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.     

An Entrepreneurial Perspective on the Marketing of Charities

ABSTRACT

This paper discusses marketing activities within charities, with specific reference to the applicability of an entrepreneurial approach, and cause marketing. The efforts of these institutions in recent years to apply the tools of conventional marketing to the services they provide in the markets which they serve is laudable. However, it is argued that in times of environmental turbulence, this is necessary but not sufficient, and that an entrepreneurial perspective on marketing needs to be adopted particularly in relation to cause marketing efforts. Here are elements of risk-taking, proactiveness and innovativeness, and a more recent notion of “network-spotting” or object-orientation. The concept of entrepreneurial intensity in this regard is introduced, as well as a process which can be applied to entrepreneurial marketing in charities. Finally, the obstacles to entrepreneurial marketing by charities are identified.     

“Relationship marketing” and the “markets‐as‐networks approach”—a comparative analysis of two evolving streams of research

Predating the increased attention by marketing academics on relationship marketing, European marketing scholars developed a network approach to the study of industrial markets that is also based on relationships between seller and buyer as a fundamental concept. This article aims to analyse the similarities and the differences between relationship marketing studies and network studies. After comparative analyses of definitions, empirical and research foundations, attributes related to governance structures and to the marketing mix approach and of major issues addressed in the research agendas, the conclusion is: relationship marketing in its limited interpretation is just a development within the marketing mix approach. Relationship marketing in its extended interpretation is, or rather could become, close to the markets‐as‐networks approach. However the basic attribute in network studies of “embeddedness” is largely missing in relationship marketing. To develop relationship marketing as a generic concept, researchers need to address also the issue of the generic nature of the market. Because when relationships are regarded as the generic governance form for transactions, then the market itself becomes network‐like!     

Ethnic Food Marketing

Abstract

This paper discusses the unique role of ethnic foods in value-added food product marketing. In particular, the case of Korean kimchi is used to provide several examples of concepts introduced within the paper. When Korean kimchi export markets were disaggregated into groups of “culturally similar” and “culturally distant” markets, striking differences in the pattern of trade flows were observed. Exports of kimchi to culturally similar markets were more stable, predictable and higher volume. Exports of kimchi to culturally distant markets were more variable and had lower volume. A literature review of 28 articles published from 1979 through 1998 revealed a growing consistency in model formulation for the study of ethnic food markets. The niche markets that ethnic foods represent may be an important part of future value-added food product marketing strategies in an increasingly global society.     

Tradition Versus Change: Evaluating the Currency of Some Traditional Chinese Values in Today's Business Environment

Abstract

In the last decade, the discussion about how marketing is changing has focused largely on practices in more affluent industrialized economies. Far less attention has been given to understanding the marketing strategies and practices of firms in emerging and transition economies. In this paper, we compare marketing of multinational firms versus local firms in Argentina. We identify the environmental characteristics of Argentina's emerging economy and, using survey data of 96 firms, we group firms into five clusters. We refer to two clusters as “traditional/local” as they use very basic marketing methods, with one serving business markets and the other consumer markets. The other three clusters we refer to as “progressive” as they represent state-of-the-art practices. The first two of these are foreign-owned and serve consumer and business markets, the third represents locally-owned service firms. The managerial implications are examined.     

A Stakeholder Perspective on Relationship Marketing

Abstract

This paper proposes a broad framework of relationship marketing using the stakeholder approach. Drawing from Peck et al. (1999) framework and proposing several modifications, the authors identify the following relational groups-supplier markets, customer markets (channels), customer markets (end users), competitor markets, external influence markets, and internal markets. The growing importance of strategic alliances is reflected in all constituent groups as well as in a proposed modification of the Berry and Parasuraman (1991) levels of relationships. This paper also re-examines the strategic role of the traditional marketing mix strategies (namely, product, price, place, and promotion) in the new relationship paradigm. Finally, implementation strategies for the stakeholder markets, in general, and customer markets, in particular, are proposed. Several propositions are derived throughout the paper, many of which can be fertile areas for future research investigations.     

