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Deconstruction, Derrida, dualism, consumer behaviour, theory and practice
Abstracts Each abstracted article is awarded 0-5 stars for each of four qualities: (1) depth of research (2) value in practice (3) originality of thinking (4) readability for non-specialists. No abstract is included for any article awarded less than seven stars overall.
Deconstructing consumer behaviour: Theory and practice D. Marsden THEORETICAL. Journal of Consumer Behaviour (UK), Vol. 1, No. 1, p. 9 (13pp) Alleges there is a binary dualism, plus an implied hierarchical power relationship, between theory and practice in consumer behavioural research. Expounds Derrida's deconstructionist theories in relation to such dualisms as nature/culture, rational/emotional, stimulus/response, masculine/feminine, as well as theory/practice. Holds such dualisms are reductionist and saturated with power relations in which positive/negative values are assigned to primary/secondary terms: the dualism theory/ practice implies a primacy for the former, based on the concept of academics as `the ultimate source of cognitive authority'. Claims most theories of consumer behaviour are alike in being predicated on a 19thcentury mechanistic, deterministic world view no longer held by natural scientists. Attacks the dominance of quantitative techniques and standardised surveys in consumer research. Criticises segmentation techniques, which are mathematical abstractions, not empirical realities, and evaluative rather than socially neutral. Suggests consumer research should look to the natural and social sciences and note the effect of the observer on that which is observed: `All theories and practices contain implicit assumptions . . . that guide the outcomes of the research.' Recommends the use of ethnography, and the exploration of the historical, political and societal conditions that have given rise to particular forms of `knowledge' and power. Like much `post-modern' deconstructionism, this article conceals its kernel of truth (that theory and practice in marketing are largely indistinguishable features of a continuous iterative process) within a cloud of largely impenetrable, albeit very fashionable, nonsense. Research: ÐÐ Practice: Ref: 3301
**
Originality:
**
Readability:
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*** 271
Abstracts
Internet, advertising, media choice, consumer behaviour
The effects of perceived consumer characteristics on the choice and use of Internet ads S.-J. Yoon and J.-H. Kim THEORETICAL. Journal of Brand Management (UK), Vol. 8, Nos 4/5, p. 346 (19pp) Aims to discover consumers' main motivations in accessing Internet ads, how these motivations differ from those associated with ads in traditional media, and how consumer characteristics affect choice of media, with particular reference to four product categories Ð automobiles, luxury watches, fast food and shampoos. Reports a study by the Korean Advertisers' Association showing that 41 per cent clicked on banner ads to obtain information, 29 per cent for free offers, and 20 per cent because of the shape/graphics of the ad. Refers to various social science models (expectancy-value theory, uses and grati®cations theory, Katz's process model). Describes a further Korean study using a person-to-person questionnaire to 100 subjects; questions covered attitude to Internet advertising, comparison of major characteristics of different media, evaluation of media-product relevance, and demographics. Deduces from results of this study six reasons for using Internet ads: to maintain social relationships; to pass the time; to satisfy curiosity; for practical reasons; for two-way communication; for product interest. Concludes that the Internet is a suitable medium for high-involvement products, and TV for low-involvement. Emphasises the need for an integrative media plan. I'm not completely convinced that a questionnaire answered by 100 Koreans will necessarily provide a complete blueprint for global Internet advertising. But the methodology is mildly interesting, and the conclusions broadly sensible. Research: Ref: 3302
Consumer behaviour
272
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Practice:
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Originality:
*
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**
Understanding buyer behaviour in the 21st century A. Styler EXPOSITORY. Admap (UK), September 2001, p. 23 (3pp) Charts the growth in consumer cynicism about company, and business leaders', behaviour. Describes four consumer buying behaviours derived from in-depth home interviews: brand-focused, price-sensitive, featuresavvy and advice-led. Notes that most consumers will adopt different behaviours in different product or purchase situations. Expands brie¯y on the characteristics of each behaviour type. Considers customers' exit points from the buying process and the need, when such points are reached, for a strategy to keep the consumer `on track'. Claims that giving consumers access to telephone contact is a must; that the Internet keeps them in control Ð but is in its infancy; that post is slow but confers status. Charts differences in the four behaviour modes between heavy and light category users. Reveals that further research on these lines is in hand.
