Fundamental changes in marketing organization: The movement toward a customer-focused organizational structure

There has been growing interest in the future of marketing and changes in marketing’s organization and role within the firm. However, there has not been research that holistically explores key changes in marketing organization. The authors draw on qualitative interviews with 50 managers in the United States and Germany and argue that changes in marketing organization that have been discussed in isolation are part of a more general shift toward customer-focused organizational structures. They initially discuss two specific changes related to the overall shift: changes concerning primary marketing coordinators and increasing dispersion of marketing activities. They then introduce the concept of a customer-focused organizational structure that uses groups of customers as the primary basis for structuring the organization. They identify typical organizational transitions as firms move toward a customer-focused organizational structure and discuss the challenges firms face in making this transition. They conclude with implications for academic research, managerial practice, and business school curriculum. Christian Homburg is a professor of business administration and marketing and Chair of the Marketing Department at the University of Mannheim in Germany. He received his Ph.D. and master’s degrees from the University of Karlsruhe and earned his habilitation at the University of Mainz. His research interests include organizational issues in marketing, customer orientation, industrial marketing, and relationship marketing. Dr. Homburg has consulted and delivered executive education programs for more than one hundred companies, including Daimler-Benz, Siemens, Deutsche Bank, Hoechst, RWE, Thyssen, Krupp-Hoesch and Sodexho. John P. Workman, Jr. is an associate professor of marketing at Creighton University in Omaha, Nebraska. Dr. Workman conducts research on the organization and role of marketing within the firm, on new product development in high-tech firms, and more recently on organizational issues for e-commerce initiatives. His research uses concepts from organization theory, strategy, and sociology to examine the interactions between marketing and other groups in the firm. Dr. Workman has a B.S. from N.C. State University, an M.B.A. from the University of Virginia, and a Ph.D. from M.I.T. He has consulted for a number of organizations on the topics of e-commerce and marketing organization. Ove Jensen is a Ph.D. student studying under Professor Homburg at the University of Mannheim. He received his master’s degree from the WHU Koblenz. He conducts research on sales management, organizational issues in marketing, and incentive systems. He has extensive consulting experience in the areas of market-focused management and sales management.     

Success-producer and failure-preventer marketing skills: A social learning theory interpretation

This study examines organizations that emphasize differing types of marketing skills. It is based on a national survey of Health Maintenance Organizations. The organizations are first classified into groups based on their distinctive marketing skill configurations. Six groups were identified. Next, differences between these organization types are examined with respect to organization strategy, characteristics of the chief marketing executive, organizational environment, and performance. These results suggest that more successful organizations develop particular constellations of marketing skills. The results generally appear consistent with a social learning theory perspective on marketing skill development.     

The quality and effectiveness of marketing strategy: Effects of functional and dysfunctional conflict in intraorganizational relationships

By examining only dysfunctional conflict and ignoring functional conflict, empirical research in marketing has presented only part of the story. This research offers the first systematic look at the antecedents and consequences of both functionaland dysfunctional conflict in intraorganiational relationships. The authors develop and empirically test a causal model for key organizational antecedents of new product strategy quality and market performance. They find that dysfunctional conflict in the decision-making process has deleterious consequences for quality of strategy and market performance, whereas functional conflict improves both quality of strategy and performance. Specifically, organizational design characteristics such as formalization, interdepartmental interconnectedness, low communication barriers, and team spirit improve new product performance by enhancing functional conflict, whereas centralization and high communication barriers lower new product performance by increasing dysfunctional conflict. A post hoc test for common method bias or variance suggests that bias or variance alone cannot explain these findings. His general research interests focus on strategic issues relating to internal relationships, market learning, and organizational context of marketing strategy. His research has been published in theJournal of Marketing, Journal of Business Research, Journal of Advertising Research, Journal of Advertising, andJournal of Services Marketing, among others. His general research interests focus on strategic issues relating to relationship marketing, firm performance, sustainable competitive advantage, timing of market entry, and information technology. His past research has been published in theJournal of Marketing, Journal of Business Research, Journal of Services Marketing, andMarketing Education Review, among others. His research interests are in the areas of marketing research methods, structural equations modeling, cellular automata theories and methods, and Taoist methodologies for marketing strategy. His research has been published in theJournal of Marketing, Journal of Marketing Research, andJournal of the Academy of Marketing Science, among others.     

