Advancing marketing strategy in the marketing discipline and beyond: from promise,to neglect,to prominence,to fragment (to promise?)

ABSTRACT

The purpose of this article is to advance the field of strategic marketing within the marketing discipline, which will in turn, the author argues, contribute to enhancing the discipline’s impact beyond the narrow confines of its own journals. Towards this goal, certain aspects of the history of marketing strategy need to be reviewed. However, though this article draws extensively on historical sources, it is not a history of marketing strategy. Rather, this article uses historical materials and arguments concerning the four ‘Eras’ of marketing thought to advance five major claims: the area of strategic marketing (1) had significant promise when the marketing academic discipline was founded in Era I (1900–1920), (2) was neglected in Era II (1920–1950), (3) rose to prominence in Era III (1950–1980), (4) has become a ‘fragment’ in Era IV (1980–present) and (5) has prospects that are both promising and problematic in the future ‘Era V’. Finally, a tentative prognosis for strategic marketing and the marketing discipline is suggested.     

An Aspect of Family Enterprise in the Industrial Revolution

The status hierarchy in Japanese enterprises collapsed during the tumultuous years of ‘total war’ and post-war democracy, and the ‘Japanese employment system’ was greatly affected by the ‘white-collarisation of blue-collar workers’. This transformation can be seen through changes in the work rules and wages systems at Hitachi Electric from the 1930s to the 1950s. The labour ideology of the wartime planned economy, which saw enterprises as ‘production communities’ and assumed equality between white- and blue-collar workers, challenged the nature of employment relations. As the experience of the post-war union movement reveals, this wartime ideology exerted a pervasive influence on Japanese labour, and, during the US Occupation, it forced widespread, ‘democratic’ reforms on enterprise management. In consequence, the main elements of the Japanese employment system were formed and reinforced during the 1950s and 1960s.     

The Worst of Both Worlds: British Regional Policy, 1951–64

Previous studies have explained ‘passive’ British regional policy during the 1950s largely in terms of contemporary perceptions that the ‘regional problem’ was essentially solved. This article demonstrates that the continuing threat of regional decline was appreciated by the Board of Trade. Arguments in favour of an active regional policy were rejected, however, largely due to the strength of neo-liberal opposition to regional intervention within the government. The evolution of regional policy during its ‘passive’ phase, from 1951 to 1958, is examined, together with the factors which eventually led to a reversal of policy in favour of a long-term, planned, regional development strategy. The article also examines available evidence regarding the costs and benefits of the various approaches to regional policy which were implemented during this period     

An analysis of prediction error for new prime-time television programmes: a comparative study between the USA and Korea

This study investigates possible factors in prediction error for audience share for new prime-time television programmes in the USA and Korea. While previous studies have focused on the factors affecting the size of a programme's actual audience, little attention has been paid to the accuracy of audience share prediction. A total of 193 new prime-time TV programmes from 1994 to 1997 for the USA and from 1998 to 2001 for Korea were examined. Advertising industry forecasters' predicted audience share, and actual share data were accumulated from Broadcasting & Cable and Weekly Nielsen Reports. Findings show that the ‘Programme Type’, ‘Returning Lead-Ins’ and ‘Returning Lead-Outs’ worked as significant factors for estimating error in audience share in the USA, and ‘Programme Type’ and ‘Programme Length’ played major roles in forecasting error in Korea. The degrees of relationship with forecasting error are consistent with previous studies' findings. Similarities and dissimilarities in prediction error in both countries were found and are discussed in this study.     

Innovation in retail internationalisation: Tesco in the USA

This paper examines the market entry of the UK's largest retailer (Tesco) into the USA. Tesco's launch of a new brand – Fresh & Easy Neighborhood Markets – in virgin territory is a bold move, notwithstanding the firm's considerable success with its overseas investment strategy (which within ten years has resulted in more than 50% of the firm's operating space being outside its ‘home’ market). The paper contextualises the study by taking a historical view of innovation in the retail industry, which reveals that generally - and certainly for the most part of the twentieth century – innovations have dominantly flowed from the US to the UK. The paper suggests that Tesco's US experiment is unusual both in terms of the innovatory aspects of its market entry and the reversal in that conventional direction of knowledge transfer. The Fresh & Easy story is then examined in terms of ten ‘dimensions of innovation’ involved in the market entry. The paper concludes by drawing out from these ‘dimensions of innovation’ a number of important issues for management scholarship raised by the study, stressing the need to incorporate insights from a wider social science literature.     

Book Reviews

This article will investigate why German business leaders during the 1950s resisted the American lead for advanced management training but instead developed theirvery own model, the Baden-Badener Unternehmergespräche (BBUG). The article explains the origins, set-up and methods of the BBUG; it also analyses the background of the talks' participants during its first decade of existence. In so doing, it provides another viewpoint to the debate on the ‘Americanisation’ of German management in the post-war years.     

