Getting marketing back in the boardroom:understanding the drivers of marketing's influence within the firm

As many strategically important aspects of marketing are addressed by other functions in the organization, the decreased influence of the marketing department within companies is a topic of growing debate. In this study, the authors investigate this diminished influence and assess its determinants and consequences. They interviewed 25 marketing and finance executives from leading Dutch firms. They also conducted a large-scale Internet-based survey of several hundred marketing, finance, and general managers. Their results show that accountability and the innovativeness of the marketing department are the major drivers of the marketing department’s influence. They also demonstrate that a firm’s short-term orientation is negatively related to the influence of the marketing department. Marketing influence is positively related to market orientation, which is positively related to firm performance. Their results do not support prior findings of a direct positive link between marketing influence and firm performance, which might suggest that there is no need for a strong marketing department. The study suggests that an influential marketing department is relevant primarily when the firm is not market oriented. When firms are market oriented, a less influential marketing department does not lower their performance. Hence, it appears that they can choose to have an influential or noninfluential marketing department without any repercussions for their performance. Marketing activities could move to other functions. The authors suggest that marketing departments should aim to retain their influence. Dispersing marketing decision making among many functions can cause a lack of coordination; customers also lose their advocate within the firm. How can marketing departments regain their influence? The authors suggest two general solutions. First, marketing departments should become more accountable by linking marketing actions and policies with financial results. Marketers should become capable in analytics and finance. Second, they should become more innovative by increasing their share in new product or service concepts. They can do so by using their knowledge of the market and customers to contribute to new product or service development.

Branded lives:the production and consumption of meaning at work

'Branded Lives explodes the myth that a brand must, or even can stand for one unified, easily communicated message. While warning of the dangers of managing to preserve this myth, the book also celebrates the plurality of brand meanings generated by those employed to serve both the brand and the customer. I recommend reading this book in its entirety. If you are like me, your reading will bring a refreshing fullness to the experience of brands and branding and many new insights.' - Mary Jo Hatch, University of Virginia, US. © Matthew J. Brannan, Elizabeth Parsons and Vincenza Priola 2011. All rights reserved.

Internet technologies, ECRM capabilities, and performance benefits for SMEs:An exploratory study

Research on large firms suggests that dedicated customer relationship management (CRM) software applications play a critical role in creating and sustaining customer relationships. CRM is also of strategic importance to small and medium-sized enterprises (SMEs), but most of them do not employ dedicated CRM software. Instead they use generic Internet-based technologies to manage customer relationships with electronic CRM (eCRM). There has been little research on the extent to which the use of generic Internet technologies contributes to SME performance. The present study fills the gap, building upon the literature on organizational capabilities, marketing, and SMEs to develop a research model with which to explore the relationships between generic Internet technologies, eCRM capabilities, and the resulting performance benefits in the SME context. A survey across 286 SMEs in Ireland finds strong empirical evidence in support of the hypotheses regarding these benefits. The study contributes to managerial decision making by showing how SMEs can use generic Internet technologies to advance their customer relationships and contributes to theory development by conceptualizing eCRM capabilities in an SME context.

