New product adoption by pharmacists

The objective of this paper is to report a study into the new product buying behaviour of retail pharmacists in Britain and their ways of handling product and marketing information. The research was of an exploratory and qualitative nature, involving in‐depth personal interviews with a relatively small sample of 37 retail pharmacists within the Greater Manchester and Mersey area.

The results show that retail pharmacists in general are indifferent to and reluctant to accept new pharmaceutical products. Retail pharmacists normally are too busy to attend any professional meetings but those who do attend meetings regularly seem to be more innovative, which indicates the existence of opinion leadership in the pharmaceutical community.

With respect to the sources of information, commercial sources are useful for creating awareness, but personal channels are more influential in the later stages of the decision‐making process. Finally, the results indicate that lack of information and poor communications amongst retail pharmacists, physicians and manufacturers are possibly a major reason for new product failure. Using these findings the authors highlight important lessons which may apply to a wide range of product marketing. In particular the risks/opportunities of new product development and marketing are discussed.     

Determining Relationship Quality in the Development of Business-to-Business Financial Services

ABSTRACT

The quality of relationships built with customers during the New Service Development (NSD) process is a current concern of researchers in relationship marketing (and NSD) and is particularly important in a highly competitive environment characterised by rapidly changing customer needs like the one of financial services. The primary relationship analyzed in relationship marketing is the one between seller and buyer, but the focal type of relationship for new product and service development is the one termed “the knowledge relationship” (Gummesson 2002), a relationship used to create knowledge. This paper reports the results of in depth qualitative research on the factors that impact on the quality of such relationships developed between new service developers and their customers during the NSD process of business-to-business financial services. Results show that the most important factors that affect relationship quality are: communication quality of the relationship; the development of strong relationship bonds; the quality of relationship partners; a strong customer orientation in NSD based on a proactive approach of relationship partners during the NSD process, and proficiency in knowledge brokering.     

Marketing innovation: a systematic review

ABSTRACT

This study aims to investigate the development of ‘marketing innovation’ defined as the implementation of new marketing practices involving significant changes in the design, distribution, promotion or pricing of a product or service. We conduct a systematic review to provide conceptual, methodological and thematic guidance for scholars interested in studying marketing innovation. Our findings suggest while marketing innovation is often merged with the dominant technological focus underpinning product or service innovation, there is a growing trend to consider the innovation potential offered by the development of new distribution channels, branding strategies, communication types or pricing mechanisms. Digitisation, a key driver for marketing innovation, enables new communication methods, branding strategies, offering designs, and transaction settings. There is a growing trend to focus on cocreation, service-dominant logic and user community perspectives.     

Marketing's role in successful product development

This paper argues, on the basis of an empirical study of leading US and UK manufacturing firms, that the marketing function has on balance a more important contribution to make in identifying and initiating product development options than the technical function. It is shown that from the manufacturer's viewpoint different types of developments revolve around: (i) old product development, which is concerned wth improving or updating existing product lines and (ii) new product development, which is concerned with new product lines. Within each of these two main types further important marketing‐related options are identified which widen the scope for product development far more than is commonly appreciated.     

New product development in the financial service industry: A case study

New product development is an important aspect of service marketing. Information, however, is sparse on the actual development processes that are used by service firms to develop these new products. Utilizing a case study approach this article traces the development of a new service for a major UK based financial institution. Through an in‐depth examination of the processes it was found that a complex development system was used. The authors were able to identify a number of factors that were essential to the successful development of this new product.     

On Closeness to the Customer in Industrial Markets

ABSTRACT

Recent years have witnessed a resurgence of academic and practitioner interest in the way companies interact with their customers. While there has been considerable scientific progress in the understanding of market orientation and buyer-seller relationships, limited attention has been given to the concept of closeness to the customer. Specifically, there has been no valid measure of the construct as a whole. This paper reports the development of a valid 28-item measure (called CLOSCUS) for assessing industrial firms' closeness to the customer. The development of the scale is based on a literature review, field interviews as well as statistical analyses of two independent samples from different sides of the buyer-seller dyad. Results indicate that seven factors underlie the 28 items. These are related to product, service, and process quality (two factors), flexibility in dealing with customers (one factor), and the way of interacting with customers (four factors), respectively. Based on the CLOSCUS scale, closeness to the customer is shown to impact on a customer's commitment, trust, and satisfaction. It is also demonstrated that closeness to the customer is both conceptually and empirically distinct from market orientation which contradicts some marketing researchers' prior statements. The paper concludes with some experiences from applications of the scale in a number of German companies.     