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Abstracts A tantalisingly brief look at some interesting behavioural research. A less insistent plugging of the author's company would be welcome. Research: Ref: 3303
Age, segmentation, purchasing behaviour
***
Practice:
**
Originality:
**
Readability:
****
Learning to love the older consumer I. Szmigin and M. Carrigan THEORETICAL. Journal of Consumer Behaviour (UK), Vol. 1, No. 1, p. 22 (12pp) Notes academic interest in the USA in the older consumer (resulting from demographic change); contrasts this with a lack of UK research in this area. Looks at possible modes of segmentation of the older market Ð including health status and social orientation. Notes the gap, for many older people, between cognitive age and chronological age. Quotes estimate that over-45s own nearly 80 per cent of UK wealth. Looks at two recent pieces of UK research into older people's purchase intentions Ð one in the ®eld of travel and leisure, and one in relation to a new healthfood concept. Reports in the former case a high level of intended purchase, not linked to chronological age, and in the latter case a level of innovative behaviour again not linked to chronological age. Claims that older consumers are still part of mainstream consumption, capable of innovative consumption behaviour and, across many segments, af¯uent. Questions whether marketers can be bothered to ®nd appropriate segmentation techniques for this large and growing group. Worthy but fairly dull. Research: Ref: 3304
Measurement, marketing
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Practice:
**
Originality:
**
Readability:
**
Measure up! A manifesto for change R. Shaw EXHORTATORY. Journal of Targeting, Measurement and Analysis for Marketing (UK), Vol. 9, No. 4, p. 301 (5pp) This editorial recommends the adoption by management of a determination to measure, in future, all marketing activity. Compares the results achieved by athletes from measuring their performance with the potential for marketers; deplores the fear of numbers and formulae found in many marketing departments; stipulates that measurement should be about education, and not about retribution. Discusses a measurement cycle, starting with strategic and operational planning, through speci®cation of measurements, collection of data, creation of models, to learning from decision tracking and back to planning. Recommends mediation through external consultancy. Life-long direct marketers may ®nd it hard to understand how, in 2001, it can still be necessary to utter such a clarion call for such obvious behaviour. Sadly, it is Ð and many will perish before they learn.
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Abstracts Research: Ref: 3305
Measurement, marketing, market orientation, lifetime value
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Practice:
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Originality:
*
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****
A summary of thinking on measuring the value of marketing B. H. Clark THEORETICAL. Journal of Targeting, Measurement and Analysis for Marketing (UK), Vol. 9, No. 4, p. 357 (13pp) Notes the long 50-year history of research into measuring marketing performance. Distinguishes between marketing as an organisational function, and as a ®rm-wide process (is marketing too important to leave to marketers?). Chooses to focus on the latter. Considers ®rst marketing productivity analysis (especially in the 1960s and 1970s), but concludes ®nancial measures may be poor indicators for the future. Looks at 1980s' obsession with market share; holds this is a crude measure to be used with caution. Recommends measuring innovative capability. Notes dif®culty for marketers in demonstrating causal links between activity and sales/ pro®ts. Discusses marketing audits, with reservations. Describes concept of market orientation and the recognition of marketing assets. Discusses measurement of customer satisfaction and customer loyalty/lifetime value. Concludes with a discussion of benchmarking. A valuable theoretical introduction to marketing metrics for those new to the subject. Direct marketers, long accustomed to micro-measurement of campaign ef®ciencies, can learn here some wider perspectives. Research: Ref: 3306
Marketing strategy, measurement, ®nancial evaluation
274
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Practice:
***
Originality:
