profiling contemporary marketing practice
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Profiling Contemporary Marketing Practice. Jaqueline Pels, Universidad Torcuato Di Tella 1- Overview 2- Cross-National Results 2000 3 - Incorporating e-Marketing 4 - Cross-National Results 2001 Market Orientation & Performance 5- Conclusions and Implications. - PowerPoint PPT PresentationTRANSCRIPT
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Profiling Contemporary Marketing PracticeJaqueline Pels, Universidad Torcuato Di Tella
1- Overview2- Cross-National Results 20003 - Incorporating e-Marketing4 - Cross-National Results 2001Market Orientation & Performance 5- Conclusions and Implications
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1- Contemporary Marketing Practice (CMP) Research ProgrammeCMP research project was started in NZ in 1996extended to Canada, Finland, Sweden, Ireland, Argentina, Thailand, UK, Germany, USA, SE Asia, Africa
Objective? profile marketing practice in a contemporary environment, and to examine the relevance of relational marketing in different organizational, economic and cultural contexts
Synthesis of: European, North American, Australasian & Latin thinkingqualitative and quantitative methods
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Contrasting Views of How Firms Relate to their MarketsTransactional (AMA 1985).the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchange, and satisfy individual and organizational objectives.
Relational (e.g. Berry 1983)attracting, maintaining and enhancing customer relationships
need for a richer framework that incorporates both transactional and relational aspects of marketing
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Developing Pluralistic View of Marketing Practice(Coviello, Brodie and Munro 1997)Classification scheme developed from an extensive review of North American and European literatureTransaction Marketing (TM)managing the 4Ps to attract and satisfy customersDatabase Marketing (DM)using technology-based tools to target and retain customersInteraction Marketing (IM)developing interpersonal relationships between individual buyers and sellersNetwork Marketing (NM)positioning the firm in a connected set of inter-firm relationships
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Aspects of Marketing - Relational Exchange Dimensions
Transaction
Database
Interaction
Network
Focus
Economic transaction
Information & economic transaction
Relationships between a buyer and seller
Relationships between firms
Parties Involved
A firm in the general market
A firm in a specific target market
Individual sellers and buyers
Sellers, buyers, and other firms
Communication Pattern
Firm to market
Firm to individual
Individuals with individuals
Firms with firms
Type of Contact
Arms length, impersonal
Personalised
Face-to-face, interpersonal
Impersonal- interpersonal
Duration
Discrete
Discrete yet over time
Continuous
Continuous
Formality
Formal
Formal (personalised via technology)
Formal and informal
Formal and informal
Balance of Power
Active seller passive buyers
Active seller less passive buyers
Seller/buyer mutually active/adaptive
All firms active and adaptive
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Aspects of Marketing - Managerial Dimensions
Transaction
Database
Interaction
Network
Managerial
Intent
Customer
attraction
Customer
retention
Interaction
Co-ordination
Decision
Focus
Product
or brand
Product/brand
and customers
Relationships between individuals
Relationships
between firms
Managerial Investment
Internal
marketing assets
Internal
marketing assets
External
maktg assets
External mktg
assets
Managerial
Level
Functional
marketers
Specialist
marketers
All managers/
employees
General manager
Time Frame
Short term
Longer term
Short or long term
Short or long term
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Research Questions?At a general level...
To what extent are transactional and relational marketing practiced across countries?
More specifically
Do the findings generalize for economies that are either similar or different in terms of: economic development
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Methodparticipants required to fulfill the questionnaire as part of course workstructured survey instrument measuring marketing practices feedback sessions to ensure validity of results
instrument administered in English to participants from executive management programs pre-tested to ensure questions understood
controls for demographic differences
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SampleGroup 1: Advanced Economies [New Zealand (185), Canada (94), Finland /Sweden (51)]economies well developed
Group 2: Transition Economies [Argentina (96), Thailand (55)]economies in transition
firms range in size, age, growth rate, ownership, level of export activity, use of technology, and sectorconsumer goods (15-28%), consumer services, (15-25%),B2B goods (22-38%), B2B services (26-43%)
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2- Cross National Results,2000Aspects of Marketing Practiced (Firms with Medium to High Levels)
N Z
Canada
Fin/Swe
Argentina
Thailand
Transaction Mktg
80.5%
75.5%
70.6%
74.0%
83.6%
Database Mktg
77.8%
79.8%
80.4%
57.3%
83.6%
Interaction Mktg
91.8%
91.5%
88.2%
75.0%
90.9%
Network Mktg
7474.1%
79.8%
74.5%
61.4%
85.5%
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Which Combinations?
