Download An Investigation on Integrity Marketing Assessment Index System of High-tech Enterprises ,

An Investigation on Integrity Marketing Assessment Index
System of High-tech Enterprises
GU Jianping, YANG Huifang
School of Business, Nanjing Normal University, P.R.China, 210097
[email protected]
：
Abstract The establishment and improvement of market economic order relies on business credit. And
integrity marketing is an inevitable choice for the high-tech enterprises to become more successful in the
new market environment. In this paper, we found that it is the urgent need to establish the assessment
index system to evaluate the integrity of high-tech enterprises. The paper adopts contradictive
management methodology, and takes integrity marketing as a whole, which is complex and regular.
After analyzing the thought, basic principles and elements of establishing the assessment index system,
this article proposed the basic framework and detailed of the index system, including the technology
development index, the peer competition index, the product sales index and so on, which aims to
promote the integrity activities of high-tech enterprises well and to provide important foundations for
local governments to develop the evaluation work.
Keywords: High-tech Enterprises, Integrity marketing, Assessment system
1 Introduction
The credit rating of modern enterprises started in the United States in the late 19th and early 20th. Later
the major developed western countries started the evaluation work which based on enterprises’ financial
statistics index successively. Today there are several main credit evaluation models. They are the
finance-oriented model of the United States, the business-oriented model of Japan, the solvency-oriented
model of Germany and the evaluation system of the UK. The study on the evaluation system of business
credit can make use of the experience and evaluation models of Commercial banks and all major credit
rating agencies abroad.
The well-known and popular models include the Credit Monitor model proposed by KMV Corporation
in 1993, the Credit Metrics model proposed by J.P Morgan in 1997, the Credit Risk model proposed by
Credit Suisse Financial Product (CSFP) in 1997 and so on. China’s enterprise credit rating started late.
In 1992, the National Association of Credit Rating formulated the Credit Rating Index system, and then
the rating business was standardized and institutionalized. At present, the research on China’s business
credit evaluation system is in a phrase of development and improvement. The functions, methods and
the index system of business credit evaluation are studied and explored constantly. On the whole, China
does not have a comprehensive evaluation model and index system for business credit and a further
research is needed.
According to incomplete statistics, relevant evaluation models of business credit in the major western
countries involve almost 70 enterprise credit evaluating indexes. The most frequently used indexes aim
to study factors such as profitability, solvency and operating efficiency and so on, which represent the
business credit. U.S. scholars Fombrun and Van Riel evaluated the most outstanding companies in the
world based on the reputation of different enterprises. They adopted quantitative methods to measure the
company’s Reputation degrees from five first-level indexes and 20 second-level indexes. (The five
first-level indexes are the enterprise’s social responsibility, emotional attraction, goals and leadership,
financial performance, work environment, products and services.) And classified enterprises based on
scores of reputation degrees. Then an effective analysis tool is provided to tell whether an enterprise is
excellent or not objectively and fairly.
As a new marketing method, integrity marketing means enterprises stick to integrity ideas to implement
integrity principles consciously in every aspect of marketing activities. In the whole marketing process
interests of the social, enterprises, consumers, and the staff are all took into account by enterprises to
realize their long-term development. The core issue is how to unify enterprises and other stakeholders to
498
realize the common development. To tell whether the marketing activities of high-tech enterprises are
honest or not and what degrees of the business credit are, we must start from integrity marketing scope
and make the scientific assessment on the whole integrity marketing process, activities, and results. And
then build an evaluation system to provide a foundation for people to evaluate the integrity marketing of
high-tech enterprises.
2 The importance of integrity marketing evaluation system of high-tech
enterprises
Integrity marketing assessment index system refers to the general items of the evaluation elements,
methods, degrees and the evaluation index weight adopted by assessment index system to assess the
integrity of the marketing. It is the premise and basis to evaluate the enterprise integrity marketing. The
integrity marketing evaluation work can’t be developed without a scientific and reasonable integrity
assessment index system, not long the credit rating’s objectivity, and impartiality and science. The
research on integrity evaluation system has an important practical meaning in optimizing the investment
environment, improving the effective allocation of resources and the economic environment. It is also
meaningful in financing in the capital market and in the rectification of economic order.
