MARKETING MANAGEMENT DECISIONS

Marketing Management Decisions

Abstract

As firms increasingly outsource functions to focus on core competencies, access to resources from trading partners to accomplish goals becomes more important. As such, supply chain management is recognized as critical to creating and sustaining competitive advantage by integrating activities across trading partners that can produce a unique and valuable offering. This dissertation suggests the role of marketing is well positioned to oversee and manage integration of supply and demand activities that have traditionally been practiced separately both within and across firms in a supply chain.

The research fills a gap in the literature by presenting a comprehensive model of Interfirm Demand Integration (IDI) that fully explored the structures and processes involved in supply chain relationships, the antecedents to integration, and the resultant performance outcomes. Results provide prescriptive insights to development and maintenance of supply chain relationships.

A multiple method approach was used to explore the IDI phenomenon. First, a grounded theory approach was employed to gain an understanding of the mechanisms involved in integration across firms in a supply chain. To that end, depth interviews were conducted with 26 executives representing several different ndustries at different tiers in the supply chain. Qualitative data analysis resulted in development of a theoretical model and six hypotheses that were tested in the quantitative phase of the research. A survey methodology was used for data collection, and structural equation modeling was used for data analysis.

Table of Contents

Chapter One Introduction6

Introduction6

Chapter Two: Literature Review11

Marketing as Management12

Marketing Management as an Optimization Problem13

The Rise and Fall of the Strategic Planning Empire15

The Changing Role of Marketing19

The Relationship Between Marketing and Selling21

The Conflict of the Marketing Concept and Corporate Charter24

Strengthening the Managerial View of Marketing25

Models of Marketing Decisions27

Grounded Theory Methodology28

Selecting the Setting30

Dependence31

Volume of Business31

Replaceability35

Concentration37

Product Assortment38

Chapter Three: Methodology41

Research Methodology41

Informants42

Methodology43

Data Analysis45

Findings46

Cognitive Predilections47

Chapter Four: Findings and Discussion53

Findings53

Pictographic thinking53

Decision Making by Functionally Illiterate Consumers59

Decision heuristics59

Contributions, Limitations, and Further Research74

Chapter Five Conclusion76

Implications for Marketing Research and Management76

Product differentiation and new product introduction78

Avoiding product liability risks81

Managing price promotions83

Consumer loyalty programs85

References88

Chapter One Introduction

Introduction

A study of the decision making and coping of functionally illiterate consumers reveals cognitive predilections, decision heuristics and trade-offs, and coping behaviors that distinguish them from literate consumers. English-as-a-second-language and poor, literate consumers are used as comparison groups. The strong predilection for concrete reasoning and overreliance on pictographic information of functionally illiterate consumers suggest that companies should reconsider how they highlight the added benefits of new products or the differentiating aspects of existing product offerings across channels such as advertising, in-store displays, and positioning. Concrete reasoning also has strong implications for the execution and presentation of price promotions through coupons and in-store discounts, because many consumers are unable to process the information and thus avoid discounted products. Finally, the elaborate coping mechanisms identified and the loyalty that functionally illiterate consumers display toward companies that are sensitive to their literacy and numeracy deficiencies reveal a potential for loyalty programs aimed at this population that do not involve price discounts.

To be functionally literate, people must have the language and numeracy competencies required to function adequately ...