**
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Ef®cacy of ®nancial measures of marketing: It depends on markets and marketing strategies J. N. Sheth and A. Sharma THEORETICAL. Journal of Targeting, Measurement and Analysis for Marketing (UK), Vol. 9, No. 4, p. 341 (16pp) Notes an increasing interest in the ®nancial evaluation of marketing strategies. Ascribes this in part to dot.com marketing excesses, but also to cost reductions achieved in other major areas such as manufacturing, leaving marketing in the ®ring line with something like 50 per cent of corporate costs. Holds that traditional metrics such as sales and market share re¯ect past events; looking forward requires such measures as net present value, discounted cash ¯ows and shareholder value creation. Emphasises the dif®culty of measuring marketing returns, and notes that research has focused on inputs rather than outcomes. Outlines a matrix which divides markets into service, product and knowledge markets, and marketing into customer-centric, segment-centric and product/brandcentric marketing; characterises each of these nine cells. Looks at the ®nancial evaluation measures that can be accurately collected in each case. Predicts that marketing will continue to move towards customer-
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Abstracts centricity and towards better, more forward-looking ®nancial evaluation measures. Quite a sound foray into an increasingly fashionable arena. Unfortunately the writing is extremely dull. Research: Ref: 3307
CRM, measurement, database
**
Practice:
**
Originality:
**
Readability:
*
Integrating customer data into customer relationship management strategy: An empirical study J. Abbott, M. Stone and F. Buttle SURVEY. Journal of Database Marketing (UK), Vol. 8, No. 4, p. 289 (12pp) After a lengthy literature review, poses the question of the extent to which companies collect and use customer data for implementation of CRM strategies. Describes an e-mail survey with 40 respondents Ð two-thirds of them from IT, but otherwise covering a wide range of marketing enterprise. Details areas of responsibility of the marketing departments surveyed, and types of campaign conducted. Considers that most marketers surveyed still focus on brand, rather than customer, management. Looks at marketing budgets, targets and metrics employed; lists metrics, in order of frequency, as sales, lead generation, expense/ revenue ratio, customer loyalty, lifetime value, improved share of customer spend; concludes metrics appropriate for CRM have some way to go. Looks at possession and use of databases; notes frequent lack of trust in data quality. Finds the link between marketing and product development is often weak; the link with customers is weaker still. As a corrective to purely theoretical studies of CRM, this throws an interesting light on the imperfect real world, although the study is curiously skewed to IT companies (and the literature review is dead boring). Research: Ref: 3308
Internet, CRM, marketing, customer service
***
Practice:
**
Originality:
*
Readability:
***
eCRM: Measuring the effectiveness of Web channels W. Hewson and F. Coles SURVEY. Journal of Targeting, Measurement and Analysis for Marketing (UK), Vol. 9, No. 4, p. 370 (18pp) Publishes details of the third quarterly Sistrum survey into online customer service in the UK; provides `damning evidence' of ineffectiveness of money spent on online activity. Survey sent e-mails to 187 major UK companies in May 2000, covering contract hire, business travel, PCs and printers, ISPs, business schools, ®nance houses, adult entertainment, branded clothes, consumer electronics, food, cosmetics, automotive industries. Gives samples of questions asked of each category, and tables for each of responses received by time-span, and by fullness of
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Abstracts answers. Records that the sector least awful at responding appropriately was adult entertainment; overall only 8 per cent of companies provided an effective timely response, and 41 per cent failed to respond at all. Notes Internet marketing costs of up to £46 per £1 gross pro®t earned. Concludes by wondering whether overseas competitors are wasting as much money on the Web as UK companies. Speaking as a constantly frustrated would-be Internet customer, I ®nd this all too familiar. Have you approached your own company website as a potential customer? Try it if you dare; ask a question, order a brochure, and see what, if anything, happens.
