Download The Relevance of the Business-to-Business/Consumer

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
1- Contemporary Marketing
Practice (CMP) Research
Programme
CMP research project was started in NZ in 1996
 extended 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 thinking
 qualitative and quantitative methods
Contrasting Views of How Firms
Relate to their Markets
Transactional (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
Developing Pluralistic View of
Marketing Practice
(Coviello, Brodie and Munro 1997)
Classification scheme developed from an extensive review of North
American and European literature
Transaction Marketing (TM)
 managing the 4P’s to attract and satisfy customers
Database Marketing (DM)
 using technology-based tools to target and retain customers
Interaction Marketing (IM)
 developing interpersonal relationships between individual buyers and
sellers
Network Marketing (NM)
 positioning the firm in a connected set of inter-firm relationships
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
Impersonalinterpersonal
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
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
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
Method
 participants required to fulfill the questionnaire as part of
course work
 structured 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
Sample
 Group 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 sector
 consumer goods (15-28%), consumer services, (15-25%),
 B2B goods (22-38%), B2B services (26-43%)
2- Cross National Results,2000
Aspects of Marketing Practiced (Firms
with Medium to High Levels)
Transaction Mktg
NZ
80.5%
Canada
75.5%
Fin/Swe
70.6%
Argentina Thailand
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%
7474.1%
79.8%
74.5%
61.4%
85.5%
Network Mktg
Which Combinations?
Transaction
Marketing
Database
Marketing
Network
Marketing
Interaction
Marketing
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 differences
e.g. tendency for more firms from Argentina to be in the T cluster
Which Combinations? higher %’s of
consumer goods firms in T cluster
Transaction
Marketing
Database
Marketing
Network
Marketing
Interaction
Marketing
Which Combinations? higher %’s of
consumer service firms in T and TR
clusters
Transaction
Marketing
Database
Marketing
Network
Marketing
Interaction
Marketing
Which Combinations? higher %’s of
B2B goods and service firms in R and TR
clusters
Transaction
Marketing
Database
Marketing
Network
Marketing
Interaction
Marketing
3- Incorporating Interactive eMarketing into the CMP Framework
 Ongoing conceptual development/refinement:
 instrument now has a 5th aspect
 e-Marketing eM
 interactive technologies to create and mediate dialogues
 testing of the new instrument in UK, NZ and Germany
“Interactive”: The Early Views
 As discussed by Blattberg and Deighton (1991)
 used synonymously with the term ‘database’ marketing
 builds 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)
More Recent Views

the 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 time
 Structural: 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
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
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 External
Internal operational assets 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
4 - Cross-National Results 2001
Market Orientation & Performance
 48 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 relationships
 DM practiced with TM
 IM practiced with NM
 Interactive Marketing provide linkage between DM and
IM/NM
Overview: Aspects of Marketing
Practice 2001
Transaction
NZ UK ARG
Low
19 37 14
Medium 60 45 54
High
21 18 32
Total 100% 100% 100%
Index Value
Database
NZ UK ARG
23 55 27
28 34 66
29 11 7
100% 100% 100%
e-Marketing
NZ UK ARG
63 85 52
29 8 41
8 7 7
100% 100% 100%
Interaction
NZ UK ARG
8 24 13
40 30 37
52 46 50
100% 100% 100%
Network
NZ UK ARG
17 39 29
42 30 56
42 31 15
100% 100% 100%
Which Combinations?
Transaction Marketing
Database Marketing
e-Marketing
Moderate positive relationship
Strong positive relationship
Moderate negative relationship
Network Marketing
Interaction Marketing
Table 4: Partial Correlations Between Indices by Country
a. Transactional Marketing
& Relational Marketing
Transaction Marketing with
Database Marketing
Transaction Marketing with
Interaction Marketing
Transaction Marketing with
Network Marketing
b Relational Marketing.
Database Marketing with
Interaction Marketing
Database Marketing with
Network Marketing
Interaction Marketing with
Network Marketing
** = p<.01, * = p<.05
USA New Zealand
.39**
Argentina
-.18**
-.05
-.03
.09
.62**
.41**
.15
.39*
.31**
.66**
.67**
Transaction mktg
Database mktg
network mktg
e-mktg
interaction mktg
New Zealand
UK
Transaction mktg
Database mktg
network mktg
e-mktg
Argentina
interaction mktg
Market Orientation
Table 7: Groups by Market Orientation
Pluralistic
Traditional
B2B
Low
Marketing
Total
MO 1
.7254
.7252
.6744
.7122
MO 2
.7022
.6497
.6295
.6648
MO 3
.7167
.6939
.6344
.6874
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Mean
Expected Performance
3.7
3.6
3.5
3.4
3.3
3.2
Table 8: Clusters by Type of Performance Measurement Used and Expected
Performance
Pluralistic
Traditional B2B
Low Marketing
Used
Expected
Used
Expected
Used
Expected
Sales Growth
4.42
3.08
4.36
3.10
4.50
2.86
New
Customer
Gained
3.67
3.08
3.55
3.11
2.63
3.83
Market Share
3.09
3.30
3.64
4.25
2.63
4.00
Customer
Retention
3.33
4.00
4.00
4.36
2.50
3.83
Profitability
4.25
3.18
4.27
3.36
3.88
2.86
Customer
Satisfaction
3.33
3.90
3.91
4.20
2.63
4.00
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
future


understanding 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 relational


the distinction between goods and services is not the point
service aspect of products provide competitive advantage
The Argentine Sample
Product/Service
Ownership
Mis sing
1.8
38.2
38.6
Not for Profit
Totally foreign owned
B2B Servic es
Consumer Packaged Go
12.7
Consumer Durables
7.3
Consumer Services
20
Industrial Goods
20
Totally domestically
Domestic/foreign
AGEORG
49.1
more than 10 yrs
5yrs or less
21.1
6-10 yrs
29.8
38.6
22.8