Faith in four Ps: An alternative

McCarthy's mnemonic of the four Ps, by offering a seductive sense of simplicity to students, teachers and practitioners of marketing, has become an article of faith. Among the consequences of this have been a lack of empirical study into what are the key marketing variables and how they are perceived and used by marketing managers, a neglect of process in favour of structure and a neglect of product range considerations. What is needed is a form of analysis developed by sociologists that would focus on the process by which managers construct their own interpretations of marketing realities and develop individual styles of management and decision‐taking.     

Evaluation and Choice as a Satisficing Process

The question of whether individuals are rational or irrational in their decision‐making has long been an area of interest to academics and marketers, as the different decision styles require differing use of information sources and choice criteria by consumers during the buying process. As such, marketers would be required to adopt different communication strategies and stress different marketing mix or product features if they were to be successful in influencing the consumer’ s final choice.

The debate can be classified into whether or not consumers follow a formalised decision sequence of search and evaluation leading to final product choice. If consumers are not prepared to commit themselves to the cognitive and behavioural effort required by this formal process then they will satisfice their decision‐making, applying simplifying strategies to arrive at a satisfactory, although not the optimum, choice.

This paper reviews the common assumptions of search and choice, suggesting a three‐stage model which can be used to guide marketing strategy. Research into the decision process used by consumers in the acquisition of a video recorder is used to illustrate the operation of the satisficing model. Implications for marketing strategy are then discussed.     

Perceptions of the Environment and Wholesaler Structure in a Channel of Distribution in a Developing Country

Abstract

This study explores relationships between perceptions of the technological environment and selected structural variables of wholesalers in the channel of distribution for petroleum products in a developing country from a systems theory perspective. Survey research was used to collect primary data related to technolgical environment factors and size, assortment structure, and market coverage of wholesalers of petroleum products in Nigeria. Canonical correlation analysis was used to assess the relationships between constructs. From a theory development perspective, the study explores the applicability of systems theory concepts to an important marketing area. From a managerial standpoint, the study has implications for international marketing managers concerned about the nature of specific aspects of the business environment in newly emerging third world markets.     

An Evaluation of Marketing Practices in Banks in Ghana

ABSTRACT

This study ascertains the extent to which the marketing concept has been adopted and implemented by banks in Ghana. It addresses a gap in an area that is currently under researched and provides insight into the banking services industry in a developing country. All sixteen licensed banks in Ghana were included in this study. The data was collected through in-depth interviews and self completed questionnaires. The results suggest that marketing departments in the banks are organised mainly within headquarters and headed by marketing and advertising/public relations managers. The marketing activities in the banks are associated with the stage where marketing orientation is perceived as advertising and public relations. There is a partial lack of marketing culture in the banks. The total and formal acceptance and understanding of the marketing concept is at an embryonic stage in the evolutionary process.     

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.     

Ownership Sentiments Towards the Customer Care Function in E-Business Situations

ABSTRACT

Effective management of customer care is critically important for successful electronic commerce. The executive in charge of the customer care function in a business based on e-commerce might have a technical IT background, a marketing background, or be from general management. This empirical study examined the degrees to which a sample of 86 marketing and IT managers responsible for customer care in e-commerce environments felt they “owned” the customer care function, and the antecedents and consequences of powerful ownership sentiments. It emerged that heads of department with marketing backgrounds reported significantly stronger feelings of ownership of customer care than heads with IT backgrounds. The level of ownership sentiment varied with respect to the extent of the personal investment a manager had devoted to developing the customer care function, the belief that he or she was an expert in customer care, the person's commitment to the organisation as a whole (rather than to a specific function within it), and the degree of centralisation of the firm's decision making. People who felt strongly that they owned their company's customer care function experienced a heavy sense of responsibility for its effective management. However, the same individuals were more likely to be in conflict with managers of other departments and to resist change.     

Customer Lifetime Value and Firm Valuation

SUMMARY

Unlike most marketing metrics, CLV provides information which is directly relevant to marketing decision makers, non-marketing executives such as CFOs, and financial analysts. This paper highlights why and how CLV is financially relevant. It explicitly compares CLV-based valuation with four finance-oriented methods (DCF, P/E ratio, customer counting, and extrapolation). We also discuss implications for marketing managers, financial executives as well as educators.     

Adapting Internal Marketing to a Volunteer System

ABSTRACT

This article investigates the appropriateness of utilizing internal marketing as a mechanism for developing successful volunteer programs within the not-for-profit sector. The connections between relationship marketing, internal marketing, and organizational culture are established and the implications for voluntary program managers are addressed.     