Margetinggeschichte:Die Genese einer modernen Sozialtechnik, Hartmut Berghoff

Book revew: Marketinggeschichte: die Genese einer modernen Sozialtechnik [Marketing history: The genesis of a modern social technique], edited by Hartmut Berghoff, Frankfurt/Main, Campus Verlag, 2007, 409 pp., illus., [euro]30.00 (paperback), ISBN 978-3-593-38323-1. This edited volume is the result of a workshop at Göttingen University in 2006 and combines a number of different approaches to the research into the history of marketing in Germany's economy and society. The majority of contributions loosely focus around the occurrence of a ‘marketing revolution’ in the 1970s, which ties in with interpretations of the Americanisation of German business. This revolution replaced the indigenous German idea of Absatzwirtschaft (the economics of sales) with the American-influenced idea of Marketing, which was less functionally oriented and more strategic, and which aimed to connect processes within the firm in order to allow a greater focus on the consumer. The entire volume is framed by Hartmut Berghoff's substantial and informative introduction, which introduces a number of actors and trends beyond the content of the volume. Throughout the various contributions, authors provide explanations of the timing and nature of marketing revolutions. Alexander Engel identifies an earlier revolution in the marketing of dyes, which undergoes major change with the emergence of chemical dyes. While the natural dyestuff had been a commodity, with producers removed from consumers via a global network of traders, chemical dyes were products and were branded at an early stage. This was a fundamental change in the nature of production and sales. As Roman Rossfeld shows in his contribution on the Swiss chocolate industry (which focuses almost exclusively on Suchard), even companies that produced non-essential consumer goods which had always required some measure of labelling grappled for years with the need to develop fewer and higher impact brands, as well as an efficient sales operation. A good example for the classical ‘marketing revolution’ of the 1970s is the German automobile industry. Ingo Köhler convincingly argues that the crisis situation of German car manufacturers – the change from a seller's to a buyer's market, appreciation of the German mark which undermines exports, the oil crises coupled with higher inflation and greater frugality of consumers and the emergence of new competitors – lead companies to refocus from production to the demands of the consumer. While he highlights the role of Ford in responding most rapidly to these problems, he does not address whether the multinational was potentially transferring American knowledge to the German market. Similarly, Paul Erker illustrates that a marketing revolution in transport and logistics happened much later, because the market remained highly regulated until the 1980s. Both Paul Erker and Uwe Spiekermann in their contribution, present comparisons of two different sectors or companies (the tire manufacturer Continental and the logistics company Dachser, and agriculture and trade, respectively). In both cases, however, it remains unclear why these examples were chosen for comparison, as both seem to have little in common and are not always effectively used to demonstrate differences. The weakest section of the book is the development of marketing as an academic discipline. The attempt at sketching the phases in the evolution of marketing as an academic discipline by Ursula Hansen and Matthias Bode opens with an undergraduate-level explanation on the methodology of historical periodisation that seems extraneous. Considerably stronger is the section on the wider societal impact of marketing, and Anja Kruke shows how the new techniques of opinion research was accepted by politics and business – surprisingly more readily by politicians than their commercial counterparts. In terms of contemporary personalities, Hans Domizlaff emerges as one fascinating figure of German marketing history, which several contributors refer to and whose career as the German cigarette manufacturer Reemtsma is critically analysed by Tino Jacobs. Domizlaff was Germany's own ‘marketing guru’, whose successful campaigns led to the wide-ranging reception of his ideas about the nature of good branding and marketing. These are variously described as intuitive, elitist, and sachlich, a German concept of a sober, fact-based, and ‘no frills’ approach. Domizlaff did not believe in market research. Rather, he saw the genius of the individual advertiser as key to intuitively ascertaining the people's moods, wishes, and desires. This seems to have made him peculiarly suited to the tastes of the German middle class, according to Thomas Mergel's contribution on the nature of political marketing in the republic. Especially in politics, any form of hard sales tactics were severely frowned upon and considered to demean the citizen as incapable of making an informed choice, a mentality that he dates back to the traditions of nineteenth-century liberalism. Part of this disdain of ‘selling politics like toothpaste’ was also founded on the highly effective use of branding by the National Socialists, who identified their party through the use of an increasingly standardised image of Adolf Hitler and the swastika. Alexander Schug extends on previous research that criticised the simplistic notion of Hitler's charisma as the only explanation of the popular success and distances his approach from those who see it in terms of propaganda and demagogy. He argues that the NSDAP used the tools of advertising and branding precisely because they had to introduce their new ideology into a political marketplace dominated by more established parties. In this they were undoubtedly successful, more so than they intended: as bakers sold swastika cookies and butchers formed Führer heads out of lard, the NSDAP sought to regain control over the now effectively iconic images that constituted their brand, which was in danger of being trivialised and devalued. Key to understanding the history of marketing in Germany is on the one hand the exchange of ideas with the United States, and on the other the impact of national-socialist policies, and the question whether they were a force of modernisation or retardation. The general argument in the volume appears to favour the latter explanation. In the 1930s, some of the leading marketing experts emigrated to the USA, leaving German academia and business isolated. The aftermath of the Second World War left a country that needed to increase production to satisfy consumer demand, and there was little interest in advanced sales techniques. Although the Nazis were progressive in applying new marketing methods to their political campaign, this retarded the adoption of sales techniques in politics for a long time. Germany saw the development of idiosyncratic approaches by people like Domizlaff in the 1930s and 1940s, when it lost some leading thinkers, and only engaged with American marketing conceptions in the 1960s and 1970s, when consumers eventually became more important than producers.

Charismatic leadership as a driver of sales-marketing collaboration

The purpose of this study is to develop an integrative framework for investigating the organizational consequences of marketing leadership. The new integrative framework employs the theories of charismatic leadership and organizational identification as foundation. Combining constructs and propositions from these two theories, and informed by initial insights from in-depth interview research, our proposed framework offers an holistic model to explore and explain how marketing leadership behaviours influence (1) relations between marketing and sales groups, and (2) consequent firm performance. The paper develops propositions and offers future research directions.

