Content area
Abstracts featured in this final section include: the development of brands over three significant time phases; the implications for marketing communications of the changing nature of business and consumer environments; and the importance of brands in determining the formulation of company strategy.
Brand growth and "phase 4 marketing" A.K. Sylvester, J. McQueen, S.D. Moore Admap (UK), Sep 94 (29/9): p. 34 (3 pages)
Examines the development of brands over three significant time phases: the period 1950-65, including the advent of TV and the growth of consumer businesses; 1965-80, highlighting the focus on improved product quality, logistics of shelf stocking and the development of brand image; and 198094, a push/pull era with a shifting balance between retailers and manufacturers. Predicts that phase four, 1995 onwards, will be characterized by brand customization with manufacturers focussing on one-to-one relationships.
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What brands need now J. Lumn
Admap (UK), Sep 94 (29/9): p. 38 (5 pages)
Surveys the implications for marketing communications of the changing nature of business and consumer environments, focussing on brand commitment and the proliferation of media; maintains that there has been a diffusion of manufacturers' authority and that they are now failing to exploit opportunities. Believes that brands are the linking factor in the change process that has been emerging in recent years and asks whether products are seen as brand leaders or leader brands, also questioning the significance of size compared with personality. Investigates how advertising can be made to work harder and recommends that advertising agencies should be assuming broader strategic responsibilities.
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Extending brands with new product concepts D.A. Sheinin, B.H. Schmitt
Journal of Business Research (USA), Sep (31/1): p. 1 (10 pages)
Explores the extension of brands with a new product concept rather than product category extension and presents an empirical study investigating the significance of category attribute congruity, brand effect and brand breadth. Defines extension via a new product concept, and finds that brand effect and breadth do have an impact on the effectiveness of a brand extension. Concludes that only high-effect - wide-breadth brands can manage relatively incongruous extensions. An important subject - it's just a shame that the article is relatively hard to comprehend.
Who will save the brands? P. Boutie
Communication World (USA), Aug 94 (11/7): p. 24 (6 pages
Taking the case of Philip Morris's cut in the price of Marlboro cigarettes, looks at the decline in the equity of brands, attributing much of the problem to the constant over-extension of brands, with a consequent proliferation spreading brands too thinly. In the consumer's mind, this creates knowledge of more than 5,000 brands (it says here) which complicates choice. Claims that the solution lies in catachresis (too complex to explain here, but think St Michael) and brand liking (building a positive attitude by making consumers believe that the brand or company cares for them).
Brand orientation - a strategy for survival M. Urde
Journal of Consumer Marketing (UK), Vol 11 No 3 94: p. 18 (15 pages)
Explores the importance of brands in determining the formulation of company strategy and discusses the three drivers of brand: decreasing product divergence, increasing media costs and integration of markets. Illustrates these drivers with a number of examples, including an extended case study based on Nicorette, the anti-smoking treatment; shows how the product moved from being a drug to being a brand and the company a brandoriented one. Develops a model of the fundamental relationships and concepts in a brand-oriented company, and identifies a number of criteria that are important for managers in adopting this approach. Highlights a number of useful pointers for developing brand success.
Design tools win the final showdown A. Gregory
Engineering Computers (UK), Sep 94 (13/6): p. 29 (3 pages)
Demonstrates how ACW, a Scottish injection moulding company, has taken full advantage of available prototyping and presentation technology to speed up its ability to develop new products and market them more effectively. Shows how speed, quality and the right price are achieved through innovative technology, but stresses the important role of a visionary management in the company's achievements. Outlines the development steps taken since 1988 and the likely future direction.
Supplier involvement in integrated product development L.M. Birou, S.E. Fawcett
International Journal of Physical Distribution & Logistics Management (UK), Vol 24 No 5 93: p. 4 (11 pages)
Argues that there is now less scope for competitive advantage to be derived from cost and quality, and that it is in new product development that companies are now trying to score points; discusses integrated product development (IPD), whereby the product and the manufacturing process associated with it are developed concurrently, often with the involvement of major suppliers, and presents research into the extent and nature of that involvement, considering such issues as the type of supplier staff involved, when they commit resources to IPD, the level and type of support they offer, and the interaction between buyer and supplier. Compares findings from the USA with those from Europe, noting that both have made progress down this road but that the Americans are further forward. Concludes that time must be adopted as the next source of competitive strength, leading to the promotion of IPD efforts; that European manufacturers have perhaps not yet tapped the resource offered by their supplier base; and that purchasing managers must develop working relationships with the various players in the product development process.
