Book Reviews

In a world of limited resources, marketing managers tasked to deliver shareholder value face decisions about how to maximise the returns on their marketing portfolio. Risk is less often considered. In finance the picture is very different; financial portfolio management is concerned with both risk and returns. The central innovation in this paper is the application of modern portfolio theory (MPT) to the management of marketing portfolios in food retailing and in drinks manufacturing. The authors develop a model that calculates an efficient frontier of marketing portfolios that maximise overall return within certain risk constraints, first for a simple two-segment marketing world and then for a more realistic multi-segment portfolio. However, marketing portfolios differ from financial ones in the sense that the allocation of marketing spend affects the returns from the portfolio. Therefore, a second innovation, an extension of MPT to take account of marketing spend allocation decisions, has been developed. Using this model, marketers can determine the risk and the returns of marketing investments, helping them select an optimal portfolio. This would go some way to ensuring that marketing contributes to shareholder value creation, currently one of its major challenges.     

Successful exporting to the Arabian gulf region: A survey of Bahraini consumers

This paper details the emerging need for relational skills in marketing. The challenges of fostering relational resources within marketing practice and pedagogy are then discussed. Next, the paper explores the value of experiential learning approaches in education and considers different experiential models for fostering relational resources. An African Drumming circle was chosen, because it offers exciting opportunities to explore relational principles both through the actual lived experience as well through the active exploration of the metaphor. The paper concludes that the drumming circle offers an interesting access to experiencing the movement from being an individual actor to collaborating as part of a wider network of actors. Thus, insights are generated at the level of lived experience as well as at a more metaphoric one. The paper therefore serves to foreground the role of pedagogy in Relationship Marketing     

Affirming Communication's Primary Role in a Manufacturer-Retailer Context

Contrary to most extant relationship research which has relegated communication to a minor relational role, we found communication to be a central relationship variable. Communication's importance arose in a qualitative stage of our research which involved four manufacturer-retailer case studies. To affirm communication's central relational role, we tested the link between relationship governance and communication in a quantitative study of 280 retailers of the manufacturer's product, and found a positive link. Additionally, to aid future research in this area, this study brought together measures of communication from several U.S. studies and tested them in their totality.     

Commodities Must Begin to Act Like Branded Companies: Some Perspectives from the United States

The agricultural commodity industry needs to focus more on profits, less on value, and must change with the consumer. In short, a branded approach is needed. Households today are comprised of time-starved persons working outside of the home who have less experience shopping for and distinguishing between ready-to-eat fruits and vegetables and ones that may be overripe. Consumers want to place their trust in branded companies to give an official endorsement that the product is indeed good and worthy of purchase (e.g., Dole Brands, Sun-Maid Raisins). This change in the mindset of today's food shopper has provided an unprecedented opportunity for marketers of commodities to begin to act like branded companies by stamping the name of a well-known brand onto a commodity thereby guaranteeing its goodness and freshness. A profitable opportunity exists on the horizon for commodity marketers to behave in a manner that is more consistent with branded companies and today's consumer. A case history of Ocean Spray, which has recently faced a decision to protect the brand or sell off and take the risk of being a non-branded commodity in an extremely competitive market, is also discussed.     

Information Technology and Customer Orientation: A Study of Direct,Mediated, and Interactive Linkages

This study investigates whether and how information technology (IT) is linked to a firm's ability to understand and fulfil customer needs, i.e. customer orientation. IT alone or in tandem with other strategic resources may enable businesses to process market intelligence and coordinate organisational responses to meet evolving buyer preferences. Based on a survey of senior marketing managers and PLS path model analyses, we learned that greater IT capabilities are associated with higher customer orientation but in mediated and interactive ways with marketing information quality and organisational trust. These and other findings largely supported the conceptual model. An implication is that while IT capabilities can help firms be more customer-focused, other critical resources must also be present.     

