Industrial marketing strategies and different national environments

This article analyzes the marketing strategies of industrial suppliers in five Western European countries. The strategies are characterized in a quality dimension and a customer adaptation dimension. In the quality dimension the strategies are found to be related to characteristics of the industrial environment of the supplier country. In the adaptation dimension they are related to the cultural affinity with the customer country as perceived by industrial purchasers in these countries.     

Relationship Marketing and the Orientation Customers Require of Suppliers

Increasingly firms are being encouraged to move away from traditional, transactional marketing towards building long-term relationships with customers. The majority of the literature examines the benefits to suppliers of adopting this philosophy. It was decided, therefore, to examine whether the interacation between customer requirements of the marketing style exhibited by their suppliers and customers’ perception of style delivered by suppliers might influence service quality satisfaction. To examine possible interactions, a mail survey of 500 .small UK manufacturing firms was undertaken to determine perceptions of services provided by accountants. The survey tool used two new scales developed specifically to measure requirements and perceptions of relationship marketing style. Service quality satisfaction was rneasured in relation to overall expectations versus perceptions, reliability, responsiveness, assurance, empathy and tangibility. Applying ANOVA to the responsiveness from 141 firms suggests that service quality satisfaction will be highest where there is convergence between the marketing style required of a supplier and a customer's perception of the style exhibited by the supplier: The implications of these findings in relation to the need for further research are discussed.     

Managing customer relationships. The challenge of deploying scarce managerial resources

In industrial markets many managers from marketing, technical service and production functions interact with customers. How should these managers be allocated to an evolving array of customers? This paper reports on the customer visits made by the managers of one packaging supplier. The visits of the marketing people seem related to the financial significance of the customer, whereas the technical visits are best understood by a ‘portfolio’ approach. At the same time many idiosyncratic and situational factors affect resource deployments.     

Supplier Relationships:

Merchant/wholesaler sales forces are extensions of the mill/supplier marketing organization they represent. The Sales Force Effectiveness Study revealed significant areas of the supplier/vendor relationship that are critical to merchant sales force effectiveness: formal supplier evaluations, coordination to reach target markets, partnership agreements, and coordination of policies and procedures. Effective supplier relations propel merchant sales forces to top performance ranks. Research results suggest that improving sales force effectiveness is a channel-wide effort. To achieve these desired results, mills and merchants must work together to clearly define the role, structure, and functions of the sales forces operating throughout the marketing channel.     

The internal competitor: buyer motives and marketing strategies

Suppliers often face internal competitors. An internal competitor exists when a buyer simultaneously sources the same components from both an internal production unit and an external supplier. Based on a literature review we identify several different buyer motives for supporting such internal competitors. Though it may be difficult for an external supplier to immediately identify relevant buyer motives, the different motives suggest that these buyers should be targeted with different marketing strategies. For each buyer motive possible marketing strategies are suggested and briefly discussed. For example, it is discussed (1) how the external supplier may try to replace the internal competitor, (2) how the external supplier may try to operate in parallel with the internal competitor, and (3) when the external supplier should refuse to deliver to a customer with internal production of the same components.     

The Role of Market Orientation In Business Dyadic Relationships: Testing an Integrator Model

Over the last decade market orientation and relationship marketing have been huo of the most outstanding fields of research within Marketing discipline. However, little at tention has been devoted towards the investigation of the interface existing between both concepts. The aim of this study is to overcome this deficiency. Thus, the paper begins with a review of the existing literature into relationship marketing and market orientation as well as their main constructs. The result of this analysis is the proposal of a theoretical causal model in which the cultural market orientation that buyer firms show appears as a conditioning factor of their loyalty towards a supplier. Next, the methodology followed as well as the empirical contrast of the model proposed are thoroughly presented. R e empirical data was obtained from huo personal surveys conducted on the same sample of 141 industrial companies. Finally, results, conclusions and practical implications are discussed. In this way, the research proves that a buyer firm’s cultural market orientation acts as an indirect antecedent to the degree of loyalty shown to its main supplier.     

