A cross-national investigation into the marketing department's influence within the firm:toward initial empirical generalizations

An ongoing strong debate within the marketing discipline concerns the role of marketing within the firm. It has been frequently reported that the marketing function is in a deep decline. Marketing executives and academics alike are interested in the antecedents of this decline and potential performance consequences of this decline. Recent academic research have started investigations on this important topic. Using studies in single countries innovativeness and accountability of the marketing department has been reported as major antecedents of the influence of the marketing department within the organization. Academic research, however, does not provide convincing evidence for a direct link between this influence and business performance. Instead it shows that market orientation is a crucial intervening variable, as marketing department influence is positively related market orientation, which subsequently positively related to business performance. As noted prior research, however, studies firms in single countries. In this article we execute a cross-national study on the antecedents and performance consequences of marketing department influence in order to derive initial empirical generalizations. This study is executed in seven Western-oriented countries, including USA, UK, The Netherlands, Germany, Sweden, Israel and Australia. The study heavily builds on the framework developed in the 2009 Journal of Marketing article of Verhoef and Leeflang. This framework is tested per country and subsequently meta-analytic tests are used to derive initial empirical generalizations. An important empirical generalization is that innovativeness, the customer-connecting capabilities, and accountability of the marketing department are positively related to marketing department influence. Interestingly, a second initial generalization is that creativity of the marketing negative induces less influence. Our results also show a third empirical generalization in that firms having a CEO with a marketing background tend to have more influential marketing departments. Confirming prior research a fourth initial empirical generalization is that MD influence measures and market orientation are positively related. Market orientation is subsequently positively related to business performance. Our most important generalization is, however, that MD influence is positively related to business performance. Hence, beyond striving to become market oriented, firms should also aim to have strong marketing departments. These departments can create a stronger focus on the customer and can also coordinate marketing efforts. In order to become more influential marketing departments should: (1) acquire innovative capabilities, (2) be more connected to customers, (3) invest in accountability, and (4) be careful with be careful being too creative.

Paving the way for "distinguished marketing"

Over the last six decades, marketing concepts, tools, and knowledge have gone through tremendous developments. A general trend toward formalization has affected orientation and decision making and has clarified the relationship between marketing efforts and performance measures. This evolution has received strong support from concurrent revolutions in data collection and research techniques. This article outlines the formalization of the marketing discipline and proposes steps that will pave the way for future developments in marketing, toward what I call “distinguished marketing”.

Early marketing matters:a time-varying parameter approach to persistence modeling

Are persistent marketing effects most likely to appear right after the introduction of a product? The authors give an affirmative answer to this question by developing a model that explicitly reports how persistent and transient marketing effects evolve over time. The proposed model provides managers with a valuable tool to evaluate their allocation of marketing expenditures over time. An application of the model to many pharmaceutical products, estimated through (exact initial) Kalman filtering, indicates that both persistent and transient effects occur predominantly immediately after a brand's introduction. Subsequently, the size of the effects declines. The authors theoretically and empirically compare their methodology with methodology based on unit root testing and demonstrate that the need for unit root tests creates difficulties in applying conventional persistence modeling. The authors recommend that marketing models should either accommodate persistent effects that change over time or be applied to mature brands or limited time windows only.

Effects of pharmaceutical marketing:a re-analysis of the study of Windmeijer et al

Despite a growing body of scientific research, there is still much uncertainty about the effects of marketing expenditures on the demand for pharmaceuticals. Recently it was found that higher marketing expenditures for a brand may reduce the price elasticity of demand, and hence allow firms to charge higher prices (Windmeijer et al [1]). In this study we reconsider the study by Windmeijer et al. We find that their econometric models are based on an incorrect assumption of homogeneous parameters across brands. As a consequence, our conclusions concerning the effects of pharmaceutical marketing are different from theirs.

Creating lift versus building the base:current trends in marketing dynamics

Markets are dynamic by nature, and marketing efforts can be directed to stimulate, reduce, or to utilize these dynamics. The field of marketing dynamics aims at modeling the effects of marketing actions and policies on short-term performance (“lift”) and on long-term performance (“base”). One of the core questions within this field is: “How do marketing efforts affect outcome metrics such as revenues, profits, or shareholder value over time?” Developments in statistical modeling and new data sources allow marketing scientists to provide increasingly comprehensive answers to this question. We present an outlook on developments in modeling marketing dynamics and specify research directions.

