Marketing planning in the larger family business

In recent decades a considerable literature on marketing planning has accumulated. The larger part relates to marketing planning in big firms with specialized, professional managers. There are books on the subject, like that of Malcolm McDonald which has gone through several editions, and there is also a steady stream of articles in the academic journals. In addition, the marketing planning activities of big firms are referred to by many more writers in the overlapping but broader contexts of “strategic marketing” and “strategic planning”. A lesser part of the literature relates to marketing planning in small firms. The small firms in question are usually very small. Typically they are owner‐managed and employ just a handful of people in a single location. The purpose of this study is to fill a gap in the literature by examining a medium‐sized firm; a category which seems to have been neglected by researchers.

Most modern economies are characterized by a significant group of middle‐sized firms, still owner‐managed, but with multi‐million dollar turnovers. Many of these remain family companies and constitute an important reservoir of business initiative. One such family business is the focus of this study. Given the relative lack of scrutiny of such firms to date, the author decided to conduct an in depth evaluation from within one large, family firm rather than seek by means of questionnaire to obtain information from a significant sample of the group. The results of the study suggest that neither the existing typologies of small firm approaches to marketing nor the formal models of marketing planning attributed to big companies necessarily characterize the marketing planning and management of larger, family businesses.     

Choosing the Right Metrics to Maximize Profitability and Shareholder Value

There is an ever-present need for managers to justify marketing expenditures to the firm. This can only be done when we can establish a direct link between marketing metrics and future customer value and firm performance. In this article, we assess the marketing literature with regard to marketing metrics. Subsequently, we develop a framework that identifies key metrics that firms should focus on that can give a firm a better picture of how they got to where they are now and insights towards how they can continue to grow into the future. We then identify several organizational challenges that need to be addressed in order for firms to build the capabilities of collecting the right data, measuring the right metrics, and linking those metrics to customer value and firm performance. Finally, we offer guidelines for future research with regard to marketing metrics to help firms establish successful marketing strategies, measure marketing effectiveness, and justify marketing expenditures to top management.     

Competitive by design

This paper is concerned with the role of design in the competitiveness of manufacturing companies and reports on design management in commercially successful firms. The findings are based on a survey of design policies and practices in over one hundred British and foreign companies from several industries, ranging from furniture to electronics. The paper shows that while in theory design plays a key role in competition, influencing both “price” and “non‐price” factors, in practice many managers do not give design high priority in company strategy and product development. The commercially most successful firms were those that not only invested resources in design and managed it effectively, but had other strengths, for example in marketing and manufacturing.     

The impact of economic downturns on marketing

The Great Recession of 2008–2010 affected the global and U.S. economies and its companies more universally than any economic downturn since the Great Depression. This study explores how the Great Recession influenced the marketing decisions of firms and the resulting long-term effects on marketing within business-to-business companies. Empirical evidence from previous recessions suggests that companies should focus on their customers and increase their marketing efforts during a recession. However, many companies typically slash their marketing budgets during economic downturns. Authors found that during the Great Recession, companies reacted differently than in previous recessions with their marketing responses. Authors conclude their analysis by proposing that the Great Recession will have three long-term effects on marketing in business-to-business companies.     

External environment and the moderating role of export market orientation

This research has two main objectives. The first is to fill the knowledge gap on the role which the external environment plays in the strategic behavior of exporting companies, taking into account the psychological distances between the domestic and foreign markets. The second aim is to clarify the role that market orientation plays in export activity, since the literature review shows conflicting results. The study provides insight into these issues through hypothesis testing of a conceptual model using a sample of 212 Spanish exporting companies. The results lead to two major conclusions: (a) in turbulent environments, exporting firms adapting the marketing mix program to the needs of foreign markets obtain a better export performance in highly competitive and psychologically distant markets; (b) although market orientation has a direct and positive effect on export performance, its main role is to support strategic decision making in exporting companies. In addition, market orientation moderates the relationship between marketing mix adaptation and export performance.     

Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs

This paper studies the impact of generic strategies on firm performance using a longitudinal study of small and medium-sized enterprises (SMEs) in Austria. In two surveys, data on the strategic behavior and performance of the same group of firms were gathered for the period from 1992 to 2002. The study expands existing literature, which provides little evidence whether the persistent commitment to a generic strategy over a longer period pays off or whether strategic change is the rule in SMEs, reflecting their flexibility as a potential competitive advantage. We consider the traditional generic strategies of cost-efficiency and differentiation, but also examine the group of firms that have no clear strategy or are “stuck in the middle.” Within this group, we distinguish between those companies that deliberately combine traditional low cost production and differentiation, i.e., follow a combination strategy, firms that change their strategy and those that have no strategy. We argue that a combination strategy is a viable strategic choice for SMEs in the long run. We found that the majority of firms pursued a persistent strategy over a 10-year period, but that companies that changed their generic strategy did not produce inferior results to those that adhered to a single strategy over the entire period. Our results reveal that firms that follow a combination strategy outperform companies with no generic strategy in terms of profitability and growth and achieve higher profitability than companies that follow a differentiation strategy.     

We’re all connected: The power of the social media ecosystem

Consumers are adopting increasingly active roles in co-creating marketing content with companies and their respective brands. In turn, companies and organizations are looking to online social marketing programs and campaigns in an effort to reach consumers where they ‘live’ online. However, the challenge facing many companies is that although they recognize the need to be active in social media, they do not truly understand how to do it effectively, what performance indicators they should be measuring, and how they should measure them. Further, as companies develop social media strategies, platforms such as YouTube, Facebook, and Twitter are too often treated as stand-alone elements rather than part of an integrated system. This article offers a systematic way of understanding and conceptualizing online social media, as an ecosystem of related elements involving both digital and traditional media. We highlight a best-practice case study of an organization's successful efforts to leverage social media in reaching an important audience of young consumers. Then, we conclude with several insights and lessons related to the strategic integration of social media into a firm's marketing communications strategy.     

Investment and marketing strategies of Mexican companies in the United States: Preliminary evidence

Because of its geographic proximity to the United States and its favored position as a member of the North American Free Trade Agreement (NAFTA), Mexico has become an emerging player in the global marketplace, and this new position has motivated several Mexican companies to establish businesses in the United States. Attempts have been made to explain why Mexican firms have become global players, explanations that focus on several national and international factors. However, these factors omit important drivers of the process, including entry and marketing strategies. This study aims to 1) give an account of how and why Mexican companies enter the United States, and 2) identify some tendencies in the way U.S. subsidiaries of Mexican companies develop and use marketing strategies to serve U.S. markets. © 2004 Wiley Periodicals, Inc.     

Marketing as a Determinant of Long-Run Competitive Success in Medium-Sized U.K. Manufacturing Firms

Over the last decade or so, many studies have highlighted the important role that marketing plays in contributing to a firm's competitive success. Thus, this article aims to examine the contribution of marketing to the competitive success of forty two British medium-sized manufacturing firms at two time points, 1987/88 and 1997/98, in order to determine any success factors that are durable over time. The investigation is based on mail surveys and in-depth interviews undertaken within the same set of firms at both dates. The findings identify eight specific marketing practices that might well be described as key determinants of success. However, they also draw into question several of the traditional tenets of successful marketing.     

Marketing control and performance in early-growth companies

This article examines the relationship between market performance and marketing control systems used by early-growth electronic component and instrument manufacturers. Essentially, “marketing control” means keeping things on track. Long pushed aside by the excitement of planning and organizing business ventures, controlling operations, particularly marketing operations, has received little attention. This is regrettable because control is the only mechanism which ensures that resources are allocated efficiently and that strategic objectives are met. Also, for the early-growth high tech company, which is already in a state of flux, developing an appropriate marketing control system is essential to its ability to meet and respond to the recurring challenges brought about by the pace at which change is occurring.In this article the author examines the issue of marketing control from a theoretical as well as an empirical perspective. First, the author presents a framework for evaluating the marketing control system within a company. The core of the framework presents the essential elements of marketing control: feedback and corrective action. Bounding the core is:

1. 1. The Formal Marketing Organization. Delimits the company's capability to enact the control processes.