Product Placement of Medical Products

Abstract

Product placement is a well-established marketing technique that nevertheless continues to provoke considerable criticism and debate. Likewise, direct-to-patient marketing of pharmaceuticals is legally acceptable but is controversial among ethicists and medical professionals. Little has been published regarding the ethical challenges and pitfalls involved in medical marketing, including the issues of whether medical products should be treated differently from consumer products and whether pharmaceuticals are distinct from medical devices. Discussed are examples of pharmaceutical marketing as well as an episode from the Chicago Hope television program in which a medical device was touted as a solution for a problem for which the Food and Drug Administration (FDA) has not approved the use of the device. Legal and ethical considerations for product placement of medical products as they influence patient demand are also analyzed, as well as some of the pitfalls that may accompany direct marketing of medical products.     

Issues of Competitiveness

Abstract

This article investigates the forces that constrain Taiwanese-based corporations from improving quality and introducing and marketing new products. A total of 182 executives from the service and manufacturing sectors participated in the study. The results indicate that Taiwanese-based firms are optimistic about their competitive market position and about their respective industries. Furthermore, executives of these firms prefer to compete in regional and global markets. Absence of pride in a job well done, ineffective performance evaluation systems, and excessive government regulations were found to be the most important factors that may prohibit improvement in product quality. The results also reveal that various factors may hinder the development and marketing of new products. They are inattentiveness to consumer needs, top management's lack of attention to world competition and global opportunities, deterioration of the competitive spirit among employees and managers, absence of a flexible manufacturing strategy, volatile business environment, and too much focus on immediate results.     

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.     

Consumer perceptions of monetary and non-monetary introductory promotions for new products

Abstract

Little research has examined how consumers respond to sales promotions in new product categories. This article fills this gap by integrating research on reference prices with literature on sales promotions for new product categories. Existing research suggests that consumers respond more favourably to non-monetary promotions (e.g. extra free promotions) than monetary promotions (e.g. price discounts) because non-monetary promotions are framed as segregated gains rather than reduced losses. However, both kinds of promotions are widely used in practice, suggesting the importance of other contributory factors. With a consumer experiment on a national panel of consumers, this research demonstrates that extra free product promotions are most preferred for existing products, and introductory low-price promotions are preferred for innovative products. The moderating effect of a product's innovativeness is explained via a new relationship in the marketing literature, whereby perceived risk mediates the relationship between perceived innovativeness and a consumer's tendency to stockpile.     

Global marketing Myopia

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

Integrating strategy,industrial product innovation and marketing research

This article investigates the function of marketing research with respect to new industrial product innovation, commercialization, and ultimate adoption and diffusion. Although industrial firms have implemented strategic planning concepts extensively, because of the uncertain nature of intermediate markets, they have failed to utilize the full capabilities of marketing research early in the new product innovation and development process.The article also contends that even where there has been awareness of a critical lack of information at the innovation, commercialization, and diffusion-adoption interfaces, discussion of the nature of this information has been insufficient and too narrowly focused to comprehend the decision-support needs of management. Properly integrating industrial marketing research and new product innovation requires remedying four basic problems, viz., problems of appropriate and full utilization, problems of substance and approach, problems of timing and uncertainty, and problems of integration with other functions. The paper concludes with a schema identifying a broad range of useful market research techniques within a framework which encompasses the sequential aspects of bringing a new industrial product to the market from conceptualization to adoption.     

Integrated Marketing Communications and New Product Performance in International Markets

ABSTRACT

This research probes marketing communications for international product launch. Marketing communications is found to be more visible if the firm is more marketing proficient and the market is more turbulent. The communicated messages are less consistent when the firm is more proficient in marketing and the market is more hostile, but more consistent when the firm is more internationalized and the market is more turbulent. Both visibility and message consistency of marketing communications enhance new product performance. However, greater visibility lowers message consistency, implying that message and media strategies for international product launch need to be carefully formulated and handled.     

The Benefits of IT-Based Supply Chains-Strategic or Operational?

ABSTRACT

Business relationships are being revolutionized by the use of inter-organizational information systems (IOSs) that connect together separate companies' business processes through the application of Information Technology (IT). The physical value chain is now paralleled by the virtual information chain. Detailed case studies from earlier research suggest that there are huge benefits to be gained from concepts such as Electronic Data Interchange (EDI), shared product design databases and shared production scheduling systems. However, there is little empirical evidence of the overall usage and outcomes of IOS implementation. In this survey, IOS benefits are evaluated using marketing derived frameworks. Evidence from 89 United Kingdom (UK)-based organizations, a large proportion of which are trading internationally, suggests that IOSs are becoming pervasive across different business processes and across different types of industry. The analysis reveals that marketing activities are now dominated by the management of the information along the supply chain and that significant benefits can be realized. However, the time-scale for implementing such systems is of the order of 5 to 10 years and there are significant barriers to successful implementation.     