Relationship marketing: The strategy continuum

Conclusion Few service firms will apply a pure transaction marketing strategy. Even highly standardized service operations include direct contacts with customers, and the customers do perceive the production and delivery process. Hence there are part-time marketers and functional quality effects, so we cannot talk about a pure transaction marketing situation. However, the more standardized the process is, the more dominating is the core service and the technical quality of the outcome of the production and delivery process and the less difficult it is to manage the personnel from a marketing point of view. Firms can position their strategic approach along the strategy continuum, and the more a relationship-type strategy is called for, the more has to be invested in interactive marketing, the functional quality impact, and internal marketing. In such a situation, it is at the same time more important to create information systems where the firm is managing its customer base directly and not relying on market share statistics and ad hoc customer surveys. Christian Gr?nroos, a former visiting professor at Arizona State University and a research fellow at the First Interstate Center for Services Marketing there, is currently a professor of marketing at the Swedish School of Economics and Business Administration in Finland, where he also is head of the marketing department. He has published extensively within the areas of service management and marketing and relationship marketing. He has published seven books and numerous articles in English, German, Spanish, Italian, Portuguese, Russian, Chinese, Dutch, Finnish, Swedish, Danish, and Norwegian.     

Interactions between marketing and quality at the SBU level: Influences and outcomes

The management of quality and development of effective cross-functional cooperation have assumed a new strategic importance over the past decade. However, many companies have reported that quality strategies have failed to deliver anticipated performance benefits and that ineffective interfunctional relationships may be to blame. This study explores marketing-quality interfunctional relationships as a potential source of quality strategy implementation failure at the strategic business unit (SBU) level. This study focuses on interdepartmental connectedness, communication and conflict between marketing and quality, and the antecedents and consequences of these dimensions of interfunctional interaction. Using data from a pooled response mail survey, the results suggest that marketing-quality interactions are associated with senior management quality leadership, strategic quality planning process, and control system characteristics. Interfunctional interactions between marketing and quality are found to be only weakly related to relative quality, market performance, and financial performance outcomes. Neil A. Morgan is a university lecturer in marketing and strategy at the Judge Institute of Management Studies, University of Cambridge, England. His research interests focus on strategic issues concerning marketing strategy formulation, marketing implementation processes, and business performance. His work has appeared in theJournal of Business Research, Industrial Marketing Management, British Journal of Management, and other journals. Nigel F. Piercy is Sir Julian Hodge professor of marketing and strategy and chair of Marketing and Strategy at the Cardiff Business School, Cardiff University, United Kingdom. His research interests focus on the organizational context of marketing management, market-led strategic change, and the role of process in marketing strategy implementation. His work has appeared in theJournal of Marketing, theJournal of the Academy of Marketing Science, theJournal of Advertising, and other journals.     

Elevating marketing: marketing is dead! Long live marketing!

Marketing must be elevated to a higher level of consciousness. A consciousness that grows beyond solving small, immediate problems to addressing long-term, large problems that goes beyond individual customer satisfaction and short-term financial performance to encompass the total value creation system. The discipline, in theory and practice, must move beyond a narrow focus on customers to a broader concern for them as citizen-consumers. This necessitates a recommitment of marketing to its fundamental purpose in society, which is improving the standard of living for all citizens by co-creating value at all levels within a socio-economic system. An elevated (systems) concept of marketing must focus on micro, meso and macro systems with an understanding of the purpose and shared vision for each system, a clear identification of responsibilities, and a focus on resource effectiveness and efficiency.     

