Marketing Theory

Finally, a baby step forward with this not so interesting subject (from my perspective)... I managed to read most of the materials, constructed my essay objectives, and now.... to fill in the 10 page contents. If any one has any good tips, good articles about the following topics... PLEASE HELP!!!!

''The main purpose of this essay is to help me to understand the nature and perspectives of the different theoretical discussions, how they influence the researcher’s choice when conducting a research. In this paper I will compare the various research processes, the respective outcome when applying these different theoretical approaches and why different choices influence the process.''

Pohjavaara School Ski Competition 2012

Well, these two days I have not been studying much because of all the children's activities. Last Thurs evening, we went to watch kids SISU competition in school. It was quite fun and entertaining... here is a short video clip to add to my collections :D http://youtu.be/bhZpcjlN2DA

Ski Championship Finale 2012

After three ski competitions, finally, kids' ski championship came to an end today. B tried but did not manage to squeeze into top 3, but J ended up 2nd today and also 2nd in the entire Championship. Well done and bravo!

Here is the short clip of great memories!
http://www.youtube.com/watch?v=1mI5rZHM6lY

OLD fashioned professors

Had a call with an old fashioned professor this morning. It was quite an experience after not having to deal with  professors for over 10 years!

First experience 20 years ago, with old Australian professors, who used no technology except projector slides and old textbooks.

Second experience was with British old professors, who again uses no technology except projector slides and newer textbooks.

Now, third experience 20 years after my bachelor degree, in digital age and information century, with old Finnish professors, who to my greatest surprise, uses NO TECHNOLOGY - use printed handouts which we must PURCHASE, prefer face to face meetings instead of email discussions, uses textbooks that are 10 to 20 years old, and need hard copy assignments by POSTAL mail!

OH MY GOD! I am living backwards!

Face-off Day!

Wow, heavenly! I had my very first face spa today! First ever after living in Finland for 5 years :P  These used to be my monthly ritual in Asia, but in Finland, it was quite challenging when I do not have the language skills nor ability to find out more about the treatment, products etc. This treat was from my lovely mother in law, and so now, I could go for more treatments in future :D HAPPY!

Fishing Under Ice - Must See!

This is so COOL and CREATIVE, filmed in Vaala Finland... enjoy!

http://www.youtube.com/watch?v=VIs00QjiJZQ

Kid's Ski Competition

Kids have a mini competition in school today. B was the only participants for his age group, and J turned out to be second in her age group. Anyway, the most important thing is, they both had lots of fun, took away some nice prizes and played with their friends. As for us, the parents - we manage to catch up with one another, which is rare occasion :D Well done kids!

Ave Maria by Schubert sang by Mirusia Louwerse

A friend sent me an interesting email this morning....

**********************

Ave Maria by Schubert
             *The violinist and conductor André Rieu received a message
             from a Dutch lady that her niece Mirusia Louwerse, of
             Dutch parents, born, raised, and residing in
             **Australia**(1985), looked like an angel and sang like
             one.
             *At first he did not believe much, but the lady was so
             insistent that he, a little reluctantly, agreed to an
             audition. *
             *He was captivated, and in 2008 She was invited to this
             presentation live where they filmed their interpretation
             of Ave Maria by Schubert.*

http://www.youtube.com/watch_popup?v=TkY9HtwXNU8&vq=medium

Father-in-law in hospital!

FIL hospitalized himself when he noticed his heart beat is getting very irregular and causing very visible discomfort when he was driving. However, after spending two days in hospital, he did not feel any improvements, and he was not satisfied with the doctor who is responsible for his case. He was annoyed that the doctor was not attentive to his questions, and was not providing clear explanations. Although he has requested to move to another hospital, however, the same doctor has declined his request... so, hopefully, there is nothing serious with his heart, and he is on his road to recovery. Pray hard!

Staff Day

We had the bi-annual staff day today. The event took place at the Sport school in Vuokatti, a nice ski resort area. The intend of the event was great. We had some updates about the National strategies and school's strategies in the next 5 years, an update of how we did to date, etc. We have some staff, students to present which is a new 'format'. However, what I felt was lacking was the 'team building' part. Although, some activities were organized, but they are not exactly 'team sport', nor activities that can further strengthen the relationships between workmates. After a shortwhile, I decided it is not worth staying. It is better to take leave home earlier to study or do something more meaningful. So, overall, I think it was not a well organized event for the amount of money spent.

19 credits DONE!

So happy that I cleared 16 of 50 credits in 2 months! Must keep up the pace! For now, I shall pamper myself with a little retreat on Friday! Waiting eagerly!