Marketing,violence and social cohesion: first steps to a conceptual approach to the understanding of the normalising role of marketing

ABSTRACT

This paper answers a call for contributions ‘dedicated to revealing how markets and marketing make violence culturally acceptable and socially normalised’. Such an investigation has to involve some in-depth conceptualisation with respect to the meanings of both marketing and violence. The market is an institution related to other institutions which altogether are – as in all societies – trying to cope with violence. Today our societies are based on both markets and democracy, but those institutions tend to be mutually contradictory. When marketing tends to replace politics and to almost religiously convert citizens into consumers it is social cohesion that is at stake. This paper aims at contributing to a deeper understanding of social/historical trends. As it highlights the importance of ideas (representations and motivations) and their links with changing institutions, it might help researchers and marketers to a broader understanding of their role and towards a more conscious social behaviour.     

The Determinants of Pricing Strategies for Industrial Products in International Markets

ABSTRACT

The global marketplace is becoming increasingly complex in which to conduct business. Firms marketing consumer goods have a somewhat easier time than those selling industrial products, since more has been written about them and the international consumer goods have been analyzed for a longer period of time. In addition, the international marketing literature, has looked more at the elements of product, promotion and place than price. This literature gap has created a void in the understanding of marketers as to how to effectively price industrial products in international markets.

The paper identifies the important industrial pricing strategies in international marketing and examines the underlying determinants that affect their outcome. In addition, the specific causal relationships between the determinants and pricing strategies are examined through a logistic regression analysis.     

Customer service—the missing dimension in marketing management

Although several writers have drawn attention to Customer Service as a vital ingredient for success in marketing there is still confusion over what is, how to measure it and hence how to manage it. Yet examples continue to emerge which suggest that Customer Service is the essence of the marketing concept in practice and therefore a source of differentiation and competitive advantage.

It is also suggested that the way firms deal with customer service is a more accurate reflection of their marketing orientation than organisational or other characteristics. A useful reminder that business is about creating and providing customer satisfactions would therefore seem appropriate and ways to improve Customer Service are suggested based on several case study examples.     

Private labels ain’t bona fide! Perceived authenticity and willingness to pay a price premium for national brands over private labels

Abstract

As private labels are consolidating their gains in national markets, a conventional recommendation to national brand manufacturers would most likely be to invest more in marketing in order to increase the perceived quality gap between national brands and private labels. It is assumed that the quality gap would boost consumer willingness to pay a price premium for national brands over private labels. Differing from this conventional approach, the current study focuses on the perceived authenticity gap between national brands and private labels, to explore whether and how this factor influences the effect of marketing and manufacturing variables on willingness to pay. This relationship is relevant in milieus where consumers might take brand authenticity rather than quality perceptions to guide their brand evaluations. The current study finds that the perceived authenticity gap mediates the effect of only some particular conventional marketing tools on willingness to pay. The study suggests that national brand managers should take the presence of private labels in the national markets as an opportunity to exploit the dynamics of authenticity evaluations, rather than as a threat.     

The regulatory challenge to branding: An interpretation of UK competition authority investigations 1950–2007

Abstract

Branding is a necessary and important business tool. This study, however, examines whether branding can constitute an anticompetitive act. While most markets and firms do not undertake anticompetitive actions, being identified as such can result in a wide range of negative outcomes. To explore this low-frequency yet high-risk outcome, this study assesses how branding has been perceived to be anticompetitive by the UK competition authorities. This assessment is undertaken by examination of all UK competition law regulatory decisions undertaken over the period 1950–2007 by the UK competition authorities. From this assessment, it is observed that branding can facilitate excessive pricing, requires vertical restraints, and can lead to consumer confusion; all potentially anticompetitive acts. The competition regulatory decisions focused on branding issues are demonstrably different from regulatory decisions without branding concerns and involve larger, often manufacturing, firms, which operate in more concentrated markets. It is concluded that comprehension of competition law needs to be disseminated more widely amongst marketing communities and greater reference to business and marketing theory should be made by competition law agencies to assist the comprehension of marketing techniques such as branding.     