Export marketing strategy implementation,export marketing capabilities,and export venture performance

Since exporting is the most popular mechanism by which firms engage with international markets, understanding the drivers of export market performance is key to explaining firms’ international competitiveness. The literature posits that the effective implementation of planned export marketing strategy is a key determinant of the performance of firms operating in international markets. Yet little is known about the specific nature and drivers of export marketing strategy implementation effectiveness. In this study we build on the implementation literature in marketing and strategic management to develop a new conceptualization of export marketing strategy implementation effectiveness. Drawing on dynamic capabilities theory, we empirically examine the export marketing capability antecedents and performance consequences of export marketing strategy implementation effectiveness in the context of manufacturing firms that are exporting to international markets. Results indicate that effective implementation of planned export marketing strategy contributes to export market and financial performance, and that marketing capabilities play an important role in enabling effective marketing strategy implementation in export venture operations.     

An empirical study of innate consumer innovativeness,personal characteristics,and new-product adoption behavior

This article explores the relationships between innate consumer innovativeness, personal characteristics, and new-product adoption behavior. To do this, the authors analyze cross-sectional data from a household panel using a structural equation modeling approach. They also test for potential moderating effects using a two-stage least square estimation procedure. They find that the personal characteristics of age and income are stronger predictors of new-product ownership in the consumer electronics category than innate consumer innovativeness as a generalized personality trait. The authors also find that personal characteristics neither influence innate consumer innovativeness nor moderate the relationship between innate consumer innovativeness and new-product adoption behavior. Subin Im is currently an assistant professor of marketing at San Francisco State University. His primary scholarly interest includes the organizational aspects of innovation, new-product development for marketing strategy, the consumer side of the innovation adoption process, organizational learning in new-product development, moral hazard and adverse selection model, and research methodology using multivariate statistical techniques. His current research projects include creativity in new-product development, market orientation and innovation, consumer innovativeness, entrepreneurship and organizational learning in new-product development, the development of the creativity measure, the validation of the innovativeness measure, and the testing of nonlinear effects in structural equation modeling. He received his Ph.D. from the University of North Carolina at Chapel Hill. Subin worked in banking and semiconductor industries before he joined academia. Barry L. Bayus is a professor of marketing in the University of North Carolina's (UNC) Kenan-Flagler Business School. Prior to joining the marketing faculty at UNC, Barry worked in both industry and academia. He has also served as an expert witness in patent infringement cases involving high-tech products. His teaching and research interests are in the areas of new-product design and development, marketing analysis and strategy, and technological change. His recent research is concerned with the creation and evolution of new markets and the historical evolution of products, as well as new-product development issues such as speed to market, product life-cycle management, new-product preannouncements, product proliferation, firm entry, and exit timing in dynamically changing markets. Charlotte H. Mason is an associate professor of marketing in the University of North Carolina's Kenan-Flagler Business School, where she leads the MBA Customer and Product Management concentration. Her industry experience includes work for Procter & Gamble, Booz, Allen and Hamilton, as well as consulting projects. Her research focuses on the development and testing of marketing models and applications of multivariate statistics to marketing problems. She is currently investigating issues relating to the analysis and use of large customer databases as well as strategic issues surrounding customer portfolio management. Her research has been published inMarketing Science, theJournal of Marketing Research, theJournal of Consumer Research, Marketing Letters, theJournal of the Academy of Marketing Science, and theJournal of Business Research. She is on the review boards of theJournal of Marketing Research and theJournal of the Academy of Marketign Science and is coauthor (with William Perreault) ofThe Marketing Game!, a strategic marketing simulation.     

Extending the competitive marketing strategy paradigm: The role of strategic reference points theory

The purpose of this article is to extend and integrate the new strategic reference points theory (SRP), developed in the strategic management area, into the discipline of strategic marketing management. The major new tenets of the theory are the inclusion of cognitive, organizational processes and benchmarking simultaneously. First, the authors describe the impact of the marketing SRP on marketing strategic choice behavior captured in the tradeoff between risk and return (risk avert vs. risk lover) as was proposed by prospect theory. Then, they explore the performance consequences of integrating the newly formed stages while considering organizational process and implementation issues of reference points such as content, configuration, consensus, and change. Aviv Shoham is a senior lecturer of marketing at the William Davidson Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Technion City, Haifa. Avi Fiegenbaum is an associate professor of management at the William Davidson Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Technion City, Haifa.     

