Who performs marketing? Dimensions of agential variation in market practice

Recently, there has been a renewed academic interest in marketing practice. To capture the practical performance of marketing, however, a re-conceptualization of marketing practitioners is needed. To this end we explore how to characterize those who perform marketing. Working abductively by combining previous ideas on the constitution of economic agents with two longitudinal case studies of Swedish retail trade, we identify general dimensions of agential variation in three areas: in the constitution of agents, i.e. in how agents are put together/what agents are made of; in their programs of actions, i.e. the motives, interests and/or functions ascribed to agents; and in their capacities, i.e. in what market agents are capable of. We then trace implications of the observed heterogeneity of market practitioners for marketing.     

Building competences for new customer value creation: An exploratory study

Recent marketing literature suggests companies to become market driving (proactive business logic, changing the rules of the market) instead of market driven (reactive business logic, customer-led). This transformation implies that companies are able to boost their capacity to create new customer value. Based on survey data of business-to-business markets, we advance a tentative model that links competence development to new customer value creation. Although exploratory in its nature, our study exhibits that companies should build three types of competences: marketing practices for external knowledge absorption, general organizational competences and supply chain/network competences. Using cluster analysis, we are able to further link these competences to the capacity of new value creation. Four clusters are detected with different degrees of expertise in new value creation and each displaying their own profile of competences. Becoming market driving requires an integrated and balanced view on marketing practices.     

Incumbents in a dynamic Internet related services market: Does customer and competitive orientation hinder or help performance?

The Internet challenges many incumbent firms to adapt their marketing strategies by developing and offering new products involving Internet technology. Existing literature on market orientation and performance of services suggests that market orientation, and its components, are likely to facilitate effective adaptation. In contrast, the marketing innovation literature suggests market orientation may be too reactive and inhibit effective adaptation. Our results suggest some merit to both perspectives. Client orientation hindered performance of Internet advertising services, while competitive orientation facilitated performance. In addition, limited support was found that suggested superior performance occurs in an environment with a diverse client base and clients possessing in-house capabilities that “compete” with agencies for Internet advertising services. Implications for incumbents pursuing product growth strategies via new, technology related services in dynamic environments are discussed.     

Moving from basic offerings to value-added solutions: Strategies, barriers and alignment

Commoditization erodes the competitive differentiation of companies and often leads to a profit squeeze. Existing literature recommends the transition from basic product offerings to service-based value concepts in order to regain competitiveness in such a context. This paper explores the concrete efforts of suppliers in the commoditized electro-technical industry to create new non-price-based customer value. In this paper, a taxonomy of efforts is developed which builds on the competitive strategy and strategic marketing literature. Our research identifies barriers to the market introduction of these new value concepts. Observations in this industry lead to a framework that (1) proposes alternative step-by-step strategies for making the transition from basic products to service-based solutions, and (2) offers alignment suggestions for overcoming identified barriers. Migration paths to introducing new service-based value concepts are incremental rather than radical, and managers should complement their market approach with (a) value chain actions to create multilevel industry support and (b) an organizational alignment approach.     

Collective action for small-scale producers of agricultural biodiversity products

The role of well-functioning markets for development is now widely recognized. However the challenge remains to make these markets benefit the poor and the environment. Increasing attention is being given to the potential role markets can play for agrobiodiversity conservation through product diversification and increasing competitiveness in niche and novelty markets. Several case studies were undertaken that explore the use of market-based approaches to on-farm agrobiodiversity management and livelihood improvement. This paper explores how the theory of collective action can provide a more synthetic understanding of how market chains operate, and the changes that could permit a more equitable distribution of benefits. The case studies illustrate the need for improved trust, mutual understanding of each actor’s involvement, and an agreed process of collective action with a high level of community participation. The cases differ in their degree of collective action, the level of market organization and the ways in which handling, processing, and innovative marketing add value to the agrobiodiversity products. Comparative analysis identified a range of situations in which market development can support agrobiodiversity conservation and livelihoods.     