***** Practice: **** Originality: *** Readability: ***
Research: Ref: 3309
CRM, lifetime value, decision analytics, data mining, customer modelling, data warehouse
Techniques for customer modelling in CRM P. Furness THEORETICAL, WITH EXAMPLES. Journal of Financial Services Marketing (UK), Vol. 5, No. 4, p. 293 (15pp) De®nes CRM as a process for increasing the lifetime value of customers. Gives a diagram of the CRM process; centres on the place in this process of decision analytics Ð including customer modelling, treatment strategy design, process modelling, experimental design, distribution modelling and forecasting analysis, but focusing on customer modelling Ð a term de®ned as synonymous with data mining. De®nes three types of customer modelling: predictive (to estimate future customer behaviour), descriptive (to understand customers Ð eg by segmentation) and statistical. Describes a typical ®nancial customer life cycle. Gives examples of the use of predictive modelling for both response and risk assessment, and refers to its use in relation to lifetime value assessment. Emphasises the importance of a data warehouse. Outlines the techniques available for customer modelling (linear and logistic regression, decision trees, neural nets, fuzzy logic, Bayesian networks). Notes the various proprietary datamining toolkits. Discusses the deployment of customer models via decision engines or campaign management systems, and lists the proprietary sources of these too. Gives some (very brief) case studies. Notes issues of data protection and skill scarcity in an increasingly complex environment. This article begins with a beautifully clear description of the concept and uses of customer modelling. The second half seems to assume a universal need for fairly massive CRM software, which very few companies are, or are likely to be, equipped to handle. Research: Ref: 3310
276
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Originality:
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Abstracts
CRM, segmentation
Segmentation by behaviour Ð New approaches to managing customer relationships M. Brewer and B. Richards THEORETICAL. International Journal of Customer Relationship Management (UK), Vol. 4, No. 1, p. 47 (5pp) Claims that one-to-one marketing is achievable only by small businesses, and is not desirable for most people; therefore segmentation is the real challenge of CRM. Notes the increasing number of segmentation bases and methods. Suggests a new approach based on a values and anxieties structure. Explains that a product/service has up to three types of value Ð practical (meeting customers' needs), social and emotional. Distinguishes two types of anxiety Ð coping (can I cope properly?) and status. Draws matrix to illustrate how different characteristics of a credit card offer display each value, and cater to each anxiety. Gives a second example of segmenting customers from the mortgage market, and indicates the values and anxieties appropriate to ®rst-time buyers and to remortgagers. Concludes that it will become increasingly common to dig deeper into the drivers of individual behaviour, and that this is one example of such an approach. An interesting new look at the inescapable problem of segmentation. Research: Ref: 3311
MOSAIC, FIZZ, ®nancial services, segmentation, classi®cation
*
Practice:
**
Originality:
***
Readability:
***
MOSAIC: From an area classi®cation system to an individual classi®cation M. Farr and R. Webber DEVELOPMENTAL. Journal of Targeting, Measurement and Analysis for Marketing (UK), Vol. 10, No. 1, p. 55 (11pp) Considers the possibility of combining area-level data (using the MOSAIC postcode classi®cation system) with data held at an individual level to produce a classi®cation usable at individual and household level. Details the background of area classi®cation systems. Discusses three approaches to personal-level classi®cation: the use of the sample of anonymised data from the Census; the use of lifestyle data (which the authors ®nd an unpromising approach); and the use of near-universal publicly available data (on the electoral register, the postal address ®le, at Companies' House and on the Shareholders' Register). Notes the incidence of persons not on the electoral register, which might be a problem when using this methodology for government purposes. Describes in detail the methodology used, in pursuit of this third approach, to build a classi®cation of persons for, in particular, the ®nancial services industry. Comments on the usage already achieved for the resultant `FIZZ' system, within and without ®nancial services, and its potential in particular for government targeting of socially deprived (in one way or another) areas. Comments on the system's strengths and weaknesses vis-aÁ-vis MOSAIC, claiming that it is a far superior tool for
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Abstracts reaching groups at the top and bottom ends of the income distribution, albeit somewhat uni-dimensional. What a pleasure to read an article that is a meticulous report of thoughtprovoking original work: this should be the rule not the exception. Nonstatisticians may ®nd the methodological passage hard; skim, and persevere with the closing parts. Research: Ref: 3312
Marketing strategy, Internet, segmentation, banners, branding