Tandoori Chicken and Bryanni

After few attempts, finally... SUCCESS! A perfect treat after skiing :D

Another ski picnic!

Another short ski for 10km before snow and wind came.... This time we ski towards Kajaani (west) and the headwind was quite strong. However, on our way back, the wind was behind us, the effort was much lesser :D (Video: http://youtu.be/NhwDtsza3Kk)

  

Swans arrived from 'Africa'!

First sign of Spring, migrating swans have arrived from Africa!!

Marketing Theories #6

Summary #6

Metatheory                                                                                    
Definition P29
Bartels (1970) – To understand to pertain to the requirements of theory formulation, with particular reference to the structure of thought and to utilization of language for the communication of meaning.

Zaltman et al (1973) – Careful appraisal of the methodology of science and the philosophical issues involved in the conduct of science. This is the investigation, analysis and the description of technology of building theory, the theory itself and the utilization of theory.  

Authors have chosen three distinct categories with two criteria:

1.      Syntax P 30 – Structure (i.e. whether the theoretical concepts are properly defined and integrated to form a strong nomological network; ability to grouped in a logical way, grouped to form hypotheses, and related hypotheses grouped to form theories; Bartell 1970 – Subject identification and unity) and Specification (Relationships among the theoretical concepts must be specified in a manner to clearly delimit the hypotheses/ Bartell 1970 – ‘interconcept relationship’). A good theory must be structurally sound with a precise organizational pattern.

2.      Semantics P31 – Testability (i.e. precise and direct operational definitions that can be tested by other scholars without having to worry that they will be misinterpreted) and Empirical support (i.e. evaluates the degree of confirming evidence that has been gathered to support the theory’s hypotheses). Must be clear, precise and complete in our description of what constitutes a relevant observation and how to interpret such observation so as to test the theory (Halbert 1964).

3.      Pragmatics P32 – Richness (i.e. ask how comprehensive and generalizable the theory is. A theory is more useful if it covers a large spectrum of problems, situations typically encountered. Bartels (1970) – Generality of relationships – suitability to explanation of experience on a broader scale.) and Simplicity (it evaluates the communication and implementation potential of the theory). Questioned the relevance of the theory to the ‘users’ – marketing practitioners.

Marketing Theories #5

Summary #5

Marketing School of Thoughts                                                                              

1. Non-interactive

Balance of power, in which one party in the marketing process (usually the producers), was portrayed as an action agent who has impact on the behavior of buyers in the market place. In 1960s and 70s, the positions were reversed and focused on the consumer as the primary party of importance and action in the marketing process.

Conclusion

Persuasion or selling (buying) becomes the primary focus in this study.

2. Interactive

Forces the theorist to think of reactions to a marketing activity by one party and counter-reactions by the other party.

Banoma, Bagozzi and Zaltman (1978) summarized the distinction between the interactive (dyadic) vis Noninteractive (unit) perspective, P21:

1.      Behavior cannot be explained independently of the context

2.      To reduce explanations into constructs which violate the structure of interaction will cause confusion

3.      Adopt social perspective for marketing analysis

Four main variables (P21):

1.      Relational variables – nature of connections between the actors in the dyad

2.      Social structural variables – Conditions of the situation the dyad occurs and social positions the dyad occupy

3.      Social actor variables – Characteristics of individuals contribute or hinder the dyad relationship

4.      Normative variables – regarding how people ought to behave.

Conclusion:

Interactive perspective of marketing thought is more concerned with the interdependent relationship between marketing actors. Exchange or relationship becomes the focus of study.

3. Economic P22

Actions of marketing actors were considered to be driven by economic values

·         Marketing system objective was to fulfill basic consumer needs in the most efficient ways to max. profits by the producers, channel members and consumers

Conclusion

·         Narrow perspective about buyers and sellers’ behavior

·         Tends to be normative

·         Relates back to the origins of marketing as a subdiscipline of economics assoiated with a distinct domain of human behavior.

4. Non-economic P22

·         Focus on the social and psychological factors that may influence the behavior of marketing actors

1.      Producers strive for long term stability and survival

2.      Distribution channel structure is the result of the interplay between power, conflict and channel norms

3.      Consumer behavior is the result of complex psychological motivations and pervasive social pressures

Conclusion

·         Tends to be descriptive

·         Basic philosophies of human motivation and human behavior is the key values and orientation

Marketing Theories #4

Summary #4

Is Marketing a Science or, at Best, a Standardised Art?

