An agent-based fuzzy cognitive map approach to the strategic marketing planning for industrial firms

Industrial marketing planning is a typical example of an unstructured decision making problem due to the large number of variables to consider and the uncertainty imposed on those variables. Although abundant studies identified barriers and facilitators of effective industrial marketing planning in practice, the literature still lacks practical tools and methods that marketing managers can use for the task. This paper applies fuzzy cognitive maps (FCM) to industrial marketing planning. In particular, agent based inference method is proposed to overcome dynamic relationships, time lags, and reusability issues of FCM evaluation. MACOM simulator also is developed to help marketing managers conduct what-if scenarios to see the impacts of possible changes on the variables defined in an FCM that represents industrial marketing planning problem. The simulator is applied to an industrial marketing planning problem for a global software service company in South Korea. This study has practical implication as it supports marketing managers for industrial marketing planning that has large number of variables and their cause–effect relationships. It also contributes to FCM theory by providing an agent based method for the inference of FCM. Finally, MACOM also provides academics in the industrial marketing management discipline with a tool for developing and pre-verifying a conceptual model based on qualitative knowledge of marketing practitioners.     

Return on marketing investments in B2B customer relationships: A decision-making and optimization approach

The basic notion of relationship marketing entails that firms should strive for mutually beneficial customer relationships. By combining relationship marketing theory and operations research methods, this paper aims to develop and demonstrate a managerial decision-making model that business market managers can use to optimize and evaluate marketing investments in both a customer-oriented and economically feasible manner. The intended contributions of our work are as follows. First, we add to the return on marketing literature by providing a first decision-making approach that explicitly assesses the optimization of marketing investments in terms of profitability, effort, and resource allocation. Second, we show how the risk of marketing investments can be assessed using sensitivity analysis. By means of an empirical study the versatility of our decision-making approach is demonstrated by assessing various critical decision making issues for business marketing managers in detail.     

Teamwork Barriers in Japanese High-Technology Firms: The Sociocultural Differences Between R&D and Marketing Managers

Building and maintaining internal harmony is a fundamental concern for managers in many Japanese firms. Discussions of Japanese management practices often point to the intense socialization of new recruits, the rotation of employees through different functions, and the significant role of seniority in determining salary levels and promotions. Considering this emphasis on harmony, can we reasonably assume that the orientations of Japanese R&D and marketing managers do not differ in any ways that may pose significant barriers to teamwork between their departments? X. Michael Song and Mark E. Parry test this assumption by examining the sociocultural differences between R&D and marketing managers in Japanese high-technology firms. Using responses from both R&D and marketing managers in 223 firms, their study groups the respondents’ employers as either low- or high-integration firms. They examine the sociocultural differences between the R&D and marketing managers in the study along five dimensions: time orientation, bureaucratic orientation, professional orientation, tolerance for ambiguity, and preferences for high-risk, high-return projects. Contrary to expectations, the responses reveal several significant differences between the R&D and marketing managers in this study. Compared to their colleagues in marketing, the Japanese R&D managers in this study generally have a stronger preference for high-risk, high-return investments. The R&D managers in the study also have a longer time orientation than the Japanese marketing managers. However, marketing managers from the high-integration firms in the study have a longer time orientation than their counterparts in low-integration firms. Compared to the R&D managers, Japanese marketing managers in the high-integration firms studied have a greater tolerance for ambiguity. And relative to managers in low-integration firms, marketing and R&D managers in the high-integration firms in this study typically have a more bureaucratic organization. Perhaps most important, a significant number of R&D managers in this study perceive the marketing managers in their firms to have higher organizational status. Specifically, responses from R&D managers indicate that they perceive their marketing colleagues to have higher salaries, more power, and brighter career prospects. Such perceptions may foster morale problems among R&D professionals in these Japanese firms, and thus require management intervention to ensure that R&D performance does not suffer.     