The integrity marketing assessment index system is more and more important in reducing the credit risk
and maintaining the normal economic order. Integrity marketing evaluation helps the enterprise reduce
risks and provide good basic conditions for the establishment of modern enterprise system. It makes the
market fair and just, provides the investors fair and objective information and protects their profits. It
can provide customers the comprehensive business credit information and protect their legal interests.
Meanwhile, the enterprises can improve their credit ratings and achieve maximum economic benefits. It
is integrity that equals to enterprises’ markets, brands, benefits and the core competitive strength. The
integrity marketing evaluation related to the enterprises’ honor and development. The establishment of
integrity marketing evaluation helps to improve the economic development continuously, fast and
healthily.
3 Analysis on elements of integrity marketing assessment indexes
3.1 Marketing capability of the high-tech enterprise
Marketing ability is a relatively broad concept, which refers to the enterprise’s overall quality, economic
scales, management mechanism, profitability and viability etc. It is the important basis and assurance for
the enterprise to develop integrity marketing. As previously demonstrated, the quality of business
leaders and the staff has an important influence on the enterprise integrity marketing. If enterprises have
a strong sense of integrity, they will not deceive customers, and fall into arrears with debt, salary or a
loan.
3.2 Technological innovation ability
Technological innovation ability is the foundation of the high-tech enterprise. Generally speaking, there
is some connection between the strength of technological innovation ability, technical strength and the
business credit.
3.3 The solvency
The contract is the economic tie and the credit certificate of relevant enterprises in marketing activities.
It is the basic responsibility for every honest enterprise to fulfill the contract. The analysis of the state of
the fulfillment of contracts of an enterprise can show its credibility. Obviously, the enterprise’s
capability to fulfill contracts is related to the environment of the market, the credit status of relevant
enterprises such as suppliers and distributors etc. On the other hand, the enterprise’s performance in debt
compensation also shows its integrity status. Whether an enterprise can repay the debt and interests in
marketing process reflects its credit and reputation directly.
499
3.4 Development capability
The enterprise’s capability to develop is the power to promote its progress and to improve its credit
status. It is an important force factor to evaluate the enterprise’s credit status. Though some enterprises
do not have good credit status, they have powerful growth momentum. They have the potential to
change the credit status quickly once they develop. The enterprise’s growth and prospects depend on its
management objectives, philosophy and decision-making ability. So the enterprise must have the
concepts of fair competition, market supply and demand efficiency and benefits, and the ambition. Take
the human resources, customers, marketing, technology, finance, environment and social etc. into
account to set practical management objective to improve enterprises’ management level.
，
4 The establishment of the high-tech enterprise assessment index system
Based on the principles and analysis above, the author thinks the high-tech enterprise integrity
marketing assessment index system includes ten indexes showed in the following form.
Table 1 The integrity marketing assessment index system of high-tech enterprises
Indexes
Data Sources
Technology development
Relevant government administrations, industry
associations
Peer competition
Peer enterprises, industry associations
Product sales
Relevant government administrations
customers’ reflection
Customers, Consumers association
Cooperation of suppliers
Supply units (other creditors)
Solvency
Financial operation
Self-evaluation, experts etc.
Social responsibility
Self-evaluation, Experts, Relevant government
administrations etc.
Development
Government evaluation
Relevant government administrations
capability
Staff relations
The staff, Labor and social security department
Environmental protection
Relevant government administrations
Elements
Capability in
technological
innovation
Marketing
capability
4.1 The technology development index
It mainly reflects the status of technology development and technology innovation of the high-tech
enterprise. Generally speaking, an enterprise with higher technical level and stronger technology
development and innovation capability has higher credibility. The specific indexes include the input
ratio of research and development, the ratio of the technology development funds and sales, quantity of
patents, the proportion of technical staff to the total staff etc.
4.2 The peer competition index
Peer competition refers to the credit status between the high-tech enterprises and the same industry. As
the acceleration of integration of the domestic market, the competition among high-tech enterprises in
the product development, the market development, customer services and market shares and so on is
more and more fierce. Whether to treat the same industry properly is an important method to weigh
whether the high-tech enterprise is honesty. The specific peer competition indexes include numbers, the
depth and breadth etc. of the bilateral cooperation.
4.3 The product sales index
It mainly reflects the credit status of products of high-tech enterprises in product sales. We can say the
product is the image of an enterprise. High quality products not only raise the economic efficiency of
enterprises, but also win a good reputation for them. So this is a dominant index to evaluate the integrity
marketing of high-tech enterprises. The specific indexes include rates to repair of products, product
qualified rate, claimed events, rationality of pricing etc.