Hutchinson (1952) – firmly believe this is an art or practice thus difficult to develop a unique body of theory. P13

Bartels (1951), Buzzell (1963) and Hunt (1976b) examined how well marketing meet the scientific requirements.

Bartels (1951): P13

1.      Must be establishment of general laws or broad principles

2.      Should be of social import

3.      Extension of knowledge as well as guiding administrative means toward profitable ends

4.      Abstraction as well as concrete facts

Buzell (1963): P13

1.      A classified and systemized body of knowledge

2.      Organized around one or more central theories and a number of general principles

3.      Usually in quantitative terms

4.      Permits prediction or control future events

Hunt (1976b): P14

1.      Described and classified real world

2.      Presume underlying uniformities and regularities interrelating the subject matter

3.      Adopt intersubjectively certifiable procedures for studying the subject matter

Anderson (1983): P14

… Positivism’s reliance on empirical testing as the sole means of theory justification cannot be maintained as a viable description of the scientific process or as a normative prescription for the conduct of scientific activities.

Peter and Olson (1983): P14

…. Main task of science is to create useful knowledge. Marketing scholars… to create new conceptual schemes and perspectives…. outdated rules of the Positivistic / Empiricist approach that focuses only on testing theories we already have….

Bagozzi (1984) summarized the structural aspects of theory construction:

·         Logical empiricist model (the Received View), Operational oriented approach – realist theory of science(Holistic Construal),  Criticism and constructivism (Arndt 1985), Relativism (Anderson 1983, 1986, Peter & Olson 1983), Humanish (Hirschman 1986)

·         Comparative approach vs. traditional confirmatory approaches

Marketing Theories #3

Summary #3

What is, or Should Be, the Proper Domain of Marketing Theory?

This part touches the ‘boundaries of marketing’.

Kotler and Levy (1969) argued that every organization is involved in marketing whether or not these activities are recognized as involved in marketing whether or not these activities are recognized as such.

Kotler (1972a, p49) presented a generic concept of marketing, ‘Marketing is specifically concerned with how transactions are created, stimulated, facilitated, and valued.’ He attempted to focused on the importance of transaction where core concept of marketing is the transaction and there is an exchange of values between two parties. He argued that, a transaction can occur between any two parties – Pg 8.

Tucker (1974) presented the unresolved problems, ‘ The crux of the issue is this: is the identity of marketing determined by the subject matter dealt with or by the technology with which the subject is handled? Specifically, is marketing the application of certain functions, activities or techniques to the dissemination of economic goods and services, including the satisfaction they provide? Or is it the application of those techniques to the dissemination of any ideas, programs or causes – noneconomic as well as business’ (pp 74-75)

THREE questions with theoretical implications:

1. Is Service Marketing different from product marketing?

Uhl and Upah (1983) concluded 4 areas of differences:

a.      Tangibility

b.      Ability to stored (perishability)

c.       Ability to transport

d.      Ability to mass market

‘A service is any task (work) performed by another or the provision of any facility, product, or activity for another’s use and not ownership, which arises from an exchange transaction. It is intangible and incapable of being stored or transported. There may be an accompanying sale of a product (p. 236)’

Enis (1979) and Enis and Roering (1981) argued that goods and services share many common characteristics and that marketing of goods and marketing of services may appropriately call for similar strategies.

Zeithaml, Parasuraman and Berry (1985) identified some unique characteristics of services (intangibility, perishability, heterogeneity, inseparability of consumption and production). They also pointed out that differences exist among services as well as between services and goods. 

2. Is there a difference between consumer goods marketing and industrial goods marketing?

Fundamental differences between industrial and consumer marketing – Journal of Marketing:

‘Rational buying motives appear to predominate in the industrial field but their influence declines with the increase in product similarity. (p. 153)

Multiple-buying responsibility is common place in the industrial field in the purchase of major items of equipment and in the establishment of formulas for purchases of raw materials and component parts (p. 154)

The channels of distribution for industrial goods are likely to be shorter than channels for consumer goods. There are fewer middlemen in the industrial chain and a much larger percentage of industrial goods is sold direct to the buyer in industrial marketing than the percentage sold direct to the consumer in consumer marketing (p. 155)

Sheth (1979a) argued that there are greater variations in marketing methods within industrial marketing and consumer marketing than there is between these two types of marketing. E.g. house require direct marketing techniques while some industrial goods like solvent and lubricants may be mass-marketed. – p. 11 

3. Are domestic marketing and international marketing similar or dissimilar?

Advocates for standardization

·         Fatt in 1967 – some consumer needs are universal e.g. desire to be beautiful (p. 11)

