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Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 1 >
What is the Role of
in today’s Enterprises?A Cross-Cultural Comparison
Dr. Sven Tuzovic, Associate Professor
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 2 >
Introduction
Definition
Research Objectives
Literature Review
Conceptual Framework
Hypotheses
Methodology
Our Sample
Results
Findings and Conclusions
1
2
3
4
5
6
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Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 3 >
Introduction
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 4 >
The influence of marketing departments has received much
attention in both the
popular press and academic literature
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 5 >
Claim: “MARKETING has lost its
strategic role”
Sources: Murphy 2005; Sheth and Sisodia 2005
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 6 >
According to a global survey among
1,200 CEOs, 80% ranked marketers low in the
hierarchy of their organizations’ executive committees
Source: Lukovitz 2012
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 7 >
… or, even worse, CEOs did not include
them at all !
Source: Lukovitz 2012
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 8 >
And, in addition, 64% of “marketer-unhappy” CEOs have removed critical responsibilities from marketing’s traditional core functions, e.g.,
product development, pricing, etc.Source: Lukovitz 2012
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 9 >
Yet, “many statements aboutthe role of MARKETING in
modern firms remain
anecdotal and
journalistic”
Source: Verhoef and Leeflang 2009, p. 15
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 10 >
Definition
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 11 >
Terminology in the literature varies:
role power
emphasis
influence
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 12 >
We define MARKETING’s role as:
The influence of the marketing department
on a firm’s strategic decision making
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 13 >
Research Objectives
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 14 >
We investigate:the role of marketing departments
of firms headquartered in the
United States, Europe and Asia
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 15 >
We contrast:the role of marketing among
Eastern and Western (i.e., American and European) firms
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 16 >
Literature Review
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 17 >
Author(s) and Year
Research Focus Theory and Framework
Unit of Analysis, Sample Size and Country(ies)
Sectors Key Findings
Homburg et al. (1999)
Influence of the marketing department
Contingency theory, institutional theory
SBU level;n=72;USA and Germany
Consumer packaged goods, electrical equipment and machinery
External contingency factors (i.e., competitive strategies) and institutional variables (i.e., marketing background of the CEO and the type of industry) are positively related to marketing department’s influence.
Moorman and Rust (1999)
Role and value of the marketing function
Conceptual framework building on extensive literature review
SBU level;n=330;USA
B2B vs. B2C The marketing function contributes to firm performance beyond the variance explained by a firm’s market orientation.
Götz et al. (2009)
Role of marketing and sales departments
Contingency theory
SBU level;n=153;Germany
Automotive, electronics, cosmetics, food and banking
Marketing department’s power amplifies (i.e., moderates) the relationship between market orientation and firm performance.
Verhoef and Leeflang (2009)
Determinants of marketing’s influence and impact on firm performance
Conceptual framework building on literature review
Firm level;n=213;The Netherlands
B2B vs. B2C; services vs. goods
Market orientation mediates the link between a marketing department’s influence and firm performance.
Accountability and innovation are key antecedents of a marketing department’s influence.
Actual decisional influence of the marketing department is limited to segmentation, targeting and positioning, advertising, and customer relationship management.
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 18 >
Author(s) and Year
Research Focus Theory and Framework
Unit of Analysis, Sample Size and Country(ies)
Sectors Key Findings
Engelen and Brettel (2011)
Moderating effects of three national cultural dimens-ions on relation-ship between marketing department’s capabilities and Its influence
Conceptual framework based on Verhoef and Leeflang (2009)
Firm level;n=740;3 Western (Austria, Germany, USA), 3 Asian (Hong Kong, Thailand, Singapore) countries
Financial services, consumer goods, utilities, chemical,automotive, and machinery/ electronics
Accountability has no impact on the marketing department’s influence in Asian countries, contradicting previous findings for Western countries.
Innovativeness and customer connecting are positively related to the influence of the marketing department across cultural contexts.
Lee et al. (2011)
Marketing program implementation
Resource-based view, dynamic capabilities theory
SBU level;n=269;USA
Retailing Marketing program implementation has a positive direct effect on firm performance.
Merlo (2011)
Marketing department’s influence from a power perspective
Power theory
SBU level;n=122;Australia
Manufacturing Marketing subunits can strengthen their role by employing different types of power.
Market turbulence can lead to greater influence of the marketing department within the firm.
Verhoef et al. (2011)
Replication of Verhoef and Leeflang (2009)
Conceptual framework based on Verhoef and Leeflang (2009)
7 industrialized nations (USA, 5 European countries and Australia)
As in Verhoef and Leeflang (2009)
Firms in industrialized countries should have strong marketing departments.
The presence of a CEO with a marketing background is positively related to a marketing department’s influence.
Competitive strategies are not consistently related to a marketing department’s influence.
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 19 >
Common weakness of previous studies:
• Often only single-country data • Lack of cross-cultural comparison
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 20 >
Conceptual Framework
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 21 >
Marketing department’s influence
within the firm
Firmperformance
H6 (+)
Firm characteristics
Background of CEO
H2 (+)
H3 (+)
H4 (-)
H5 (+)
H1 (+)Responsibilities
Resources
Marketing departmentcharacteristics
Differentiation
Low-cost
Competitive strategy
Market Orientation
H7a (+) H7b (+)
Contextual moderators
Firm size Geographical region Organizational structure
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 22 >
Hypotheses
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 23 >
H1 The greater the marketing department’s responsibilities in a firm, the greater the department’s influence in the firm.
H2 The greater the marketing department’s level of resources in a firm, the greater the department’s influence in the firm.
H3 A differentiation strategy is related positively to a marketing department’s influence within a firm.
H4 A low-cost strategy is related negatively to a marketing department’s influence within a firm.
