Fostering ethical marketing decisions

This paper begins by examining several potentially unethical recent marketing practices. Since most marketing managers face ethical dilemmas during their careers, it is essential to study the moral consequences of these decisions. A typology of ways that managers might confront ethical issues is proposed. The significant organizational, personal and societal costs emanting from unethical behavior are also discussed. Both relatively simple frameworks and more comprehensive models for evaluating ethical decisions in marketing are summarized. Finally, the fact that organizational commitment to fostering ethical marketing decisions can be accomplished by top management leadership, codes of ethics, ethics seminars/programs and ethical audits is examined. Gene R. Laczniak is Professor of Business at Marquette University. He has written extensively in the field of marketing and business ethics. He is coeditor of Marketing Ethics: Guidelines for Managers, Lexington Books, 1985 and coauthor of The Higher Road: A Path to Ethical Marketing Decisions, Allyn & Bacon, 1992 (both with P. E. Murphy). Professor Laczniak's research interests focus on the social and ethical influence of marketing activities on society as well as marketing strategy. Patrick E. Murphy is Professor of Marketing in the College of Business Administration at the University of Notre Dame. His articles on business and marketing ethics have appeared in several periodicals. He currently serves as editor of Journal of Public Policy & Marketing and is coeditor of Marketing and Advertising Regulation: The Federal Trade Commission in the 1990s, Notre Dame Press, 1990 (with W. L. Wilkie). His research interests focus on the ethical and public policy issues facing business.This article is based on material forthcoming in The Higher Road: A Path to Ethical Marketing Decisions, Allyn & Bacon, 1992.     

Beyond the world of packaged goods: assessing the relevance of integrated marketing communications for retail and consumer service marketing

Product and packaged goods marketers have responded to changing consumer and media environments by adopting integrated approaches to marketing communication. The value and utility of such approaches likely extend to a wide range of marketers, but there have been few published attempts to examine the viability of the integrated marketing communication concept in retail and service marketing. This study addresses this void by using a seven-stage model of integrated marketing communications to examine the media and message delivery practices of national and regional retailers and consumer service marketers. The results of a national mail survey found many of these marketers using such key integrated marketing communication elements as multiple media, databases, individual-level consumer information and behavioural response measures in their media and message delivery practices. Few, however, were using these elements in a strategic or coordinated fashion. Integrated approaches thus appear to have much value in retail and service marketing, particularly as a means for coordinating media and message delivery elements in a fashion that provides a way to link behavioural responses to media vehicles and advertising messages.     

Ethics and services marketing

The area of services marketing is a highly crucial one for potential ethical violations. The services industry, which drives over two-thirds of our national economy, is about to experience severe changes due to increasing competition. The temptation to make ethical compromises will pose a dramatic threat to the business climate.We review conceptual approaches to the field of marketing ethics and conclude that existing models often lack an important component which affects ethical decision-making. That component includes the interorganizational variables: the primary task environment, including immediate customers and suppliers to the buyer and seller; the secondary task environment, comprised of suppliers and customers to the immediate suppliers and customers, competitors, and regulatory agencies, and the macro-environment, those broader forces which impinge on the activities in the primary and secondary task environments.We suggest various propositions for circumstances under which unethical behavior is likely to occur within the interorganizational domain. The overarching framework is that of service industries in an increasingly competitive environment.Dr. Ellen Kennedy and Dr. Leigh Lawton are associate professors in the Department of Marketing at the University of St. Thomas in St. Paul, Minnesota. They have published articles in theJournal of Business Ethics andIndustrial Marketing Management on the topics of using fiction to teach business ethics and workforce socialization.     

The rebuilt marketing machine

Since its conception, the marketing mix has been the marketer's tool kit for success. A firm's marketing plan is basically comprised of the 4 Ps of the marketing mix tool kit, with practitioners and academicians segregating a marketer's tasks into product, place, price, and promotion. A decade of company-based research suggests, however, that it is time to rebuild the marketing machine by focusing upon the key strategic issues that companies, and marketers, face in today's rapidly evolving, digitized marketplace. If marketing is to become a way of doing business rather than merely one of several organizational functions, marketers must recognize that the marketing mix tool kit is truly an implement for success, just as an engine and wheels are necessary for successful navigation of an automobile. Only after we, as marketers, recognize and conceptualize marketing as a bigger machine than just the 4 Ps will we be able to bring a market orientation to the forefront of strategic thought.     

