A strategic approach to target marketing-choosing the preferred generic customer : a model of shareholder value performance

In recent years the contribution of the marketing function has changed and interest now centres on its contribution to a firm&rsquo;s financial performance. The Marketing Science Institute in the USA has stated that it is the number one marketing issue facing corporate America. The Australian Marketing Institute is promoting a set of marketing metrics that will help Australian firms measure the function&rsquo;s contribution to shareholder value creation. Much of the literature relates notions such as customer satisfaction and other marketing activities with a firm&rsquo;s profit. A missing link appears to be the choice firms make in terms of which customer groups to target and the resultant impact on shareholder value performance. The generic customer groups comprise: existing customers, former customers and prospects. A review of the literature reveals that marketing costs and benefits vary across these groups. The challenge for management is to determine which group represents the best target and to allocate scarce marketing resources accordingly. The task is made even more challenging because the economic value of members within each group also varies and some product lines may be unprofitable and therefore, may not be worth pursuing. To generate superior shareholder value it may not simply be the case of acquiring the maximum number of new customers from any source but to find the appropriate mix of the generic customer groups and manage the individual customer relationships accordingly. This paper seeks to firstly summarise and review the recent literature on marketing and its relationship to shareholder value and secondly to propose a model for allocating marketing resources across generic customer groups in order to generate improved shareholder value performance. Importantly, the model not only covers increasing business with customers but also shedding customers or shedding the extent of business conducted with customers as means of generating shareholder value.<br />

Value perception in music information systems

When referring to the value that IS adds to business and provides to consumers, we often (implicitly or explicitly) pertain to monetary value. However, perspectives exist regarding the notion of value which go beyond the monetary significance and maintain a direct influence on businesses and their performance. This paper explores the concept of value, its importance in IS, and the importance of understanding of how IS stakeholders perceive value. The paper focuses on the challenge of studying value in IS -although value manifests in properties of an information system, it can only be experienced and perceived subjectively through sense perception, experience and judgement of the system stakeholders. To address this challenge, the paper suggests the existence of a clearly shifting trend in the perception of IS technology and comments on the social impacts of end-users (consumers) being absorbed into the value-creation process for an information system in the music industry.<br />

Connecting entrepreneurship with innovation value in university knowledge transfer

This paper conceptually links entrepreneurship and innovation through a structured and comprehensive examination of the levels of activities that may be (or should be) found within the modern university. By doing so, we believe a fertile ground for testing insightful new hypothesis will be opened for exploration. The authors explore several literatures and introduce three novel theoretical models to help examine innovation and entrepreneurship within the domain of university knowledge transfer. Predicated upon our generalized conceptual assertion that innovation is a function of new knowledge and entrepreneurial capacity, we pose four research questions: 1) what is innovation and entrepreneurship in the university context, 2) how might it be studied, fostered and evaluated, 3) how do the domains of individually driven entrepreneurship and organizational entrepreneurship interact and converge within the university innovation value creation process and 4) how does entrepreneurship ultimately impact upon innovation with respect to creating value from all areas of research and activities provided by the modern university? It is expected that the models offered will allow for both theoretical and empirical testing of these questions.<br />

Brand image co-creation and individual identity extension in online environments: a Facebook investigation

In this thesis I investigate the extent to which companies can build a more communal environment out of their fan pages while also evaluating the corresponding brand value that may come from having such a communal environment. My research is comprised in three articles: in the first article, I describe how the brand image is created or augmented in the fan page environment, therefore providing demonstrable evidence of value creation. In the second article, I describe how individuals use fan page semiotic elements to communicate their identities. Finally, in the third article, I describe the possible communal characteristics of a fan page and the conditions that enable it to evolve to the virtual brand community concept. As a result, I will contribute to the marketing literature on the use of Facebook for communicating brand identity, on the co-creation of the brand image in social media context, and on the conceptual definition of fan pages as a communal environment.

Relational resources: do they create value for both buyer and suppliers?

The study tested the relationship between relational resources and value creation and appropriation. A survey with suppliers and buyers provided evidence that interorganizational fit and knowledge sharing have impact on the relational benefit and the share captured by each organization, but also indicated that each echelon has a different perception

Identity, incentives and the value of information

We examine the impact of identity preferences on the interrelation between incentives and performance measurement. In our model, a manager identifies with an organization and loses utility to the extent that his actions conflict with effort-standards issued by the principal. Contrary to prior arguments in the literature, we find conditions under which a manager who identifies strongly with the organization receives stronger incentives and faces more performance evaluation reports than a manager who does not identify with the organization. Our theory predicts that managers who experience events that boost their identification with the firm can decrease their effort in short-term value creation. We also find that firms are more likely to employ less precise but more congruent performance measures, such as stock prices, when contracting with managers who identify little with the organization. In contrast, they use more precise but less congruent measures, such as accounting earnings, when contracting with managers who identify strongly with the firm.