Flattering to deceive (lookalike products) R. Rowell
Marketing Business (UK), Sep 94 (No 33): p. 31 (1 page)
Provides a brief history of trade mark protection, stressing that in the UK it was only recently extended to service marks; lists the characteristics that must be present before an action for "passing off" can succeed. Quotes instances of lookalike products and court rulings, and refers to the recently formed British Producers and Brand Owners Group.
Paper promises (sales promotion) S. Derrick, A. Massey
Marketing Business (UK), Sep 94 (No 33): p. 37 (5 pages)
Two articles on sales promotion: the first concerns itself with gift vouchers, which may be issued by a single retailer (Marks & Spencer is the UK market leader for this type) or may be of the multi-retailer type, and there is also a travel voucher market; the swipe-card revolution is reported to be gathering speed and intelligent systems that capture purchase data are said to be most effective (the market leader here is Argos). The second article deals with customer loyalty schemes, which frequently reward the customer for collecting several tokens to receive a certain item, or offer membership (at a price) whereafter purchases may be made at a discount or at a member's price. There are choices, permutations, combinations, and these articles are hopping from one to the other, avoiding any evaluation and content to cite, quote, and report.
Strategic challenges for branding P.H. Farquhar
Marketing Management (USA): Vol 3 No 2 94: p. 8 (8 pages)
Begins with a historic perspective of the growth of products and the development of branding, reminding that branding was originally conceived as a protection against infringement and dilution; highlights the risks involved in brand bundling, particularly consumer confusion, and identifies two emerging consumer trends that will impact on branding over the next ten years: consumer pessimism and the desire for choice simplification. Explores several strategic challenges that brands must face in the coming years if they are to survive, including credit for product or service quality, and the adding of value, together with four basic branding strategies for survival: differentiation, fortification, integration, and the creation of alternative channels of distribution.
Marketing's colours: Al's Gas Town T.V. Bonoma
Marketing Management (USA): Vol 3 No 2 94: p. 17 (8 pages)
Relates experiences gained by the author when working for his father's gas station as a boy, which provided the foundation for sound marketing; defines marketing as the process of creating customer loyalty and a cycle of need satisfaction and repurchase throughout the consumer's or the product's life cycle. Analyses the criteria for market selection, highlighting the fact that in retailing this is equivalent to site selection, and investigates the critical success factors involved in gasoline retailing including the "standard" products sold; reviews the kind of incremental services that might be offered to all customers and those that could be directed at key customers.
A new dimension to financial product innovation research P.D. Morton, C. Tarrant
Marketing and Research Today (Netherlands), Aug 94 (22/3): p. 173 (8 pages)
Analyzes the methods used by the UK's Eagle Star Insurance in researching a new insurance product, identifying the various research options that were available and suitable for the achievement of the research objectives; presents details of the approach adopted based on SIMALTO techniques and indicates that innovations to the basic technique were made through the addition of realistic budgets for potential customers to use. Outlines the findings from the research that was undertaken and concludes that the enhancements made the research appear as a dynamic "game" to the participants.
Using research to help keep good customers K. Waterhouse, A. Morgan
Marketing and Research Today (Netherlands), Aug 94 (22/3): p. 181 (14 pages)
Profiles the research undertaken by Lloyds Bank in the UK aimed at developing an understanding of the customer defection process in order to create a strategy for retention; analyzes the question of customer retention in a banking context, detailing the position at Lloyds. Explores the main reasons given by customers for account closure and the influences of specific factors, and charts the second stage of the research which focussed on the testing of retention tactics in branches; outlines the further qualitative and quantitative research undertaken to develop a deeper understanding of the processes involved and reviews the ways in which retention procedures were implemented.
What distinguishes the top performing products in financial services
R. G. Cooper, C. J. Easingwood, S. Edgett, E. J. Kleinschmidt, C. Storey The Journal of Product Innovation Management (USA), Sep 94 (11/4): p. 281 (19 pages)
Asserts that the number of new product options in financial services far exceeds the capacity of firms to supply; consequently, argues that in order to avoid spreading resources too thinly and risking many failures, the financial services firm needs an effective procedure for researching the options, picking the handful of potentially great winners and managing these chosen products so that they realize their potential. From a survey of some 170 products, identifies three criteria for judging success (financial performance, customer appeal and market development) all of which are readily measurable; goes further by highlighting nine characteristics of financial products that tend to lead to success when tested against the chosen criteria; provides detailed worked examples. Summarizes the entire argument in concise recommendations for innovation policy.
Are product life cycles really getting shorter? B.L. Bayus
The Journal of Product Innovation Management (USA), Sep 94 (11/4): p. 300 (9 naves)
Questions the widely held belief that product life cycles are getting shorter, although admits that evidence to prove or disprove the thesis is inadequate for individual products; referring to others' research, conducted at higher levels those of the technology, the product category and the industry as a whole concludes that the belief is unfounded. Suggests that it gained currency from related phenomena such as shorter development times and an increasing rate of innovation; considers the implications for product profitability.