Empowering People in Modern Organizations for Improved Customer Service

ABSTRACT

Buyer perception of sellers can be arrayed on a perception spectrum ranging from exploitive to sacrificial. Satisfied buyers see their supplier at the midpoint on this continuum-not the best place for a supplier to be because customer commitment will be absent. Delighted, loyal buyers sec their supplier on the sacrificial end of the spectrum. Accordingly, effective relationship marketing programs are designed to move buyer perception of seller behavior to the sacrificial end of the Bxploitivc-Sacrificial continuum. The core ingredient in a marketing program designed to engender customer perception of sacrificial supplier behavior is an iron-clad extraordinary guarantee.     

Psychic distance,marketing strategy and performance in export ventures of Brazilian firms

Compared to other issues examined in the exporting literature, less attention has been paid to the performance implications of following a standardisation or adaptation strategy. In addition, despite the interest in the psychic distance construct in the international marketing literature, there has been also little empirical research on the effect of managers' psychic distance on the international marketing strategies of the firm. To address these issues the present study offers an empirical investigation of the relationship among psychic distance, international marketing strategies, and export performance of Brazilian firms. A sample of senior managers of industrial firms in Brazil is used to test the hypotheses. The results reported here indicate that the degree of international marketing strategy adaptation is affected by the manager's psychic distance towards the foreign markets. Product and promotion adaptation were found to have a positive effect on export performance while surprisingly, distribution and price adaptation were found to influence export performance negatively. Contrary to expectations, the results also confirm that psychic distance has a positive effect on the export performance of the firm. Implications of these findings along with the limitations of the study are discussed.     

Coping With Dependence: A Logistics Strategy Based on Interorganizational Learning for Managing Buyer–Supplier Relations

The rise of outsourcing has heightened interest in the role of logistics managers in coping with dependence in buyer–supplier relations. Buying firm dependence on a supplier potentially reduces supplier performance to expectations because the buying firm cannot leverage power to capture value in the relationship. Drawing from interorganizational learning theory, we advance a logistics strategy that consists of supplier cost analysis and supplier integration as a means to create value and thereby mitigate the negative effects of dependence. By facilitating the acquisition and use of knowledge, supplier cost analysis and supplier integration enable buying firms to identify improvement opportunities while engaging in collaborative supplier relations. Using survey responses from 222 buying firms, we find that while buyer dependence decreases the buyer's perceived supplier performance, supplier integration suppresses these negative effects. Furthermore, we show that supplier cost analysis is a valuable knowledge acquisition tool that logistics managers can use to enable supplier integration as a relational form of governance. As such, we provide new insights into interorganizational learning theory and suggest to logistics managers the important role supplier cost analysis plays in managing buyer–supplier relationships.     

A checklist for managers to enhance influencer partnerships and avoid potential pitfalls

Influencer marketing continues to be popular with marketing managers because of its effectiveness as a marketing tactic for raising brand awareness and ROI. To date, much of the literature on influencer marketing focused on its benefits, but it also bears potential risks: not all influencer marketing experiences are positive. While influencer marketing is still emerging in the digital space, managers should not forgo supplier managerial principles when hiring influencers. This article provides a checklist to help managers navigate this marketing tactic and avoid potential mistakes by encouraging the same due diligence they would with other suppliers. The checklist asks nine questions during the life cycle of an influencer relationship—including selection, performance and contract management, and reputation management—and is corroborated by the marketing literature but should be applied by managers. To demonstrate this, several case studies were examined in which managers should have considered supplier management when engaging with influencers. By employing the checklist amid influencing marketing efforts, managers can avoid the mistakes identified in the case studies.     

The Influence of Customer Relationship Marketing Strategies on Supply Chain Relationships: The Moderating Effects of Environmental Uncertainty and Competitive Rivalry

Purpose: A firm's customer relationship marketing strategy also may affect its attitudinal loyalty toward its main supplier. Furthermore, environmental uncertainty and competitive rivalry could moderate this relationship. This research investigates both questions.