Explaining Firm Internationalization in Africa Using the Competence Approach

Abstract

The purpose of the study was to explore, through secondary research, the potential influence of the top management (key decision makers) of firms on the degree of internationalization of firms in sub-Saharan Africa.

More specifically, an attempt was made, firstly, to characterize the problem of low exports and low firm internationalization in Sub-Saharan Africa with a view to discussing the potential influence of the characteristics of key decision makers on firm internationalization. Secondly, to explore the competence theory and determine whether it could provide a viable analytical framework to facilitate future empirical investigations into the influence of key decision makers (top management) on firm internationalization focusing on sub-Saharan Africa.

Previous studies on firm internationalization from different parts of the world including Sub-Saharan Africa were examined. The characteristics and behaviors of top management reported to relate strongly to high levels of firm internationalization and export performance were extracted. The literature on competence then was examined with a view to obtaining theory that would be used to integrate the various managerial variables, which strongly related to high levels of firm internationalization.

The process of analysis and integration resulted into the development of the Competence Model of Firm Internationalization, which has been proposed. The analysis indicated that the top managers of firms had profound influence on the level and intensity of export activities mainly through the firms' production and marketing functions. The managerial implications of the findings and future research directions are discussed along with the limitations of the study.     

Management perspectives on Markstrat: The GE experience and beyond

Markstrat has attained great success as an educational tool for marketing management. It is also a simulated environment in which academics are now conducting experimental studies on marketing variables and monitoring the impact in the Markstrat context. A most important question that arises in both these types of utilization of Markstrat is the degree to which it reflects the real world of marketing decision making. Do managers from diverse industry experience perceive that Markstrat reflects a real enough marketplace to be useful both as a teaching tool and as a research environment? This article reports the results of a study of this question in the General Electric Company, plus the perceptions of another set of managers drawn from a broad set of other companies. Overall results indicate that managers working in diverse industries believe that Markstrat does reflect a real environment useful for teaching and research.     

Australian Exports of Horticultural Crops with Special Reference to Fresh Citrus Fruits

Abstract

Exports of horticultural products, in particular fresh citrus fruits, are becoming increasingly important in terms of export earnings for Australia. However, Australian fresh citrus exports account for about 12 per cent of the total production of citrus. About 57 per cent of total exports is sold on Asian markets. The purpose of this study is to examine the problems and prospects for fresh citrus exports on world markets and, in particular, in the Asian region. The findings of the study reveal that higher freight and labour costs have made Australian citrus less competitive on world markets. Thus, producers have an incentive to sell over 80 percent of the total production of citrus on domestic markets. However, there is scope for greater market opportunities in the Asia-Pacific region for Australian fresh citrus fruits. Australia should increase the yield per tree, improve the quality of citrus fruits and identify the need for market promotion and research in order to increase the volume of citrus exports on world markets, especially in the Asia-Pacific region.     

Choosing among alternative new product development projects: The role of heuristics

The initial screening decision that marketing managers make is critical. It requires the selection of what innovation project to invest in, which is fundamental to marketing success. However, our knowledge of how managers make these decisions and how this impacts performance is limited. By drawing upon cognitive psychology and the managerial decision-making literature, we address two critical questions. The first question focuses on identifying specific decision-making types (e.g., specific heuristics, intuition) used when making an innovation screening decision. Based on this analysis and prior research, we develop specific decision-maker profiles about how an individual manager decides. The second research question is about connecting these profiles with performance. Specifically, it addresses what the consequences of different decision-maker profiles are on the perceived accuracy and speed of decision-making? Data were collected from 122 senior managers in these industries. We find that when heuristics are used alone, or concurrently with intuition, managers make decisions that are as accurate as when they rely on analytical decision-making. However, the process is significantly faster. The findings provide an important step toward a more comprehensive understanding of decision-making at the front-end of innovation.     

Effects of Country-of-Manufacture and Brand Image on Korean Consumers' Purchase Intention

ABSTRACT

In this study, a theoretical framework is developed to explain the differential effects of country-of-manufacture (COM) and brand image on the cognitive, affective, and behavioral components of Koreans' consumer decision making. Although effects are product specific, findings, overall, indicate that brand image has a stronger effect than COM on Koreans' perceptions of hybrid global products. Moving the production of an electronic product (TV) to a developing country, however, negatively affected Koreans' evaluation of product performance, prestige (brand and technical), and purchase attitudes. The findings have interesting marketing implications for hybrid global brands and contribute to building a theory of COM.     