Implications of service processes outsourcing on firm value

Outsourcing is one of the important strategies acknowledged by firms recently. With an increase in globalization and the proliferation of information technology, more and more firms outsource not only their production but also their service processes including back office business processes and information technology functions to external suppliers. Recognizing the criticality of outsourcing service processes in marketing management, the authors build on the outsourcing literature and integrate it with the finance literature on market efficiency to develop a conceptual framework. The authors collect outsourcing announcements from the Wall Street Journal and business news available at Lexis-Nexis between 1995 and 2005 to conduct an event analysis. Results indicate that outsourcing in general creates positive firm value, i.e., cumulative abnormal returns; however, such effects vary depending upon different levels and dimensions of an outsourcing decision. The authors conclude with managerial implications and future research at the end.     

Market representations in industrial marketing: Could representations influence strategy?

A central question in industrial marketing is whether the form in which the market of a firm is represented influences the marketing strategy. This question has been studied generally through case study research, and quantitative evidence is limited. In response to this limitation, this paper reports on a quasi-experiment investigating whether market representations have a constructive aspect in business. Empirically, this study compares two types of market representations - ostensive and performative - in order to test for influence exacted in two well-established strategies in industrial marketing - service focus and product differentiation. Results indicate that service focus is selected when market representations rely on agency in firms (i.e., performative), and product strategies are selected when structures are emphasized (i.e., ostensive). This paper contributes to methodology development by expanding the link between a case study approach and quasi-experiments explaining how quasi-experiments can replicate findings in industrial marketing.     

Market orientation and organizational performance: A comparison of industrial versus consumer companies in mainland China using market orientation scale (MARKOR)

Although not conclusive, past empirical marketing strategy studies conducted in the United States and western European countries suggested a strong positive relationship between market orientation and a company's performance. The objective of this study is to investigate the reliability and validity of the market orientation construct in a very different socioeconomic, cultural, and business environment of Asia. Specifically, using the Kohli and Jaworski [J. Mark. 54 (1990) 1] MARKOR scale, this study investigates the market orientations of Chinese business managers who operate in a select number of industrial and consumer goods industries in urban China. Previous research has predicted a positive relationship between market orientation and performance, on the assumption that market orientation provides a firm with a better understanding of its environment and customers, which ultimately leads to enhanced customer satisfaction. Study results indicated that there were statistically significant differences between market-oriented and non-market-oriented Chinese managers in terms of their responses to market orientation scale statements. As well, a higher level of market orientation of Chinese companies operating in the Beijing area was discovered. This is rather encouraging because there is a large body of marketing literature that supports the argument that higher levels of market orientation would lead to better organizational performance. The managerial and public policy implications of the study are also discussed.     

Internet integration in business marketing tactics

Companies have got to learn to eat change for breakfast. Tom Peters

…it behooves us to adapt oneself to the times if one wants to enjoy continued good fortune. Niccolo Machiavelli

Business Marketing Management (BMM) over the Internet has been receiving a “lot of ink” in current periodicals and to a lesser degree in academic literature. Practice changes so rapidly that principles emerging from last month's successes may need revision before they are derived and printed. There is yet a general theory of business-to-business Internet integration. Nonetheless, there is a need to build such knowledge on “the fly,” and to attempt to see patterns even if they have a short life span. The present work takes a look at the state of business-to-business Internet marketing practices as the year 2000 came to a close for larger companies. Not surprisingly, and just like the hardware that make Internet distribution density so high, we find that the Internet is having an impact on: market size and structure, business buying and selling behavior, negotiation strategies and associated pricing practices. Moreover, distribution systems are experiencing a major realignment while logistics optimizing is even greater. The Web and e-mail are becoming more fully integrated into the business communication mix. The attempt here is to learn about the most rapidly emerging and changing communication technology of the past 100 years. Business-driven technology now appears to be driving business marketing tactics and results are augmented through multifaceted complex use of the Internet.     