Neuromarketing and consumer neuroscience:contributions to neurology

Background: 'Neuromarketing' is a term that has often been used in the media in recent years. These public discussions have generally centered around potential ethical aspects and the public fear of negative consequences for society in general, and consumers in particular. However, positive contributions to the scientific discourse from developing a biological model that tries to explain context-situated human behavior such as consumption have often been neglected. We argue for a differentiated terminology, naming commercial applications of neuroscientific methods 'neuromarketing' and scientific ones 'consumer neuroscience'. While marketing scholars have eagerly integrated neuroscientific evidence into their theoretical framework, neurology has only recently started to draw its attention to the results of consumer neuroscience.Discussion: In this paper we address key research topics of consumer neuroscience that we think are of interest for neurologists; namely the reward system, trust and ethical issues. We argue that there are overlapping research topics in neurology and consumer neuroscience where both sides can profit from collaboration. Further, neurologists joining the public discussion of ethical issues surrounding neuromarketing and consumer neuroscience could contribute standards and experience gained in clinical research.Summary: We identify the following areas where consumer neuroscience could contribute to the field of neurology:. First, studies using game paradigms could help to gain further insights into the underlying pathophysiology of pathological gambling in Parkinson's disease, frontotemporal dementia, epilepsy, and Huntington's disease.Second, we identify compulsive buying as a common interest in neurology and consumer neuroscience. Paradigms commonly used in consumer neuroscience could be applied to patients suffering from Parkinson's disease and frontotemporal dementia to advance knowledge of this important behavioral symptom.Third, trust research in the medical context lacks empirical behavioral and neuroscientific evidence. Neurologists entering this field of research could profit from the extensive knowledge of the biological foundation of trust that scientists in economically-orientated neurosciences have gained.Fourth, neurologists could contribute significantly to the ethical debate about invasive methods in neuromarketing and consumer neuroscience. Further, neurologists should investigate biological and behavioral reactions of neurological patients to marketing and advertising measures, as they could show special consumer vulnerability and be subject to target marketing. © 2013 Javor et al.; licensee BioMed Central Ltd.

Social media and related technology:drivers of change in managing the contemporary sales force

The selling environment has undergone tremendous transformation over the past 2 decades. Perhaps the greatest change has centered on changes and advancements in technology. The latest dramatic change has been the rapidly increasing use of social media and other related technologies in the business-to-business realm. The sales world began the use of technology through the use of Web 1.0, which was primarily webpage oriented; now we see the world of social media as the paradigm of how firms should implement technology. Although there has been some recent emphasis on how marketing might implement social media into their strategies and how the individual salesperson might implement social media into his or her daily selling routine, no substantive discussion on how social media is affecting the role of the sales manager has appeared in the literature. This article systematically examines how social media is impacting the sales management function and, in fact, may be dramatically revolutionizing the position. To help the marketing and sales organization better understand the changing sales world, we present eight lessons that every sales manager needs to embrace.

How organizational cognitive neuroscience can deepen understanding of managerial decision-making:a review of the recent literature and future directions

There is growing interest in exploring the potential links between human biology and management and organization studies, which is bringing greater attention to bear on the place of mental processes in explaining human behaviour and effectiveness. The authors define this new field as organizational cognitive neuroscience (OCN), which is in the exploratory phase of its emergence and diffusion. It is clear that there are methodological debates and issues associated with OCN research, and the aim of this paper is to illuminate these concerns, and provide a roadmap for rigorous and relevant future work in the area. To this end, the current reach of OCN is investigated by the systematic review methodology, revealing three clusters of activity, covering the fields of economics, marketing and organizational behaviour. Among these clusters, organizational behaviour seems to be an outlier, owing to its far greater variety of empirical work, which the authors argue is largely a result of the plurality of research methods that have taken root within this field. Nevertheless, all three clusters contribute to a greater understanding of the biological mechanisms that mediate choice and decision-making. The paper concludes that OCN research has already provided important insights regarding the boundaries surrounding human freedom to act in various domains and, in turn, self-determination to influence the workplace. However, there is much to be done, and emerging research of significant interest is highlighted.

Social media and sentiment in bioenergy consultation

he push to widen participation in public consultation suggests social media as an additional mechanism through which to engage the public. Bioenergy companies need to build their capacity to communicate in these new media and to monitor the attitudes of the public and opposition organisations towards energy development projects. Design/methodology/approach This short paper outlines the planning issues bioenergy developments face and the main methods of communication used in the public consultation process in the UK. The potential role of social media in communication with stakeholders is identified. The capacity of sentiment analysis to mine opinions from social media is summarised, and illustrated using a sample of tweets containing the term ‘bioenergy’ Findings Social media have the potential to improve information flows between stakeholders and developers. Sentiment analysis is a viable Purpose The push to widen participation in public consultation suggests social media as an additional mechanism through which to engage the public. Bioenergy companies need to build their capacity to communicate in these new media and to monitor the attitudes of the public and opposition organisations towards energy development projects. Design/methodology/approach This short paper outlines the planning issues bioenergy developments face and the main methods of communication used in the public consultation process in the UK. The potential role of social media in communication with stakeholders is identified. The capacity of sentiment analysis to mine opinions from social media is summarised, and illustrated using a sample of tweets containing the term ‘bioenergy’ Findings Social media have the potential to improve information flows between stakeholders and developers. Sentiment analysis is a viable methodology, which bioenergy companies should be using to measure public opinion in the consultation process. Preliminary analysis shows promising results. Research limitations/implications Analysis is preliminary and based on a small dataset. It is intended only to illustrate the potential of sentiment analysis and not to draw general conclusions about the bioenergy sector. Originality/value Opinion mining, though established in marketing and political analysis, is not yet systematically applied as a planning consultation tool. This is a missed opportunity.