State intervention and economic growth in Southern Italy: the rise and fall of the ‘Cassa per il Mezzogiorno’ (1950–1986)

In the second half of the twentieth century, the Italian government carried out a massive regional policy in southern Italy, through the State-owned agency ‘Cassa per il Mezzogiorno’ (1950–1986). The article reconstructs the activities of this agency, making use of its yearly reports and of national and local archives. The Cassa was effective in the first two decades, thanks to substantial technical autonomy and, in the 1960s, to a strong focus on industrial development; however, from the 1970s it progressively became an instrument of waste and misallocation. At the local level, we find significant differences between the southern regions, and correspondence between the quality of state intervention and the regional patterns of GDP and productivity.     

Anti‐dumping Protection in a Liberalising Country: Mexico's Anti‐dumping Policy and Practice

The use of anti‐dumping policy has been steadily growing in recent decades, and so has the theoretical and empirical literature on anti‐dumping. However, while developing countries as a whole have become at least as active as the ‘traditional’ anti‐dumping regimes (the USA, the EU, Canada and Australia), the literature is almost exclusively concerned with the latter group. This article gives an overview of anti‐dumping policy and practice in Mexico, one of the leading ‘new’ anti‐dumping regimes. It assesses how anti‐dumping has expanded since the country began liberalising trade in the mid‐1980s, and discusses how the policy has been applied in a protectionist way that is not dissimilar to policy practice in the traditional user countries.     

The breakdown of the workplace ‘family’ and the rise of personnel management within an Australian financial institution 1950–1980

The management of its people defines the way in which an organisation develops the capabilities to successfully compete in the market environment. Since the 1950s, approaches to staff management have evolved from traditional bureaucratic foundations to strategic planning exercises. This article uses a case study approach to investigate the way in which the process of organisational learning evolved in the development of personnel management practices. It suggests that although old and new practices were often overlaid on each other, ‘bridges’ developed which allowed the progressive development of new managerial processes.     

The Formation of Distribution Keiretsu: The Case of Matsushita Electric

The Japanese keiretsu, specifically vertically linked firms, have attracted global attention, and there is continuing dispute over their purpose. They act as close, long-term business relationships between large corporations and a number of selected smaller firms. They have been seen as rational effective systems, especially suited to the circumstances of Japan's industrialisation, and as a factor in its economic success. On the other hand, they have been criticised as closed systems that exclude potential competitors. Keiretsu are generally divided into production keiretsu, financial keiretsu, and distribution keiretsu. As a pioneer of distribution keiretsu, Matsushita (Panasonic) grew in Japan by securing the outlet of its products at ‘appropriate’ prices, and is now its nation's largest electronics manufacturer. Its distribution structure was founded in the 1930s, but the changes introduced in the 1950s finally brought it substantial commercial advantages, and encouraged rivals to form similar networks.     

British Business History: A Review of the Periodical Literature for 1998

Japanese economic success has been built upon the establishment and development of key manufacturing sectors, and the perspectives of business history can especially reveal that complex interaction of companies, markets, business networks, and state which has over time created a globally competitive industrial system. Long-term economic growth was capped in the 1950s and 1960s by growth rates that were unprecedented in their scale and duration. Similarly, the process of industrial transformation accelerated in the years between 1918 and 1950, important developments finally coalescing during the post-war period into the so-termed ‘Japanese industrial system’. Debates over the timing of economic development in Japan are intertwined with debates on the contribution of a pre-industrial national culture to business success. The historical record suggests that the acquisition of organisational capabilities within Japanese manufacturers has been shaped by the timing of the country's industrialisation and by its consequent development needs. The nature of Japanese management and Japan's industrial system, although influenced by cultural attributes, was shaped by organisational and economic objectives attuned to the circumstances of the country's industrialisation, and competitive advantage followed from the unavoidably nationally specific process by which potential was ultimately matched by capability.     

‘An indispensable luxury’: British American Tobacco in the occupation of Germany, 1945–1948

Abstract

World War II devastated the international markets for British American Tobacco (BAT). This article uses new archival documents to show how BAT successfully navigated political and social obstacles in military-occupied Germany (1945–1948) to become the leading non-German tobacco concern in West Germany. It reveals BAT’s lobbying strategy used a ‘revolving door’ with the British and American occupation administrations and a targeted message that aligned with changing military priorities. This coordinated approach allowed BAT to overcome military resistance to big business, oppose high tobacco taxes, and push for greater foreign tobacco imports. It ultimately helped the company lay foundations for expansion.     

Conclusion: Korean business and management – the end of the model?

