Showing papers in "Journal of Strategic Marketing in 1995"

Narver and Slater, Kohli and Jaworski and the market orientation construct: integration and internationalization

Abstract: Recent developments in marketing theory have resulted in two conceptualizations of the market orientation construct and preliminary evidence provides support for the often assumed relationship between market orientation and company performance. However, there is hardly any research regarding the potential consequences of market orientation for internationally active organizations. Current measures of the construct are biased towards domestic operations and do not explicitly consider factors specific to an international context. The present study proposes a framework integrating the two dominant conceptualizations of market orientation and introduces an international dimension to its study. The framework enables the specification of an expanded market orientation construct which, it is hoped, will be both valid and of practical use to organizations operating at an international level.

Issues in conducting marketing strategy research

Abstract: Marketing, as an academic discipline, is becoming more and more concerned with strategic issues. Indeed, numerous theoretical articles concerning marketing strategy issues have won awards in the Journal of Marketing in recent years. However, empirical testing of these theories has been less frequent. Difficulties in designing effective research to address marketing strategy issues may be a significant reason for this situation. This paper reviews some key considerations in conducting marketing strategy research and offers recommendations for how they may be resolved.

Measuring market orientation: some evidence on Narver and Slater's three-component scale

Abstract: The dimensionality o f Narver and Slater's market orientation measure is investigated via three different measurement models using confirmatory factor analysis. None o f the three models, including unidimensional and multidimensional specifications, provide a good fit. Further, an examination o f the original 21-item scale indicates that the components comprising the market orientation scale are only partially related to the dimensions originally proposed by Narver and Slater.

Strategic orientation and marketing strategies in transition economies: a study of Russian firms

Abstract: The Miles and Snow typology has been used widely in the past as a means to understand the marketing strategies implemented by organizations. The authors adapt this typology to include the planned demand enterprise (PDE) type in Russia, where marketing is in an infantile stage and elements of a command economy are still in place. Results of an empirical investigation of approximately 200 firms show dramatic differences in the perceptions of marketing between firms adopting a market orientation and those still operating under a PDE orientation.

Developing a decision tool for identifying operational and attractive segments

Abstract: Although market segmentation is a well recognized and accepted aspect of marketing theory, problems for companies trying to implement the concept are not uncommon. In some companies poor understanding of basic segmentation principles is the cause. In others, industries have become geared to serving specific sectors and distribution is organized accordingly — any restructuring of the customer base would create considerable practical difficulties. Other companies complain of too few tools to help them make appropriate and effective targeting decisions. The use of boxes and matrices as an aid to strategic thinking is widespread in modern marketing and strategic planning. Amongst the more commonly cited are the Boston Consulting Group's (BCG) Boston Box and the Directional Policy Matrix (DPM). This paper considers a new matrix, developed from the DPM, which could help consumer and industrial planners make more effective decisions about which market segments to target. The Segment Evaluation Matrix (SEM) direc...

Customer service as a competitive strategy

Abstract: To survive and prosper in today's competitive markets a business needs to have a source of competitive advantage. The search for and sustenance of such advantage may be found in superior products that customers value, by effective cost or differentiation strategies or in superior management or financial acumen. More recently, some firms have been taking greater cognizance of the possibility that the most productive route to corporate prosperity may lie in serving customers better than the competition. This study explores this area by examining the importance firms are now placing on a service orientation and service activity. The findings are based on a survey of manufacturers and suggest that those firms most committed to service were significantly higher performers than others, that certain characteristics could be identified which classify service activity and that firms are increasingly using service dimensions in an effort to create and sustain a competitive advantage.

Collaborative strategy in new product development — risks and rewards

Abstract: It is often argued that the volatility of competitive environments can make an independent approach to new product development (NPD) impracticable, time-consuming and costly. Therefore, organizations are increasingly recommended to develop new products and services collaboratively through alliances, for example, in R&D, marketing or production. Discussion and research have tended to focus on the benefits of such collaborative strategies and have tended to under-estimate the problems and costs involved. There are also unresolved issues in the collaboration literature which raise important questions about the operational and strategic benefits claimed for collaborative new product development (CNPD). This paper addresses the issues surrounding the costs of collaboration by reporting recent empirical research in UK technology markets aimed at examining the risks and rewards experienced by UK companies following CNPD strategies. The research suggests that careful management is necessary to achieve the potenti...

The life cycle concept revisited: aid or albatross?

Abstract: The product lifecycle concept has been an established model for marketing analysis and planning for over 40 years. Despite the fact that during that time it has been periodically challenged as a framework, both with regard to form and content, substantial empirical evidence has now accumulated to confirm the existence of the predominantly bell-shaped, four-phase, lifecycle representation of sales in many markets. There has, however, been relatively little exploration of the characteristics of each phase of the cycle. This study provides evidence on how phases of the cycle differ with regard to market conditions, strategies pursued and performance outcomes. It concludes that many of the differences predicted by the theory are not supported by the evidence and that both strategy and performance differences are more related to market position than stage of lifecycle.