500
4.4 The index of customers’ reflection
It mainly refers to the credit status of the high-tech enterprise’s treatment to customers. Customers are
the objects of high-tech enterprises. Enterprises can achieve a lasting development only if they can win
the trust and favorable impression of customers. Generally speaking, the higher an enterprise’s
credibility is, the better customers’ comments are. The main evaluation indexes are quantity of
customers’ returns, recommendations, and complaints etc.
4.5 The index of the cooperation of suppliers
It reflects the relationship between high-tech enterprises and suppliers. Whether enterprises can treat
suppliers equally and build a good relationship with them is an important aspect to weigh the integrity
marketing of high-tech enterprises. The main evaluation indexes are numbers of contracts, volume of
each contract, and the fulfillment of contracts etc.
4.6 The index of financial operation
It mainly reflects credit status of high-tech enterprises in funds operation and management. This index
includes whether enterprises carry out the national financial discipline and fully reflect the real situation
of their financial operation without false accounts. The ownership rate of all funds, asset-liability ratio
and current ratio and so on are main evaluation indexes.
4.7 The social responsibility index
It mainly reflects the credit status of the high-tech enterprise’s responsibility to the society. Whether
enterprises are brave enough to take the social responsibility, to support and take part in the public
welfare actively, and to supply jobs as many as possible to promote the harmonious development of
enterprises and committees, all these are reflections of this index. The main indexes are implementation
of national policies and laws, payment of taxes, the employment situation of social, and sponsor the
charity.
4.8 The government evaluation index
It mainly reflects the credit status in the communication of high-tech enterprises and financial
institutions, news media contacts and other government duty office. The main indexes are the frequency
of media exposure, the value of brands, market situation of stocks, rewarded by the government and the
quantity of the loan.
4.9 The index of staff relations
It refers to the credit status of the high-tech enterprise treatment to the staff. The staff is the basis of the
enterprise’s exist and development. High-tech enterprises should firmly establish the people-centered
thinking and strengthen the management of human resources to create a good environment for the staff’s
study, work and life. The main indexes are the leader’s quality, work attitudes and education level of the
staff, work environment, wages and benefits, promotion opportunities and the staff’s identity to
enterprises.
4.10 The environment protection index
It mainly reflects the enterprise’s protection to the environment in the process of marketing activities.
This index includes whether the enterprise fulfill their environmental responsibilities carefully, whether
they make full use of all kinds of resources and strengthen the environment protection to improve the
environment quality conscientiously. The main indexes are the up-to-standard rate of wastewater
discharge and the total discharge of waste gas etc.
5 Conclusion
One of the effective ways for enterprises to improve their competitiveness and to participate in the
international competition under the acceleration of economic globalization is to establish the integrity
501
concept, build an integrity culture and raise the integrity marketing level. So it is necessary to establish
an objective, scientific and effective index system to analyze the integrity marketing status of high-tech
enterprises. It can help enterprises reduce dishonest behavior and improve the effectiveness and
efficiency of the marketing. Also enterprises of different areas can be compared with each other
conveniently to distinguish their integrity ratings. There is certain ambiguity in the operation of the
enterprise integrity marketing index, so a quantifiable index needs to be searched in the further use. The
influence of the macroeconomic environment, industry trends, policy and regulatory measures and other
external factors of enterprises should be considered. Then we can adjust the weight and integrity ratings
of each index which bases on specific situations.
Acknowledgements:
This thesis is a research result of National Bureau of Statistics of China project (2008LY017).
References
[1]. Das, T. K. Teng, Bingsheng, and Alliance Constellations: A Social Ex2 change Perspective [J].
Academy of Management Review, 2002, Vol.27, No.3, 445- 456.
[2]. THONGJ. An Integrated Model of Information System Adoption in Small Business [J]. Journal of
Management Information System 1999,15 (4) :187-214
[3]. Morgan, Robert M. and Shelby D. Hunt (1994), the Commitment - Trust Theory of Relationship
Marketing [J]. Journal of Marketing, 58 (July), 20 - 38.
[4]. Barney, JAY. Firm Resource and Sustained Competitive Advantage [J]. Journal of Management,
1991, 17 (1) :99-120
502