Cause marketing and customer profitability

This research marks the first attempt to investigate the cause marketing–customer profitability relationship, and to assess whether features can moderate the influence of cause marketing (CM) on customer profitability for a focal brand and its main rival. We obtain a panel dataset on 7257 customers to evaluate the Yoplait–Susan G. Komen partnership. On a propensity score matched sample, we estimate a multilevel model and find that Yoplait’s CM initiative positively influences Yoplait’s customer profitability (2.70%), along with a deleterious effect on Dannon’s customer profitability (?13.31%). These findings are theoretically meaningful and pragmatically useful as they: (1) provide behavioral evidence of CM’s profit impact, (2) establish CM as an “offensive” strategy that cultivates the rival’s customers, (3) suggest features can amplify the effect of CM on the focal brand’s customer profitability, and (4) support that managers can add CM to their strategic marketing arsenal as an instrument to strengthen brand equity.     

Institutional pressures and marketing ethics initiatives: the focal role of organizational identity

Institutional theory implies that normative societal expectations create pressures for organizations to respond acceptably to important institutional constituents. Although the role of the institutional environment on marketing has been studied, the organizational mechanisms by which firms respond to societal pressures remain under-investigated. We suggest that an important determining factor involves organizational identity, which drives firm response to societal norms and facilitates its quest for legitimacy. Accordingly, this study contributes to organizational theory in marketing by casting identity as the focal mechanism in the firm’s response to the institutional environment. Marketing ethics and CSR issues frame this research given natural synergies with institutional and organizational identity theories and evidence that increasingly, firms must respond to societal expectations involving ethics in their marketing practices. Using game theoretical models and economic experiments, we find that the influence of the institutional environment emerges through firm identity, affecting resource allocation to ethical product augmentation.     

Shared organizational values: Measurement and impact upon strategic marketing implementation

The concept of shared organizational values and its impact upon successful marketing strategy implementation are discussed. The need to measure the degree to which values within the organization are shared is stressed. A method to quantitatively measure the degree of value congruency and the strength of value consistency is proposed. An exploratory, empirical study is presented in which organization values are measured and found to impact upon strategy implementation.     

The antecedents and consequences of customer-centric marketing

As we enter the twenty-first century, the marketing function remains concerned with serving customers and consumers effectively. The authors propose that just as the marketing function gradually shifted from mass marketing to segmented marketing in the twentieth century, it will increasingly move toward customer-centric marketing in the next century. In the practice of customer-centric marketing, the marketing function seeks to fulfill the needs and wants of each individual customer. The antecedents of customer-centric marketing are the increasing pressure on firms to improve marketing productivity, increasing market diversity in household and business markets, and technology applicability. On the basis of the shift toward customer-centric marketing, the authors expect increased importance of marketing as a “supply management” function, customer outsourcing, cocreation marketing, fixedcost marketing, and customer-centric organizations. This article highlights the implications of customer-centric marketing as well as the boundary conditions that will affect its adoption. Jagdish N. Sheth is the Kellstadt Professor of Marketing in the Gouizeta Business School at Emory University. He has published 26 books and more than 200 articles in marketing and other business disciplines. His book,The Theory of Buyer Behavior (with John A. Howard), is a classic in the field of consumer behavior and is one of the most cited works in marketing. His other books includeMarketing Theory: Evolution and Evaluation (with David Gardner and Dennis Garrett) andConsumption Values and Market Choices: Theory and Applications (with Bruce Newman and Barbara Gross). Rajendra S. Sisodia is Trustee Professor of Marketing at Bentley College. Previously, he was an associate professor of marketing and director of executive programs at George Mason University and an assistant professor of marketing at Boston University. He has a Ph.D. in marketing from Columbia University. He has published more than 40 articles in journals such asHarvard Business Review, Journal of Business Strategy, Marketing Letters, andMarketing Management. He has also authored about two dozen cases, primarily on strategic and marketing issues in the telecommunications industry, as well as a number of telecommunications industry and company analyses. Arun Sharma is an associate professor of marketing at the University of Miami. He has published more than 30 articles in marketing and his interests are in the area of market and marketing evolution.     