Conceptual and empirical developments of marketing channel conflict

Managers regularly have to struggle with conflict within the marketing channel and it is therefore important that marketing managers should have an understanding of conflict and its meaning in the channel setting. This paper attempts to provide a background to this understanding by reviewing the conceptual and empirical developments in the field of marketing channel conflict. These developments are drawn together into an integrated model of current research into channel conflict.     

Perceived Purposes of Budgets in Organizations in a Developing Country

ABSTRACT

The main objective of this paper is to explore the perceptions which Ghanaian managers have of the purposes which budgets serve in organizations. The paper draws upon previous research concerning the link between budgets and decision-making in the developing world. The findings of these studies suggest that budgets are minimally used and inadequately understood. The data employed in this paper is of a qualitative nature drawn from four large-scale organizations by way of discussions, semi-structured interviews plus documentary evidence. The paradox of the findings is that whilst most managers perceived the major roles of budgets to be planning and control, in fact, budgets are largely ignored. Among the reasons stated for this include the high inflation in the country, lack of money in the organizations, managers' lack of adequate accounting knowledge, and untimely and inappropriate presentation of budget variance reports. The paper concludes with some consideration of the ways in which

the budget can be a more effective management tool.     

Anti-corruption commissions: lessons for the Asia-Pacific region from a proposed Australian federal anti-corruption watchdog

ABSTRACT

This paper reviews the experience of anti-corruption commissions in the region and argues that the debate on the establishment of a national anti-corruption body in Australia is dependent on the country’s political culture, institutions and elites. Corruption and integrity coexist and are conceived as the obverse and converse, respectively, of a functional and dysfunctional system. Anti-corruption bodies in the Asia-Pacific region are compared against applicable global anti-corruption frameworks, policies and principles. The paper proposes a conceptual model for a National Integrity Ecosystem (NIE), premised on community values and trust and situates the Australian experience within such an ecosystem. A federal anti-corruption watchdog is the missing piece in Australia’s institutional infrastructure. Its acceptance and effectiveness require difficult and sustained change in the underlying political culture of the country and its elites.     

Building and Maintaining Effective Buyer-Seller Relationships

Abstract

O'Grady and Lane (1996) have observed that Americans and Canadians have difficulty establishing the rapport for effective buyer-seller relationships, and that Canadians are especially disadvantaged. This article explored the marketing activities that American and Canadian managers preferred to establish these relationships. Differences were found in both relationship marketing and marketing mix factors. The Americans were significantly more committed to relational activities, building relationships based on respect, shared goals, personal trust and making sure everyone received the expected benefits. The Canadians focused more on pricing, and helping out when asked or needed. To do lists are offered for making each more effective with the other.     

Service Quality

Abstract

We examine the many definitions and dimensions of quality. We review the results of a quality survey and compare differences in quality perceptions among various demographic factors. We provide recommendations to managers on translating these findings into marketing segmentation strategy.     

Commentary on “Business-to-Business Marketing Textbooks: A Comparative Review”

ABSTRACT

The proposal by Backhaus, Muehlfeld, and Okoye (2002) to design a business marketing text around a framework of customer-relationship types is provocative and spawns a useful debate on the issue of what should actually be taught in the business marketing course, particularly at the undergraduate level. We believe that the approach may increase the attention given to relationship marketing but do so by sacrificing coverage of core content that students and informed business marketing managers need to know. In the end, we opt for a more comprehensive approach in exploring strategy making for the business market while they chart a narrower and more specialized path.     

The Effects of Cultural Dimensions on Ethical Decision Making in Marketing: An Exploratory Study

As more and more firms operate globally, an understanding of the effects of cultural differences on ethical decision making becomes increasingly important for avoiding potential business pitfalls and for designing effective international marketing management programs. Although several articles have addressed this area in general, differences along specific, cultural dimensions have not been directly examined. Hence, the purpose of this study was to examine differences in ethical decision making within Hofstede's cultural framework. The results confirm the utility of Hofstede's cultural dimensions and place ethical decision making within an overall theoretical framework. Sales agents from a high power distance, uncertainty avoidant, Confucian, collectivist culture (i.e., Taiwan) placed more value on company and fellow employee interests (vis-à-vis self interests) than did managers from a masculine, individualistic culture (i.e., the United States). American and Taiwanese managers did not differ in their deontological norms or on the importance that they placed on customer interests. The theoretical and managerial importance of these findings are also discussed.