Psychosocial antecedents of communication,trust, and relationship effectiveness in new product development projects: a functional manager perspective

The basic differences between marketing managers and their technically trained counterpart managers [e.g., research and development (R&D), engineering, and manufacturing managers] in terms of work experience, training, and differing decision‐making styles have often been suggested as a source of conflict, which acts as a barrier to effective working relationships and integration during new product development (NPD) work. In this paper, we empirically explore this issue by developing and testing a model of psychosocial differences (thought worlds and psychological distance) between the two groups of managers and their effect on communication, trust, and relationship effectiveness during NPD projects. We find that while thought world differences do still matter, it was from a marketing perspective that they had a stronger effect. These findings have implications for top management trying to manage the functional manager interface during NPD projects. We propose a semi‐formalized approach to relationship building that may speed up the acquisition of social data that is often necessary to elevate working relationships to trusting ones and improve the efficiency of NPD work. Our model is tested using data from two samples, 184 technically trained managers and 145 marketing managers from Australian companies involved in NPD work.     

Evaluating market segmentation approaches

This article is concerned with managing and monitoring industrial market segmentation. The economics of market segmentation are overviewed, and an attempt is made to relate the segmentation tool to costs incurred. It is recommended that managers employ more economical methods of segmentation before using more costly parts of the marketing mix. A monitoring scheme is presented with two components that helps managers assess how well their segmentation strategy converts customers to the firm, meets market needs, and represents an efficient allocation of resources.     

The social psychology of industrial buying and selling

New ways to view industrial marketing are offered in order to clarify some currently existing confusion in the area. The dyadic or two party model and the systems model are offered as reconceptualizations leading to a better understanding of industrial marketing management. Action implications for business managers and academic researchers are suggested.     

A dominant product-dominant country framework of industrial export segmentation

This article proposes a framework that industrial marketing managers can utilize to improve their understanding of and ability to select industrial products for export to attractive global markets. The framework is arrayed along two axes: export products and existing global markets. As a result of the suggested process, a 2×2 model emerges that provides guidance to marketing managers about actions that can be undertaken to maximize success with industrial products and services in the global marketplace.     

Bidirectional Information Transfer: An Imperative for Network and Marketing Integration in a Canadian Telecommunications Firm

Market intelligence helps ensure that R&D efforts are focused on customer needs. In turn, R&D supplies the information necessary for gaining competitive advantage through advances in product and process technology. However, improved R&D–marketing integration means more than simply involving additional marketing personnel in product development. We must focus on identifying and achieving the desired level of integration. Jozée Lapierre and Brigitte Hénault present the results of a study examining the R&D–marketing interface in a large Canadian telecommunications company. Their study explores managers' perceptions of interfunctional integration during the planning and implementation of new services. The goal of this study is to identify the critical integration areas and managers' satisfaction with the organization's current level of integration. Network (i.e., technical) and marketing managers differ substantially in their perceptions of the required level of integration. However, they agree on the five most important areas of interfunctional integration: marketing involvement in establishing service development schedules; information transfer from marketing to network on competitors' moves; information transfer from marketing to network on customer requirements for new services; information transfer from network to marketing on network availability for providing evolved services; and information transfer from network to marketing on network restrictions affecting performance, after-sales servicing levels, and service pricing. In other words, network and marketing managers view information transfer between their groups as requiring the highest integration level. Both groups agree that their budgeting activities do not require as much integration as other activities. Managers from both groups are generally dissatisfied with the current level of interfunctional integration. Marketing managers are far more dissatisfied than network managers in most areas of integration explored in this study. However, network managers are more dissatisfied than their marketing colleagues in all areas involving the transfer of information from marketing to network.     

Marketing strategy and the efficacy of procedural justice: The mid-level marketing manager in industrial service firms

A principal challenge confronting the senior marketing team in B2B firms is how to ensure that the marketing strategies they develop are implemented effectively. The literature indicates that mid-level marketing managers' perceptions of the procedural justice within the firm may be critical in this respect. However, there has been little empirical research on this issue. The authors develop and test a conceptual model of the key drivers and consequences of marketing managers' procedural justice perceptions. The findings show that if mid-level marketing managers trust their senior marketing colleagues and simultaneously operate within moderately organic structures, then procedural justice will thrive. A consequence of this is more effective implementation of marketing strategy which, in turn, leads to increased market performance.     