Management framework guiding strategic thinking in rapidly changing markets

Developing a management framework to guide strategic thinking in changing markets is increasingly critical for researchers and executives in coping with the complex and rapidly changing global business environment. Conventional training and practices have too often led strategy researchers and executives to assume a stable competitive box around existing businesses, not recognising the effects of radical and increasingly disruptive change on markets and competitive space. New strategic thinking logic and initiatives require a conceptual framework to guide obtaining information, perceptive interpretation of strategic issues and trends, and choice of the right strategic initiatives. The conceptualisation begins by determining the market-based strategic capabilities needed to identify the nature and scope of determinants of market changes. These changes must be identified, driven by new competition, new business models, and creativity and innovation. Understanding fast changing markets requires identifying new market space, conducting strategic segmentation analysis, and determining customer value requirements. Finally, this knowledge guides strategic vision and formulation and implementation of market-driven strategies for changing markets. The framework is based on conceptual logic and empirical findings from multiple disciplines including marketing strategy and strategic management     

Elements of strategic social media marketing: A holistic framework

Social media marketing is an integral element of 21st-century business. However, the literature on social media marketing remains fragmented and is focused on isolated issues, such as tactics for effective communication. The current research applies a qualitative, theory-building approach to develop a strategic framework that articulates four generic dimensions of strategic social media marketing. Social media marketing scope represents a range from defenders to explorers, social media marketing culture includes the poles of conservatism and modernism, social media marketing structures fall between hierarchies and networks, and social media marketing governance ranges from autocracy to anarchy. By providing a comprehensive conceptualization and definition of strategic social media marketing, this research proposes an integrative framework that expands beyond extant marketing theory. Furthermore, managers can apply the framework to position their organizations on these four dimensions in a manner consistent with their overall corporate mission and objectives.     

Direct marketing in the financial services industry

This article presents empirical research findings on the use of direct marketing by a representative sample of UK financial services institutions. A number of similarities and differences between banks, building societies and insurance companies are identified in relation to direct marketing programmes and the use of particular direct marketing techniques. While acknowledging some exceptions the research concludes that there is scope for a greater appreciation of the strategic value and workings of direct marketing. Institutions could usefully focus attention on achieving fuller integration of direct marketing with other marketing and communication activities and securing improvements in testing, database quality and timing.     

Strategic marketing planning guided by the quality-of-life (QOL) concept

An emerging ethical philosophy in marketing is developing. This philosophy is based on quality-of-life studies which are becoming an important topic of research in behavioral and social sciences (basic and applied research). This paper addresses the QOL orientation in marketing from a decision-making perspective. Specifically, this paper shows how marketers can engage in strategic marketing planning guided by the QOL concept. M. Joseph (Joe) Sirgy is social/consumer psychologist and a professor of marketing at Virginia Tech. He has written extensively about quality-of-life issues in business and society. He is presently serving as executive director of the newly formed International Society for Quality-of-Life Studies.     

The influence of relationship marketing orientation on brand equity in banks

During the last few decades, business philosophy has shifted from marketing orientation to Relationship Marketing Orientation (RMO). Service-oriented organizations, such as banks, increasingly apply RMO to enhance their brand management practices, such as brand loyalty and brand image. This in turn creates an identity for their brand name and adds value to it. The main purpose of this study is to investigate the influence of RMO on Brand Equity in the banking industry. This study also examines the influence of the dimensions of RMO (trust, bonding, communication, shared values, empathy and reciprocity) on the development of Brand Equity in banks. Social exchange theory underpins this examination of the relationship between RMO and Brand Equity. The sample comprised 1400 commercial bank customers from Sri Lanka, and the surveys were administered for data collection. There were two main stages to the analysis: testing the measurement model using confirmatory factor analysis and testing the hypotheses. The findings revealed that RMO positively influenced the development of Brand Equity in banks. Of the dimensions of RMO examined here, Trust, Communication, Shared Values and Empathy significantly enhanced Brand Equity. The implications of these findings for theory and practice have been suggested. The findings of this study have practical applications for enhancing the Brand Equity of banks and other financial institutions by strengthening their relationship marketing practices. This study also suggests some insightful directions for future research.     

