Sustainable supply chain management in “Base of the Pyramid” food projects—A path to triple bottom line approaches for multinationals?

Conducting business operations at the Base of the Pyramid (BoP) have necessitated the need for multinational corporations (MNCs) to involve poor communities in production processes including management of critical supply chains. However, current research on the interface between supply chain management and BoP business operation is lacking. In analyzing three cases of BoP projects in the food industry this study addresses the question of how sustainable supply chain management (SSCM) applied to BoP projects can help MNCs to achieve their sustainability goals. Findings indicate that applying SSCM to BoP projects can complement economic, social, and environmental dimensions of sustainability. In particular, the BoP projects analyzed show viable paths for integrating the social domain of sustainability with general SSCM theory and practice. From the perspective of international business research, the findings help to link sustainability activities to MNC operations at the BoP. Accordingly, further research is needed to advance integration of these two research streams.     

A Special Theory of Globalization:

The focus of this study is to provide theoretical and empirical evidence supporting a new direction of globalization offering the viewpoint of marketing globalization. The result of this analysis suggests a special theory of globalization that can be implemented by the multinational organization. One approach to globalization focuses on a standardized marketing mix strategy to global homogenous markets, while the other focuses on a modified marketing mix strategy to global diverse markets. Multinational corporations can engage in either or both strategies while maintaining a global approach to international marketing.     

Marketing strategy in emerging markets: a conceptual framework

Citing difference between emerging and developed markets, scholars highlight need for different approaches to marketing in emerging markets. In this paper, we argue that while there are some unique characteristics of emerging markets, all countries within emerging markets do not have similar levels of product penetration and consumption. As a result, it is wrong to assume that emerging markets are untapped and under-served across the product categories. To a list of characteristics identified as unique to emerging markets, we add large population as an important characteristic and discuss its strategic implications. We develop a conceptual framework that factors in combined effect of varying degrees of product penetration & consumption levels with large population of emerging market countries. The conceptual framework identifies four strategic alternatives for marketing in emerging markets. Instead of recommending any generic marketing strategy, we propose that marketers need to choose an appropriate mix of strategies aimed at primary and selective demand creation in emerging markets.     

Re-placing place in marketing: A resource-exchange place perspective

This study clarifies the marketing discipline's conceptualization of place by presenting a revised perspective and conceptual framework of place, referred to as REPLACE. Drawing from resource exchange theory and attention restoration theory, the framework problematizes the assumption that places are merely physical locales by foregrounding how places can become inseparable aspects of consumers' lives. We present an alternative resource-based perspective of place, namely as a repository of resources that are potentially available to consumers through exchange processes. These exchange processes, and the complexity of the offered resources, influence consumers' relationship with a locale as well as their sense of well-being. With this alternative perspective, we bridge the place concept to public health and extend the understanding of attachment in service settings.     

Using Information as a Basis for Segmentation and Relationship Marketing: A Longitudinal Case Study of a Leading Financial Services Firm

An important concern for service businesses is how to develop an appropriate segmentation and relationship marketing strategy that is tied to the value contribution of the customer base. This article presents a case study of the relationship marketing strategy for a division of a leading, worldwide financial services provider. The case firm segments customers into three tiers, using a framework similar to the one established by Berry and Parasuraman. Potential revenue from the customer is the primary segmentation variable used to assign customers to one of the three tiers, while the customer service response is tailored for each tier based upon customer information capabilities and needs. Although information is normally thought of as a supplemental service, rather than a core service, this case study shows how information is central to providing effective customer service and is a key to relationship marketing. The study also demonstrates how social and structural bonds can be used to refocus a customer's thinking from a cost perspective to a value perspective.     

Game theory in marketing science uses and limitations

This paper reviews some major concepts in game theory and indicates how they may apply to marketing science. The theory of games provides a framework for addressing problems of competitive strategies and of buyer-seller interactions. These issues are important in studying industrial markets where there are a small number of buyers as well as for studying how to incorporate knowledgeable, active competitors into consumer marketing mix models.Few marketers have seen much benefit in the past from developments in game theory. This is partly because of the historical preoccupation of game theorists with complete information, zero sum games. The richer area of games of incomplete information may have much more to offer the marketing scientist.In this paper we review how game-theoretic approaches (interactive models) differ from most previous approaches, which are optimizing and asymmetric. We then look at how these alternative approaches apply to two problem areas - competitive entry and bargaining. Then we review potential applications of game theory in marketing and the value of applying marketing science approaches in game theory. We conclude with a perspective on future developments in this field.     

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.     