NEMAWASHI: Attaining Value Stream alignment within Complex Organizational Networks

In the process of value creation, organizations perform an intense intra-organizational dialog through which internal VS alignment is achieved towards certain strategic objectives. Within the context of complex organizational networks, were goal conflicts are preprogrammed through incentive structures, VS alignment as legitimation of action towards strategic goals has special interest. On the one hand it facilitates the access to necessary resources for goal achievement and on the other it increases the sustainability and supports commonly agreed upon decisions leading to success. This paper provides a winnerless process (WLP) differential equations model for quantifying intra-organizational value stream (VS) alignment dynamics that can help design sustainable lean management solutions. This paper presents ongoing research results that show how the model was implemented in one industrial facility.

Creating and managing value in collaborative networks

This is a theoretical paper that examines the interplay between individual and collective capabilities and competencies and value transactions in collaborative environments. The theory behind value creation is examined and two types of value are identified, internal value (Shareholder value) and external value (Value proposition). The literature on collaborative enterprises/network is also examined with particular emphasis on supply chains, extended/virtual enterprises and clusters as representatives of different forms and maturities of collaboration. The interplay of value transactions and competencies and capabilities are examined and discussed in detail. Finally, a model is presented which consists of value transactions and a table which compares the characteristics of different types of collaborative enterprises/networks. It is proposed that this model presents a platform for further research to develop an in-depth understanding into how value may be created and managed in collaborative enterprises/networks.

Modelling the innovation value chain

Innovation events ��� the introduction of new products or processes ��� represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation comprises the innovation value chain. Modelling the innovation value chain for a large group of manufacturing firms in Ireland and Northern Ireland highlights the drivers of innovation, productivity and firm growth. In terms of knowledge sourcing,we find strong complementarity between horizontal, forwards, backwards, public and internal knowledge sourcing activities. Each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs. In the exploitation phase, innovation in both products and processes contribute positively tocompany growth, with product innovation having a short-term ���disruption��� effect on labour productivity. Modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills, capital investment and firms��� other resources in the value creation process.

The innovation value chain

Innovation events - the introduction of new products or processes - represent the end of a process of knowledge sourcing and transformation. They also represent the beginning of a process of exploitation which may result in an improvement in the performance of the innovating business. This recursive process of knowledge sourcing, transformation and exploitation we call the innovation value chain. Modelling the innovation value chain for a large group of manufacturing firms in Ireland and Northern Ireland highlights the drivers of innovation, productivity and firm growth. In terms of knowledge sourcing, we find strong complementarity between horizontal, forwards, backwards, public and internal knowledge sourcing activities. Each of these forms of knowledge sourcing also makes a positive contribution to innovation in both products and processes although public knowledge sources have only an indirect effect on innovation outputs. In the exploitation phase, innovation in both products and processes contribute positively to company growth, with product innovation having a short-term ���disruption��� effect on labour productivity. Modelling the complete innovation value chain highlights the structure and complexity of the process of translating knowledge into business value and emphasises the role of skills, capital investment and firms��� other resources in the value creation process.

Milyen ��rt��ket teremt a szabadid�� sport ��s mi a kapcsolata a versenyk��pess��ggel? (What value is created by leisure sport and what is its relationship with the competitiveness?)