Effectiveness of Olympic sponsorship by foreign and domestic companies: the influential role of consumer ethnocentrism

This study investigates Chinese consumers' responses to foreign and domestic sponsors engaged in the Beijing Olympic Games. It identifies direct causal relationships between consumer ethnocentrism, attitudes towards the sponsor and product judgement. Findings reveal that event involvement mediates the positive relationship between consumer ethnocentrism and attitudes towards the domestic sponsor. Attitudes towards foreign sponsors are found to be a significant mediator in the relationship between consumer ethnocentrism and judgements of the sponsors' products. Theoretical and managerial implications are discussed.

The relative advantage of marketing over technological capabilities in influencing new product performance:the moderating role of country institutions

Marketing and technological capabilities are major drivers of new product performance. Prior research has suggested that marketing capabilities outperform technological capabilities. This study shows that the relative advantage of marketing over technological capabilities for new product performance depends on the institutional context in a country. Meta-analytic data of 341 effect sizes of the relationship between capabilities and new product performance taken from 50 articles with 57 independent samples and collected in 17 different countries reveal new contingencies to the capabilities framework. Although in general, marketing capabilities have a stronger influence than technological capabilities on new product performance, this effect is moderated by institutional context factors. The relative advantage decreases and even reverses with increasing growth rates; it further decreases with increasingly stronger rules of law in a country; and it increases in societies that put emphasis on self-expression values over survival values. These findings contribute to research on the utility of different capabilities, inform the institution-based view of firms in international marketing, and provide implications for international marketing managers.

New product development proficiency and multi-country product rollout timeliness

Purpose: The purpose of this paper is to address a gap in the understanding of the indirect effects of marketing and technical factors on time efficiency in developing a new product and international new product launch. Design/methodology/approach: This paper adopts a contingency perspective in examining the relationships between antecedents and on-time completion (or timeliness) of new product development (NPD) and international new product rollout (INPR). A conceptual framework is tested based on data obtained on 232 NPD projects undertaken by Korean firms. Findings: The results show that NPD proficiencies mediate to a greater or lesser extent the effects of key antecedents (e.g. cross-functional linkages, project fit with available marketing resources, and effective coordination of headquarters-subsidiary/agents' activities) on timeliness in NPD and INPR. Research limitations/implications: Empirical research on the role of marketing and technical proficiencies in improving NPD timeliness and rollout timeliness in the context of international NPD affirms the importance of adopting a contingency perspective in examining the antecedents of NPD and multi-market entry timeliness. Practical implications: This paper lends insight into the role of overseas subsidiaries or agents in helping to build the technical proficiencies of emerging country companies. Originality/value: This is the first review focusing on the mediating influences on time dimensions (e.g. timeliness) in multi-country product launches. © Emerald Group Publishing Limited.

Internal market orientation and market/oriented behaviours

Purpose – The purpose of this empirical paper is to investigate internal marketing from a behavioural perspective. The impact of internal marketing behaviours, operationalised as an internal market orientation (IMO), on employees' marketing and other in/role behaviours (IRB) were examined. Design/methodology/approach – Survey data measuring IMO, market orientation and a range of constructs relevant to the nomological network in which they are embedded were collected from the UK retail managers. These were tested to establish their psychometric properties and the conceptual model was analysed using structural equations modelling, employing a partial least squares methodology. Findings – IMO has positive consequences for employees' market/oriented and other IRB. These, in turn, influence marketing success. Research limitations/implications – The paper provides empirical support for the long/held assumption that internal and external marketing are related and that organisations should balance their external focus with some attention to employees. Future research could measure the attitudes and behaviours of managers, employees and customers directly and explore the relationships between them. Practical implications – Firm must ensure that they do not put the needs of their employees second to those of managers and shareholders; managers must develop their listening skills and organisations must become more responsive to the needs of their employees. Originality/value – The paper contributes to the scarce body of empirical support for the role of internal marketing in services organisations. For researchers, this paper legitimises the study of internal marketing as a route to external market success; for managers, the study provides quantifiable evidence that focusing on employees' wants and needs impacts their behaviours towards the market. © 2010, Emerald Group Publishing Limited