Strategies for Business Format Franchisors to Expand into Global Markets

Abstract

Franchising is emerging as a highly effective strategy for growth, job creation, and economic development and is spreading rapidly around the globe. However, the pursuit of global markets by franchisors has traditionally relied on employing just three generic franchising options (i.e., direct franchising, master franchising, area development). This paper presents a more expansive view of strategic choice for franchisors by presenting first-mover, platform, and conversion strategies as additional strategic approaches that may be utilized to meet the challenge of expanding into international markets. Propositions are advanced to first suggest which strategic approaches aremost appropriate under varied foreign market conditions and then how these approaches should be linked to the three generic licensing options to create combination strategies based on franchisor experience/capabilities and similar/dissimilar markets. A contingency model of global franchising is presented, which depicts the above relationships and provides an overall framework that can assist franchisors in solving the foreign expansion and distribution question. Managerial and research implications are then provided.     

Internationalising the Business Student

SUMMARY

This paper reviews approaches to internationalising business education and describes an alternative approach to designing an international business degree program. The paper goes on to describe two competing paradigms of international business education. The paper recommends that rather than develop strategies to internationalise the business curriculum, course designers attempt instead to internationalise the business student.     

A Comparison of Communications Practices Among Indian and U.S. Scientists and Engineers

ABSTRACT

An investigation of communication practices among U.S. (n s= 90) and Indian (n = 71) engineers and scientists employed in the aerospace industry revealed statistically significant differences between the two cultures. The differences may be attributed to Hofstede's (1980) cultural dimensions of individualism, uncertainty avoidance, and power distance; Hofstede and Bond's (1988) Confucian dynamism; and Hall's (1976) cultural context. Implications for practice address strategies to accommodate foreign cultures and to develop complementary approaches using the strengths of both cultures. Areas for future research are offered.     

An Investigation on Incentive Strategies in Community Building in Business-to-Business Electronic Markets

ABSTRACT

Purpose: Community building is recognized as an important governance mechanism in business-to-business (B-to-B) electronic markets by enhancing firms’ participation in these platform markets. However, little research has been done regarding the role of incentive strategies in community building. The main purpose of this paper is to understand how to motivate merchants to participate in a merchant community with incentive strategies.

Methodology: Data were collected in a community of a large B-to-B electronic platform market in China. We randomly chose a sample of 605 participants from among all merchant firms registered in this community, and track their behaviors for 2 weeks. Their behaviors are recorded based on our research design.

Findings: With the empirical analysis from a community of a large B-to-B electronic platform market in China, our results show that (1) both platform and peer incentive strategies can significantly enhance community participation, while platform incentives is more effective in general; (2) platform incentive strategy is a more effective strategy as seller firm uncertainty increases; (3) peer incentive strategy is a more effective strategy as buyer firm uncertainty increases.

Originality: This paper is among the first to investigate two types of incentive strategies in community building, platform level and peer level. We also investigate the moderating role of market uncertainties due to market participants from seller and buyer when examining the effectiveness of these two incentive strategies.     

Live streaming commerce from the sellers’ perspective: implications for online relationship marketing

ABSTRACT

Live streaming has recently become a popular direct selling channel which offers small, self-employed sellers unseen levels of consumer interaction and engagement. While the extant research focused on consumer motivation and intention to shop via live streaming, little is known from the seller’s perspective. Indeed, the potential advantages of live streaming commerce are accessible to everyone, but sellers experience different levels of success with this medium. Using a mixed quantitative and qualitative approach, this study analyses Facebook data of live streaming sellers to assess the nature and extent of engagement metrics, and delineate the dynamic, interactive live streaming sales process. We identify four sales approaches and twelve strategies adopted in acquiring and retaining customers. This typology of sales approach representing seller-focused antecedents is mapped against the relationship process and outcomes to provide a framework for understanding relationship mechanisms in live streaming commerce.     

A Pragmatic View of Perceived Service Quality Measurement

Abstract

Service quality measurement has been a central issue to service quality researchers and practitioners. A review of the service quality literature yields several approaches to the measurement of service quality. These approaches each have their strengths and weaknesses, and each may be appropriate under given circumstances. The present paper seeks to offer guidance to service practitioners interested in the measurement of service quality by suggesting which approach may be appropriate in light of various measurement criteria.     

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.     

Re‐innovation and robust designs: Producer and user benefits

New waves of technologies have been sweeping through all industrial sectors in the 1980s. Increasingly, corporate managers have begun to use technology strategies as a major competitive tool. Within these strategies, there are at least a dozen different patterns of redesign and re‐innovation. Overall, one of the most important philosophies has been development of robust design configurations. These robust designs have a product family of variants which meet changing market needs with benefits for both producers and users.     

A Forum for Issues in Advertising Education

Abstract

Advertising education is an established facet of higher education. It has developed, however, along two tracks—journalism and marketing. The result has been two different approaches to the study of advertising, neither of which may be the best approach. If the best education in advertising is to be offered, then the academic community must address itself to a resolution of these differences in the approaches to the teaching of advertising. Thus, a forum to consider the problems of advertising education is suggested.     

Evaluation of Social Marketing Efforts Designed to Increase Enrollment in the Children's Health Insurance Program (CHIP)

ABSTRACT

Expanded eligibility criteria for children in the federally funded Child Health Insurance Program (CHIP) has created unique social marketing challenges because of the need to engage families that historically have not received public support. The purpose of this article is to evaluate statewide outreach strategies to increase CHIP enrollment. Quantitative research identified the outreach strategies used by Ohio counties and determined the counties that demonstrated the greatest increases in child health insurance enrollment. Qualitative research explored consumer and outreach staff perceptions of which marketing strategies led to success. Findings, implications, and application to social marketing theory are discussed.     