A sport egyre fontosabb t��nyez��v�� v��lik a t��rsadalomban, ��s gazdas��gi s��lya is egyre szignifik��nsabban jelentkezik. A sportgazdas��gtani ��r��sok nagy r��sze azonban a hivat��sos sporttal foglalkozik, a szabadid��sport nem kap el��g s��lyt. Downward ��s szerz��t��rsai m��g 2009-ben is az elm��leti ��s gyakorlati munk��k hi��ny��ra h��vt��k fel a figyelmet. Jelen cikk a szabadid��sporttal k��v��n foglalkozni, ��s c��lja, hogy bemutassa, milyen ��rt��ket teremt a szabadid��sport az egy��n, a v��llalatok, a t��rsadalom ��s a gazdas��g sz��m��ra, valamint azt, hogy az egyes szerepl��k a szabadid��sport ��ltal milyen m��don lehetnek versenyk��pesebbek. A szabadid��sport ��s a versenyk��pess��g r��vid fogalmi defini��l��sa ut��n a szerz�� bemutatja az irodalom-feldolgoz��s ��s a 31 kvalitat��v m��lyinterj�� kapcsol��d�� eredm��nyeit. ___________________ Sport has always been an important part of society but it is now becoming an increasingly important part of the economy. The sport management literature mostly deals with competitive sport, leisure sport has a week position. Downward et al.have written about the lack of theoretical and empirical works in the area of leisure sport. This article deals with leisure sport, the aim of the author���s work is: to present the value creation of leisure sport for individuals, companies, for society and economy, and to examine how they could be more competitive through leisure sport. After presenting short definitions of leisure sport and competitiveness, the author does literature review and presents the most important thoughts of the articles and the results of my 31 qualitative in-depth interviews.

Creating value, not wasting resources: sustainable innovation strategies

It is well-accepted in academic and public debate that society has overused natural resources. Business managers in consequence face a normative framework where products need to become more ���sustainable���. The paper characterises the mechanisms and logic that make ���[environmentally] sustainable innovation strategies���. Those mechanisms highlight multiple value creation and sustaining value beyond the original new product lifecycle. They yield as much utility as possible from the embedded natural resources. And they avoid creating waste. ���Multiple value creation��� asks managers to revaluate the attrite product or to make customers change their use patterns. The paper then demonstrates how to extend the ���old��� logic of innovation with a phase of revaluation: a phase promoting further use of the product and/or material. Our concept is empirically illustrated by two industry case examples. Namely, the copier industry and the emerging automotive lithium-ion batteries industry. We provide a patent analysis in order to demonstrate the assessment of extended life cycles, for the case of ���recovery of raw materials from disposed products���.

Exploring value propositions and service innovation : a service-dominant logic study

This paper presents an eight-firm study, conducted from the service-dominant logic perspective, which makes a contribution regarding knowledge of the anatomy of value propositions and service innovation. The paper suggests that value propositions are configurations of several different practices and resources. The paper finds that ten common practices, organized in three main aggregates, constitute and fulfill value propositions: i.e. provision practices, representational practices, and management and organizational practices. Moreover, the paper suggests that service innovation can be equated with the creation of new value propositions by means of developing existing or creating new practices and/or resources, or by means of integrating practices and resources in new ways. It identifies four types of service innovation (adaptation, resource-based innovation, practice-based innovation, and combinative innovation) and three types of service innovation processes (practice-based, resource-based, and combinative). The key managerial insight provided by the paper is that service innovation must be conducted and value propositions must be evaluated from the perspective of the customers��� value creation, the service that the customer experiences. Successful service innovation is not only contingent on having the right resources, established methods and practices for integrating these resources into attractive value propositions are also needed.

Creating and measuring customer value in digital businesses

Most economic transactions nowadays are due to the effective exchange of information in which digital resources play a huge role. New actors are coming into existence all the time, so organizations are facing difficulties in keeping their current customers and attracting new customer segments and markets. Companies are trying to find the key to their success and creating superior customer value seems to be one solution. Digital technologies can be used to deliver value to customers in ways that extend customers��� normal conscious experiences in the context of time and space. By creating customer value, companies can gain the increased loyalty of existing customers and better ways to serve new customers effectively. Based on these assumptions, the objective of this study was to design a framework to enable organizations to create customer value in digital business. The research was carried out as a literature review and an empirical study, which consisted of a web-based survey and semi-structured interviews. The data from the empirical study was analyzed as mixed research with qualitative and quantitative methods. These methods were used since the object of the study was to gain deeper understanding about an existing phenomena. Therefore, the study used statistical procedures and value creation is described as a phenomenon. The framework was designed first based on the literature and updated based on the findings from the empirical study. As a result, relationship, understanding the customer, focusing on the core product or service, the product or service quality, incremental innovations, service range, corporate identity, and networks were chosen as the top elements of customer value creation. Measures for these elements were identified. With the measures, companies can manage the elements in value creation when dealing with present and future customers and also manage the operations of the company. In conclusion, creating customer value requires understanding the customer and a lot of information sharing, which can be eased by digital resources. Understanding the customer helps to produce products and services that fulfill customers��� needs and desires. This could result in increased sales and make it easier to establish efficient processes.