Service quality delivery in a cross-national context

Consumption of a broad range of services ranging from tourism to hospitality by an increasingly global mix of customers, especially from the new millennium of the emerging middle class, is creating an interesting challenge for service providers. What are the macro-environmental (cultural, historical, economic, political etc.) influences on service culture and on service quality delivery? Drawing on the expectancy-disconfirmation theory, this qualitative study provides insights on profound macro-environmental drivers of attitudes towards service quality delivery from a cross-national context. Based on comparative, country-based industry insights that highlight employee attitudes from advanced and emerging markets, we discuss the impact from a cross-national service quality delivery perspective. By examining comparative country contexts in growing service sectors, as in hospitality and tourism, we develop and present a conceptual model of cross-national service quality delivery.     

Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors

Identifying, building, and maintaining partnerships with non-business actors are crucial challenges for multinational companies (MNCs) when implementing Base of the Pyramid (BoP) projects. Using a multiple-case study we analyze such partnerships through the lens of the relational view, focusing on resources generating inter-organizational value and on mechanisms for governing the partnerships. The cross-case analysis suggests that proficiency in identifying appropriate partners featuring non-tangible synergy-sensitive resources is vital for BoP ventures. MNCs compensate for their lack of local knowledge, contacts, and legitimacy by recruiting non-business actors for this consultancy and brokering function. Once a suitable network of partners has been identified, these resources need to be explored and exploited by developing personal relationships, communication routines, common goals, and partner-specific capacity building. Synergy-sensitive resources facilitate performance and long-term maintenance of BoP partnerships by establishing well-adapted and well-informed management practice and by creating a lock-in that works as an informal self-enforcing governance mechanism.     

Identifying Key Success Factors for Social Enterprises Serving Base‐of‐Pyramid Markets through Analysis of Value Chain Complexities

There are people in this world who have little or no access to basic needs and they struggle financially, living on less than a handful of dollars a day. A better understanding of how to supply/serve the world's poor is needed. In this paper, through the lens of Porter's value chain framework we investigate the challenges and opportunities social enterprises face in base‐of‐pyramid (BoP) markets based on secondary data on 23 organizations. Our contribution is twofold: First, we analyze value chain complexities for the social enterprise based on the value creation role (consumer, coproducer) and income level (poverty, extreme poverty) of the local population. We find that nature of customers’ requirements varies across customer segments in the BoP markets and social enterprises face unique challenges in fulfilling such differentiated demand patterns. Second, we develop an affordability–accessibility framework that helps to identify the situations that may be favorable/unfavorable for social enterprises to meet the challenges in BoP markets. We make four propositions that social enterprises may use to cope with difficulties in affordability and accessibility. Our findings will be useful for such organizations to understand and design better supply chains for the base of pyramid.     

Franchising at the Bottom of the Pyramid (BOP): an alternative distribution approach

Bottom of the Pyramid (BOP) markets provide distinct marketing challenges to firms either serving these markets or intending to enter these markets. BOP markets have often been criticised for having weak supporting infrastructure such as inefficient or non-existence of distribution systems which hinder firms' ability to distribute products to consumers. Franchising is one distribution strategy which firms can use to enhance distribution at the BOP. Using findings from research conducted in Zimbabwe, this article demonstrates how firms can use franchising as a distribution strategy to facilitate distribution of products to those at the BOP. Both consumers and firms derive benefits from the use of franchising. Firms face distinct challenges in using this strategy and need to re-invent the way they do business.     

Market similarity and market selection: Implications for international marketing strategy

International market selection patterns for a sample of 954 new products suggest that firms exhibit a significant preference for markets similar to the home market. Preferences for similar markets decline as firms gain experience in a variety of markets, however. This pattern suggests the importance of uncertainty and information in global market selection and marketing mix management. Alternative means of gathering information about foreign markets permit and support very different approaches to global marketing activity. More fundamentally, a global perspective on the relationship between market conditions, marketing policies and programs, and consumer response can be developed systematically to improve global marketing performance.     

International Marketing Ethics from an Islamic Perspective: A Value-Maximization Approach

International marketing practices, embedded in a strong ethical doctrine, can play a vital role in raising the standards of business conduct worldwide, while in no way compromising the quality of services or products offered to customers, or surrendering the profit margins of businesses. Adherence to such ethical practices can help to elevate the standards of behavior and thus of living, of traders and consumers alike. Against this background, this paper endeavors to identify the salient features of the Islamic framework of International Marketing Ethics. In particular, it highlights the capabilities and strengths of this framework in creating and sustaining a strong ethical international marketing culture. At the heart of Islamic marketing is the principle of value-maximization based on equity and justice (constituting just dealing and fair play) for the wider welfare of the society. Selected key international marketing issues are examined from an Islamic perspective which, it is argued, if adhered to, can help to create a value-loaded global ethical marketing framework for MNCs in general, and establish harmony and meaningful cooperation between international marketers and Muslim target markets in particular.     