·         Buzzell (1968) – obstacles and also tangible benefits to apply common marketing policies in different countries

·         Levitt (1983) – emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude

Advocates for adaptation

·         Kotler (1986a) and Wind (1986) – diametrically opposed to Levitt’s hypothesis

·         Sheth (1986) suggests a contingency framework that identifies situations where standardization will be successful and other situations where customization is necessary

·         Dholakia, Firat and Bagiozzi (1980 – presented five points for discussion (p.25) – pg 12

o   Marketing concepts are a product of, and contextually bound to the American industrial system

o   This fact limits the spatial and temporal validity of marketing concepts

o   The context boundedness inhibits the emergence of a suniversal conception of the nature and scope of marketing

o   Specific biases and barriers are created in terms of theoretical development in the field

o   Efforts are needed to de-conceptualize, re-conceptualize and thereby universalize the analytical categories of marketing.

Conclusion:
When a scholar proposes a new theory, he or she must explicitly explain the domain to which this theory is relevant. Is it applicable to for-profit marketing, nonprofit marketing, social marketing, industrial goods marketing, or international marketing? P13

Marketing Theories #2

Summary #2

What is, or Should Be, the Relationship Between Marketing and Society?

·         This concerned for marketing’s impact on the environment. There are criticism that marketing has been poorly utilize the scarce environmental resources and alleged disregard for public welfare. (Globe and Shaw 1975, Sethi 1979, Kangun 1974) – Pg 5

·         Three issues were focused on (Zikmund and Stanton, 1971) – Pg 5:

1.      Process of extracting resources from the environment to use in creation of products, marketing placed a burden on some non-renewable resources such as petroleum, also the lost of recreation utility due to heavy use of forestry resources also caused criticism.

2.      Direct impact to environmental quality resulted from use of products by consumers has caused criticism to marketing

3.      Disposal of many products impair / strain the environment

·    CONCLUSION: Marketing was criticized for indirectly for environmental issues resulted from heavy extraction of non-renewable resources, disposal of products or lost of recreation utilities as a result of forestry to produce goods.

·         Other environmental issues (Crosby and Taylor 1982) – Pg 6:

1.      Excessive packaging makes waste collection more difficult and costly

2.      Nonreturnable cans and bottles encouraged consumers to litter

3.      Waterways becoming increasingly polluted, tainted by runoff from garbage disposal sites

·         Upton Sinclair 1906 – raised potential harmful effects of product consumption – deplorable sanitary conditions in meat packing industry. Only in 1960s, product safety issue became a paramount issue – Pg 6

1.      1962 Thalidomide used by pregnant women caused birth defects

2.      1965 GM’s Corvair was inherently dangerous to drive – Unsafe at Any Speed by Ralph Nader

·         Marketing discipline refined its focus to concentrate on marketing’s overall treatment of specific groups of consumers (Pg 6):

1.      Elderly consumer – How marketing should respond positively to these changes (e.g.Phillips and Sternthal 1977, Schewe 1985, French et al 1983)

2.      Young consumer – Marketings’ relationship with children as consumers, esp. persuasive effects of TV Ads (e.g.McNeal 1987, FTC Staff Report on TV Ads to Children 1978, Popper and Ward 1980)

3.      Ethnic minorities – Blacks, Hispanics who spend large amounts in consumer goods market – critics have questioned marketing treatment of these prominent minority groups (e.g. Andreasen 1982, Sturdivant 1968)

4.      Foreign consumer – Marketers under attack for supposedly taking advantage of consumers in less developed countries when marketing becomes more global in perspective (e.g. Nestle’s promotion of infant foruma, Post 1985)

·         Increasing interest in consumer complaining behavior (Czepiel, Rosenberg and Suprenant 1980, Day and Landon 1977). Negative word-of-mouth by dissatisfied consumers (Richins 1983). Appropriate managerial responses to consumer complaints (Resnik and Harmon 1983) – Pg7

·         Another aspect of interest – governmental regulations, governmental scrutiny, product liability issues (Morgan 1982) and advertising regulation (Dunn 1981) – Pg 7

·         Emergence of the MACROMARKETING THOUGHT. Basically analyzes the impacts and consequences of interactions between marketing system and social systems .– Pg 7

CONCLUSION:

Marketing should NOT be blame for its impact on society? (Levitt 1958) or New theoretical foundations needed to help marketing cope with the social consequences of its functions?

Marketers must join forces with consumer advocates and public policymakers to forge new visions or marketing’s responsibility to society and society’s responsibility to marketing. So, stronger theories needed to address this difficult issue. Pg 7