marketing campaigns (nightmares, strokes-of-luck, homemade issues, and triumphs). We conclude with five points of caution that managers should heed when trying to launch their own viral marketing campaign.