2. 2. Marketing Culture. The subjective, interpretive aspect of organizational life, which determines what control components and marketing structure are valued in the company.

The framework is used to analyze the marketing control systems of 20 early-growth high tech manufacturing companies. Four hierarchical configurations of the control system elements are identified and the companies assigned to one of the following configurations:

1. I. seeking some sales.

2. II. making good on sales.

3. III. seeking profitable sales.

4. IV. making profitable sales.

Four companies possessed none of the elements of control. There were merely operations which produced results. As a consequence the companies were judged to be generally unsuccessful in focusing their resources on the markets that they wished to serve. In addition, the market performances of these firms, relative to others in the sample, were poor. Ten Stage II companies, in their attempts to expand sales and to remedy logistical problems associated with making deliveries on sales, had developed formal sales departments. Unlike the four companies which were placed in Stage III, these companies put little emphasis on the financial accountability of sales and marketing. Consequently, their abilities to evaluate or steer profit performances mitigated against their achieving high levels of market performance. Only two companies were judged sufficiently different from other companies to warrant placement in Stage IV. These companies focused on developing marketing structures and reporting procedures which provided real time feedback on market performances. Because of this, they appeared able to identify market opportunities that were defensible in the long run and in which they could exercise control over profits.In conclusion, the findings indicate that greater control of marketing operations correlates with stronger market performances. When performance is measured in terms of absolute sales, sales growth. cumulative cashflow and profitability, companies with more evolved marketing control systems perform noticeably better than do others in the sample.     

An Exploration of Factors Influencing Inward Technology Licensing Performance

This article describes an exploratory study of firms' performance in the use of technology licensed from foreign non-affiliate companies. It focuses on identifying the factors that distinguish between licensee firms with high and low performance. The results suggest that a firm's internal distictive competencies in manufacturing and marketing; and mangers' perceived costs and bengits of inward licensing significantly explain the firm's performance in the use of licensed technology.     

Competitive Actions of Small Firms in a Declining Market

Small firms, through their flexibility advantages and closeness to customers, potentially can increase their sales volume in economic downturns. The decline in U.S. housing construction (beginning in 2006) provided an opportunity to develop and test four hypotheses predicting the attributes and marketing actions associated with successful companies supplying housing markets. Smaller firms and those producing made‐to‐order products were most likely to have realized increased sales volume. These successful firms were not engaged in several marketing actions hypothesized to increase sales volume in a declining market. Small firm competitiveness was based more on working closely with customers to produce fully customized products.     

Pricing in marketing strategies of U.S.- and foreign-based companies

This study examines the role of pricing in marketing plans of U.S.- and foreign-based companies operating in the United States. Concurrently, two other issues, centrality of pricing decisions and pricing objectives, are examined. One objective of this study is to complement prior research, which has suggested the existence of managerial differences in other marketing and nonmarketing areas between U.S.- and foreign-based firms.The results, based on a mail survey and personal interviews, show that some differences exist between the U.S.- and foreign-based firms so far as the pricing element of their marketing plans is concerned. Pricing decisions are also shown to be more centrally made in the U.S.-based firms than in the foreign-based firms. Distribution of pricing objectives of the two types of firms, however, were not significantly different from one another. Group mean scores for pricing objectives, on the other hand, do suggest some fundamental differences.     

Marketing Metrics

A fundamental problem for measuring marketing performance is defining and identifying both the best metrics and best practice. This article, based on a three-year research project among major companies, summarises both what firms do and what the research implied they should do. It proposes a common use of language as a prerequisite to defining metrics and introducing performance measurement systems. Boards should establish and regularly review both external and internal market metrics, including innovation health. The author also explains why he thinks market research responsibility, and reporting marketing performance to the board, should be turned over to the finance director or chief knowledge officer.     