The traits of successful new service development S. Edgett
Journal of Services Marketing (UK), Vol 8 No 3 94: p. 40 (10 pages) Presents the findings of a study into the successful development of new services by UK banks and building societies. States that respondents were asked to identify one new service success and one failure, answering questions on the development activities involved; groups the identified variables into a number of different constructs. Weighs up successful and unsuccessful products against these criteria, including organizational, resource allocation, formalization, preliminary assessment and design testing, market research and market potential, business/financial analysis, project updates, market synergy and finally launch effectiveness.
Brand alliances as signals of product quality A.R. Rao, R.W. Ruekert
Sloan Management Review (USA), Autumn 94 (36/1): p. 87 (11 pages) Reviews the economic rationale for the existence of brand names and explores the phenomenon of joint branding (e.g. IBM and Intel or Bacardi and Coca-Cola); claims that joint branding may be an effective alternative to traditional brand-extension strategies, arguing that brand alliances may serve as quality signals for brands unable to establish sufficient quality on their own; considers the evaluation of a brand alliance option, using the relationship between NutraSweet and Diet Coke as an example of how to assess the alliance decision. Examines issues relating to alliance implementation, e.g. costs and buyers' sensitivity to quality. All fair enough, but this is really strategic alliance thinking with new clothes.
How intimate are your customer relations? M. Wrennall
Supermarketing (NZ), Aug 94 (9/7): p. 46 (2 pages)
Reveals that New Zealand supermarkets are failing to identify their key customers and therefore increase potential spending in their stores; considers the use of a tracking system employed to show customer spending, enabling stores to identify their best customers and establish a more personal relationship with them in order to retain their loyalty and allow more target marketing. Analyses the value of tracking systems and lists the benefits of establishing such customer information.
The cost effectiveness of sales promotion A. Marsden
Admap (UK), Oct 94 (24/10): p. 19 (3 pages)
Analyses the significance of sales promotion as an element of a brand owner's marketing mix and maintains that, as it can be one of the most costly elements, proper evaluation of its profitability needs to be considered; describes the "evaluation cycle", highlighting the difficulties encountered in the learning phase, and considering how to replan and improve the next promotion. Identifies three distinct elements of brand equity and examines the role of sales promotions in enhancing the value of the equity. Concludes by detailing ideas relating to qualitative and quantitative measurement of sales promotion effectiveness.
How to build a brand on radio D. Fletcher
Admap (UK), Oct 94 (24/10): p. 40 (4 pages)
Demonstrates how DHL International, a leading business parcels courier, used the medium of radio to build its brand and sketches the background to the campaign, posing the question "why advertise?"; examines three significant targeting issues - nature and size of customers, the purchase decision process involved and the tangibility of the service to DHL's customers' customers. Questions whether the role of DHL adds value to the total offer of the customer's business and assesses the advertising strategy utilized under three broad headings - sustained awareness maintenance, disparity of audiences targeted and local/regional targeting. Outlines the creative approaches used and the effectiveness measurement techniques employed. An interesting look at a neglected area.
Profiling technology diffusion categories J.R. Taylor, E.G. Moore, E.J. Amonsen
Journal of Business Research (USA), Oct-Nov 94 (32/2-3): p. 155 (8 pages)
Provides an empirical test of two models of technological adoption by small businesses, describing the models - a benefit-price model and a psychographic model - and testing them with exploratory research among US small business customers of Hewlett-Packard's laser printers from 1985 to 1990. Finds that benefits and price are better indicators of buyer adoption than psychographic factors. Concludes that the findings have profound implications for companies selling new technology products and flags up future conclusive research. An interesting, if rather limited, academic study with some significance for high-technology marketers.
Identifying cannibalization within product line extensions and multi-brand strategies
C.H. Mason, G.R. Milne
Journal of Business Research (USA), Oct-Nov 94 (32/2-3): p. 163 (8 pages)
Investigates the cannibalization of brands by competing brands from the same organization using the US cigarette market as a data source; presents a model derived from ecological theories regarding niches and tests this using the cigarette data. Concludes that the model has some value since it can identify products with high and low rates of cannibalization, and recommends that cannibalization analysis should be incorporated into new product development processes. A helpful, if rather academic, presentation.
