Does competitive entry structurally change key marketing metrics?

To what extent does competitive entry create a structural change in key marketing metrics? New players may just be a temporal nuisance to incumbents, but could also fundamentally change the latter's performance evolution, or induce them to permanently alter their spending levels and/or pricing decisions. Similarly, the addition of a new marketing channel could permanently shift shopping preferences, or could just create a short-lived migration from existing channels. The steady-state impact of a given entry or channel addition on various marketing metrics is intrinsically an empirical issue for which we need an appropriate testing procedure.In this study, we introduce a testing sequence that allows for the endogenous determination of potential change (break) locations, thereby accounting for lead and/or lagged effects of the introduction of interest. By not restricting the number of potential breaks to one (as is commonly done in the marketing literature), we quantify the impact of the new entrant(s) while controlling for other events that may have taken place in the market. We illustrate the methodology in the context of the Dutch television advertising market, which was characterized by the entry of several late movers. We find that the steady-state growth of private incumbents' revenues was slowed by the quasi-simultaneous entry of three new players. Contrary to industry observers' expectations, such a slowdown was not experienced in the related markets of print and radio advertising.     

Creativity in marketing management—a unified approach

This paper sets out to identify how marketing management can provide the lead in adopting a more creative approach to innovation at the idea generation stage.

Both the proactive and reactive approaches to innovation strategy are discussed in the context of change factors and the sourcing of new ideas for innovation. Four loci of idea initiation are identified, which appear to vary in importance according to industry sector.

Although evidence is presented to suggest that heuristic techniques are being used increasingly to enhance creativity, their use is limited both by the perception of their function and the strategic mode adopted by the organisation. The concept of the marketing‐centred creative circle is introduced to counter these limiting factors. It is argued that the creative circle offers a bridging function in the generation of new ideas for innovation and in extending the existing stock. As well as performing this function, a more creative and entrepreneurial atmosphere will emerge as lateral relationships develop. With the development of successive marketing‐centred creative circles within the organisation, a unified approach to creative innovation will evolve as the traditional proactive and reactive strategies merge.     

Customer service—the missing dimension in marketing management

Although several writers have drawn attention to Customer Service as a vital ingredient for success in marketing there is still confusion over what is, how to measure it and hence how to manage it. Yet examples continue to emerge which suggest that Customer Service is the essence of the marketing concept in practice and therefore a source of differentiation and competitive advantage.

It is also suggested that the way firms deal with customer service is a more accurate reflection of their marketing orientation than organisational or other characteristics. A useful reminder that business is about creating and providing customer satisfactions would therefore seem appropriate and ways to improve Customer Service are suggested based on several case study examples.     

Are workplaces with many women in management run differently?

Are workplaces with a high percentage of women in management run differently? This paper uses data from the British 1998 Workplace Employee Relations Survey (WERS98) to analyze empirically the relationship between the percentage of female workplace managers and people-management practices. The results show that workplace management teams with a higher proportion of women monitor employee feedback and development more intensely. Such teams also tend to promote more interpersonal channels of communication and more employee participation in decision-making, although the evidence is weaker for these last two practices. Overall, the findings suggest that the concept of good workplace management practices converges on female leadership styles when the percentage of female managers increases.     

Omnichannel marketing: Are cross-channel effects symmetric?

The rapid growth in omnichannel (e.g., Web, call center, sales agent, store) shopping and the need to effectively allocate resources across channels are prompting managers and researchers to better understand cross-channel effects, that is, the effects of marketing efforts in one distribution channel on shopping outcomes in other channels. We develop a broad set of hypotheses about cross-channel effects based on channel richness and influence roles (informative, persuasive). To test the hypotheses, we model the effects (own and cross) of channel marketing efforts on shopping outcomes in different channels through a simultaneous equation system. We estimate these models using data from the auto insurance industry that comprises the exclusive agent, the independent agent, the Web, and the call center channels. Our results offer novel insights. They show that cross-channel effects and elasticities are significant and asymmetric. While the effect of marketing efforts in a channel on shopping outcomes in a dissimilar (with a different primary influence role) channel is positive (e.g., exclusive agent, the Web, and the call center channels are complementary), the magnitudes of the cross-channel effects are asymmetric. Similarly, while the effect of marketing efforts in a channel on shopping outcomes in a similar (with the same primary influence role) channel is negative (e.g., independent agent and exclusive agent channels are substitutional), they are also asymmetric. Exclusive agent efforts have a greater negative effect on the outcomes of independent agent efforts than vice versa. Based on the results, we develop a channel influence vs. influenceability analysis tool for managers to better plan their channel efforts. We also illustrate a resource allocation model that shows substantial incremental profits from the reallocation of marketing efforts based on our model with cross-channel effects relative to a model without cross-channel effects.     