A cross-national investigation into the marketing department's influence within the firm

Both marketing academics and practitioners are debating the diminished role of marketing as a separate function within firms. In this study, which expands on previous research on Dutch companies, the authors focus on how the marketing department’s capabilities relate to business performance across countries. The authors collected data in seven Western countries—the Netherlands, Germany, Sweden, United Kingdom, United States, Australia, and Israel. They surveyed top marketing and financial executives, CEOs, and other top employees of profit-based middle-sized and large firms. Their findings show that accountability provides the most consistent predictor of influence, whereas the marketing department’s innovativeness and customer connection show less consistent results. Across the seven countries, the department’s integration with the finance department has a consistent but negative effect on the department’s perceived influence. The influences of marketing departments clearly differ across countries. Perceived influence is substantially higher in the United States and Israel than in other countries, whereas top management respect for the marketing department is substantially higher in Israel than in any other country. The study also found that the marketing department is well represented on the boards of companies in Sweden, Israel, and the United States. In most countries, marketing tends not to be organized as a line function. Some differences among countries emerge in the relationships between the marketing department’s influence and business performance. In Israel, the United States, the United Kingdom, Germany, and Australia, influence relates positively to business performance, whereas in the Netherlands, it has no influence. The results for Sweden suggest a negative influence. The authors conclude that a strong marketing department appears to benefit firms in most of the countries studied. The results imply that the marketing department should have input into boardroom considerations.

Does competitive entry structurally change key marketing metrics?

To what extent does competitive entry create a structural change in key marketing metrics? New players may just be a temporal nuisance to incumbents, but could also fundamentally change the latter's performance evolution, or induce them to permanently alter their spending levels and/or pricing decisions. Similarly, the addition of a new marketing channel could permanently shift shopping preferences, or could just create a short-lived migration from existing channels. The steady-state impact of a given entry or channel addition on various marketing metrics is intrinsically an empirical issue for which we need an appropriate testing procedure. In this study, we introduce a testing sequence that allows for the endogenous determination of potential change (break) locations, thereby accounting for lead and/or lagged effects of the introduction of interest. By not restricting the number of potential breaks to one (as is commonly done in the marketing literature), we quantify the impact of the new entrant(s) while controlling for other events that may have taken place in the market. We illustrate the methodology in the context of the Dutch television advertising market, which was characterized by the entry of several late movers. We find that the steady-state growth of private incumbents' revenues was slowed by the quasi-simultaneous entry of three new players. Contrary to industry observers' expectations, such a slowdown was not experienced in the related markets of print and radio advertising.

A simultaneous examination of the effects of salesperson relationship-building activities and marketing activities on retail buyers' purchase decisions

Firms’ contemporary selling practices often not only demand that salespeople meet sales quotas, but also that they build strong, profitable relationships with customers. Given the belief that relationship-building activities can develop closer customer ties and improve sales performance, scholars have increasingly studied salesperson behaviors aimed at nurturing buyer-salesperson relations. However, while previous sales research has investigated the effects of a number of relational activities on performance outcomes in isolation, knowledge about their effectiveness in comparison to other important performance drivers is virtually absent. The present study provides some first theoretical and empirical insights into this research gap by simultaneously examining the role of specific salesperson relationship-building activities, and product-focused variables, in retail buyers’ new product purchase decisions. Following an extensive literature review, a two-part qualitative field study was conducted to explore salesperson relationship-building activities that are regarded as important by retail buyers. Two key relational behaviors were suggested by the customer-centric and retail industry-specific data; salesperson consultation (communication-based) and salesperson helping behavior (action-based). Drawing on this as well as extant literature, a conceptual framework was developed concerning the influences of these relationship-building activities and other product-focused factors on retail buyers’ new product acceptance. The study’s quantitative component contained a mail and web survey of U.S. retail buyers, resulting in a total dataset of 192 responses. After a comprehensive measure validation process, the theoretical hypotheses were tested using logistic regression analysis. Contrary to existing assertions, the results suggest that salesperson relationship-building activities themselves do not directly and/or indirectly influence purchase decisions, but instead can moderate the effects of product-focused determinants on retail buyers’ new product selections. Data on actual purchase decisions provide a high level of external validity to the findings. The study closes with a concluding discussion, including theoretical and managerial implications of the findings, limitations of the research, and directions for future inquiry.