Non-financial performance measures in new product development C.C. Curtis
Journal of Cost Management (USA), Autumn 94 (8/3): p. 18 (9 pages) Challenges the view that compressing manufacturing and new product development cycles will lead to better financial performance, and reports on two studies that collected data from which the author was able to model financial performance as it relates to two aggregate new product development cycles - time through R&D and idea-to-customer time. Using these models shows that a 1 per cent increase in earnings is associated with a reduction in time through R&D of 251 days and to repeat this benefit would require cutting another 251 days from the cycle! Also argues that a point exists at which further cycle compression will not only fail to add to a product's life-time earnings but also may actually lead to financial deterioration because of, for example, an inability to recover the incremental costs of acceleration through higher prices; dubs this the acceleration trap. However, presents two strategies for companies that do need to shorten new product development cycle time to stay competitive - use concurrent engineering approaches or increase the R&D/marketing interface in the early stages of product design.
From contract supplier to market leader: a case study H. Gill
Journal of Engineering Design (UK), Vol 5 No 3 94: p. 187 (8 pages) Delves into the reasons for the success of Countax, a manufacturer of accessories for the UK market leader in garden tractors, which, faced with the loss of 70 per cent of its business, transformed itself within three months into a serious challenger to the market of its previous customer. Concludes that its secrets of success were an extensive knowledge of the marketplace, a flexible manufacturing system, a pragmatic approach to make or buy decisions and, most important, a design team that continuously strives to improve on quality, make economies in manufacturing costs and meet the needs of the customer. A success story about a company that turned a potentially terminal situation into the catalyst for a change of direction.
A second look at Japanese product development R.R. Kamath, J.R. Liker
Harvard Business Review (USA), Nov-Dec (72/6): p. 154 (11 pages) Contends that many managers, worldwide, who are adopting Japanese-style management practices, such as using fewer suppliers, forging long-term relationships with them, encouraging their continuous improvement, and involving them in design and development, have an incomplete understanding of such arrangements and are thus unable to obtain their full benefits; maintains that successful partnerships depend on gaining the right balance among a supplier's technological capabilities, the customer's willingness to share information and both companies' strategic requirements. Explores four roles that suppliers can adopt - partners, mature full-system suppliers, child and contractual - each carrying different responsibilities for suppliers and customers during product development; analyses how these relationships work in practice, and offers advice to suppliers on relationships with customers hoping to develop product development alliances on the Japanese model.
MIPS - managing industrial positioning strategies H. Muhlbacher, A. Dreher, A. Gabriel-Ritter
Industrial Marketing Management (USA), Oct 94 (23/4): p. 287 (11 pages) Proposes a model of how to structure the product positioning process in industrial markets, having reviewed and discussed existing approaches including the use of segmentation as a strategic tool, competitive analysis and differentiation, noting their benefits. Shows how the model starts with an analysis of actual and potential customers, and demonstrates how it can be implemented by way of a case study of an Austrian industrial engineering and construction company.
Using knowledge-based systems for strategic market assessment M.J. Liberatore, A.C. Stylianou
Information & Management (The Netherlands), Oct 94 (27/4): p. 221 (12 pages)
Explains the need to be able to evaluate ongoing product development projects, and reviews the literature on such evaluation and selection techniques; presents a model for the development of a knowledge-based market evaluation system and demonstrates its use at Armstrong World Industries, an industry leader in flooring products. Traces the various stages from knowledge acquisition and modelling, knowledge representation and prototype development, system validation and verification, to system implementation and use, and maintenance as a result of continued learning. Reports the successful use of the system at Armstrong and concludes that its continued use is testament to the merits of the approach.
The UK in the economic world cup R.G. Humphreys, W. Shaw-Taylor
Management Accounting (UK), Sep 94 (72/8): p. 34; Oct 94 (72/9): p. 18 + Nov 94 (72/10): p. 26 (10 pages)
In response to the UK government's white paper on British competitiveness, explains the objective measures used to gauge economic performance - gross domestic product (GDP) or value added - and shows where the UK stands in the economic world tables (in the third division - or is that the "new" second division if you include the Carling Premiership?); describes the brand routes to improving economic performance, including some of the popular ideas, which, when the results are measured, may tend to be counterproductive. Illustrates how firms can maximize the direct value added by each product and the product mix they produce, and thus improve their contribution to the national score; stresses the importance of design in increasing value added. Finally suggests ways to maximize value added per employee by reducing the amount of work carried out on each task and lists some of the human resource (e.g. brainstorming), analytical (e.g. activity sampling) and numeracy (e.g. Pareto analysis) skills that can be employed to help reduce labour waste.