*****Practice: ****Originality: *****Readability: ***
Developing a marketing strategy for global online customer management D. P. Kothari, S. K. Jain, A. Khurana and A. Saxena THEORETICAL. International Journal of Customer Relationship Management (UK), Vol. 4, No. 1, p. 53 (5pp) Proposes that consumers use the Web in very diverse ways Ð more so than with other channels. Suggests a segmentation of four user types based on a level of brand knowledge (low/high) and whether the user is seeking something speci®c or sur®ng. This segmentation gives four groups: the expert (knowledgeable and seeking), the wanderer (neither), the adventurer (knowledgeable but sur®ng) and the investigator (not knowledgeable but seeking). Suggests strategies in Web design to meet each type. Considers strategies to bring visitors to a website Ð branding, banners, af®liates, direct marketing (including fax, direct mail and email) and online promotion. Emphasises there is no right set of business technologies for everyone, but that the essence lies in building relationships with customers, suppliers and employees. A formidable array of authors for such a slight piece Ð but the emphasis on understanding the nature and motivations of your particular customers is well justi®ed. Research: Ref 3313
Internet, advertising, banners, clickthrough, brand awareness
278
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Web marketing shows a measure of its value S. Payton JOURNALISTIC. Net Pro®t (UK), Issue No. 56, August 2001, p. 12 (2pp) Notes that the early optimism about Web advertising has turned to cynicism. Suggests both reactions are overdone. Lists three categories of Web advertising Ð banners, branded sites and e-mail. Notes the virtual abandonment of click-through as the sole measure of banner effectiveness, but suggests that it is still one valid statistic, beside which should be placed assessment of indirect response and of effect on brand awareness. Notes the use of online surveys to measure brand awareness. Lists factors favouring e-mail over direct mail (cost, speed, response rates) but notes use of text-only software (by over half of e-mail
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Abstracts recipients) makes tracking of response very dif®cult. Suggests use of market research. A clearly written round-up of the current accepted wisdom Ð some of which is wrong: the cost and response comparisons between e-mail and direct mail are fatuous. Research: Ref: 3314
Brands, Internet, awareness, trust, customer promise
*
Practice:
**
Originality:
*
Readability:
***
Branding matters more on the Internet H. Rubinstein and C. Grif®ths THEORETICAL, WITH EXAMPLES. Journal of Brand Management (UK), Vol. 8, No. 6, p. 394 (11pp) Illustrates the brand value of a number of global brands as a percentage of their companies' market capitalisation. Notes that there are 7.5 million websites, but that 81 per cent of consumers will not buy online. Claims that brands help people make choices through familiarity and trust. Finds that most dot.coms have not gone beyond spending to achieve awareness: a well-recognised name is not the same as a strong brand, which must include trust and ability to deliver on its promise. Holds that the online process is much more transparent. Enunciates three basic principles: have a sound economic base and a clear customer promise; understand and know your customers Ð organise round their needs, not around the technology; decide on the role you want for the Internet (an additional channel, or consolidation of your supply chain, or reinvention of the company). Elaborates on each rule and illustrates with positive and negative examples. Offers four factors for online brand success: deliver a consistent brand experience; integrate all brand expressions; establish brand awareness; measure every new initiative. Elaborates on each factor, again with positive and negative examples. Recommends `call-me' buttons. Insists that successful communication is customer initiated. Notes that 84 per cent of websites do not follow up online customers, and 75 per cent do not recognise repeat customers. Easy to read; no startling new insights, but some interesting nuggets of information and examples. Research: Ref: 3315
Banking, segmentation, decision making
**
Practice:
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Originality:
*
Readability:
****
Effective communication to your chosen segments Ð A case study A. Lowe CASE STUDY. Journal of Financial Services Marketing (UK), Vol. 5, No. 4, p. 319 (7pp) Based on the efforts of Fleming Premier Banking (a retail telephone bank) to create a coordinated marketing mix to improve the results of its marketing spend. Outlines the bank's positioning. Describes its approach to segmentation via focus groups, questionnaires and TGI cluster analysis
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Abstracts to provide two target markets of between 1 million and 2 million each. Describes a two-day marketing conference for senior management plus agency personnel, its mode of procedure and decision making. Indicates use of media including speci®c publications and direct mail. Discusses careful approach to the Internet, and use of sponsorship. Emphasises the need to work as a cohesive unit, internally and externally. Indicates resulting substantial upturn in business, plus much-improved awareness. At last Ð an article on targeted marketing that uses the word `database' only once, and `CRM' or `data mining' not at all. An all-too-short account of a common-sense approach to the fundamental problem of human relationships. Research: Ref: 3316
