A New Kind of Marketing: Creating Micro-Niches Using Resonance Marketing

ABSTRACT

Marketing has been dramatically changed by the Internet, the old rules do not apply. The Web allows companies to create products using micro-segmentation for target markets that are extremely small. Firms that want to be successful have to learn about resonance marketing. Resonance marketing used in conjunction with cause marketing and/or multicultural marketing can help a company find new market niches, charge premium prices. It can also be of great value to those interested in starting a small business.     

Corporate ventures into industrial markets: Dynamics of aggressive entry

This article reports a study of the effect of aggressive entry by firms venturing into new industrial markets. There are three main sets of results:First, there is a significant correlation between the competitive attractiveness of the target industry and the initial share objective set by the corporation venturing into that industry.Second, the downstream share objective, set at the launch of the venture is significantly correlated with several key marketing strategy and investment strategy options made by the firm at the start of operations.Third, if most of these key strategy decisions are made under the assumption that a high share position will rapidly be achieved, their resulting performance, in terms of both market share and ROI, is superior to firms which enter with less aggressive share aspirations.These results are particularly appealing to the large established firm which has the resources and thus can both afford to absorb the cost of failure and afford to make significant front-end investments in aggressive initial marketing expenses and investments in initial plant capacity. For such firms a feasible strategy for a new venture into an industrial market could be to: if possible (but not essential) seek industries/markets to enter which are less likely to provoke rivalrous responses; set aggressive market share targets; invest aggressively in initial plant capacity; develop aggressive sales force, sales promotion, advertising, service quality, and/or pricing programs relative to competitors, as appropriate to the particular industry being entered.The reason we suggest that the programs be aggressive as appropriate is that different strategic options are likely to be more effective in one industry than another. For instance, aggressive advertising and sales promotions could be more effective for consumables, while aggressive sales calling programs and superior service delivery could be the more effective route for capital goods businesses.     

Using diffusion models to forecast market size in emerging markets with applications to the Chinese car market

Marketing managers have to forecast the market size and this forecast guides strategic decisions whether to continue exporting, open new factories or expand existing production operations. Forecasting sales and the market size is a challenging task; even more so in emerging markets where data is limited and the market demand is changeable. This research proposes a novel approach that applies diffusion models using car ownership data to forecast car sales. Car ownership data may be easier to access than sales data in emerging markets but marketing managers are more interested in the sales forecast. Researchers propose using diffusion models to forecast the adoption of new products or products which are new to consumers in a market. This research demonstrates that marketing managers can use diffusion models to predict car sales in China where cars are new products to most consumers in this market. Since the majority of car buyers in China are first time buyers, car manufacturers and retailers must also forecast when the market composition will change. This effectively means predicting when first time car buying will start to slow down and repeat/replacement purchase or second hand car purchase will become more important. To forecast both sales and market composition change, marketing managers must choose a robust model. Managers want insights from models that have been tested robustly especially in less stable market conditions. In this context, this study illustrates the value of using a rolling forecast instead of a fixed horizon approach when comparing and choosing which model to use to forecast both sales and market composition change for the Chinese car market.     