Innovative capabilities among Anglo-American countries S.M. Dunphy, P. Herbig
Management Decision (UK), Vol 32 No 8 94: p. 50 (7 pages)
Surveys the literature on the influence of culture on the innovative capacity of a society and examines, more specifically, the innovative differences among the Anglo-American cluster of countries - the UK, USA, Australia, New Zealand, Canada and other former British colonies. Discusses their structural differences in terms of the ease/acceptability of entrepreneurial activities, market size, and societal and business rigidity, to explain their innovative differences; looks at the implications for managers.
A clear line to the top (product launch) H. Lane Fox
Marketing (UK), 13 Oct 94: p. 28 (1 page
Traces the successful launch of the adult soft drink Caledonian Clear, by UK entrepreneur Joe Woods, relating how he developed and launched the product on a shoestring, and how he shunned traditional product launch approaches. Indicates that the product's success was achieved through competitive pricing and gaining listings in supermarket and off-licence chains. It's nice to see a small guy win in a FMCG market - a pity the case study is so brief
Brand development P. Betts
Marketing Intelligence & Planning (UK), Vol 12 No 9 94: p. 18 (6 pages) Presents the findings of a survey, based on observational research and quantitative in-store interviewing, aimed at determining the brand positioning within the wallcoverings market in the UK, with a view to aiding future brand strategy; discusses the question of what branding is, and suggests that branding has a key role to play in communicating real and perceived positive attributes. Traces the background to the wallcoverings market in the early 1990s, including past successes and recent trends, and queries whether products were seen as brands or just product names. Highlights the importance of retailer/manufacturer relationships in developing the brand and debates the value of developing the company brand.
On your mark: get set or it may go (trademarks) M.S. Lans
Marketing News (USA), 26 Sep 94 (28/20): p. 12 (1 page)
Summarizes US legislation (but presumably legislation is similar elsewhere) aimed at preventing brands and trademarks becoming generic terms and so losing their legal protection. Lists the various ways this may happen, naming many examples such as escalator, thermos, dry ice and aspirin whose trademarks are irretrievably lost in the mists of time, and Xerox, which has fought against its brand name becoming interchangeable with photocopying; gives advice on how to avoid it happening to your brand, with a useful pre-emptive checklist. An unusual subject, which shows that there is a fine line between the benefits and disadvantages of becoming a household name.
Determinants of timeliness in product development R.G. Cooper, E.J. Kleinschmidt
The Journal of Product Innovation Management (USA), Nov 94 (11/5): p. 381 (16 pages)
Takes a list of ten factors thought to promote the fast development of new products and tests them on more than a hundred new product projects in the North American and western European chemical industries; finds that project organization, predevelopment planning and market orientation were the most important drivers, followed by technical proficiency, market attractiveness, sharp product definition and the quality of the product launch. Studies relationships between timeliness and financial performance, and, in sharp contrast to the widespread belief that speed is vital for profitability, finds only a weak connection; offers practical guidelines for successfully harnessing the seven "drivers".
Factors influencing new product success and failure in small hightechnology electronics firms
C.M. Yap, W.E. Souder
The Journal of Product Innovation Management (USA), Nov 94 (11/5): p. 418 (15 pages)
Reports on a study of 12 small electronics companies in Alabama (USA), based on discussions and questionnaires relating to two successful and two unsuccessful products from each firm, aiming to identify factors that promote new product success; lists the initial set of 40 factors that were believed to have a possible influence and shows how these were covered in no less than eight questionnaires on characteristics of the firm, of the product, etc. Describes the subsequent statistical analysis and discusses the extent to which findings were consistent/inconsistent with previous studies; presents the conclusions as a set of eight "prescriptions" for such firms to improve their new product success rates.
Product replacement: strategies for simultaneous deletion and launch product
J. Saunders, D. Jobber
The Journal of Product Innovation Management (USA), Nov 94 (11/5): p. 433 (18 pages)
Considers the marketing situation in which one desires to phase out an old product as one launches a replacement and runs through 11 alternative ways of doing this, with named product examples. From a survey, tries to relate the choice of strategy to factors in the competitive environment, such as the market, the nature of the product and the competitors, but admits to difficulties in drawing conclusions; throws more light on the relationships by performing a cluster analysis that yields four major strategy alternatives (out of the original 11), but even so acknowledges that there was, in the companies surveyed, no significant difference in the success rates for the four. Suggests avenues for further research. Despite the rather inconclusive results, a wellplanned and thoughtful venture into largely unexplored territory.
The cost of customer loyalty L.Geddes
Promotions and Incentives (UK), Oct 94: p. 12 (1 page)
Argues that so-called loyalty schemes are undermining the concept of product loyalty by giving too much away to customers who would have bought anyway; claims that, although promoters know added value is central to successful loyalty schemes, the majority of in-store promotion remains either advertising or short-term offers. Proposes that giving good customers status is one way to secure long-term relationships and repeats the warning that price promotions increase promiscuity. Brief, but cogent review of loyalty schemes and promotions.