营销组合视角下的服务质量差距分析

服务质量差距模型是专门用来分析服务质量产生差距问题的工具,从营销组合角度分析发现,服务质量产生的差距分为管理层认知差距、质量标准差距、服务传递差距、营销沟通差距及顾客期望服务与感知服务间的差距。可从管理认知、质量标准、服务传递、营销沟通和感知服务五方面弥补差距,解决服务质量的差距问题。     

Investigating the causal configurations of cost-efficient firms at the bottom of the pyramid

This study highlights how social and commercial enterprises with local and global presence, balance their economic and social goals, to sustainably serve the bottom-of-the-pyramid (BoP) markets, predominantly in emerging economies. Employing the lens of transaction cost economics and configurational theory, we propose that successful venturing into the BoP markets, sensitize firms to create appropriate governance mechanisms for reducing transaction costs, resulting in creation and capture of values. Further, these mechanisms enable those firms to attain cost efficiency and sustainability in the process of fulfilling their social objectives. To that end, we employed the case survey method to analyse 42 cases, from the Harvard Business School repository, on multinational enterprises (MNEs) in emerging economies. Further, we used qualitative comparative analysis to uncover the various causal governance configurations that enabled those firms to sustainably serve the BoP markets.     

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.     

What is the Right Supply Chain for Your Shopper? Exploring the Shopper Service Ecosystem

The emergence of shopper marketing represents a major strategic force in consumer goods branding and retailing, and poses significant challenges to pre existing supply chain thought that most scholars have yet to address. In order to address the marketing and supply chain challenges presented by shopper marketing initiatives, scholars from both disciplines can find common ground by focusing on the shopper instead of consumers or products. The issue is no longer one of matching a supply chain to a product. Instead, marketers and supply chain managers need to ask, “What's the right supply chain for our shopper?” The shopper service ecosystem framework developed in this paper brings together the service dominant logic of marketing with the service ecosystem perspective in supply chain management. Future research frontiers suggest research directions that bridge the marketing and supply chain disciplines to create a multidisciplinary foundation for future research in the shopper marketing realm.     

The impact of market similarity on international marketing strategies: The automobile industry in Western Europe

The formulation of an optimal marketing mix is quite complex when that mix must be effective across multiple international markets. At the crux of the problem is whether markets are similar to each other or interdependent and how this influences marketing mix decisions. Examining the marketing mixes of more than 30 automobile companies competing in the five major markets in Western Europe, it was found that easily changed marketing mix elements, such as prices and advertising, reflect market similarity, interdependence, and product‐market conditions, although not always in the expected ways. The least flexible element, the number of models offered, does not appear to reflect any of these types of conditions. © 2000 John Wiley & Sons, Inc.     

Leveraging Distribution to Maximize Firm Performance in Emerging Markets

Despite the rise of emerging markets as lucrative destinations for business expansion, marketing literature in this area is largely anecdotal and conceptual. Further, owing to the largely unorganized retail structure in emerging markets, managers tend to make sub-optimal marketing-mix decisions by taking an aggregate view of their distribution network. In this study, we develop an econometric model to help firms develop a multichannel distribution strategy in emerging markets while accounting for (a) own-marketing mix, (b) competitive actions, (c) brand-level heterogeneity, and (d) dependencies that may arise between product offerings. The proposed model is tested on longitudinal data from a large Indian CPG manufacturer. The results indicate that firms must consider store format-specific distribution elasticities (as opposed to aggregate effects), especially in an emerging market, where the role of distribution is critical in brand success. Further, depending on the offering, price (own- and cross-) and advertising elasticities could vary even though the brand is essentially the same. Also, we find that there are significant dependencies between product forms that need to be considered when designing the marketing mix. Finally, we provide re-allocation recommendations to help managers choose the level of store format distribution in order to maximize profits. The proposed distribution re-allocation strategy resulted in an average of 7.7% increase in profits across three product forms for the focal firm.     

Value chain integration of base of the pyramid consumers: An empirical study of drivers and performance outcomes

The seminal works on Base of the Pyramid (BOP) markets encourage companies to explore untapped low-income markets and to alleviate poverty by providing affordable products and services. The transition to second generation BOP strategies has centred on the integration of local consumers across value chain activities. This integration presents challenges both for firms and for low-income consumers due to the nature of informal BOP markets, severe institutional voids and lack of local knowledge of firms. In this context, little is known about the motivational drivers of firms to integrate BOP consumers in value creation activities and the impact on different performance dimensions, namely economic, social and ecological. This study adopts the perspective of micro-, small- and medium-sized enterprises (MSMEs) and investigates drivers and performance outcomes of BOP consumer integration. For this purpose, we develop a theoretical framework and test it empirically by employing a unique dataset of 142 enterprises which provide basic products and services to low-income markets. Our findings provide empirical support for the claim that BOP consumer integration enhances economic, social and ecological performance. MSMEs in our sample engage consumers mainly due to a strong intrinsic motivation to drive social impact rather than a pragmatic motivation to overcome information asymmetries. While studies of multinationals entering BOP markets almost exclusively report the need for cross-sector partner collaboration, our findings suggest that this may not be the case for MSMEs.