Services outsourcing: marketing strategy and the internal competitor

Abstract: As corporations look to concentrate on core competencies, the likelihood of outsourcing various business services increases. The outsourcing phenomenon represents a significant market opportunity for suppliers of business services. However; the outside supplier often finds that his major competitor, the internal service provider, is part of the outsourcing evaluation team. Furthermore, the internal provider may have significant influence in his/her role as the inhouse functional expert. This study investigates the viewpoint of the inhouse provider vis-a-vis outside suppliers in the context of warehousing, a pure business service. The study finds that outsourcing does not take place where the inhouse expert perceives a wide gap between internal and external service capabilities.

A new direction for strategic alliance research in marketing: organizational cognition

Abstract: For marketers and other strategists, the importance of strategic alliances is increasing in both research and practice. Despite frequent considerations of the potential benefits of these interorganizational relationships in both domestic and international markets, alliances have often failed to live up to expectations in practice. Traditional research paradigms have provided few meaningful insights into the causes of success and failure. In this paper, we propose that research using an organizational cognition perspective can provide valuable insights into alliance development and management. We derive important alliance research questions and draw from a wide range of cognitive methodologies to suggest specific directions for future research.

Strategic positioning for export market development: the role of managerial attitudes, export development programmes and firm characteristics

Abstract: This paper examines a set of strategic factors related to managerial attitudes, firm characteristics and export development support programmes which are important in determining export readiness and performance. The study differentiates between Canadian exporters and non-exporters of different sizes and levels of export activity. Using discriminant analysis, the author identifies strategic variables which relate to export status. The discriminant model performs well above a prioriexpectations in effectively classifying firms as non-exporters, minor exporters or major exporters and identifies the strategic factors influential in developing export-oriented firms.

Corporate values and the marketing concept: examining interfunctional relationships

Abstract: This study examined the quality of the inter-functional relationships between the marketing and production functions from the perspective of the marketing in three contexts — inter-functional exchange relationships, perceived effectiveness of the relationship between marketing and production and inter-functional conflict. Two potential correlates of these constructs were evaluated — the adoption of the marketing concept and corporate values. The data were clustered on the scale measuring adoption of the marketing concept. Three clusters emerged and were labelled the ‘marketing effective’, the ‘inexperienced marketers’ and the ‘marketing ineffective’. The results show that those with a clear marketing focus and a clear set of customer oriented goals were also those which demonstrated low levels of conflict and high levels of cooperation between marketing and production, a result which is independent of size.

Business orientations and corporate success: a correspondence analysis of Wong and Saunders' findings

Abstract: Wong and Saunders have previously sought to describe the relationship between business orientation and performance. This article presents a further analysis of their results using the multivariate mapping technique of correspondence analysis. The analysis provides further insights into the relationships between the variables under study by allowing the distance between variables to be seen. In this case, it shows how close various business orientations are to one another. The results suggest that significant differences in corporate performance can result from only comparatively small differences in strategic marketing ability.

Stratlogics: towards an expert systems approach to the analysis of competitive positioning

Abstract: Portfolio analysis has been subjected to considerable scrutiny in recent years. This paper describes an attempt to recast portfolio analysis in the light of past criticisms and the growing importance of expert systems to marketing decision making. It introduces a data driven approach to the analysis of competitive effects that has at its heart a portfolio-based model. Inputs to the ‘stratlogic’ model include data on the competitive structure of a product-market and measures of the marketing ambition and positioning of the players in it. The authors go on to outline the various steps that should be taken to develop an expert system based on the stratlogic approach. By deliberately exploiting management's creativity and insight, the authors argue that the expert system approach facilitates the strategic thinking that would be constrained where a predefined set of general propositions was imposed.

UK building society diversification into estate agency 1987–1992: a case study of risk minimization and experimental strategies

Abstract: The entry of building societies 1 into estate agency 2 post-dated that of other financial institutions and represented the main thrust of initial diversification activity under the Building Societies Act, 1986. The move, by all but one of the largest 13 societies during 1987–1992, involved a departure from core activities and entry into an alien industry in terms of culture, practice and structure. This paper traces these developments, highlights the pitfalls in the diversification process and provides an evaluation of the risk minimization and experimentation strategies employed by building societies. While the data relates specifically to building societies the analysis has broader appeal both within financial services and across other industry sectors.

Bankstrat: a strategic marketing expert system for retail banking

Abstract: This paper describes an expert system (ES) model which can be used to support strategic decision making, with specific reference to banking and financial services. It begins with a review o f trends in the banking sector and a further review of previous ES applications in marketing. The practical operation of the model and its internal logic are described. The paper concludes with general remarks on the scope for applying ES methods in this domain.