Understanding the links between technological opportunism, marketing emphasis and firm performance: Implications for B2B

The capability of firms to sense and respond to changes in technologies, called technological opportunism, is of growing importance to managers as a source of competitive advantage. However, exactly how technological opportunism impacts firm performance is still not clearly understood. Furthermore, the role of marketing in this relationship, if any, has yet to be examined. Understanding this relationship is critical for marketing managers not only for determining strategic investments of resources but also for demonstrating marketing return on activities. This paper explores the links between technological opportunism and firm performance. The results show that technological opportunism has a strong positive impact on key measures of performance such as firm sales, profits and market value. Importantly, marketing emphasis is the mechanism through which the technological opportunism-performance relationship is achieved. Finally, the impact of marketing emphasis on B2B firms is different than that for B2C firms, highlighting the importance of these activities for B2B marketing managers.     

A Cross‐National Comparative Study of Senior Management Policy,Marketing–Manufacturing Involvement,and Innovation Performance

The marketing–manufacturing interface is important to the success of product development. This research investigates the effect of senior management policies on the effectiveness of the marketing–manufacturing interface. Based on existing literature, a conceptual framework is developed that relates senior management policies, marketing–manufacturing involvement, and new product performance. The proposed framework is contingent on the national culture of the country in which product development occurs. Structural equation modeling is used to test the framework with data from a sample of 146 U.S. marketing managers and 185 Japanese marketing managers. The results suggest that a number of senior management policies are effective in promoting joint involvement between the marketing and manufacturing functions during the innovation process. While the use of formal cross‐functional integration policies was found to promote marketing–manufacturing involvement both in the United States and Japan, team leader autonomy, team rewards, and job rotation were found to promote marketing involvement in the United States but not in Japan. On the other hand, promoting marketing–manufacturing involvement via goal clarity and promotion of teamwork proved to be effective in Japan. The results have a number of implications for product development practice. Foremost among these is the finding that, despite the fundamental ideological differences separating the marketing and manufacturing functions, senior management policies can enhance the level of marketing–manufacturing involvement, and consequently can improve the likelihood of new product success. The second implication is that the effectiveness of specific senior management policies depends on national culture. Thus, managers wishing to improve the marketing–manufacturing interface should select the policies that match the culture in which the product development project is located.     

A dynamic capability view of marketing analytics: Evidence from UK firms

While marketing analytics plays an important role in generating insights from big data to improve marketing decision-making and firm competitiveness, few academic studies have investigated the mechanisms through which it can be used to achieve sustained competitive advantage. To close this gap, this study draws on the dynamic capability view to posit that a firm can attain sustained competitive advantage from its sensing, seizing and reconfiguring capabilities, which are manifested by the use of marketing analytics, marketing decision-making, and product development management. This study also examines the impact of the antecedents of marketing analytics use on marketing related processes. The analysis of a survey of 221 UK firm managers demonstrates: (a) the positive impact of marketing analytics use on both marketing decision-making and product development management; (b) the effect of the latter two on sustained competitive advantage; (c) the indirect effect of data availability on both marketing decision-making and production development management; and (d) the indirect effect of managerial support on marketing decision-making. The research model proposed in this study provides insights into how marketing analytics can be used to achieve sustained competitive advantage.     

Broadening the scope of the resource-based view in marketing: The contingency role of institutional factors

Drawing on the resource-based view (RBV) of the firm and institutional theory, the authors propose and test an integrated model in an industrial marketing context that expands the boundaries of the RBV to incorporate institutional factors pertaining to societal and political issues. The rationale for taking such an integrated approach stems from the knowledge that firm performance can be explained better by incorporating not only the inability of managers to take particular actions but also their reluctance or unwillingness to pursue those behaviors. The authors develop an integrated model that tests (1) the direct effect of marketing institutional factors on the development of marketing RBV factors and (2) the moderating role of marketing institutional factors on the performance effect of marketing RBV factors. The empirical results indicate general support for the hypotheses, and this research provides several implications for broadening the scope of the RBV in marketing by underscoring how fit between marketing resources and the context in which those resources are deployed affects firm performance.     