Ethical Ideologies and Older Consumer Perceptions of Unethical Sales Tactics

Demographic differences among consumer groups have become increasingly important to the development of marketing strategies. Marketers depend heavily on the sales force to implement strategies at the consumer level and, not surprisingly, different groups may view the salesperson’s role differently. Unfortunately, unethical sales practices targeted at various consumer groups, and especially at seniors, have been utilized as well. The purpose of this study is to provide initial empirical evidence of the ethical ideological make-up of four age segments outlined by Strauss and Howe (1991, Generations: The History of America’s Future 1584–2069, Morrow, New York) and to examine the propensity for these groups (seniors, in particular) to respond differentially to potentially unethical sales tactics. Data were collected from 179 respondents representing the four generational age groups. MANOVA revealed that the seniors in this study were distinct with respect to ethical ideology and less accepting of unethical sales tactics. Managerial implications are discussed for sales organizations to maximize their effectiveness across consumer groups. Rosemary P. Ramsey (Ph.D., University of Cineinnati) is Professor of Marketing in the Raj Soin College of Business at Wright State University, Dayton, OH, USA. Rosemary spent several years as a marketing and sales practitioner in the private sector, primarily for NCR Corporation. She is interested in relationship development as it pertains to buyer-seller interactions, salespersons with their sales managers, and team dynamics. She has been on the faculty at University of Kentucky and University of South Florida. She was in administration at Eastern Kentucky University, Cleveland State University, and Wright State University. She is published in the Journal of the Academy of Marketing Science, Journal of Retailing, Journal of Business Research, Journal of Personal Selling & Sales Management, among others. She was recently honored by Who’s Who among America’s Teachers and Who’s Who in Executives and Professionals. Greg W. Marshall (Ph.D., Oklahoma State University) is Professor of Marketing and Strategy in the Roy E. Crummer Graduate School of Business at Rollins College, Winter Park, FL, USA, Greg’s research centers on the areas of sales force selection, performance, and evaluation; adoption and successful use of technology by salespeople; sales force diversity; decision making by marketing managers; and intraorganizational relationships. He is Editor of the Journal of Marketing Theory and Practice. His industry experience includes thirteen years in selling and sales management, product management, and retailing with companies such as Warner Lambert, Mennen, and Target Corporation. He is a frequent consultant and trainer in the area of strategic marketing. Greg serves on the editorial review boards of the Journal of the Academy of Marketing Science, Journal of Business Research, and Industrial Marketing Management.He is co-author of the books, Sales Force Management 9e and Relationship Selling and Sales Management 2e, both published by McCraw-Hill, and Marketing: Real People, Real Choices 5e, published by Prentice Hall. Mark W Johnston (Ph.D., Texas A&M University) is the Alan and Sandra Gerry Professor of Marketing and Ethics at the Roy E. Crummer Graduate School of Business at Rollins College, Winter Park, FL, USA. Mark has conducted a number of seminars around the world on a variety of topics including ethical issues in marketing, sales force motivation, managing turnover in the organization, sales training issues, and improving overall sales performance. He has served as a marketing consultant to a number of organizations around the country. A partial list of his research includes publications in theJournal of Marketing Research, Jotunal of Applied Psychology, Journal of Business Research, and Journal of Personal Selling & Sales Management. He is co-author of the books Sales Force Marnagement 9e and Relationship Selling and Sales Management 2e, both published by McGraw-Hill. Dawn R, Deeter-Schmelz (Ph.D., University of South Florida) is Chair and O’Bleness Professor of Marketing at Ohio University, Athens, OH, USA. Her research interests include customer service teams, sales management and buyer-seller relationship issues, business-to-business e-commerce, and scale development. She has published in Journal of the Academy of Marketing Science, Journal of Marketing Theory and Practice, Industrial Marketing Management, Journal of Personal Selling & Sales Management, Journal of Marketing Education, and Journal of Business Logistics, among others. In a marketplace where the consumer is King ... understanding the fundamental needs, values, icons and historical experiences of the various generations is more critical than ever. Generational mindsets and feelings are major factors in determining ...an effective marketing strategy. —Fishman (2004), p. 4     

Privatization and Company Restructuring in Eastern Europe

Summary

The successful transition of Eastern European economies from central planning to market orientation has to include significant company restructuring in addition to privatization. At the micro level it can bring enhanced productive efficiency through changes in organizational structure, operations and financial control and the introduction of marketing as a crucial element and function of the restructured companies. At the macro level, company restructuring creates the necessary conditions for improved allocative efficiency, achieved through the transition from the monopolistic market structure of chronic deficit to a mostly competitive one able, in the longer run, to meet market demand. Restructuring is used here in the broader sense of changes in the organization's management orientation, operational processes and systems as well as in its formal structure. Restructuring is held to be both extremely complex and critical to the realization of the benefits of privatization at both macro and micro levels. Some broad hypotheses relating to common elements of the restructuring process arc introduced: a shift to a flatter, less hierarchical organization structure; the adoption of ‘western’ financial management and accounting practices and the introduction of budgetary accountability; the evolution of the marketing function and the rationalization of product ranges in the light of market needs.     