Product/Brand co-creation methodology crossing marketing, design thinking, creativity and management: ideas(r)evolution

This thesis introduce a new innovation methodology called IDEAS(R)EVOLUTION that was developed according to an on-going experimental research project started in 2007. This new approach to innovation has initial based on Design thinking for innovation theory and practice. The concept of design thinking for innovation has received much attention in recent years. This innovation approach has climbed from the design and designers knowledge field towards other knowledge areas, mainly business management and marketing. Human centered approach, radical collaboration, creativity and breakthrough thinking are the main founding principles of Design thinking that were adapted by those knowledge areas due to their assertively and fitness to the business context and market complexity evolution. Also Open innovation, User-centered innovation and later on Living Labs models emerge as answers to the market and consumers pressure and desire for new products, new services or new business models. Innovation became the principal business management focus and strategic orientation. All this changes had an impact also in the marketing theory. It is possible now to have better strategies, communications plans and continuous dialogue systems with the target audience, incorporating their insights and promoting them to the main dissemination ambassadors of our innovations in the market. Drawing upon data from five case studies, the empirical findings in this dissertation suggest that companies need to shift from Design thinking for innovation approach to an holistic, multidimensional and integrated innovation system. The innovation context it is complex, companies need deeper systems then the success formulas that ���commercial ���Design thinking for innovation ���preaches���. They need to learn how to change their organization culture, how to empower their workforce and collaborators, how to incorporate external stakeholders in their innovation processes, hoe to measure and create key performance indicators throughout the innovation process to give them better decision making data, how to integrate meaning and purpose in their innovation philosophy. Finally they need to understand that the strategic innovation effort it is not a ���one shot��� story it is about creating a continuous flow of interaction and dialogue with their clients within a ���value creation chain��� mindset; RESUMO: Metodologia de co-cria����o de um produto/marca cruzando Marketing, Design Thinking, Criativity and Management - IDEAS(R)EVOLUTION. Esta disserta����o apresenta uma nova metodologia de inova����o chamada IDEAS(R)EVOLUTION, que foi desenvolvida segundo um projecto de investiga����o experimental cont��nuo que teve o seu in��cio em 2007. Esta nova abordagem baseou-se, inicialmente, na teoria e na pr��ctica do Design thinking para a inova����o. Actualmente o conceito do Design Thinking para a inova����o ���saiu��� do dominio da area de conhecimento do Design e dos Designers, tendo despertado muito interesse noutras ��reas como a Gest��o e o Marketing. Uma abordagem centrada na Pessoa, a colabora����o radical, a criatividade e o pensamento disruptivo s��o principios fundadores do movimento do Design thinking que t��m sido adaptados por essas novas ��reas de conhecimento devido assertividade e adaptabilidade ao contexto dos neg��cios e �� evolu����o e complexidade do Mercado. Tamb��m os modelos de Inova����o Aberta, a inova����o centrada no utilizador e mais tarde os Living Labs, emergem como possiveis solu����es para o Mercado e para a press��o e desejo dos consumidores para novos productos, servi��os ou modelos de neg��cio. A inova����o passou a ser o principal foco e orienta����o estrat��gica na Gest��o. Todas estas mudan��as tamb��m tiveram impacto na teoria do Marketing. Hoje �� possivel criar melhores estrat��gias, planos de comunica����o e sistemas continuos de di��logo com o p��blico alvo, incorporando os seus insights e promovendo os consumidores como embaixadores na dissemina����o da inova����o das empresas no Mercado Os resultados empiricos desta tese, constru��dos com a informa����o obtida nos cinco casos realizados, sugerem que as empresas precisam de se re-orientar do paradigma do Design thinking para a inova����o, para um sistema de inova����o mais holistico, multidimensional e integrado. O contexto da Inova����o �� complexo, por isso as empresas precisam de sistemas mais profundos e n��o apenas de ���f��rmulas comerciais��� como o Design thinking para a inova����o advoga. As Empresas precisam de aprender como mudar a sua cultura organizacional, como capacitar sua for��a de trabalho e colaboradores, como incorporar os p��blicos externos no processo de inova����o, como medir o processo de inova����o criando indicadores chave de performance e obter dados para um tomada de decis��o mais informada, como integrar significado e prop��sito na sua filosofia de inova����o. Por fim, precisam de perceber que uma estrat��gia de inova����o n��o passa por ter ���sucesso uma vez���, mas sim por criar um fluxo cont��nuo de intera����o e di��logo com os seus clientes com uma mentalidade de ���cadeia de cria����o de valor���