Carefully crafted identity can build brand equity G. Grossman
Public Relations Journal (USA), Oct/Nov 94 (50/8); p. 8 (4 pages)
Lists ten checkpoints for building brand equity which include listening to customers, looking at tired brands and line extensions. Emphasizes the power of design with a case study of Kmart, and assesses the value of consistency with case studies of Coca-Cola and Gillette. A short condensed article with a useful checklist.
Managing brand portfolios: how the leaders do it S. Laforet, J. Saunders
Journal of Advertising Research (USA), Sep/Oct 94 (34/5): p. 64 (13 pages) Examines the ways in which European and US firms approach branding of their products, both individually and in product groups, and reviews the literature relating to branding issues, highlighting Olins' corporate identity structures: monolithic, endorsed and branded. Describes a survey of senior marketing managers which was used in conjunction with a content analysis of brand packaging to build up a picture of brand structures, and presents the findings in terms of brand types and hierarchies, analyzing them according to corporate brand profiles and the question of brand strength versus brand usage. Outlines the possible choices for brand strategies, including corporate brands, house brands, mono brands, furtive brands and corporate-driven branding. A wide-ranging review and analysis, plenty of well-known examples and interesting ideas for development.
Towards commercial and environmental excellence: a green portfolio matrix
B.W. Lee, K. Green
Business Strategy and the Environment (UK), Autumn 94 (3/3): p. 1 (9 pages)
Examines product strategy with the aim of achieving both commercial and environmental excellence, and studies in turn the strategic approach to environmental management and the environmental approach to product strategy, using figures and models to explain the thinking. Reviews commercial concerns and develops a green portfolio matrix to investigate relationships between environmental response and commercial performance; explores in depth the four sustainable segments of the portfolio matrix, the bread and butter, nimble, leadership and pioneer strategies for commercial success alongside environmental excellence, drawing on commercial examples such as 3M and Volkswagen.
The end of the road for brand managers? R. Lewis
Direct Response (UK), Nov 94: p. 25 (2 pages)
Considers the changing role of brand managers in packaged goods companies and how the increasing use of direct marketing by these companies will further affect this role; argues that the attitudes and training of brand managers will make it difficult for them to see consumer data as a key corporate asset in the way that they see a brand as one. Claims that there is a trend for brand management hierarchies to be flattened and that this bodes well for the introduction of direct marketing. A considered and intelligent piece showing that the anti-direct marketing brigade is starting to weaken.
Assessing the innovativeness of organizations and its antecedents: Project Innovstrat
G.J. Avlonitis, A. Kouremenos, N. Tzokas
European Journal of Marketing (UK), Vol 28 No 11 94: p. 5 (24 pages) Introduces research aimed at determining the success rates and the influencing factors behind successful product innovations; discusses the critical role of technological innovation and reviews previous research. Examines existing concepts of innovativeness which are based on factors such as elapsed time of adoption, subjective measures, adoption/nonadoption and number of innovations; puts forward arguments against extant concepts, and presents the findings from a research study of alternative conceptualization and measurement of organizational innovativeness (the Project Innovstrat of the title), based on findings relating to Greek manufacturing industry. Proposes a five-factor model including technological innovation challenges, strategic innovation intentions, product innovativeness, innovativeness of core machinery and innovative leadership.
Speed to global markets: new product success in the ethical pharmaceutical industry
P.-L. Yeoh
European Journal of Marketing (UK), Vol 28 No 11 94: p. 29 (21 pages) Maintains that innovation and creativity are critical elements of a firm's new product development programme and highlights their particular significance in industries with high R&D priorities; proposes that new product efforts should be devoted to the development of new chemical entities (NCEs). Identifies five variables that are likely to influence a pharmaceutical firm's ability to develop global NCEs, namely technological familiarity, product differentiation, competitive intensity, source of technology and national origin of the firm. Puts forward a model based on these variables and discusses the implications for implementation.
Fall-out from a product flop R. Oram
Financial Times (UK), 19 Jan 95: p. 10 (1 page)
The flop of the title was Unilever's Persil Power. Its problem? It damaged products in the wash, as rival Procter & Gamble was only too keen to let consumers know. Consequently, lessons have been learned, among them - test products extensively and do not neglect the brand. And now Unilever has introduced New Generation Persil, but this against a background of confusion among consumers, branded (sic) as "sloppy washers" (poor devils who mistakenly believe one product will provide all their washing needs). Somehow the mangle wash seemed so much simpler.