Banks, channels, integration, Etypes, ChannelChoice
*
Practice:
***
Originality:
*
Readability:
****
Strategic integration of customers and channels C. Kimber THEORETICAL. Journal of Financial Services Marketing (UK), Vol. 5, No. 4, p. 332 (5pp) Notes the 7 3 24 3 anywhere mind-set of banking customers. Claims banks are particularly well placed to adopt new channels, since they are heavy IT spenders, have integrated new technologies, and have no physical product to deliver. Claims banks `lead the market in . . . sophisticated customer analysis techniques'. Notes that banks must understand who wishes to use these channels and how use will grow. Introduces two new tools (from CACI) to aid ®nancial services organisations in quantifying new channel take-up Ð Etypes and ChannelChoice. Discusses the need to determine changes required to existing networks, given that channel usage will differ not only by user but by product. Ends with a plea for full channel integration, and quotes the experience of three major US companies (now also setting up in the UK) who have recognised this need. Rather slight, and the two new tools are not terribly well explained. Some might be surprised to hear about banks' leadership in customer analysis Ð but such quibbles apart, the arguments are sound and not uninteresting. Research: Ref: 3317
**
Practice:
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**
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The superef®cient company M. Hammer
Supply-chain integration, Internet, distribution
280
THEORETICAL, WITH EXAMPLES. Harvard Business Review (US), Vol. 79, No. 8, p. 82 (9pp) Looks at the next opportunity for companies that have spent the last decade streamlining their intra-company processes Ð namely the integration of inter-company processes. Considers the case of a chemical company which
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Abstracts spun off part of its vertically integrated production process, only to ®nd it had created inter-company barriers, resulting in duplication, delays and increased overheads. Describes the integration of information systems between the two companies that cured this problem. Insists that this supplychain integration cannot be achieved simply by a technological ®x on the Internet, but requires a change in thinking and ways of working. Gives further examples from IBM and Hewlett-Packard Ð the latter involving a multi-link supply chain, in which some of the links were large companies and some were represented by multiple small companies. Indicates that similar solutions can be applied to distribution problems Ð eg those faced by non-competing co-suppliers of the same customers Ð and gives example. Concludes by recommending four steps for `making it happen'. The theme of supply-chain integration is familiar, but the exposition and the examples given are beautifully clear. The possibilities of extension into other areas are interesting. Research: Ref: 3318
Loyalty, integrity, partnership
**
Practice:
****
Originality:
**
Readability:
*****
Lead for loyalty F. F. Reichheld JOURNALISTIC. Harvard Business Review (US), Vol. 79, No. 7, p. 76 (9pp) Claims that companies that enjoy outstanding loyalty (from employees, customers, investors) owe this to the words, deeds, decisions and practices of committed top executives who have personal integrity. Names six (US) companies as `loyalty leaders'. Offers six principles as the starting point for senior executives wishing to achieve similar status. Elaborates each principle and indicates how one or more `loyalty leaders' have implemented each. These six principles of loyalty are preach what you practice (make sure customers and employees understand the high values you espouse); play to win-win (make sure others Ð especially your employees Ð are in genuine partnership with you to serve your customers); be picky (in accepting customers and hiring staff); keep it simple (small teams work best); reward the right results (do not give worst deals to best customers); listen hard, talk straight. Describes the loyalty acid test (see www.loyaltyrules.com). Argues for the long-term superiority of ethical practice over short-term concentration on ®nancial results at all costs. A brave attempt to reconcile the pursuit of pro®t with the practice of civilised behaviour. Research: Ref: 3319
**
Practice:
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Originality:
**
Readability:
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Building relationships that work D. Girard JOURNALISTIC. Direct Marketing (US), June 2001, p. 61 (3pp)
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Abstracts Looks at various would-be loyalty drivers Ð points, discounts, newsletters etc. Opines that it is a question of horses for courses. Looks in turn at points systems, (about lock-in, not loyalty); targeted discounts/ offers (usually for short-term revenue); service bene®ts (for top customers); consumer communications (usually by direct mail, but much misused). Gives several key criteria for success in the use of each methodology Ð gives list of questions to be answered in choosing appropriate methodology.