Identification management and its bases: Bridging management and marketing perspectives through a focus on affiliation dimensions

There has been growing interest in both management and marketing regarding how individuals become identified with organizations and how organizations attempt to manage these identifications. The authors present a framework built on explicit and implicit points of convergence in research conducted in both these disciplines. In their review of the management and marketing literatures, the authors suggest three fundamental mechanisms, or “bases”, for managing organizational identification: relational, behavioral, and symbolic. Furthermore, the authors argue that how an individual is affiliated with an organization will impact the relative influence of these identification management bases. The authors conclude by suggesting how management and marketing scholars can create a theoretical space for future interdisciplinary work Such a change would involve moving away from “employees” versus “customers” as a prime division between the fields and moving toward a more fine-grained approach that emphasizes the unique characteristics of individual-organizational relationships. M. Teresa Cardador (cardador@uiuc.edu) is a doctoral student in management at the University of Illinois at Urbana-Champaign. Her research explores issues related to workplace attachment and identification, work orientation, and the experience of employees who find work highly meaningful and engaging. Michael G. Pratt (mpratt@uiuc.edu) is a James F. Towey Fellow and an associate professor of management at the University of Illinois at Urbana-Champaign. He earned his Ph.D. at the University of Michigan. His articles have appeared in leading management outlets, includingAdministrative Science Quarterly, theAcademy of Management Journal, theAcademy of Management Review, andResearch in Organizational Behavior. He recently coedited (with Anat Rafaeli) a book titledArtifacts and Organizations: Beyond Mere Symbolism (Lawrence Erlbaum, 2005). His current research examines issues of organizational attachment (e.g., identification and commitment), multiple identities and meaning, and intuition. Dr. Pratt’s work focuses largely on professionals in both traditional and dispersed work contexts.     

Twenty-first-century organizations: Implications for a new marketing paradigm

Conclusion To conclude this commentary, it may be worthwhile to clearly state the research direction that the Achrol article has launched. First, the article begins by identifying the forces that are causing network forms of organizing to spread. If network organizations continue to proliferate, as they are likely to do, then marketing as both a function and discipline must change, too. Second, Achrol helps us to understand network organizations by providing a comprehensive typology that describes the commonly found network forms. Third, the article specifies some of the key variables that need to be examined to build an integrated theory of network management. It is hoped that at some point in the not too distant future, managers can be shown how to design and operate each of the major types of network organizations. Finally, Achrol urges marketing to adopt a paradigm more consistent with the reality of today’s and tomorrow’s organizations. His article is certainly a step in the right direction. His research interests are in new organizational forms, strategic human resource management, and transnational teams. He has written many articles and chapters on strategic management and has coauthored five books, the most recent of which isFit, Failure, and the Hall of Fame: How Companies Succeed or Fail (1994). He has been a visiting scholar at The Amos Tuck School (Dartmouth College) and the Norwegian School of Management. He is currently conducting a study of human resource management practices of 21st-century organizations, which is funded by the Carnegie Bosch Institute for Applied Studies in International Management.     

Toward a theory of customer engagement marketing

Customer engagement marketing—defined as a firm’s deliberate effort to motivate, empower, and measure customer contributions to marketing functions—marks a shift in marketing research and business practice. After defining and differentiating engagement marketing, the authors present a typology of its two primary forms and offer tenets that link specific strategic elements to customer outcomes and thereby firm performance, theorizing that the effectiveness of engagement marketing arises from the establishment of psychological ownership and self-transformation. The authors provide evidence in support of the derived tenets through case illustrations, as well as a quasi-experimental field test of the central tenet of engagement marketing.     