Developing trends in the marketing of life insurance

The personal financial services industry is being changed drastically by a number of legislative and other measures. As a result, life assurance companies are having to reappraise their use of marketing methods in a highly competitive environment. This paper investigates the major industry marketing trends which are occurring particularly in the areas of advertising, distribution, new product development and price. The role of IT is highlighted.

The trends are set against a backcloth of an analysis of market penetration by a range of personal financial services products. The paper ends by outlining likely future trends in the use of marketing methods by assurance companies as part of their competitive strategies.

Data are presented from published sources and from a series of personal interviews with marketing executives in the industry.     

Eastern European marketing systems and Western marketing research voids: A research agenda

Starting with détente, there has been a marked improvement in North American trade with the U.S.S.R. and other Eastern European countries. This trend is predicted to continue at an accelerating rate in the years ahead. Despite this, trading and business systems of these countries are not likely to alter much. In most cases, planned purchases are going to continue, although the intensity may vary. Public policy makers in these countries decide well in advance what type of products or services they are going to purchase, because their purchases must conform with the goals of the annual foreign trade plan and the allocations of foreign exchange available for that particular purchase.Most aspects of Eastern European markets and marketing practices are not well known by North American company managers dealing with these countries. In most cases, lack of information about these markets often leads to misunderstanding and, hence, lost opportunity. The purpose of this article is to determine the critical research voids in an effort to facilitate the expansion of North American-Eastern European trade. To this end, a four-step procedure is proposed to pinpoint areas of research for immediate attention.     

Advances in strategic marketing and the advancement of the marketing discipline: the promise of theory

ABSTRACT

Hunt (2018, Advancing marketing strategy in the marketing discipline and beyond: From promise, to neglect, to prominence, to fragment, (to promise?). Journal of Marketing Management, 34, 16–51. doi:10.1080/0267257X.2017.1326973) provides a synthesis and critical review of over 100 years of marketing literature organised into four eras. In his prognosis of the outlook for Era V, Hunt notes that there are reasons to be optimistic about the prospects for both the marketing discipline, broadly, and the field of strategic marketing, specifically. However, he also draws attention to the concerns voiced by a number of marketing scholars regarding the current state of the field and the future outlook for the field. Hunt argues that the prospects for the marketing discipline and the field of strategic marketing are closely intertwined, and that the health of the latter contributes significantly to that of the former. Against this backdrop, this commentary focuses on the promise of theory for advances in strategic marketing and the advancement of the marketing discipline.     

Developing a distinctive consumer marketing organization

Marketing excellence is a key success factor in virtually any industry or company focused on consumer products or services. Defining what marketing excellence really means and how to mobilize the organization to achieve that goal, however, can be extremely challenging. This article examines the changing nature of the relationship between consumer and marketer and identifies the characteristics of excellent consumer marketing companies. While there is clearly no single right answer in designing marketing organizations, a number of companies in a variety of consumer industries have begun experimenting with promising results. While the solutions are different in each case, a number of common themes—including a clear linkage between strategy and marketing skills, seamless integration across the business system, and a clear marketing culture—are beginning to emerge.     

Interactive effects of marketing strategy formulation and implementation upon firm performance

Abstract

This study employed an integrative approach to investigate the influence of external business environment, strategy formulation, viability of marketing strategy, and strategy implementation upon firm performance. The findings show that while technological change and market competition negatively influence the credibility of the strategy, market attractiveness has a positive influence upon the viability of strategy employed. Moreover, market competition has a positive influence upon the involvement of marketing managers in terms of strategy making and that the presence of an innovative culture is strongly required in executing a strategic marketing plan. In addition, the study shows that the involvement of marketing managers in strategy making, which is strongly supported by an innovative culture, generates their commitment to the strategy, which positively influences strategy viability.     