Methodology/Approach: The empirical study involves a structured survey of 141 industrial firms. A structural equation technique with EQS 6.1 estimated the causal model. Multi-sample analysis revealed whether environmental uncertainty and/or competitive rivalry act as moderators.

Findings: The influence of customer relationship marketing on attitudinal loyalty toward the main supplier is positive but indirect, working through effective communication, satisfaction, and trust. However, when environmental uncertainty is high, the negative direct effect becomes significantly more intense, and when competitive rivalry is high, the positive indirect effect through satisfaction and trust is less intense.

Originality/Value: This study explores potential new paths in the relationship marketing field. Most scholars focus on the influence of a firm's relationship marketing strategy on customers' loyalty, but no previous works consider its potential influence on the firm's relationship with other partners in the supply chain, notably its strategic suppliers.

Research Implications: Structured academic research on this topic is lacking, even though many firms have implemented customer relationship programs. Supply-side researchers must evaluate the effects of such programs. Furthermore, this study combines different theoretical approaches.

Practical Implications: Practitioners can use the findings to segment their customer base and develop specific programs adapted to each target.     

Practice Makes Profit: Business Practices and Firm Success

Which business practices set successful firms apart from others? We address this question using data from an official survey of almost 3000 New Zealand firms. Questions cover: leadership, planning practices, customer and supplier focus, employee practices, quality and process monitoring, benchmarking, community and social responsibility, innovation, IT use, business structure and the competitive environment. Some of these are internal practices reflecting a firm’s resources and capabilities; some are characteristics of the external environment. We find that capital investment choices, R&;D practices, market research and a range of employee practices are positively associated with firm success; industry structure is also a key determinant of success. The association between specific business practices and firm success is mostly independent of firm size, age and industrial sector, other than for export marketing.     

Buyer/supplier partnering in British industry: The automotive and telecommunications sectors

Practitioners and academics in the fields of marketing and purchasing management share an interest in the effective management of inter‐firm buyer‐seller relationships. Buyer/supplier partnering has been advocated as an effective approach to the management of key customer or supplier relationships. Within both the automotive and telecommunications sectors of the British economy there is intense interest among major buying organisations in the development of durable partnerships with key suppliers. However, within both industries the major UK and American owned firms have to operate under the shadow of traditionally antagonistic relations with suppliers. The current state of buyer/supplier partnering within the two industries is evaluated within this historical context, and the key problem identified is the need to overcome antagonism within the inter‐organisational culture. The costs and benefits of partnering approaches to both marketing and purchasing are discussed, and implications for marketing managers seeking to develop partnerships with major customer organisations are outlined.     

LOGISTICS SERVICE DRIVEN LOYALTY: AN EXPLORATORY STUDY

Based upon the extant literature and a qualitative study of buyer‐seller relationships, an exploratory model of the relationship between supply chain power, dependence, satisfaction, and loyalty is developed and presented. Four fundamental objectives are accomplished through this research and presented here. The first was to use a qualitative method to gain a deeper understanding of the logistics service driven loyalty that exists between suppliers and customers. The second was to develop a more thorough understanding of the gap in logistics service expectations between a supplier and their customers. The third objective was to examine how the power/dependence relationship affects both customer service expectations of the parties, and the actual logistics service delivered by the supplier. Finally, this research is intended to build a basis for future quantitative research of loyalty in supplier/customer relationships.     

The Effects of the Economic Downturn on Interdependent Buyer–Supplier Relationships

The management of strategic buyer–supplier relationships is a critical concern for sourcing managers. The selection of key suppliers and how relationships with these suppliers are managed and incentivized can dramatically affect the buying company's performance. While the extant literature focusing on industrial buyer–supplier relationships is significant, the severe economic downturn beginning in 2008 tested buyer–supplier relationships in unprecedented ways, yielding new insights. The research presented in this paper uses dyadic cases to investigate transformations within industrial relationships during the economic downturn. Propositions are formulated that focus on why and how firms responded to the downturn. Three primary types of relationships are identified. The results indicate variation in the ways buying companies managed their key supplier relationships during the downturn: some firms behaved more cooperatively and found ways to jointly confront the effects of the downturn, while others responded by behaving competitively to maximize their individual outcomes. The results further suggest that researchers need to revisit existing models of relationship development and dissolution to understand how these relationships evolve or devolve. The research also raises questions about the value of physical and human asset specificity, and social investments in curtailing opportunistic behavior in times of severe economic stress.     