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Are There Differences Across Firm Types? 3 clusters Transactional (T), Tranasactional/Relational (TR), Relational (R)
BUT all types of firms have membership in all three clusters and 40% of all firms fall into the TR cluster
some country specific differencese.g. tendency for more firms from Argentina to be in the T cluster
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Which Combinations? higher %s ofconsumer goods firms in T cluster
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Which Combinations? higher %s ofconsumer service firms in T and TR clusters
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Which Combinations? higher %s of B2B goods and service firms in R and TR clusters
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3- Incorporating Interactive e-Marketing into the CMP FrameworkOngoing conceptual development/refinement:
instrument now has a 5th aspect
e-Marketing eMinteractive technologies to create and mediate dialogues
testing of the new instrument in UK, NZ and Germany
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Interactive: The Early ViewsAs discussed by Blattberg and Deighton (1991)
used synonymously with the term database marketingbuilds on traditional approaches available through the mail, telephone, and sales force
a medium for 2-way conversation: the consumer speaks through purchases and the manufacturer employs artificial intelligence to reply (e.g. loyalty programs)
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More Recent Viewsthe ability to address an individual, gather and remember the response of that individual, and address the individual once more in a way that takes into account his/her unique response (Deighton 1996)
a form of marketing with the following qualities (Iacobucci 1998)Content: technology, intrinsic motivation, use of interactive marketing information, real timeStructural: private, truly interactive, interactions among groups (incl. customers), networked networks
...the use of information from the customer rather than about the customer. (Day 1998, p.47)
often discussed in the context of the Internet
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Relational Exchange Dimensions(adapted from Coviello et al 1997, Milley 1998)
Database
Interactive
Interaction
Focus
Information & economic transaction
Relationships between a buyer and seller
Relationships between a buyer and seller
Parties Involved
A firm in a specific target market
A firm to many individual buyers
Individual sellers and buyers
Communication Pattern
Firm to individual
Firm with individuals
Individuals with individuals
Type of Contact
Personalised (yet distant)
Personalised (close)
Face-to-face, interpersonal (close)
Duration
Discrete yet over time
Continuous
Continuous
Formality
Formal (personalised via technology)
Formal (personalized via technology)
Formal and informal
Balance of Power
Active seller less passive buyers
Active seller/buyer (seller more powerful)
Seller/buyer mutually active/adaptive
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Managerial Dimensions (adapted from Coviello et al 1997, Milley 1998)
Database
Interactive
Interaction
Managerial
Intent
Customer
retention
Interaction
Interaction
Decision
focus
Product/brand
and customers
Relationships between
the firm and individuals
Relationships between individuals
Managerial Investment
Internal
marketing assets
Internal marketing assets
Internal operational assets
External
mktg assets
Managerial
Level
Specialist
marketers
Specialist marketers Technology Specialists
All managers/employees
All managers/
employees
Time frame
Longer term
Longer term
Short or long term
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4 - Cross-National Results 2001Market Orientation & Performance48 New Zealand, 84 UK & 61 Argentine Firms
vary in size, age, growth rate, type of product offered, type of market served, use of technology, export level, ownership structure
As before partial correlations show very clear relationshipsDM practiced with TMIM practiced with NM
Interactive Marketing provide linkage between DM and IM/NM
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Overview: Aspects of Marketing Practice 2001
Sheet1
Index ValueTransactionDatabasee-MarketingInteractionNetwork
NZUKARGNZUKARGNZUKARGNZUKARGNZUKARG
Low19371423552763855282413173929
Medium60455428346629841403037423056
High21183229117877524650423115
Total100%100%100%100%100%100%100%100%100%100%100%100%100%100%100%
Sheet2
Sheet3
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Which Combinations?