Systemic small-player market exclusion in an east African context

ABSTRACT

Producer–consumers in Kenya and Uganda face challenges in meeting their subsistence goals. They face a paradoxical inclusion and exclusion from the contemporary market system that the solutions proposed in the agriculture development, subsistence markets and BOP perspectives cannot address because of faults in the pervasive marketing ecosystem perspective. In this article, we go beyond the traditional discussion of producer–consumers’ market access, to include upstream as well as downstream challenges. We introduce the concept of integration gaps to markets as a counterpoint to typical measures of market access. We show the integration gap is a systematic neocolonialist exclusion of producer–consumers that international aid agencies exhorting greater market engagement may worsen. We offer suggestions for improvement from a marketing ecosystem perspective.     

Close to the customer: But is it really a relationship?

Everyone is developing relationships. Customers are being invited to have relationships with telephone companies, banks, auto dealers, airlines, and other suppliers of products and services. Relationship marketing is being touted as an effective strategy to guide companies into the next millennium. Recently there has been widespread reference to relationship marketing in the popular literature, and the concept has been embraced by many companies and organizations. There is little consensus, however, on what the concept means and even less consistency in how it is practised. What is relationship marketing? Practising marketers and articles in the trade press use the term in one way, while authors in academic journals seem often to be referring to something quite different. This paper reviews how the concept has been viewed by marketing authors and draws from social psychology to shed light on the characteristics of relationships. Some insights are drawn from a preliminary analysis of the results of focus group interviews that suggest how consumers describe their relationships with businesses.     

Relationship Marketing and the Challenge of Dialogical Interaction

SUMMARY

Our aim in this article is to challenge relationship marketing's hidden monological assumptions, and as a redress, position dialogical interaction at its core. First, we reflect on the common sense of ‘marketing communication’. Next, we clarify the concept of ‘dialogue’. We then comment on the concept of dialogue in markets, building on Karl Popper's idea of an open society, followed by scrutiny of general marketing practice to show that such dialogue is absent. We then consider the potential for marketing to be dialogical in nature. To do this we will make a necessary distinction between informational interaction, communicational interaction, and dialogical interaction. Finally, we draw the conclusion that dialogue is not so much a method of communication but an orientation to it, and consider some implications for marketing theory and practice.     

The Pedagogy of Executive Education in Business Markets

ABSTRACT

There is a growing recognition in Corporate America and other markets throughout the world that knowledge, the result of learning, and competence in technological and managerial skills are key competitive advantages. Business Week estimates that approximately $12 billion is devoted to executive education annually. However, only a quarter of this is being delivered through university settings. This shift towards alternatives to universities as sources for executive education is a result of a growing number of corporations that see current university-based programs as ineffective.

In this paper, we trace the evolution of the substance of business marketing education, underscoring the current trends in this field that focus on concept development and, to some extent, the application of these concepts in the context appropriate to participant managers. We then examine the pedagogical methods used by educational programs to address the identified trends. In the concluding section we discuss what we see as the missing piece in business marketing education. We propose that academic institutions need to go beyond the development of concepts and their contextual application to providing an architecture that enables change that corporations (the customers) are looking for. Addressing this additional objective requires not only innovative development and delivery of substance, but also developing and orchestrating the cultural climate for effecting change. Traditionally, academic institutions have delivered high quality conceptual and contextual knowledge, but have a lot to learn regarding education for effecting change. We believe that academic institutions with carefully crafted strategies that focus on leveraging their core competencies, coupled with a fierce dedication to quality, teaching excellence, innovation, and measured market responsiveness will not only survive, they are likely to flourish in partnership with the corporate community.     

Business Marketing Education: A Distinctive Role in the Undergraduate Curriculum

ABSTRACT

By extending their knowledge of markets beyond the consumer-goods domain, by deepening their understanding of how organizations make buying decisions, by strengthening their grasp of cross-functional processes, and by providing them with decision-making skills in this important area of marketing, the business marketing course makes a special contribution to undergraduates and the undergraduate marketing curriculum. Moreover, the content and focus of the business marketing course are closely tied to important themes that are transforming business practice. This article isolates the distinct contribution of business marketing education and examines important trends that are reshaping this domain. The central knowledge areas that comprise the undergraduate business marketing course are detailed and linked to specific course design strategies that can be pursued to strengthen the skill set of marketing students and respond to the needs of important constituents.     