A comparison of marketing practices: perspectives from first and second generation UK South Asians

This paper highlights not only the differences and similarities in marketing activities between first and second generation South Asian entrepreneurs; but the extent to which such activities lead to convergence with the mainstream small business population also. Therefore, differences are found in the fact that first generation respondents consider organic growth, thus differentiation via expansion initiatives and related diversification, as a way to access new co‐ethnic and non‐ethnic customer markets. This contrasts with that of the second generation. Here these particular respondents prefer to adopt a more transparent and open approach to marketing via knowledge skills advantage, and technological expertise. A feature common to both sets of respondents, and again one which this paper argues may be indicative of any small business, finds respondents following some form of self‐directed informal customer care/customer centric philosophies. Interestingly, there is no evidence to support differences in customer care and practice between the various business sectors or generation, given that such practices appear even in the absence of any formal procedures and written policies also.     

Friendly flexible working practices within the internal marketing framework: a service perspective

The purpose of this paper is to increase the understanding of the existence of work flexibility and its relevance to internal marketing. Friendly forms of work flexibility are critical to an improved understanding of the role internal marketing should have to achieve better service quality performance. This exploratory study is based on a sample of 2997 private-sector organisations provided by the CRANET survey. The results show the divergence in industry business patterns in the use of friendly and unfriendly flexible work arrangements. Service companies tend to use friendly flexible working practices in larger proportions. The analysis reveals a small negative relationship between unfriendly practices and service quality. These findings may suggest that service organisations tend to create more supportive environments when offering flexible work arrangements that are friendlier for individual workers and their families.     

The logic of being illogical in strategic marketing planning

This article challenges the validity and usefulness of a conventional model of the sequence of stages in strategic marketing planning. Quite simply the conventional model ignores the organisational and human realities facing the planner. This paper proposes an “illogical” but iterative model of strategic marketing planning which is driven by the managerial understanding of the environment and knowledge of what tactical imperatives exist and constrain implementation. The advantages of explicitly recognising this “illogical” aspect of the planning process lie in: coping better with information demands made by executives in planning; allowing for psychological planning constraints and the obstacles created by the real nature of the manager's job; and in gaining the implementation of strategic marketing plans, with all that this implies for organisational and cultural change. The argument leads to an agenda of issues to be considered by the executive responsible for managing the strategic marketing planning process.     

Cross-border marketing ecosystem orchestration: A conceptualization of its determinants and boundary conditions

The authors propose that the current trends and developments in the international marketplace call for a new theoretical concept-based approach to inform and guide cross-border marketing strategy. Specifically, the authors label this approach marketing ecosystem orchestration (MEO). The marketing ecosystem is defined as connected, interdependent, and co-evolving sets of actors, activities, and institutions enabling the marketing of an offering that has value for customers, clients, partners, and society at large. MEO is a new strategic approach for an internationalizing firm to achieve sustained value creation, value appropriation, and growth in a host market. Orchestration involves developing and/or coordinating the ecosystem’s interdependent – but independent actors, resources, information, processes, and services to create, co-create, and appropriate value from firms’ market-based assets. The authors theorize three components of MEO – the orchestration of supply chains and fulfillment networks, marketing communications, and transactions and payments sub-ecosystems – and develop a conceptual framework and propositions influencing the determinants of MEO adoption by the focal firm. This paper concludes with managerial implications and offers several new directions for international marketing research.     

A New Internet Driven Internationalisation Framework

This paper aims to offer a new Internet driven theoretical framework that explains how a successful internationalisation process may be developed and identifies the strategic dimensions that influence the key decisions in an interrelated, performance-associated way. The extant literature is examined in international marketing, international entrepreneurship and Internet marketing and a comprehensive strategic analysis is conducted of a successful individual services business: ING Direct. It is shown how strategic constructs and risk constructs drive the internationalisation process in an interrelated and performance-associated way. In the framework, the firm's target is to take advantage of an opportunity by obtaining a sustainable competitive advantage while attenuating international risk. Entry mode and country selection are strategic decisions interrelated mutually and with other strategic choices and with performance; this is why an analysis with ceteris paribus statements or episodic analysis may lead to the wrong conclusions.