The impact of network configurations on value constellations in business markets — The case of an innovation network

A growing body of scholars are advocating a better understanding of how value is created in business networks, rather than merely in business relationships or at the level of single actors. Among such networks, innovation networks, i.e. the configurations of strategic entrepreneurial nets aimed at improving the effectiveness of innovation performance, have come under scrutiny in the business marketing literature. However, research that explicitly connects value considerations with innovation network configurations is still in its infancy, with empirical evidence being notably scarce. This study is aimed at identifying if and how network configurations affect value constellation aspects in business networks, in terms of value recipients and value outcomes. We interviewed key informants representing 46 high-technology entrepreneurial firms co-located in an innovation network (Daresbury Science and Technology Park — UK). Our study identifies that different network configurations can co-exist in the same overall network; these, nevertheless, are not alternative independent structures, but rather they interact with each other through actors spanning their boundaries. Our study thus provides an understanding of network configurations relating to specific value consequences, but also provides evidence relating to the interactions between different configurations. By doing this, we establish a bridge between a business marketing and a strategy perspective on value in networks. Important managerial implications and implications for policy makers also emerge from our study.     

Supplier market orientation and accommodation of the customer in different relationship phases

As customers' needs have changed rapidly, market orientation has become a more primary focus of marketing literature. This study explores the strategies market-oriented suppliers use to accommodate customer needs. In addition, because buyer-seller relationships proceed through phases characterized by distinct behaviors, this study explores the relationship between market orientation and accommodation strategies over the course of the buyer-seller relationship lifecycle. The results show that market-oriented firms use flexibility and relationship-specific adaptation as accommodation strategies. Also, three market orientation components (customer orientation, competitor orientation, and interfunctional coordination) relate differently to flexibility and relationship-specific adaptation during the relationship lifecycle. Finally, accommodation strategies significantly mediate the effects of the three market orientation components on customer satisfaction. Thus, market-oriented firms can satisfy their customers and avoid an overreliance on current relationships by emphasizing either flexibility or relationship-specific adaptations that correspond to the lifecycle of the relationship.     

‘Good’ case research in industrial marketing: Insights from research practice

The purpose of this article is to contribute to the emerging debate about the use of the case methodology in industrial marketing. We conducted a content analysis of the 145 case studies published in three key journals (Industrial Marketing Management, Journal of Business-to-Business Marketing and Journal of Business and Industrial Marketing) over a 10-year period (1997-2006). The findings highlight the dominance of case research in qualitative industrial marketing research. They also lead us to distinguish between three different practices that influence perceptions of ‘good’ case research in this scholarly domain: ‘common’ practice, ‘best practice’ and ‘innovative’ practice. Our contribution lies in problematising what ‘good’ case research is, and showing how research practice - not just methodological literature - has a role in generating methodological conventions in a disciplinary field.     

Marketing competencies and the sources of customer value in business markets

This introduction to the special issue discusses the notion of marketing competencies in buyer-supplier relationships, and the role these competencies play in creating value for the customer. Existing work on the role of competencies in industrial marketing has two main foci. The first, established approach deals with competencies as inputs to organizational processes, and seeks to establish in how far marketing competencies such as customer relationship management, channel design, etc. lead to superior financial returns. The second, emerging, approach focuses on the marketing of competencies as a source for customer value. This article uses supply and demand side perspectives to look at these two approaches and suggests a typolology involving four distinct value-creation strategies. Recent literature is discussed and implications for advancing the application of resource-based thinking to industrial marketing are provided.     

The Role of Marketing Resources in Radical Innovation Activity: Antecedents and Payoffs