Can design improve the performance of marketing management?

Marketing management and design is assumed to be well performing when well integrated. Seen from a marketing management perspective, design is complementary and provides useful tools like visualisation and prototyping as well as empathy with the consumers. Jointly this can increase the performance of the company. Due to different cultures, languages and procedures marketing management often fails to deliver these advantages. The introductory essay provides an overview of methods to afford a better integration between the two and introduces a number of articles providing an overview and up-to-date analysis of the current situation.     

Towards a paradigm shift in marketing? An examination of current marketing practices

In recent years, the traditional Transaction approach to marketing has been challenged to the point where a number of authors have suggested that a “paradigm shift” is occurring. The “newparadigm” is commonly referred to as Relationship Marketing, and has been used to reflect a number of different types of relational marketing activity, including Database, Interaction and Network marketing. This paper investigates current marketing practice to clarify the relevance of these alternative approaches using four case studies and a survey of 134 firms. The results do not support the notion of a complete “paradigm shift”. Rather, the findings show that for many firms, transactional marketing is relevant and practised concurrently with various types of relational marketing. It is concluded that while relational marketing issues are currently receiving attention from academics and practitioners alike, the role of transactional marketing should not be ignored or underestimated.     

Do strategic marketing and social capital really matter in regional clusters? Lessons from an emerging economy of Latin America

This research explores the relationship between geographic proximity and the building of social capital and inter-firm cooperation in strategic marketing. By emphasizing social interactions and the building of social capital, we extend the research on industry clusters beyond traditional economic perspectives and factors motivating cooperation between firms. The empirical study is based on a survey of 90 senior managers from three natural resources-based industries (two non-clustered and one clustered) in Chile. The results show that managers in clustered versus non-clustered industries differ in terms of the perceived value of location, the perceived value of building social capital, their involvement in activities that build social capital, their attitudes toward cooperative marketing, their history of involvement in cooperative marketing activities, and their intentions for engaging in cooperative marketing activities in the future. Trade associations in clustered versus non-clustered industries play different roles in regard to creating social capital. The article concludes by discussing the implications of these findings for researchers, managers and policy makers.     

How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing

In cause-related marketing (CM), companies promise a donation to a cause every time a consumer makes a purchase. We analyze the impact of the size of this donation on brand choice (tactical success) and brand image (strategic success). Our results reveal different effects of donation size on these success measures. For brand choice, the effect of donation size is moderated by a financial trade-off for consumers, whereas the effect on brand image is moderated by donation framing. Specifically, we show that donation size has a positive effect on brand choice if consumers face no financial trade-off; i.e., if they do not have to choose between triggering a donation or saving money. The effect is negative if a trade-off exists such that higher donations come at higher costs. Brand image is enhanced by larger donations if the framing is nonmonetary (e.g., the campaign promises the provision of vaccinations), whereas donation size has a negative effect if donation framing is monetary (e.g., the campaign states the Euro amount). If campaigns use a combination of both frames, the effect of donation size on brand image has an inverted U shape. Our results suggest that CM enhances tactical and strategic success only if firms select the right donation size, taking into account donation framing and financial trade-offs.     

Are stocks dumped or neglected by analysts' inferior investments to covered stocks?

We compare the long-term stock price and operating performance of firms that are followed by analysts to those that are not over the period of 1994-2005. While analysts are skillful in identifying quality firms for coverage, the market is efficient in pricing both covered and neglected stocks such that risk-adjusted stock returns are compatible between the two groups. However, dumped stocks consistently outperform covered stocks with significant risk-adjusted returns across different market conditions and regulatory environments. Hence, investors might earn better returns by investing in dumped stocks, but the higher returns may represent compensation for greater search costs and information risk associated with investing in these stocks.     

How should information technology be covered in the accounting program?

Professional accounting associations, business schools, and accounting professors are increasingly faced with an important question: Which information technology (IT) competencies should be developed in accounting programs to train skilled professional accountants? Key references in accounting education show that advanced‐level training in IT is very important for accountants’ careers. Through content analysis, I investigate how Canadian CPAs are trained in IT. Results indicate that, postmerger, IT has lost ground in the CPA program. This could be mainly due to: (a) a larger coverage in finance, strategy, and governance topics; (b) challenges to promote and teach IT in terms of course development; and (c) a lack of recognition of and incentives for academic work on IT. Compared to some key players in accounting education, it appears that Canada has taken a different route with regard to the required IT competencies. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.