Archives: Literature

Abstract: We propose and test a parsimonious and comprehensive two-level framework for industrial goods pricing which allows for multiple pricing strategies for a single product. We identify a reduced set of cost, product and information conditions determining which strategy type (new product, competitive, product line,cost-based) is optimal. We further identify a set of unique determinants under which a given principal strategy within each type is optimal. For example, the competitive pricing strategy type (leader, parity or low cost supplier) should be used in the later stages of the product life cycle. Leader pricing should be used by firms with high market share whereas parity pricing should be used by firms with high costs....

Useful categorisation of pricing strategies.
Reading time <1 min
Abstract: The paper assesses the current standing of the 4Ps Marketing Mix framework as the dominant marketing management paradigm and identifies market developments, environmental changes, and trends, as well as changing academic attitudes likely to affect the future of the Mix as theoretical concept and also the favourite management tool of marketing practitioners. It reviews the criticism on the 4P’s emanating from five “traditional” marketing areas - Consumer Marketing, Relationship Marketing, Services Marketing, Retail Marketing, Industrial Marketing - and the emerging field of Electronic Marketing. The paper identifies two main limitations of the Marketing Mix as management tool, common in all examined domains, namely the model’s internal orientation and lack of personalisation. It also identifies several area-specific limitations and underlines the need for further research on the issue. The weaknesses identified in the study seem to support the frequently expressed suggestion that marketing scholars should focus their efforts in formulating the conceptual foundations and marketing methodologies that better address the needs of today’s and tomorrow’s marketer.

Great summary of the different types of extensions/replacements of the 4P Marketing Mix that have been proposed including the original authors rationales.
Reading time <1 min
Abstract: In today’s highly competitive business environments with shortened product and technology life cycle, it is critical for software industry to continuously innovate. This goal can be achieved by developing a better understanding and control of the activities and determinants of innovation. Innovation measurement initiatives assess innovation capability, output and performance to help develop such an understanding. This study explores various aspects relevant to innovation measurement ranging from definitions, measurement frameworks and metrics that have been proposed in literature and used in practice. A systematic literature review followed by an online questionnaire and interviews with practitioners and academics were employed to identify a comprehensive definition of innovation that can be used in software industry. The metrics for the evaluation of determinants, inputs, outputs and performance were also aggregated and categorised. Based on these findings, a conceptual model of the key measurable elements of innovation was constructed from the findings of the systematic review. The model was further refined after feedback from academia and industry through interviews.

Defines Novelty of innovation as follows: ” New to the firm: The minimum level of novelty of innovation is that it must be new to firm. It is defined as the adoption of an idea, practice or behaviour whether a system, policy, program, device, process, product, technology or administrative practice that is new to the […]
Reading time <1 min
Abstract: The purpose of this article is to lay the foundations of a theory that can be used to interpret innovation processes in the service sector. The hypothesis underpinning this article is based on Lancaster's definition of the product (in both manufacturing and services) as a set of service characteristics. The article follows the example of those who have sought to apply Lancaster's work to technological phenomena. Various modes of innovation in the service sectors are highlighted and illustrated.

The paper is in three parts. First it defines a product (service or goods) as a set of characteristics, a system, comprising {[C’], [C], [X], [Y]}. Where [C’] are the set of customer competences and [C] the firms competences. With [X] and [Y] being the final and technical characteristics. It then defines a framework for […]
Reading time <1 min
Myopis (short-sightedness) was identified by Levitt as a leading cause for companies not surviving. This is a focus on short-term and belief of being in a growth industry (of which Levitt posits there is no such thing). As an example the US railroad industry focussed only on running railroads and missed the growth opportunity of air freight). The lesson is that we need to frame our business in the right way and at the right abstract level to set ourselves up to grab those growth opportunities.
Reading time <2 mins
Abstract: In modern Western economic history, the industrial revolution and the evolution of scientific management helped society to achieve other important goals and turned relationship thinking into a secondary issue. A mass-market orientation and the establishment of the middle-man in distribution channels, as well as specialisation and the division of labour, became top priorities. The dominance of the highly management-oriented marketing mix approach to marketing from the 1960s onwards, has not allowed for a relationship perspective either. This article postulates six key aspects of a successfully implemented relationship marketing strategy: three strategic issues (service business orientation, process management perspective, partnership and network formation) and three tactical issues (direct customer contacts, customer databases, customer-oriented service system). Overall, relationship marketing is seen as a philosophy rather than a departmental function. A transition curve is described for getting from the second to the first.

Introduces the Services Marketing Triangle (which we build on to get to a services framework in which we can explore, find and describe (services) innovations).
Reading time <1 min
Lists potential uses of diffusion models. Forecasting Sampling   Timing of successive generations of a product Determination of the impact of capacity decisions on innovation diffusion Estimation of pirated sales Estimation of lost sales and market expansion due to patent infringements Determination of market value of a business due to its projected market penetration Assessment […]
Reading time <1 min