Market growth through mergers and acquisitions: The role of the relationship marketing manager in sustaining performance

This research suggests that firms considering a merger and acquisition strategy need to pay attention to the relationship marketing managers of the target firm and the implicit agreements that have kept them with the target firm. The results of this study convey that the joint activity of maintaining the implicit contracts and retaining the relationship marketing managers have a stabilizing and positive impact on the productivity of subordinate marketing employees. These employees are a key success factor that enables the target firm to function effectively after the acquisition.     

Financial Evaluation of the Product Line

When decisions are being made about adding or dropping a product, most managers will make a financial evaluation of the product and they may try to get some sense of the riskiness of the decision. They will also probably consider the effect of the add/drop decision on other products in the line. Seldom, however, do they consider the risk of a product mix decision in the context of the risk level of the overall product line. Professors Rabino and Wright argue that product managers should take a leaf from the analytical book of financial analysts and calculate a "product Beta" that shows the impact of the risk of the individual product on the risk of the whole portfolio of products. They also suggest some other ways of sharpening the financial picture in what are often strictly marketing evaluations. This is Professor Rabino's second article in JPIM . As in the previous one he coauthored with Howard Moskowitz, this one adds some interesting analytical methodology to managerial decision making.     

Managing knowledge in industrial markets: New dimensions and challenges

Managing knowledge in industrial markets has become an increasingly important task in the last 10 years. Many industrial firms paid little attention to the topic, since it was felt that knowledge was easily handled internally and was a simple process. The growth of information technology that centered on the collection, analysis and dissemination of information during the 1990's and early 2000's has necessitated that managing knowledge be taken seriously by industrial marketing managers. By doing so industrial firms can make available increased knowledge content in the development and provision of products and services to industrial marketing managers on all levels of the firm, achieve shorter new product development cycles, and facilitate and manage organizational innovation and learning. This article outlines the new dimensions in knowledge management in industrial marketing that are important for industrial managers, academic researchers, and business firms to understand for the future.     

Factors influencing the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness

It seems logical that performance is maximized when a business produces a creative marketing strategy and achieves marketing strategy implementation effectiveness. However, cultural tensions and resource competition may make it difficult, or impossible, to achieve both. Contingency theory suggests that market and/or firm level influences may exist that make one or the other more important. Thus, it is important for researchers to investigate those conditions so that we can provide managers with guidance regarding where to allocate their resources. The study reported in this article assesses the impact that environmental conditions and business unit strategy have on the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness. We discuss implications for managers and scholars.     

Navigating crisis from the backseat? How top managers can support radical change initiatives by middle managers

We advance the premise that to navigate crisis, rather than reactively cutting costs by culling middle management, top managers can benefit from enabling radical change initiatives by middle managers. Contextualizing this idea to the marketing function and the COVID-19 crisis, we ask: How can Chief Marketing Officers (CMOs) support marketing middle managers (MMMs) in initiating radical change in crisis situations? We take the position that marketing managers' distinctive functional influence on radical change is in driving product and service innovations that are new-to-the-firm. We then argue that crisis situations present an opportunity for top and middle managers to rethink assumptions about ‘who does what’ in radical change initiatives from the marketing function, focusing on the underemphasized possibility of MMMs initiating change and CMOs implementing. Building on recent findings on ‘change role reversal’, we unpack the notion that change initiatives may be most effective when middle managers initiate, while top managers implement. This unconventional change route would see CMOs taking a deliberate and supportive back seat in navigating crisis, while MMMs take the wheel in driving radical change initiatives. We identify duties and hurdles to a change role reversal— approach faced by MMMs throughout three stages of innovation-enabled radical change proposed by Burgelman (1991; variation-selection-retention) and chart corresponding roles that CMOs can play to support MMMs: advisor, judge, and guardian. Three tangible final questions addressed to CMOs guide managerial applications, while considerations outside scope are also discussed.     

R & D and marketing dialogue in high-tech firms

Based on an empirical study of more than 200 R & D and marketing managers from high-technology companies, we conclude that (1) there is a great deal of consensus between R & D and marketing managers on the relative importance of the areas requiring integrated efforts; (2) companies successful in their new product program achieve a significantly greater degree of R & D marketing integration; (3) company size does not affect the level of integration achieved; and (4) the companies that achieve a high degree of R & D/ marketing integration do so by concentrating on all 19 areas proposed in the article and do not merely focus on a few key areas.