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ArgentinaNew Zealand UK
Transaction mktg
Database mktg
network mktg
e-mktg
interaction mktg
Transaction mktg
Database mktg
network mktg
e-mktg
interaction mktg
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Market Orientation
Chart1
8.857.933.3
26.650.926.6
770.222.8
Low
Medium
High
Sheet1
GenerationDisseminationResponsiveness
Low8.826.67
Medium57.950.970.2
High33.326.622.8
Sheet1
000
000
000
Low
Medium
High
Market Orientation
Sheet2
Sheet3
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Performance measurements used
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Expected Performance
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Summary of Key Findings
managers of all types of organisations are placing an emphasis on managing marketing relationships
need to focus more on issues and trends which are shaping the futureunderstanding of the IT in supporting, enhancing and transforming
dangers of focusing too much on traditional dichotomous thinking ie Goods vs Services, Consumer vs B2B, transactional vs relationalthe distinction between goods and services is not the pointservice aspect of products provide competitive advantage
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12.77.32020 1.8 38.2The Argentine Sample38.638.622.849.121.129.8
_1059465982.doc
Ownership
Totally foreign owned
Domestic/foreign join
Totally domestically
_1059470904.doc
Ownership
Totally foreign owned
Domestic/foreign
Totally domestically
_1059470939.doc
Ownership
Totally foreign owned
Domestic/foreign
Totally domestically
_1059465900.doc
Ownership
Totally foreign owned
Domestic/foreign joi
Totally domestically
ROD; NOTE I HAVE TAKEN OUT THE GENERAL INTRO SLIDE AND GONE RIGHT TO DICHOTOMIES.
WE ONLY HAVE 15MIN + 5 FOR QUESTIONSSO I HAVE TO BE VERY AWARE OF TIME.NICOLE Ive changed the last sentenceWill introduce as a conceptual framework describing 4 types of marketing practice, developed from an iterative review and synthesis of the literature.
ROD: WILL NOTE THAT WE ARE FOCUSING ON THE RELATIONSHIP BETWEEN THE ORGANIZATION AND THEIR PRIMARY CUSTOMER GROUP
Second part of the framework.
Right border to be fixed.Will start the presentation with a brief introduction of the CMP framework
Will precede the framework with a brief explanation of how it was developed
(I expect Rods introduction to highlight who/what the CMP group is?
Rod - Please confirm.NICOLE Ive edited this slide a bit not keen on the opposed to issue, and also tightened up the cultural referencesWill comment that we have pooled the individual country data sets together following chi-square analysis of key demographic characteristics.
The major difference across the countries is firm size (with NZ having smaller firms than Canada, Finland or Sweden). However, this is controlled for in data analysis.
NICOLE I TIGHTENED THIS UP AND TRIED TO MAKE IT EASIER TO READNICOLE I think the following is worth commenting briefly on:
Similar patterns between the Type 1 countriesRelatively similar patterns between Thailand and the Type 1s (a bit of a surprise), but note the high NM (a cultural influence/way of doing business?)Most notable differences are between Argentina and the Type 1 countries PLUS Argentina and Thailand (less expected as both Type 2s). Note in particular the relatively low DM and NM proportions (to be discussed later)Following from slide #5, slide #6 will discuss the concept of interactivity, showing how it has evolved from something more akin to DM (as when we developed the framework) to something broader in the last couple of years (slide #7)This slide will set us up for the questions posed in this paper (and for the audience) - integrating interactivity and the Internet (next slide)Have not decided whether or not to use the colours, BUT:
Green shows overlap between DM and InteractiveYellow shows overlap between Interactive and IMBlue is unique to InteractiveThis slide is to highlight some of the CMP results (supporting the idea that DM is boundary-spanning)may or may not include it
Note however: DM was pretty broadly defined, and may include both DM and WM issues. Nevertheless, its still boundary-spanning.NICOLE Ive made some edits to points 3 and 4