Loyalty
A sober, sensible set of recommendations. Research: Ref: 3320
Charities, catalogue houses, direct mail, RFM, defensiveness
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Defensive responses to charitable direct mail solicitations W. D. Diamond and S. M. Noble RESEARCH. Journal of Interactive Marketing (US), Vol. 15, No. 3, p. 2 (11pp) Suggests that direct mail recipients have started to defend themselves against advertisers. Proposes that this may be more true for recipients of charitable solicitations than for recipients of catalogue mailings Ð even though both types tend to rely on RFM selection models for targeting. Suggests reasons why RFM may be an unsuitable methodology for charitable solicitations. Gives details of two studies to examine evidence of defence mechanisms against charitable solicitations. Finds that frequency of receipt correlates with defensive reactions Ð particularly in terms of keeping and checking records of previous solicitations and/or donations Ð and that this reaction is much less marked among catalogue recipients. Notes that catalogue recipients read promotion copy more thoroughly than recipients of charitable solicitations Ð including donors Ð but give less attention to evaluating the source of the material. This is avowedly an exploratory work. However, it does suggest that the tendency of charities to follow strategies originating in the commercial world may carry dangers. Research: Ref: 3321
Marketing strategy, market orientation, telecoms
282
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Implementing marketing strategy through a market orientation C. B. Dobni and G. Luffman THEORETICAL. Journal of Marketing Management (UK), Vol. 16, No. 8, p. 895 (22pp) Hypothesises that there are de®nable relationships (positive and negative) between levels of market orientation and the marketing strategies employed by high-tech companies. De®nes market orientation. De®nes 22 standardised marketing strategy elements and proposes a positive/negative link for each to degree of marketing orientation. Describes structure of a survey conducted in US telecoms industry to measure the level, in each
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Abstracts ®rm surveyed, of each strategy. Describes seven behavioural factors (derived from 61 underlying constructs) which were then measured for each ®rm and used via factor analysis to cluster ®rms into two groups representing high and low levels of market orientation. Details results of a correlation analysis between each market orientation cluster and the strategy elements described above. Finds that ten of the 22 proposed relationships are present for highly market-oriented ®rms and nine for the low group, with a total of 14 factors having signi®cance for one or both groups. Considers that this research offers a way of pro®ling a company's market orientation. Believes one can manage strategy through market orientation; managers will have to determine desired level of market orientation and encourage behaviours that manifest the desired strategy. A pretty complicated way of demonstrating the obvious Ð that those whose marketing strategies are closely related to discovering and meeting customer needs/wants are (as the de®nition implies) market oriented. Research: Ref: 3322
Marketing, collaboration, charities
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Marketing collaborations in the voluntary sector M. Abdy and J. Barclay SURVEY. International Journal of Nonpro®t and Voluntary Sector Marketing (UK), Vol. 6, No. 3, p. 215 (16pp) Compares and contrasts the status of marketing collaborations in the commercial and voluntary sectors. Considers the motivations for collaboration, and the contexts Ð short/long term; tactical/strategic; low/ high value; low/high risk; informal/formal; revenue generating/cost saving; inward/outward looking; complementary/competing; vertical/ horizontal markets; co-branded/new brand. Uses Interbrand distinction of three progressive types of collaboration (joint promotion, co-branding, marketing alliance) moving from tactical to strategic, and possibly on to merger. Notes three trends in the commercial market leading to interest in collaboration Ð globalisation, core competences and relationship marketing. Looks at different types of commercial collaboration (sales promotion, co-merchandising, data sharing, licensing, loyalty schemes), giving brief examples of each. Notes a number of instances of collaboration in the voluntary sector Ð list swapping, Swimathon, Charity Christmas Card Council and others. States that many collaborations involve a third party (sometimes an agency) as facilitator. Notes the barriers to collaboration, including the question of `ownership' of names, and also the restrictions imposed by charity law. Discusses charities' lack of understanding of brand values, and unsophisticated approach to relationship marketing. Suggests six further areas for investigation of collaborative possibilities. A well-written piece in an area little explored for either the commercial or the voluntary sector. Surprising not to have mentioned the constraints of privacy legislation Ð but well worth reading for what is there.