H5 The marketing department has a stronger influence in firms in which the CEO has a marketing background compared to firms in which the CEO does not have a marketing background.
H6 The greater the marketing department’s influence in a firm, the better the firm’s performance.
H7 The greater the marketing department’s influence in a firm, the higher its market orientation, which in turn improves firm performance.
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 24 >
Methodology
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 25 >
• Online survey
• Pre-tested with MBAs
• 7-point Likert scales, anchored by 1 = strongly disagree and 7 = strongly agree
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 26 >
• Emails sent to approximately 2,930 MBA / EMBA alumni in USA, Europe and Asia
• 580 individuals participated (response rate of 19.8%)
• Final sample: n = 312(We excluded respondents who did not complete the entire survey as well as few respondents from Africa and Australia)
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 27 >
Measures:• Adopted from existing literature• Reflective scales • Formative scales for Marketing’s
responsibilities and resources• Single-item measure used to
capture background of the CEO
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 28 >
Moderators:• Geographical region • Firm size • Organization of the
marketing function
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 29 >
Our Sample
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 30 >
Industry %Advertising/PR/Comm. 2.5Automotive 2.5Construction 1.5Consulting 7.7Consumer packaged goods 4.3Financial services 9.9Healthcare/Pharmaceutical/Life Science 7.7Hospitality/Tourism 5.9Manufacturing 8.0Marine & Shipping 0.9Oil & Gas 1.5Public Service 2.8Real Estate/Property 1.5Telecommunications/IT 10.8Other 32.2
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 31 >
Position of respondent %President/CEO 11.6Other C-level (e.g. CFO, CMO) 7.2SVP 3.4VP 10.0Director 17.2Head of Department 11.3Senior Manager 12.2Manager 13.5Other 13.5
Years of service in firm0-3 21.94-6 21.97-11 21.612-20 23.5More than 20 11.0
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 32 >
Annual revenue %< $25 million 22.9$25 million-$49 million 5.7$50 million-$99 million 4.5$100 million-$199 million 5.1$200 million-$499 million 11.1$500 million-$999 million 9.2> $1 billion 41.4
Number of employees1-499 29.4500- 999 6.51,000 – 9,999 19.810,000 – 49,999 19.250,000 – 99,999 11.8> 100,000 13.3
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 33 >
Location of firm’s headquarters %Africa/Middle East 1.9Asia 45.9Australia/Oceania 1.9Europe 26.1North America 24.2South America /
Organization of marketing functionCorporate function 43.6Business unit level 31.0Brand/product level 16.0Field offices 9.3
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 34 >
Results
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 35 >
Statistical Results
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 36 >
Results of Structural Equation Modeling
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 37 >
Multi-group Analysis – by Region
Market Orientation
Marketing department’s influence
within the firm
Firmperformance
Differentiation
Low-cost
Responsibilities
Resources
Background of CEO
.44*** | .34***
.42*** | .27**
-.08 | -.03
.01 | .23**
.10* | .10
.26** | .03
.34*** | .27** .23** | .38**
Notes:
Coefficient 1 = USA/Europe; Coefficient 2 = Asia
The path coefficient pairs in italics and underlined font are significantly different at *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001 (two-tailed)
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 38 >
Multi-group Analysis – by Company Size
Market Orientation
Marketing department’s influence
within the firm
Firmperformance
Differentiation
Low-cost
Responsibilities
Resources
Background of CEO
.46*** | .27**
.19* | .52***
-.05 | -.02
.09 | .08
.14* | .08*
.16* | .14
.29*** | .34*** .28** | .33***
Notes:
Coefficient 1 = Small firms; Coefficient 2 = Large firms
The path coefficient pairs in italics and underlined font are significantly different at *p ≤ 0.05, **p ≤ 0.01, ***p ≤ 0.001 (two-tailed)
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 39 >
Findings and Conclusions
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 40 >
Finding 1:Our study provides empirical evidence that an influential
MARKETING department has a positive influence on firm
performance both directly and indirectly via market orientation
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 41 >
Finding 2:The role of MARKETING in Western and Eastern firms is
significantly different
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 42 >
West vs. East:In the West, a marketing
department’s influence affects firm performance both directly and
indirectly (via market orientation), whereas this relationship is fully mediated among Eastern firms
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 43 >
In conclusion:
An influential marketing department
improves a firm’s
performance
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 44 >
Contact Information
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 45 >
Dr. Sven TuzovicAssociate Professor
Email: [email protected]
LinkedIn: www.linkedin.com/in/drstuz
ResearchGate: www.researchgate.net/profile/Sven_Tuzovic
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 46 >
Citation:
Jochen Wirtz, Sven Tuzovic, Volker Kuppelwieser (2014)
“The role of marketing in today’s enterprises”
Journal of Service Management
Vol. 25, No. 2, pp. 171-194
Research Study: The Role of Marketing in Today’s Enterprises – A Cross-Cultural Comparison
© Dr. Sven Tuzovic │ Associate Professor │Pacific Lutheran University < 47 >
References and Image CreditsSources:Lukovitz, K. (2012), “Survey probes the ‘CEO-marketer divide’”, Marketing Daily, 15 November.Murphy, D. (2005), “The click in the bricks”, Research World, November, pp. 29-30.Sheth, J.N. and Sisodia, R.S. (2005), “A dangerous divergence: marketing and society”, Journal of Public Policy and Marketing, Vol. 24 No. 1,
pp. 160-162.Verhoef, P.C., Leeflang, P.S.H., Reiner, J., Natter, M., Baker, W., Grinstein, A., Gustafsson, A., Morrison, P. and Saunders, J. (2011),
“A cross-national investigation into the marketing department’s influence within the firm: toward initial empirical generalizations”, Journal of International Marketing, Vol. 19 No. 3, pp. 59-86.
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