Depth versus Breadth Strategies for Global Brand Image Management

Abstract

Developing and maintaining a brand image is vital to any successful marketing and communication campaign. An image that clearly communicates the needs satisfied by the brand contributes to brand equity and helps combat brand parity. The normative model of brand image management suggests that marketers should base their images on a single set of consumer needs (depth strategy), rather than multiple sets of needs (breadth strategy). The extent to which depth strategies outperformed breadth strategies (in terms of annual change in sales volume, profit margin, and market share) was investigated for U.S. consumer goods exported into international markets. These markets varied in terms of level of economic development, cultural context, and competition. While the results indicate that depth strategies do tend to perform best, there are conditions under which breadth strategies perform just as well.     

Building successful brands: The strategic options

The debate on whether to include brands on the balance sheet has created a new interest in branding strategies. Successful brands clearly generate higher returns on sales and on investment. But quality and service, rather than advertising, is the best way of creating such brands. Acquisition strategies frequently produce inconsistent portfolios of brands. The policy towards brand extension is shown to depend upon the similarity of positioning strategies between current and new brands.     

Analyzing the Impact of Promotions on Manufacturer and Retailer Performance

Abstract

Promotional strategies used by manufacturers (or retailers) influence not only their own outcomes, but also the outcomes of retailers (or manufacturers). As cooperation of both the parties is needed for successful implementation of promotional strategies, the promotions used by either party should provide outcomes that are positive for the other party. The authors propose a framework for examining (1) the effect of promotional strategies on both manufacturer and retailer profitability and (2) which of two promotional strategies (retail price cut or coupon promotion) yields greater total profitability to achieve an exogenously given sales level. The proposed framework also helps in identifying conditions when conflict is likely to occur between manufacturer and retailer, and suggests a cooperative strategy to resolve the conflict.     

School Choice Attributes

Abstract

This study was conducted to determine the attributes which parents use in determining the type of school they wish their child to attend. To this end, a sample consisting of 304 parents were asked to rate eleven educational attributes and respond to several openended questions. Statistically significant differences were found which would allow private schools to employ specific marketing strategies toencourage higher enrollment levels.     

The Transition from Product to Solution Selling: The Role and Organization of Employees Engaged in Current Business

ABSTRACT

Purpose: This research investigates how to manage and organize existing employees when launching a solution sales strategy, specifically addressing whether it is possible to migrate existing sales representatives active in product sales to solution sales, and whether it is possible to combine the roles.

Methodology/approach: A case-based approach was applied to a multinational firm, engaged in business-to-business sales that simultaneously launched a solution sales strategy in 17 countries. In-depth interviews with 29 managers and sales representatives were performed to inductively identify why some countries succeeded in the launch, while others did not.

Findings: Because of fundamental differences in approach between solution and product sales, those countries where the solutions and product businesses were separated performed better. The difference in required capabilities and mindset meant that migrating sales representatives from product to solution sales is problematic.

Research implications: This research offers evidence of differences in mindset and approach between different marketing and sales strategies, extending the conclusions to how these differences affect the possibility of migrating existing sales representatives when launching a new selling strategy. Whether to separate service and product sales has been debated. The present results indicate that separating the current product business from the new solution business facilitates the successful implementation of the new strategy. In the case company, the solutions represent a mixture of product and services, suggesting that the problem is not the difference between products and services, but rather different selling strategies and approaches that require different capabilities.

Practical implications: When launching a solution sales strategy, the solution business should be separated from the current product business at both the organizational and personnel levels. Solution sales necessitates a particular approach and capabilities, making it unadvisable to transfer sales representatives and managers to the new solution business based solely on previous product sales success. Instead, a new skill profile must be developed taking account of the requirements of a demand-driven solution strategy.

Originality/value/contribution: Consensus is lacking as to whether to separate product and service businesses. This article extends the debate to the field of solution

sales, demonstrating that separation is needed to succeed in launching a solution sales strategy. Furthermore, this research extends our knowledge of the difference in approaches between different selling strategies, covering the possibility of successfully migrating existing sales representatives to a different selling strategy.     

An exploratory study of the management of product replacement

The process of product replacement is a surprisingly neglected area of innovation. Its existence as an important corporate activity is known through prior research and anecdotal evidence. This study was designed to shed some light on the replacement activities which are conducted by large companies in Britain and America. The findings revealed a number of different approaches to product replacement and suggested that related activities can be understood (and measured) by seven distinct dimensions.     

New product development strategies of suppliers of emerging technologies—a case study of expert systems

Rapid change, high levels of risk and uncertainty is the context in which suppliers of emerging technologies are developing strategies for new product development. Collaboration with “progressive” customers and the formation of lateral links with suppliers and manufacturers are options available for effective innovation. Approaches to innovation of established and start‐up companies operating in the embryonic expert systems market in the UK are discussed and salient features of a nascent product market outlined.     

Approaches to Improving Process Quality in the Service Sector

Abstract

Implementation of Theory of Constraints (TOC) and Business Process Reengineering (BPR) are two quality philosophies or approaches that are being used by several manufacturing organizations worldwide for improving throughput, on-time shipments, and quality, among others. However, the application of these approaches in the service sector are very minimal. In this paper, we illustrate how service organizations, specifically banks and healthcare institutions, can utilize these approaches for gaining a competitive advantage.