Multi-Brand Loyalty Cards: A Good Idea

The UK's leading coalition loyalty card scheme was launched at a time when questions were raised regarding the viability of such schemes. Two years into the scheme, it is now appropriate to review the scheme's relationship with its' customers and judge its' success in terms of its ability to influence card holders' behaviour.

To meet the objectives a survey methodology was adopted, and a new questionnaire devised for administration to a sample of coalition loyalty card scheme cardholders. The survey achieved 153 responses from the scheme members.

Findings from the study revealed that coalition loyalty card scheme holders' exhibit weak bonds between the card provider and its customers and that customers display signs of low commitment, low trust and low perceived relational benefits. There is a decisive lack of awareness of many sponsors and this confusion seemed to be leading to the use of coalition loyalty card scheme as a single-brand card. Although usage rates are on a par with other loyalty schemes, a lack of involvement seems apparent; indicating that no considerable increase in share of customer had occurred. This is mainly down to poorly targeted communications and irrelevant reward offerings.

Finally, there was little to suggest that coalition loyalty card scheme are currently having much influence over consumer behaviour, as the bonds between the two parties were not strong enough to encourage this. However, this does not indicate that the current market leader is currently unsuccessful, there is evidence to suggest consumers perceive real benefits in coalition schemes and that there is a willingness to alter their behaviour if the motivation is sufficient. Implications for future research include more specific investigations into the dynamic of the relationship between loyalty schemes and consumers and further research on coalition schemes per se.     

How does Relationship Management Infrastructure influence performance?

The contribution of Relationship Management Infrastructure (RMI) to positional advantage, customer, market and financial performance was tested in major, organisational customer relationships through structural equation modelling. The results support a direct, significant contribution of RMI to positional advantage, however the anticipated direct contribution of RMI to financial performance resulting from efficient and productive relationship infrastructure was not supported. The contribution of RMI to the variance in customer, market and financial performance was indirect. Explanations of these findings are proposed.     

Customer Relationship Management: from Strategy to Implementation

This article examines Customer Relationship Management, or CRM, from the perspective of strategy formulation and implementation. We commence by reviewing the origins and role of CRM and highlighting the importance of adopting a cross-functional approach to CRM strategy formulation. We examine alternative approaches to CRM strategy development and, using an 'interaction research' approach, propose a model that addresses both CRM strategy and implementation. We identify four critical implementation components of a successful CRM programme and examine these in the context of five key cross-functional CRM processes. The model structure is used to help identify a research agenda     

The Impact of Collaboration Between Industry and Academia on SME Growth

One important aspect in the small firm sector is the increased provision of training available to encourage small businesses to expand and develop their knowledge base. In the belief that new small firms can generate a number of new jobs at a time of high unemployment, the UK government in the early 1980s developed public policy to encourage small firm formation and growth. Measures have been enacted to assist small firms in the UK in areas of taxation, education, funding and placement schemes. (Cross 1983). Although Curran (1986) describes this as a 'heading plunge' into a policy of discrimination in favour of the small enterprise, and is critical of the effectiveness of many of these actions, the measures are a clear indication that public policy and funds are firmly committed to support the small firm sector (Marlow 1992). Since then local support agencies, such as The Training and Enterprise Councils (TECs), and Local Enterprise Councils (LECs) in Scotland, funded by the Department of Trade and Industry and European Union offer professional consultancy advice and training to small firms and their owners. Such agencies offer help in the form of business start-up support and training, management skills and any aspect, which can aid growth in the small firm. However, the indications from the agency consultants have found that not enough owner/managers are utilising this enterprise network to assist business growth (Marlow 1992, Choueke and Armstrong 1998).     

Marketing the British Conservatives 1997-2001

During 1997-2001 the Conservative Party utilised many concepts and techniques from marketing but this yielded little success in the general election. This article explores the story behind this result: the attempts made by the leader William Hague to use political marketing and make the Party more responsive to voters, the obstacles he faced in changing the Conservatives at all levels; the final product they offered to voters in 2001, and the Party's communication efforts in the years before the election and the campaign. Overall, analysis indicates the difficulty but also the importance of marketing political parties.