Factors of determining long-term orientation in interfirm relationships

Marketers have witnessed a paradigm shift in which establishing, maintaining, and forging long-term buyer–seller relationships are considered the core of marketing activities. Accordingly, investigating a long-term orientation (LTO) has become a steady research stream in the marketing literature. Building on this on-going research stream, this study confirms that an essential precursor of a manufacturer's LTO is trust that, in turn, is formed by relational norms and satisfaction with supplier performance. Interestingly, however, the seemingly strong trust–LTO path is moderated by both power asymmetry and environmental uncertainty in buyer–seller relationships. The empirical findings suggest that regardless of emerging relationship marketing where buyer and seller are portrayed as parts of a team, power is still in use to control suppliers. In addition, a manufacturer facing uncertainty is less likely to form LTO toward its supplier for fear of losing flexibility in the time- and quality-based competition.     

Value Creation and Category Management through Retailer–Supplier Relationships

Abstract

This article discusses category management interactions in supplier–retailer relationships based on conceptual insights about value in business markets. Much category management literature has studied supplier–retailer relationships, but despite value creation being central to category management the conceptual approach is often the power-trust controversy. Based on value concept, category management and supplier–retailer relationship literature this study develops a model and hypotheses of retailer perceived benefits and sacrifices from category management collaboration. The article proposes that closer supplier-retailer interactions through the category management process hold the potential for increased value creation through application of complementary information resources, an improved coordination of tactical efforts, and an alignment of category aims and strategies explicitly linked to retailers' value systems. Further, the perceived necessity of trust in these relationships meshes with retailers' perceived sacrifices regarding negotiation power and full control of category marketing variables, thus establishing a trade-off for retailers between benefits and sacrifices.     

The Role of Value Change Management in Relationship Dissolution: Hygiene and Motivational Factors

Responding to client needs is a central tenet of marketing, and thought vital to relationship renewal in the business-to-business context. We explore this issue by examining whether supplier response to client requests for value change is sufficient motivation for client firms to renew relationships with advertising agencies. Based on 17 dyadic interviews we find that reacting to client initiated value change is a relationship hygiene factor that does not of itself encourage renewal as it fails to evolve the structure of the relationship over time, and leads to client perceptions of supplier complacency. Although firms must respond to customer requests for value change to avoid dissatisfaction developing in the relationship, they must also actively seek to improve the relationship through driving market actions. We identified these as supplier initiated value change (SIVC), contributing to the emerging literature on value change by identifying a more vital component of managing client relationships to avoid dissolution and enhance the prospects of renewal.     

Business Customers' Behaviour – A Challenge for the Relationship Marketing Concept?

While B2B relationship marketing has been enthusiastically endorsed, business customers' behaviour suggests that suppliers should be cautious when establishing relationship marketing strategies with customers. In particular a supplier should be sure that customers see value in the maintenance of the relationship.

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Conflict in Supplier–Retailer Relationships in the Brewery Industry in Cameroon

The authors develop a theoretical framework to explain conflict in supplier–retailer relationships. In addition to traditional influence strategy variables, the framework links conflict to retailer dependence and supplier formalization. The framework is empirically tested in the Cameroonian brewery industry. The findings support the view that channel conflict is inversely related to retailer dependence and supplier formalization. Contrary to expectations, the use of noncoercive influence strategies (information exchange and recommendations) has no significant effect on conflict, while, as expected, the use of coercive influence strategies (threats and promises) increases conflict.