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Abstracts Research: Ref: 3323
Grading, LTV
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Targeting customers based on economic worth L. LiBrizzi THEORETICAL. Journal of Financial Services Marketing (UK), Vol. 5, No. 4, p. 337 (6pp) Discusses the concept of grading customers according to their economic worth, so as to be able to direct investment to the most appropriate customer relationships and to optimise limited sales and marketing resources. Points out that there is a wide variety of grading methods Ð statistical, mathematical, intuitive: the best method is the one the company will act on. Concentrates on a statistical model. First step is to calculate historical revenue, either from a weighted average, or, more rigorously, by building an actual revenue projection model; methodology is outlined, as also for the next step Ð to develop a potential value model. The third step is to combine actual projected revenue and potential revenue in a composite score, to be assigned to each customer, and from these scores to develop a ®ve-tier pyramid-shaped grading scheme, allotting one of ®ve grades to each customer. Recommends using the salesforce to correct by adding an intuitive element. Illustrates the use of this process by a contact matrix which shows method of contact, and intensity of each method, against each of ®ve grades, together with resultant costs. Emphasises that grading should be a dynamic process. Gives a brief case history of an educational marketer's use of the process. For `economic worth' read lifetime value. This is an elegant, if somewhat simplistic, run-through of an LTV calculation, together with one of its major uses. Research: Ref: 3324
Pro®ling, decision trees, gains charts
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Identifying the best customers: Descriptive, predictive and look-alike pro®ling B. Ratner THEORETICAL, WITH WORKED EXAMPLE. Journal of Targeting, Measurement and Analysis for Marketing (UK), Vol. 10, No. 1, p. 66 (13pp) Distinguishes descriptive and predictive pro®ling. Claims that the former tells a marketer how to talk to the target audience, but is misused in attempting to ®nd a target audience, for which the latter is required. Illustrates this by means of decision trees and using a worked example, in which the variables used give a descriptive view of the customers, but have no predictive value in forecasting response rates. Expands the example to show decision trees and gains charts produced by using further variables which are indicative of responsiveness, and are therefore of predictive value. Indicates that the decision-tree process can use
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Abstracts continuous, as well as categorical, variables. Concludes with a description of look-alike pro®ling as an alternative methodology when response information is not available. A simplistic Ð but useful for newcomers Ð look at decision trees; the distinction between descriptive and predictive pro®ling is valuable. Research: Ref: 3325
Internet, advertising, media, integration
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The new marketing: All media, all of the time J. Morris-Lee SURVEY. Journal of Database Marketing (UK), Vol. 8, No. 4, p. 301 (10pp) Recalls earlier predictions that the Web would replace all other advertising media; notes that advertising pages and direct mail (in the USA) are still growing, and forecast to continue growing. Suggests Americans are reading more. Looks at media credibility and the concept of relative media `heaviness'. Quotes a Graphic Arts Marketing Information Service study which reported print media as being peoplefriendly, secure, portable, durable and important. Gives table of relative advantages and disadvantages of print and electronic media. Discusses attempts at media integration via Web-to-print interface and gives speci®c example; explores the possibility of a reverse facility, directing readers of each page of print media to a speci®c Web page. Holds that all marketing communication is either `volitional' or `non-volitional'. Offers a list of 19 criteria for media selection; suggests rough-and-ready method for ranking media, based on assessment of the degree to which they meet each criterion. Some interesting thoughts on media integration, at no great depth. (For example, direct mail is said to have a high cost per thousand; this is true only if used in small quantities.) Research: Ref: 3326
Decision making
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What you don't know about making decisions D. A. Garvin and M. A. Roberto THEORETICAL. Harvard Business Review (US), Vol. 79, No. 8, p. 108 (17pp) Claims that most people regard decision making Ð incorrectly Ð as an event, whereas good decisions are reached as a process. Discriminates between two decision-making processes: advocacy, which is confrontational and leads to winners and losers, and enquiry, which is collaborative and leads to collective ownership. Analyses the response of President Kennedy's advisers to the Bay of Pigs decision (reached by advocacy) and the Cuban missile crisis (by enquiry). Introduces the `three Cs' Ð con¯ict (which can be cognitive and about ideas, which is healthy,
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Abstracts or affective, about personalities, and unhealthy); consideration (all parties to the enquiry must feel that their contributions are properly considered); and closure (reaching a decision neither too early nor too late). Accepts that whether a decision is good or bad can only be known after the event, but suggests some tests to be applied during the process: there must be multiple alternatives; assumptions must be thoroughly tested; goals must be clear; dissent and debate should be encouraged; the process must be perceived to be fair to all parties. Of course good/bad decision-making processes will not necessarily correlate perfectly, in the light of hindsight, with good/bad decisions. Still, we should hope the authors have sent this thoughtful analysis of the process to President Bush. Research: Ref: 3327
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