The Application of Stakeholder Theory to Relationship Marketing Strategy Development in a Non-profit Organization

Non-profit (NP) organizations present complex challenges in managing stakeholder relationships, particularly during times of environmental change. This places a premium on knowing which stakeholders really matter if an effective relationship marketing strategy is to be developed. This article presents the successful application of a model, which combines Mitchell’s theory of stakeholder saliency and Coviello’s framework of contemporary marketing practices in a leading NP organization in the U.K. A cooperative enquiry approach is used to explore stakeholder relationships, dominant marketing practices, and to surface differing perceptions about the organization’s marketing strategy. Resolving these differences sets the scene for developing choices in marketing strategy for the future. Simon Knox is Professor of Brand Marketing at the Cranfield School of Management in the UK and is a consultant to a number of multinational companies including Levi Strauss, DiverseyLever, BT and Exel. Upon graduating, he followed a career in the marketing of international brands with Unilever plc in a number of senior marketing roles in both detergents and foods. Since joining Cranfield, Simon has published over 100 papers and books on strategic marketing and branding and is a regular speaker at international conferences. He is a Director of the Cranfield Centre for Brand Management Development in the School and is currently looking at the impact of Corporate Social Responsibility on Brand Management. He is the co-author of two recent books, "Competing on Value", published by FT Pitman Publishing in the UK, Germany, the USA and China, and "Creating a Company for Customers", FT Prentice-Hall, in the UK, Brazil and India. Colin Gruar is currently studying for his Doctorate of Business Administration at the School. His thesis is concerned with developing marketing strategy across stakeholder groups in the Not-for-Profit sector.Formerly Head of Marketing at a major UK medical research charity, Colin has also had senior roles in sales, marketing and operations management in a range of sectors including manufacturing, financial services and energy supply.     

Meta‐marketing: Unifying organisational focus to achieve marketplace goals and objectives

Marketing and sales have not received the same emphasis from western leadership that they have in Japan. In the American model, one group markets, another sells, another designs and manufactures, and another sets organisational goals and objectives. Each area becomes separate and isolated without a common focus. Well‐designed meta‐marketing strategies directed by senior management can facilitate rapid and productive responses to changing environments.

To excel in a global economy, the field of marketing must take a new position, rethinking its fundamental relationship to all aspects of the organisation and its external environment. The perception of marketing must move beyond its present paradigm. To improve profits and sales by x percent each year is limiting. A business should expand in relation to potential, not last year's profits. A marketing focus must be designed that will increase market share, growth, short‐ and long‐term profits, and employment. Leadership can improve productivity by directing all employees to reflect a common corporate marketing and sales focus.     

Improving sales performance through ethics: The relationship between salesperson moral judgment and job performance

This study examines the relationship between salespeople's moral judgment and their job performance. Results indicate a positive relationship between moral judgment and job performance when certain characteristics are present. Implications for sales managers and sales researchers are provided. Additionally, directions for future research are given. Charles H. Schwepker, Jr. is Associate Professor of Marketing at Central Missouri State University. His research interests are in sales, sales management, marketing ethics and consumer behavior. His articles have appeared in the Journal of Public Policy and Marketing, Journal of Marketing Management, Journal of Marketing Theory and Practice and Industrial Marketing Management, as well as various national and regional proceedings. Thomas N. Ingram is Professor of Marketing and Department Chair, Marketing Department, Colorado State University. His primary research interest is in personal selling and sales management. His articles have appeared in the Journal of Marketing, Journal of Marketing Research, Journal of Personal Selling and Sales Management, and Journal of the Academy of Marketing Science, among others. He is the coauthor of Sales Management: Analysis and Decision-Making, 2nd ed. (The Dryden Press, 1992) and coauthor of Marketing: Principles & Perspectives (IRWIN, 1995).     

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.     

Reviewing the reviewers: The impact of individual film critics on box office performance

Critics and their opinions or critical reviews play a major role in many markets. Marketing research on how critics impact product performance has so far examined an aggregate critic effect. An obstacle in studies examining the relationship of aggregate critical opinion and product sales is the close association between the intrinsic quality of a product and the aggregate opinion regarding the product. Our analysis parses out these two effects, allowing us to distinguish individual critics who are simply good at identifying products with popular appeal from those who act as opinion leaders and engender early product sales. The role of critics is especially prominent in the film business, in which one finds multiple expert opinions about each movie and where critics’ endorsements are used in advertising. In the context of the motion picture industry, our research investigates the impact of individual film critics on the market performance of movies, where specific key critics and reviewers may serve as market gatekeepers, and where various critics may have different types of impacts on product performance.