JBBM at 21: Variety of Theories,Methods, and Countries While Giving Further Voice to Emerging Markets Within Africa

ABSTRACT

Purpose: The articles published in the Journal of Business-to-Business Marketing (JBBM) are reviewed for three themes: the varieties of theories used and tested, the methodologies of choice, and most pertinent to this article, the countries from which the data were obtained in the empirical studies.

Methodology/approach: Literature review of the JBBM issues, all inclusive.

Findings: The JBBM has had papers involving surveys 74%; case studies 11%; interviews 6%, experiments 4%, and networks 3%. There is a tremendous breadth of country representation, more than most other marketing journals.

Research implications: The authors encourage more frequent investigations into emerging markets, using African countries as exemplars.

Practical implications: To begin to understand marketing phenomena in the variety of African countries, the authors encourage researchers to establish partnerships, with African scholars and global multinationals whose marketing managers may have interest in understanding these markets and who may have data to share.

Contribution of the paper: Although a seemingly infinite number of marketing questions still exist even in well-developed markets, and scholars have begun to recognize opportunities in developing markets, future research will prove useful into emerging and nascent markets.     

In search of marketing equilibrium: Relationship marketing versus hypercompetition

This paper is a discussion on work in progress concerning the development of relationship marketing (RM). It is particularly focused on the concept of marketing equilibrium which is a marketing management correspondence to market equilibrium, the traditional concept of neoclassical economics. The paper starts with a brief introduction to the author's approach to RM. It proceeds‐ with a summary of the concept of marketing equilibrium. The next section is a discourse on hypercompetition, a particularly intense type of competition that has been observed by several authors. RM offers a marketing theory based on collaboration with various stakeholders through long‐term relationships, customer retention and loyalty. In contrast, hypercompetition claims that customers will switch between suppliers at an increasingly faster rate and that competitors will become increasingly hostile to one another. Two basic questions are raised: do RM and hypercompetition represent two conflicting but coexisting trends that are both growing in intensity? and How can this coexistence or conflict be conceptually handled? The aim of this paper is not to be complete and provide an answer, only to draw the reader's attention to hypercompetition as an opposite trend to RM and to offer a platform for further analysis and constructive and reflective scholarly dialogue.     

Determining Customer Satisfaction From Mobile Phones: A Neural Network Approach

Abstract

This research examines the effects of extension mode (online to online vs. online to offline), web-brand concept (function oriented vs. experience oriented) and extension similarity (high vs. low) on consumer web-brand extension evaluations, attitude, perceived quality, and purchase intention of the extension brands. The analysis reveals two significant interaction effects: (1) the positive effect of brand extension similarity on consumer evaluations is stronger when the parent brand is function oriented compared to the experience-orientated ones; (2) the positive effect of brand extension similarity on consumer evaluations is more pronounced when the web-brands extend to offline markets rather than to online markets. Implications for marketing theory and practice are discussed.     

Creativity in marketing management—a unified approach

This paper sets out to identify how marketing management can provide the lead in adopting a more creative approach to innovation at the idea generation stage.

Both the proactive and reactive approaches to innovation strategy are discussed in the context of change factors and the sourcing of new ideas for innovation. Four loci of idea initiation are identified, which appear to vary in importance according to industry sector.

Although evidence is presented to suggest that heuristic techniques are being used increasingly to enhance creativity, their use is limited both by the perception of their function and the strategic mode adopted by the organisation. The concept of the marketing‐centred creative circle is introduced to counter these limiting factors. It is argued that the creative circle offers a bridging function in the generation of new ideas for innovation and in extending the existing stock. As well as performing this function, a more creative and entrepreneurial atmosphere will emerge as lateral relationships develop. With the development of successive marketing‐centred creative circles within the organisation, a unified approach to creative innovation will evolve as the traditional proactive and reactive strategies merge.