The Role of Logistics Leverage in Marketing Strategy

ABSTRACT

In today's environment-where changes in price, promotion, and product often are quickly imitated-the way to sustain competitive advantage may lie in changes to ancillary services, such as logistics. By leveraging excellent and superior logistics services, intricately linked with marketing strategy, firms can potentially create and maintain competitive advantage. The purpose of this paper is to begin the theoretical development process by understanding the implications of logistics leverage on marketing strategy. Two sources of antecedent justification, application of extant literature and observation of the phenomenon through case studies, are employed to develop the theoretical model. Conclusions, with implications for managers and suggestions for futue research, areal soprovided.     

From Public Education to Social Marketing: The Evolution of the Canadian Heritage Anti-Racism Social Marketing Program

SUMMARY

Over recent years, whilst there has been increasing acceptance of the existence and role of marketing in the political arena, there has also been much discussion as to the applicability of its concepts and models. This paper focuses upon issues surrounding definition of the ‘product’ and the ‘marketing mix.’ It examines the varying definitions of the political ‘product’ and, from the perspective of elector as ‘consumer,’ offers its own. In addition it suggests that political marketers should follow the lead of their counterparts in the fields of service and social marketing and modify the marketing mix to suit the political environment in which they function. Finally, based upon existing definitions of the political ‘product’ and the criticisms of the current marketing mix frameworks, initial suggestions are made for the provision of a new political marketing mix.     

Innovation and the management of marketing in high technology small firms

This paper initially attempts conceptually to integrate marketing into the total innovation process within high technology small firms. It is argued that an understanding of marketing problems can only be achieved when viewed in terms of other preceding stages in the innovation cycle, of which marketing is a key final act. The subsequent presentation of evidence from two recent research studies indicates that marketing has been neglected in a surprising number of the high technology small firms studied, in which there was a considerable reliance on unsolicited orders as a reactive form of selling. It is argued that this lack of marketing vigour is partly caused by a shortage of human and financial resources which frequently stem from expensive earlier stages in the innovation cycle (e.g. R&D). It is concluded that vigorous marketing would increase output and growth in several of the currently reactive instances. Thus, the paper concludes with suggestions for a more pro‐active policy on the part of government agencies towards the promotion of sales growth in these currently inactive high technology small enterprises.     

Environmental context and marketing planning processes

The traditional model of marketing planning assumes that the process by which organizations take planning decisions is constant with respect to context. Organizational environment, internal context, performance and distinctive competency affect marketing planning only as information inputs for the planning process, not as influences on the choice of process. However, rapid change in environments, in competitive patterns and in market responses all demand action from organizations. Intuitively, we expect that rapid environmental change will require a faster planning process, and that increasing environmental complexity requires more careful deliberation. The marketing planning model does not accommodate such intuition. This paper outlines the case for rethinking marketing planning models, and develops a conceptual framework through which the impact of environmental context on marketing planning processes can be effectively examined.     

Evaluation and Choice as a Satisficing Process

The question of whether individuals are rational or irrational in their decision‐making has long been an area of interest to academics and marketers, as the different decision styles require differing use of information sources and choice criteria by consumers during the buying process. As such, marketers would be required to adopt different communication strategies and stress different marketing mix or product features if they were to be successful in influencing the consumer’ s final choice.

The debate can be classified into whether or not consumers follow a formalised decision sequence of search and evaluation leading to final product choice. If consumers are not prepared to commit themselves to the cognitive and behavioural effort required by this formal process then they will satisfice their decision‐making, applying simplifying strategies to arrive at a satisfactory, although not the optimum, choice.

This paper reviews the common assumptions of search and choice, suggesting a three‐stage model which can be used to guide marketing strategy. Research into the decision process used by consumers in the acquisition of a video recorder is used to illustrate the operation of the satisficing model. Implications for marketing strategy are then discussed.     

The organization of the future: Unity of marketing and strategy

Marketing and strategy, while once diverse activities and entities, are moving ever closer together—in this paper it is speculated that they may someday become one. This is in response to changing business environments, and to the emergence of new organizational forms. However, a more fundamental force may be the simple recognition that without relationships there is no need for strategy, and that relationships are fundamental to marketing.