Effects of IT knowledge and media selection on operational performance of small firms

This study examines the effects of information technology (IT) knowledge and media selection on operational performance, measured by balanced scorecard, in small firms. Small firms generally lag behind medium and large companies in adopting and implementing computerization. This study is based on a survey of 698 small firms. The results show that: (1) individual IT knowledge and both traditional and electronic communication methods significantly contribute to the internal process performance of small firms; (2) internal process performance, organizational IT knowledge, and electronic communication methods affect customer performance; and (3) financial performance is affected by process and customer performance. The findings imply that it is imperative for small firms to adopt computerization to achieve improvements in business performance.      

网络营销时代的传统商业企业营销管理创新探讨——基于顾客让渡价值视角

网络营销时代,越来越多的传统商业企业面临着冲击,传统商业企业必须进行营销管理创新,才能为自己赢得更大的发展空间,本文从提升顾客让渡价值的视角提出在网络营销时代传统商业企业如何利用线上和线下资源,创新营销管理的方法和思路,以更大程度地提升顾客让渡价值,培养顾客忠诚,从而使自身获得更好的发展空间。     

Implications of perceived competitive advantages,adaptation of marketing tactics and export commitment on export performance

The aim of this exploratory paper is to fill an important gap in the international marketing literature by examining the influence of firm behavior in foreign markets (export commitment and adaptation of marketing tactics) on perceived competitive advantages and export performance. Using a sample of 150 Spanish export firms, the study found that firms that are more committed to their foreign markets are more willing to adapt elements of the marketing program. These firms also perform better in foreign markets. Moreover, the results also point out that adapting marketing tactics does not have direct effects on export performance, although it does have on the achievement of perceived competitive advantages in foreign markets, which positively influence export performance.     

Marketing’s role in multi-stakeholder engagement

In 2019 the CEOs of more than 180 of the largest U.S. firms signed a statement of corporate purpose indicating that corporations are responsible for providing economic benefits to all stakeholders, not just shareholders. Although stakeholder theory states that there are several stakeholders (internal and external) whose continuing participation affects a firm’s sustainability and long-term profitability, the marketing literature has focused primarily on customer engagement. This research argues for a broadened focus by marketing scholars and introduces a stakeholder engagement framework based on a triangulation approach including a systematic review of marketing research from a stakeholder perspective, the results of a survey of 254 editorial review board members from top marketing journals, and business case examples. The framework identifies three dimensions of firms’ stakeholder engagement strategies (stakeholder recognition, support, and dialogue) linked to stakeholder responses (stakeholder contribution to the firm or retaliation) that ultimately influence firm performance (financial, reputation, and risk). Two core propositions of multi-stakeholder engagement provide a foundation for a detailed future research agenda for marketing.     

The efficacy of marketing skills and market responsiveness in marketing performance of emerging market exporting firms in advanced markets: The moderating role of competitive intensity

Emerging market exporting firms in advanced economies must manage a highly dynamic landscape owing to factors such as changing market needs and fierce competition. Hence, these firms need to develop unique marketing skills for superior performance. Accordingly, this study draws on the resource-based and dynamic capability theory to empirically examine the role of marketing skills in developing a dynamic capability—market responsiveness—for improved marketing performance, and the changes in this relationship under highly competitive intensity. Using a sample (n = 98) of firms originating from an emerging market (Pakistan) mainly exporting to advanced markets (the United Kingdom, the United States or both), the findings show that marketing skills, positively mediated by market responsiveness, influence the marketing performance of such firms in advanced markets. The indirect relationship is positively moderated by a higher level of competitive intensity. This study extends the dynamic capability and export marketing streams of literature, particularly for emerging market exporting firms in advanced markets, and provides useful performance implications to export marketing managers.