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

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

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

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

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

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

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

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%)

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%

Which Combinations?

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

Which Combinations? higher %s ofconsumer goods firms in T cluster

Which Combinations? higher %s ofconsumer service firms in T and TR clusters

Which Combinations? higher %s of B2B goods and service firms in R and TR clusters

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

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)

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

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

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

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

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

Which Combinations?

ArgentinaNew Zealand UK

Transaction mktg

Database mktg

network mktg

e-mktg

interaction mktg

Transaction mktg

Database mktg

network mktg

e-mktg

interaction mktg

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

Performance measurements used

Expected Performance

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

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