Evaluation of subsidiary marketing performance: combining process and outcome performance metrics

Issues in evaluating marketing performance and devising appropriate metrics for measurement have taken center stage in marketing thought and practice in recent years. We propose an empirical model that enables a multinational enterprise (MNE) to assess the marketing performance of its subsidiaries, taking into explicit consideration the fact that tactical actions by subsidiaries contribute to the creation of assets that can be harnessed for marketing outcomes. Thus, our model captures the asset creation abilities of marketing expenditures and also takes in to account the environmental differences of the context in which each MNE subsidiary operates. We evaluate comparative, overall, and process-level (creation of market assets and market yield) marketing performance in the context of multi-country operations. This simultaneous examination of marketing process and marketing outcome performance enables a global corporation to gain strategic, operational, and diagnostic insights into the performance of its subsidiaries. Our approach is empirically illustrated with an evaluation of the marketing performance of subsidiaries of a large global corporation.     

试论营销价值观的五个层次

营销价值观，简单说来即人们对市场营销的意义、作用、效果和重要性的总体评价。营销价值观是市场营销的灵魂。营销价值观及其体系的层次结构由低到高依次为营销产品与服务，营销顾客问题解决方案，营销顾客最大价值，营销顾客成功，营销爱、快乐、幸福。提高营销人的品德和心灵境界是营销价值观提升的核心，树立“爱出者爱返、福往者福来，成就他人就是成就自己”信念，用高层次营销价值观影响顾客、合作伙伴等营销参与者使其高尚起来。     

Customer mind-set of employees throughout the organization

Previous research has provided strong evidence for the benefits of embracing a market orientation, an organizational focus highlighting the needs of customers, and the creation of customer value. This study extends this focus on the customer to the individual worker level. A construct, customer mind-set (CMS), is developed that reflects the extent to which an individual employee believes that understanding and satisfying customers, whether internal or external to the organization, is central to the proper execution of his or her job. In this exploratory study, the authors develop a parsimonious scale for measuring CMS. Relationships between CMS and significant organizational variables are examined to establish CMS's validity and provide some tentative insights into its value to researchers and practitioners. The authors believe the CMS construct will allow for operational-level analysis of the extent to which a customer orientation is embraced throughout an organization, permitting managers to implement targeted improvement strategies. Karen Norman Kennedy is an assistant professor of marketing at the University of Alabama at Birmingham. She earned her Ph.D. from the University of South Florida. Her research interests include customer orientation and cultural change in organizations, as well as the evolving role of customers and employees in today's marketplace. Her work has been published in theJournal of Personal Selling and Sales Management, theJournal of Services Marketing, Industrial Marketing Management, and theJournal of Marketing Education. Felicia G. Lassk is an assistant professor in the Marketing Group of Northeastern University. She received her Ph.D. from the University of South Florida. Her research interests include customer orientation, salesperson job involvement, and measurement issues. Her articles have appeared in the theJournal of Personal Selling and Sales Management, Industrial Marketing Management, and theJournal of Marketing Education, among others. Jerry R. Goolsby is the Hilton/Baldridge Eminent Chair of Music Industry Studies at Loyola University New Orleans. He received his Ph.D. from Texas Tech University. His research interests include issues related to market orientation and its implementation, customer and employee relationships, and sales interactions. His work has been published in theJournal of Marketing, theJournal of Marketing Research, theJournal of the Academy of Marketing Science, and other marketing journals.     

基于顾客期望与感知的服务营销战略研究

本文以顾客期望和感知相关理论研究成果为基础,结合服务营销的特殊性分析服务企业的营销战略问题,提出了基于顾客期望和感知的服务营销战略模型。根据该模型,服务企业确定自己的营销战略,必须明确锁定自己的服务对象,在理解顾客服务期望的基础上区别对待顾客期望并合理控制顾客期望,同时按照顾客期望设计并提供服务,才能实现顾客满意的目标。在顾客满意的基础上,服务企业可以通过有保留地承诺、突出服务传递维度的重点、利用服务补救的机会等策略超越顾客的服务期望,使顾客惊喜或感动以留住顾客,实现顾客的忠诚。