Concurrent engineering: criteria for effective implementation H.J. Thamhain
Industrial Management (USA), Nov/Dec 94 (36/6): p. 29 (3 pages) Argues that, as product life cycles shorten, time-to-market has become a critical measure of corporate performance; lists the advantages of using the concept of concurrent engineering in new product development and develops criteria for its effective implementation. Identifies the conditions necessary for the effective technology transfer that is so vital for the development of crossfunctional teams, which should be in place before the project is defined. A succinct summary of the essentials of concurrent engineering.
Beyond ABC: target costing for profit enhancement J.M. Brausch
Management Accounting (USA), Nov 94 (76/5): p. 45 (5 pages)
Defines the target cost as the price customers are willing to pay for a product less the profit the manufacturer must receive for making that product, and states that target costing reverses several decades of American (Western) pricing strategy by taking into account the fact that customers do not care about manufacturers' costs, only their own. Explains how a US textile manufacturer went about implementing a target costing system which began by recognizing the differences between managerial and financial accounting, and adopting the philosophy of getting "product costs as close to actual as possible". Reports that the company has been able to reduce costs and enhance profits by implementing target costing at the product design stage, so that new product introductions must meet certain profit targets (if targets are not met, then the products are redesigned); illustrates how profits are measured.
Branding takes the credit W. Marx
Management Review (USA), Nov 94 (83/11): p. 33 (4 pages)
Charts the movement of the credit card industry into co-branding, marrying a card issuer (probably a bank) with a company in search of a boost to its market share; demonstrates that this is typically a response to the saturated credit card market and has been pursued by companies such as General Motors and Shell. Explores the marketplace for such cards in the USA and, in a separate box, gives some pointers for developing lasting customer relationships, based on those companies which are already co-branding. Predicts the growth of multiple partnerships in the industry, together with "themed" programs.
Getting every employee into the (innovation) act J. Hartlaub
Research Technology Management (USA) Nov/Dec 94 (37/6) p. 41 (5 pages)
Demonstrates how Medtronic Inc. (medical products) has attempted to involve every employee in innovation through its Quest programme, whereby every year each individual is actively encouraged to put forward new product proposals; describes the selection process for these contributions and the arrangements for the proposer's continuing involvement when and if funding is authorized. Discloses that over six years 27 of 251 proposals have received funding with very encouraging results in themselves, apart from the programme's contribution to the general innovative climate that the company is trying to foster. A formal way of bypassing the "not invented here" syndrome.
Implementing quality function deployment: a systems approach Y. Kathawala, J. Motwani
The TQM Magazine (UK), Vol 6 No 6 94: p. 31 (5 pages)
Reviews the origins of the emerging quality tool for new product development and innovation, quality function deployment, incorporating the potential benefits (chiefly that of ensuring customer input), some prerequisites and key components of the model; includes a straightforward system map of the process that may form the basis for internal communication if such a difficult technique is to be implemented. As a taster, lists some improvements in lead times, costs and other parameters claimed to be the result of QFD initiatives.
Strategic issues in product recovery management
M. Thierry, M. Salomon, J. Van Nunen, L. Van Wassenhove California Management Review (USA), Winter 95 (37/2): p. 14 (22 pages)
Defines product recovery management (PRM) as the management of all used and discarded products, components and materials that fall under the responsibility of a manufacturing company, with the objective of recovering as much as possible of their economic and ecological value, thus reducing waste - as opposed to the traditional approach of ignoring them; outlines the opportunities available to companies that succeed in PRM and support the idea of an effective policy. Classifies the information necessary for analyzing PRM issues into four categories of product, return flows, reprocessing markets and product recovery/waste management operations which are defined as repair, refurbishing, remanufacturing and cannibalization. Presents a case study of such activities undertaken by CopyMagic, a multinational copier manufacturer, BMW and IBM, and studies implications for management in areas of data acquisition, product recovery options, setting measurable objectives, product redesign, and co-operation with other members of the business chain and with companies operating in the same market. All you need to know about product recovery -formerly a shrinking violet in the field of marketing literature.
Private brands: major brand perspective S. Nandan, R. Dickinson
Journal of Consumer Marketing (UK), Vol. 11 No. 4 94: p. 18 (11 pages) Focusses on the increasing power of private brands (PB) sold by retailers, identifying a number of factors that have contributed to their successful development; illustrates the kinds of roles that PBs have played for retailers, but claims that it is not in the retailers' interests to turn totally to supplying PB on the grounds that consumers are seeking choice and variety. Proposes a model for the major brand supplier to follow in order to counter the threat from PB growth. Makes some sound points.