Marketing responsibility in an era of economic and climatic challenge

Purpose – The purpose of this paper is to illustrate Michael Thomas's concept of civic professionalism and social trusteeship as a future alternative to the current marketing profession's code of conduct and to put this in the context of climate change and ecological sustainability as a model for firms everywhere. Design/methodology/approach – Review of the marketing profession's responsibility towards society, communities and the ecology of the planet in the twenty-first century in the light of climate change. Findings – The hypothesis for the paper emerges as: whether it is possible for Chinese firms to embrace the needs of twenty-first century global ecological sustainability in meeting their own economic requirements for development and financial prosperity. Research limitations/implications – Limited secondary research and primary research that is also limited in terms of scope. Practical implications – As we move into an era of Chinese economic supremacy, we marketers must face up to the responsibility we have towards balancing the progression of global economic development (and selling goods and services in global market systems) with our responsibility towards our cultural systems and the global ecological system (the global ecosystem), the home of all our economic wealth. Social implications – To extrapolate lessons and opportunities for firms from developing economies as they move towards global domination of world economic markets and, suggest strategies for sustainability that they can, and should, adopt. Originality/value – The paper presents a theoretical framework for a global strategy for sustainability, and provides a vision of marketing responsibility that embraces civic professionalism, social trusteeship and a strategy for sustainability.

The definition, theoretical modelling and empirical research of front-line service employee corporate identity within a UK national grocery retailer:determining the FLE corporate brand identification construct

Over the past forty years the corporate identity literature has developed to a point of maturity where it currently contains many definitions and models of the corporate identity construct at the organisational level. The literature has evolved by developing models of corporate identity or in considering corporate identity in relation to new and developing themes, e.g. corporate social responsibility. It has evolved into a multidisciplinary domain recently incorporating constructs from other literature to further its development. However, the literature has a number of limitations. It remains that an overarching and universally accepted definition of corporate identity is elusive, potentially leaving the construct with a lack of clear definition. Only a few corporate identity definitions and models, at the corporate level, have been empirically tested. The corporate identity construct is overwhelmingly defined and theoretically constructed at the corporate level, leaving the literature without a detailed understanding of its influence at an individual stakeholder level. Front-line service employees (FLEs), form a component in a number of corporate identity models developed at the organisational level. FLEs deliver the services of an organisation to its customers, as well as represent the organisation by communicating and transporting its core defining characteristics to customers through continual customer contact and interaction. This person-to-person contact between an FLE and the customer is termed a service encounter, where service encounters influence a customer’s perception of both the service delivered and the associated level of service quality. Therefore this study for the first time defines, theoretically models and empirically tests corporate identity at the individual FLE level, termed FLE corporate identity. The study uses the services marketing literature to characterise an FLE’s operating environment, arriving at five potential dimensions to the FLE corporate identity construct. These are scrutinised against existing corporate identity definitions and models to arrive at a definition for the construct. In reviewing the corporate identity, services marketing, branding and organisational psychology literature, a theoretical model is developed for FLE corporate identity, which is empirically and quantitatively tested, with FLEs in seven stores of a major national retailer. Following rigorous construct reliability and validity testing, the 601 usable responses are used to estimate a confirmatory factor analysis and structural equation model for the study. The results for the individual hypotheses and the structural model are very encouraging, as they fit the data well and support a definition of FLE corporate identity. This study makes contributions to the branding, services marketing and organisational psychology literature, but its principal contribution is to extend the corporate identity literature into a new area of discourse and research, that of FLE corporate identity

Managing diversity in organizations:an integrative model and agenda for future research

The literature on policies, procedures, and practices of diversity management in organizations is currently fragmented and often contradictory in highlighting what is effective diversity management, and which organizational and societal factors facilitate or hinder its implementation. In order to provide a comprehensive and cohesive view of diversity management in organizations, we develop a multilevel model informed by the social identity approach that explains, on the basis of a work motivation logic, the processes by, and the conditions under which employee dissimilarity within diverse work groups is related to innovation, effectiveness, and well-being. Building on this new model, we then identify those work group factors (e.g., climate for inclusion and supervisory leadership), organizational factors (e.g., diversity management policies and procedures, and top management's diversity beliefs), and societal factors (e.g., legislation, socioeconomic situation, and culture) that are likely to contribute to the effective management of diversity in organizations. In our discussion of the theoretical implications of the proposed model, we offer a set of propositions to serve as a guide for future research. We conclude with a discussion of possible limitations of the model and practical implications for managing diversity in organizations. © 2014 Taylor & Francis.