Manufacturer-owned retail stores

Increasingly, manufacturers sell their products in their own retail stores, and many of these stores appear to be in direct competition with independent retailers; i.e., both types of retail stores are physically co-located. We analyze one way this practice affects the retail market. We find that, when independent retailers compete against company stores (instead of just against other independent retailers), they (1) charge higher prices and (2) are more willing to engage in marketing efforts on behalf of the manufacturer’s brand. Furthermore, when company stores and independent retailers compete in the same market, the company store charges higher prices and provides more marketing effort. Anecdotal data are consistent with these model predictions.

Performance and size: empirical evidence from Portuguese SMEs

This article studies the relationship between company size and performance for small and medium-sized Portuguese companies. Using dynamic panel estimators, we conclude that performance is related positively to size. This relationship suggests the greater relevance of scale effects, diversification and the greater ability of larger companies to cope with market changes. Furthermore, our empirical results show that performance is persistent, not showing discontinuity, suggesting that small and medium-sized Portuguese companies are relatively successful in coping with possible scenarios of aggressive competition. Debt and level of fixed assets influence performance negatively, and separation of management and ownership influence performance positively. Liquidity, risk and ownership control are not relevant in explaining the performance of small and medium-sized Portuguese companies.

Marketing and company performance: An examination of medium sized manufacturing firms in Britain

In recent years several studies have pointed to the importance of marketing to company performance and considerable emphasis has been placed, in Britain, on improving the marketing performance of small and mediumsized enterprises. Based on a mail survey of 231 medium sized manufacturing firms in the U.K., and in-depth inteviews with the Chief Marketing Executive of a sub-sample of 20 firms, the study confirms that the most successful companies are those which are marketing orientated. Nevertheless, several traditional tenets of marketing are questioned by the findings and it would seem that the traditional marketing model, as developed for large companies, is neither entirely necessary nor applicable for the smaller firm.     

Ethical dilemmas in marketing: A rationale

Because of their visibility, marketers are often perceived by society as engaging in unethical or questionable behaviors. The marketing literature does not specifically provide an explanation for this dilemma. This paper suggests that there are three major reasons for this problem: fluctuating limits of consensus, ethnocentrism, and utilitarian economic analyses. Dr Paul Hensel is an Assistant Professor of Marketing at the University of Kentucky. He received his Ph.D. in Marketing from the University of Houston in 1982. He has published in Journal of Marketing Education, Journal of the Academy of Marketing Science, Equal Opportunity International and Marketing Educator's Proceedings.Topics include marketing ethics, advertising effectiveness, and social responsibility in marketing.Alan J. Dubinsky (Ph.D., University of Minnesota) is a Visiting Associate Professor of Marketing in the School of Management at the University of Minnesota. He has served on the faculties of Southern Methodist University and the University of Kentucky. Prior to pusuing his graduate work, he was a territory manager for Burroughs Corporation. He has published widely in the areas of sales and sales management.     

Changes in the way marketing is managed — a personal view

The Marketing Department, like others in a manufacturing company, has changed considerably in the last 40 years. Its survival, and even the concept of marketing, have been under threat recently. The reasons for these changes, as the author has seen them, are described. Marketing has tried to be seen as accountable in the same way as other departments but has usually failed. It often now operates as part of a multi‐disciplinary team, which means that more people have to understand the Marketing concept, so this needs restating to a wider audience. After this, there are serious marketing tasks facing most firms today.     