Recent financial crisis has raised questions about the underpinnings and longevity of economic success in Asia, and has reminded us to be sceptical of pundits and the eponymous populist predictions relating to the region. Several perspectives can guide the analysis and evaluation of industrialization, from ‘state’ versus ‘market’, ‘internal’ versus ‘external’, and ‘macro’ versus ‘micro’. Companies in Korea as ‘latecomers’ have pursued ‘catch-up’ strategies. However, Korean corporate capabilities reside in a restricted number of industries, firms and functions (production), and are poor elsewhere, such as in marketing, technology (design and development) and organization, and small and medium-sized enterprises. Furthermore, many factors regarded once as sources of Korea's success are now seen as weaknesses. The future challenges facing Korea include its dirigiste economy, organizational structures and governance, financial transparency and labour market flexibility. While there are undoubted problems, its urgent tasks are not insurmountable.     

A NOTE ON METROECONOMICA: SHACKLE'S CONTRIBUTION

In the 1950s Shackle contributed a number of important articles to Metroeconomica, a new economic journal founded by Eraldo Fossati in 1949 and published in Trieste (Italy). The journal gave considerable prominence to Shackle's theory of decision under uncertainty through publication of many articles, but, above all, through publication of the proceedings of a symposium held in 1959 and entitled ‘Shackle's theory on decision’. The aim of this note is to clarify why Metroeconomica gave particular importance to Shackle's perspective.     

Beneath good and evil?

The aim of this paper is to think business ethics with the help of philosopher Alain Badiou, focusing on Badiou's critique of ethics and the concepts of ‘event’, ‘truth’ and especially ‘subject’. Based mainly on review articles, I construct an understanding of business ethics (comprising corporate social responsibility and sustainability) and its history as a field of research. With the help of a framework developed from Badiou's work on ethics, I conduct a metacritique of business ethics as being intolerant (exclusion of voices), nihilist (concerned with necessity and economics), reactive (to social movements in the 1960s, arguing that there has always been an ethics of business) and obscure (building upon the atemporal body of knowledge in ethics). Opposed to these tendencies, with the help of the constructive Badiou, I argue that business ethics should move towards the creation of faithful subjects possibly formed by ‘inexistent’ research in the field, as well as concerning itself with closely studying and identifying empirical cases of faithful subject formations and their deviations.     

Agency practitioners’ meta-theories of advertising

Research on practitioner theories of advertising uncovered that agency practitioners not only have definite theoretical beliefs about how advertising works, they also have meta-theoretical beliefs, fundamental presuppositions about the nature and possibility of knowledge in advertising. The meta-theoretical belief in creativity and its dictum of ‘no rules’ was found to be more important than any other guiding principle in advertising work. The primacy of creativity denies the possibility of any other moderator-focused theories that would prescribe ‘rules’ for creative content. Practitioners believe that the ontological status of advertising (as a territory defined by creativity, art and tacit skill) places it mostly outside the reach of scientific modelling. While practitioners acknowledge that knowledge about advertising is ‘layered’ (i.e. certain aspects of it are more explainable by the legitimation system of science), they also insist that the creative ‘layer’ is much thicker than other layers. A further qualifying factor is practitioners’ epistemological scepticism, which questions the validity of both academic and commercial social research as applied to advertising, and suggests instead that knowledge about advertising is better understood as ‘common sense’. The study’s findings have fundamental consequences for the professional aspirations of the advertising industry as well as the academician–practitioner gap in advertising.     

Outward FDI from the USA and host country financial transparency

Extant research has focused on the role of host country corruption as either an attractant or deterrent to foreign investment. These studies generally contend that corruption acts more like a ‘grabbing hand’ than as a ‘helping hand’. However, it is plausible that a significant component of foreign investment may be attracted to locales that offer opaque financial environments. Specifically, we hypothesize that money laundering opportunities may encourage illicit capital flows into certain jurisdictions. Using the USA as the ‘source’ country, we investigate the effect of corruption and money laundering opportunities on Foreign Direct Investment (FDI) flows. The empirical findings indicate that corruption deters foreign investment, while money laundering opportunities attract it. We also show that the effect of money laundering and corruption vary based on the host country's level of development. Our findings bolster the contention that FDI into certain host countries is motivated by a facilitation of illicit capital flows.     

HRM in Hong Kong since 1997

A diverse set of human resource management (HRM) practices became institutionalized during Hong Kong's industrialization from the 1950s through the 1970s within the context of an open economy, a government disinclined to intervene in business decisions or the labour market and a weak trade union movement. Economic restructuring, labour market changes and rising labour costs during the 1980s and 1990s pressured employers to find more effective ways of using their human resources. We focus on how the economic downturn following the Asian Financial Crisis has impacted on employment practices including employment security, compensation, skill formation, work reorganization and employment relations. We discuss changes in the public as well as private sector and argue that reforms in the former are loosening the rigidities of its highly structured internal labour market system. Public sector employment practices are thus likely to converge increasingly with the ‘best practices’ of private sector and overseas government HRM systems.