Sustainability, epistemology, ecocentric business and marketing strategy:ideology, reality and vision

This conceptual article examines the relationship between marketing and sustainability through the dual lenses of anthropocentric and ecocentric epistemology. Using the current anthropocentric epistemology and its associated dominant social paradigm, corporate ecological sustainability in commercial practice and business school research and teaching is difficult to achieve. However, adopting an ecocentric epistemology enables the development of an alternative business and marketing approach that places equal importance on nature, the planet, and ecological sustainability as the source of human and other species' well-being, as well as the source of all products and services. This article examines ecocentric, transformational business, and marketing strategies epistemologically, conceptually and practically and thereby proposes six ecocentric, transformational, strategic marketing universal premises as part of a vision of and solution to current global un-sustainability. Finally, this article outlines several opportunities for management practice and further research. © 2012 Springer Science+Business Media Dordrecht.

Applied operational research with SAS

Using a wide range of operational research (OR) optimization examples, Applied Operational Research with SAS demonstrates how the OR procedures in SAS work. The book is one of the first to extensively cover the application of SAS procedures to OR problems, such as single criterion optimization, project management decisions, printed circuit board assembly, and multiple criteria decision making. The text begins with the algorithms and methods for linear programming, integer linear programming, and goal programming models. It then describes the principles of several OR procedures in SAS. Subsequent chapters explain how to use these procedures to solve various types of OR problems. Each of these chapters describes the concept of an OR problem, presents an example of the problem, and discusses the specific procedure and its macros for the optimal solution of the problem. The macros include data handling, model building, and report writing. While primarily designed for SAS users in OR and marketing analytics, the book can also be used by readers interested in mathematical modeling techniques. By formulating the OR problems as mathematical models, the authors show how SAS can solve a variety of optimization problems.

The influence of socio-cultural environments on the performance of nascent entrepreneurs:community culture, motivation, self-efficacy and start-up success

The importance of informal institutions and in particular culture for entrepreneurship is a subject of ongoing interest. Past research has mostly concentrated on cross-national comparisons, cultural values and the direct effects of culture on entrepreneurial behaviour, but in the main found inconsistent results. We add a fresh perspective to this research stream by turning attention to community-level culture and cultural norms. We hypothesize indirect effects of cultural norms on venture emergence: Community-level cultural norms (performance-based culture and socially supportive institutional norms) impact important supply-side variables (entrepreneurial self-efficacy and entrepreneurial motivation) which in turn influence nascent entrepreneurs' success in creating operational ventures (venture emergence). We test our predictions on a unique longitudinal dataset, tracking nascent entrepreneurs' venture creation efforts over a five-year time span, and find evidence supporting them. Our research contributes to a more fine-grained understanding of how culture, in particular perceptions of community cultural norms, influences venture emergence. Based on these findings, we discuss how venture creation efforts can be supported. Our research highlights the embeddedness of entrepreneurial behaviour and its immediate antecedent beliefs in the local, community context. © 2012 Copyright Taylor and Francis Group, LLC.

What does "good" look like? A three-country examination of marketing practice

Grounded in configuration theory, this study investigates the notion of co-alignment of business orientation, marketing assets and marketing capabilities, and their relationships to performance. Using these criteria, profiles of high performing businesses were derived and assessed against a three country sample of Brazil, China and the UK. Findings are consistent, statistically significant and invariant across the sample. They show that businesses with ideal profiles significantly outperform competitors in terms of market-based performance, customer satisfaction, and financial performance. Furthermore, profiles of top performing organizations are similar across countries with respect to their orientations, assets, and capabilities. Only customer-based assets, network capabilities, and customer and shareholder orientations were different. Implications and future research directions are subsequently addressed.