While radical product innovations represent significant engines of firm growth, questions remain over whether marketing helps or hurts (1) a firm's radical product innovation activity and (2) its rewards from radical product innovation activity. By attaching an attention‐based view of the firm to a market‐based assets view of marketing, this paper examines the role of three marketing resources—market knowledge, reputation, and relational resources—on radical innovation activity. Our conceptual framework posits differentiated effects among marketing resources as antecedents of radical innovation activity and as moderators of its impact on firms' financial performance. Using a survey of a broad set of high‐tech business‐to‐business (B2B) firms to test hypotheses, it is found that firms with strong relational resources enjoy a higher propensity for, and stronger financial rewards from, radical innovation activity. Reputational resources come with a trade‐off as they hurt the incidence of radical innovation but enhance its financial rewards. However, market knowledge resources appear to hurt both radical innovation activity and its financial rewards. Our results point to the multifaceted role of marketing in radical innovation activity, which is unlikely to come with a single benefit or liability as prior work often posits. Rather, our research heightens the alertness of managers to assess their firms' marketing strength as a bundle of stocks of several marketing resources. Managers must understand the distinct benefits and drawbacks of each resource in developing and launching radical innovations. Our research underscores the differentiated value of marketing in radical innovation activity in B2B high‐tech contrary to the entrenched idea of a limited or even stifling role of marketing in this context.     

Implementation of Key Account Management: Who, why, and how?: An exploratory study on the current implementation of Key Account Management programs

Key Account Management, as currently described in relationship marketing literature, is an important approach to creating value, by implementing specific processes targeting most important customers. This exploratory study contributes to the understanding of Key Account Management by focusing on factors influencing the decision for implementing Key Account Management and the implementation-process. The findings suggest that the intensity of competition as well as the intensity of coordination are factors driving companies towards the adoption of Key Account Management programs, and that companies still pay too little attention to the selection of key accounts. The study also reveals the phenomenon of ‘hidden key accounts’: More than 80% of the investigated companies without Key Account Management offer their key customers special treatment without aligning their own internal organizational structures.     

Managers' perception of relationship management in heterogeneous markets

Relationship management holds many promises of becoming a new paradigm in marketing and management. However, the development of relationship marketing is still difficult to accomplish in heterogeneous markets, since different management practices are needed in markets ranging from homogenous segments of customers with the same preferences to customers with individual demands for customized services. This paper investigates managers' perceptions of relationship development in heterogeneous markets. Results from a survey of 135 branch bank managers show that they perceive that the more heterogeneous the market, the more difficult to achieve relationship development. The study also finds that more difficult relationship development leads branch managers to perceive a more centralized locus of realized strategy. This suggests that firm relationship development needs to focus more on customer orientation and that realized strategies need to be at a local level to support this.     

Sales force obsolescence: Perceptions from sales and marketing executives of individual, organizational, and environmental factors

The trade and academic literature is replete with observations that many sales organizations are in the midst of a redefinition of the strategic role of their sales forces. With today's market forces, change is overdue in many sales organizations. Consequently, the issue of whether the sales force is becoming obsolete has come to the forefront in recent years. As business environments change rapidly, the relevance of the modern sales force comes into question. Data were gathered from 245 midlevel sales and marketing executives on perceived sales force obsolescence. Our findings suggest that obsolescence is a phenomenon for sales organizations to address. The main findings of our study are (1) obsolescence is a phenomenon that affects sales professionals' feelings toward the job (job satisfaction) and outcomes (performance); (2) a firm's market orientation is very important in lowering perceived obsolescence; (3) a learning orientation is important in detecting symptoms of obsolescence; (4) age and education are related to perceptions of obsolescence depending on the type of industry in which the sales force competes: high- or low-tech; and (5) organizational changes can also have a bearing on the sales force's perceptions of obsolescence.     

Marketing resources and performance of exhibitor firms in trade shows: A contingent resource perspective

In spite of the fundamental nature of trade shows as venues for working on webs of vertical and horizontal relationships, the extant trade show literature neglected relationship and network context factors. Specifically, previous studies attributed superior trade show performance to internal resource conditions and hence failed to address the moderating influence of important contexts such as relationship assets and knowledge assets. This study adopts the contingent resource perspective and extends the literature by proposing that the main effect of trade show resources on trade show performance is contingent upon the firm's internal knowledge assets and its external relationship assets. Overall, the empirical evidence supports the contingency models. One major managerial implication for exhibitor managers is the need to adjust allocation of its trade show marketing resources according to market-based assets it possesses.