The Body Shop: mobilizing a green cosmetics line P. Alexandrin
Corporate Environmental Strategy (USA), Autumn 94 (2/2): p. 37 (6 pages) Dissects the green credentials of the natural cosmetics retailer, given a background of public scepticism regarding green marketing, and traces the development of The Body Shop's environmental care image - association with the likes of Greenpeace and the publication of an environmental statement. Examines its environmental practices - recycling and auditing and, in particular, product stewardship strategies which concentrate on environmental accreditation for suppliers, life-cycle analysis, risk assessment and the development of guidance notes on materials and products. The strengths of The Body Shop's marketing seems to have enabled the company to survive recent bad publicity.
The faithful shopper (Tesco's customer retention) D. Summers
Financial Times (UK), 16 Feb 95: p. 18 (1 page)
Reports on Tesco's introduction of a loyalty card that awards points for sums over a certain minimum spent in a Tesco store; questions the viability of a scheme that may save a mere 1 per cent on shopping bills by citing research which shows that loyalty schemes have little impact on consumer satisfaction: the key is not the scheme, but the company's overall performance on quality, price, service and trust. Sees the use of database information as a major opportunity for Tesco and refers to a scheme in The Netherlands for Felix petfood; junk mail sent to named cats (seriously) has had a very positive effect in shifting the product off the shelves. What next? Make a paw impression in the box if you don't wish to receive other mailings.
Diversification: exploiting the flow of technology S. Sjolander, C. Oskarsson
International Journal of Technology Management (Switzerland), Vol. 10 No. 195: p. 21 (10 pages)
From a survey of 57 large technology-based firms in Europe, the USA and Japan over 11 years, classifies their approaches to growth and diversification; creates a flowchart model of the diversification process based on the previous analysis and shows that increasing technology diversification as a precursor to product diversification is the winning formula. Demonstrates, with particular reference to named Swedish firms, that those companies that followed this path were much more successful than others. Persuasive, despite the fact that the meaning of "technology diversification" is not explained and is most unclear to your abstractor
Flying high (customer loyalty) R. Dwek
Marketing (UK), 8 Dec 94: p. 26 (2 pages)
Announces that a UK loyalty scheme, Air Miles, is developing a fully electronic system for its client companies centered on a user database; enumerates the benefits to clients and air mile collectors, and argues that the database will make a much more powerful and effective scheme. Outlines the effects of this change and lists some of the organizations switching to the new electronic system. A sign of the times and a chance for some -powerful database marketing.
Transforming brand management from a functional activity into a core process
S. Knox
Journal of Marketing Management (UK), Oct 94 (10/7): p. 621 (12 pages) Investigates ways in which brands have traditionally been developed and argues for a change in the development process; maintains that there has been a shift toward an integrated brand process and demonstrates that this integration of the brand will lead to it being viewed as a dominant core process. Describes the integrated brand value chain consisting of zones based on the company brands, category management and customer loyalty management, and reviews these developments in integrating brands and the relationship with the firm's primary stakeholder groups. Some good points here, well presented.
Refraining the process of new product development: from "stages" models to "blocks" framework
M. Saren
Journal of Marketing Management (UK), Oct 94 (10/7): p. 633 (11 pages) Contends that the traditional six-stage model of new product development is no longer applicable, criticizing from a number of perspectives and looking at other development models that have emerged. Proposes a new approach based on a number of blocks rather than stages, taking into account internal as well as external functions, and provides a case example of this approach applied to an unnamed producer of high-quality inspection equipment.
The new DFM: design for marketability G. Zaccal
World Class Design to Manufacture (UK), Vol. 1 No. 6 94: p. 5 (7 pages) Maintains that, with nearly all manufacturing organizations adopting the TQM approach, reduction of customer dissatisfaction is no longer enough and that design for manufacture, with its aims of quality improvements and cost reductions, has to be replaced by design for marketability; emphasizes the need for multidisciplinary design teams and recommends a step-wise approach in which the customer is included as part of the design process. Discusses the advantages of including outside consultants in the design team and details the requirements of the selection process. Something of an advert for the author's business, but no less interesting for that.
Design for producibility in Swedish manufacturing industries M. Carlsson, M. Egan
World Class Design to Manufacture (UK), Vol. 1 No. 6 94: p. 27 (6 pages) Reports on the results of 15 studies in 7 Swedish manufacturers as to their use of design for producibility and gives some examples of the benefits gained using a number of criteria. Concludes, surprisingly as these were world-class companies including Volvo, Electrolux and Husqvarna, that their knowledge and use of different rationalization tools was very limited, particularly on the part of those involved with product development, and was almost non-existent among production personnel; discusses the reasons for this. So much for the reality of cross-functional teamworking using concurrent engineering in new product development.
Copyright MCB UP Limited (MCB) 1995