Marketing Strategy in an Internet-Enabled Environment: A Retrospective on the First Ten Years of JIM and a Prospective on the Next Ten Years

During the past decade, developments such as the rapid growth of the Internet, digitization of information products, and digitization of the information attributes of non-information products, has necessitated businesses to fundamentally rethink, as well as institute major changes in, their marketing strategies. Against this backdrop, we present a critical assessment of extant research on marketing strategy in an Internet-enabled environment viewed through the lens of research published in previous volumes of the Journal of Interactive Marketing (JIM), and speculate on the future of interactive marketing in the contexts of marketing practice, research in marketing and marketing education. Looking back, it is evident that marketing strategy and marketing operations have been transformed by the Internet in many ways. Looking ahead, it can be expected that marketing strategy and marketing operations will be even more extensively integrated and blended in the Internet-enabled market environment in the future.     

Developing a distinctive consumer marketing organization

Marketing excellence is a key success factor in virtually any industry or company focused on consumer products or services. Defining what marketing excellence really means and how to mobilize the organization to achieve that goal, however, can be extremely challenging. This article examines the changing nature of the relationship between consumer and marketer and identifies the characteristics of excellent consumer marketing companies. While there is clearly no single right answer in designing marketing organizations, a number of companies in a variety of consumer industries have begun experimenting with promising results. While the solutions are different in each case, a number of common themes—including a clear linkage between strategy and marketing skills, seamless integration across the business system, and a clear marketing culture—are beginning to emerge.     

An empirical study of the international marketing strategies of e‐commerce companies

This study surveyed a random sample of 136 e‐commerce companies to provide baseline information about their marketing and international marketing strategies. The findings show that one in five companies do not market internationally and another four in ten generate 10% or less of their sales from international markets. About half of the companies reporting international sales did not adapt their strategies to the international markets. This may have contributed to the failure of many of these companies. A more savvy use of international marketing strategies by e‐commerce companies could be very helpful to their future well‐being. © 2005 Wiley Periodicals, Inc.     

Competitive Marketing Strategies: A Survey of Japanese Manufacturing Firms' Competitive Performance in the British Market

The role of Japanese corporations in world markets has become so crucial that an understanding of the rules of competition employed by the Japanese is essential for all those involved in international business. The aim of this survey was to gain an insight into the role marketing plays in affecting the competitive position of Japanese firms in the British market. In particular the researcher focused on the overall approach of Japanese companies to the marketplace and the process by which they identify and bring products to the market.

The broad findings emerging from this study present few surprises, Japanese companies do not seem to suffer from a “sales orientation”, a “production orientation” or “finance orientation” as opposed to a “marketing orientation”. The in‐roads being made into the British market are based by and large on a strategy aimed at satisfying customer needs and wants. Japanese companies saw their strengths in placing emphasis on research and engineering and bringing the right product to the market quickly and decisively.     

Stakeholders Management Systems: Empirical Insights from Relationship Marketing and Market Orientation Perspectives

This paper explores the managerial aspects of the relationship with stakeholders, under the assumption that transfer of knowledge is being made from relationship marketing and market orientation perspectives. These marketing tools may prove useful to manage the relationship with other stakeholders, as has been the case with customers. This study focuses on a sample of Spanish companies representing 43% of listed companies with the largest market capitalization. Given that this is the first time that corporate relationship with stakeholders is analyzed in Spain, a qualitative technique (case analysis) was used. The main conclusion of the study is that most of the participant companies have a reactive position vis-à-vis stakeholders management systems. This attitude is reflected in their concern exclusively about ethical indexes managers. J. García de Madariaga Assistant Professor, Marketing Department, Universidad Complutense de Madrid. Ph.D. in Marketing and B.A. in Advertising, Universidad Complutense de Madrid. His work has been published in refereed international journals and also in Spanish journals. He has also published numerous refereed articles in the proceedings of major national and international conferences. He is also an active marketing and marketing research consultant. Carmen Valor Ph.D. (Marketing) at Universidad Complutense de Madrid (Spain), MBA (Universidad Carlos III de Madrid, Spain). Currently, Visiting Teacher at Universidad Pontificia de Comillas-ICADE. She is also an active Research Member at Economistas Sin Fronteras Foundation and GEIES (Universidad San Pablo-CEU). Her work focuses on several issues related to corporate social responsibility and consumer behaviour. Her research has been published, inter alia, in the Journal of Business Ethics, Journal of Business and Society, Business and Society Review, or Investigación y Marketing.