Preview

Merlo Understanding the “Crisis” of Marketing

Powerful Essays
Open Document
Open Document
4020 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Merlo Understanding the “Crisis” of Marketing
UNDERSTANDING THE “CRISIS” OF MARKETING Omar Merlo, Gregory Whitwell and Bryan A. Lukas The University of Melbourne

Abstract This paper concerns academic debates on the relevance of marketing, by providing an investigation of the alleged "crisis" of marketing. The crisis refers to a decline in marketing 's strategic role within organisations, and has been discussed in different forms for at least two decades This paper provides a systematic analysis of the alleged crisis and, after carefully analysing the relevant literature, provides a categorisation of the symptoms of the crisis. This in turn provides the basis for an outline of research propositions that can be used for an empirical analysis of the alleged crisis.

Introduction As early as the beginning of the 1980s, marketing academics bemoaned an apparent decline in marketing’s strategic role (Day and Wensley 1983). In recent years, such claims have been made more stridently and with greater frequency (e.g., Day and Montgomery 1999; Doyle 2000; Piercy 2000; Webster 1997). Typical is Webster (1997, p. 49), who argues that, “for the past two or three decades, marketing has effectively ceded its strategic responsibilities to other organizational specialists who have not, until recently, been guided by the voice of the customer”. Such has been the decline in marketing’s strategic influence, Webster and others suggest, that marketing is now in “crisis”. This paper provides a systematic analysis of the alleged crisis of marketing. It examines and categorises the views of marketing academics on the major “symptoms” of marketing’s malaise, and suggests a number of research propositions. Furthermore, a number of important questions regarding the future of marketing are explored in order to discern the impact of the “new” economy on the alleged crisis of marketing. The paper is organized as follows. We begin by reviewing the marketing literature to uncover a number of key indicators of marketing’s crisis.



Bibliography: Anderson, P.F. (1982) “Marketing, Strategic Planning and the Theory of the Company,” Journal of Marketing, Spring. Berelson, B. (1952) Content Analysis in Communication Research. New York: Hafner Press. Biggadike, Ralph E. (1981) “The Contributions of Marketing to Strategic Management,” The Academy of Management Review, 6(4), 621-33. Day, George S. (1994) “The Capabilities of Market-Driven Organizations,” Journal of Marketing, 58(4), 37-53. --- (1992) “Marketing’s Contribution to the Strategy Dialogue,” Journal of the Academy of Marketing Science, 20 (Fall), 323-329. --- and Montgomery, David B. (1999) “Charting New Directions for Marketing,” Journal of Marketing, 63, 3-14. --- and Wensley, Robin (1998) “Assessing Advantage: A Framework for Diagnosing Competitive Superiority,” Journal of Marketing, 52, 1-20. ---, Kerin, Roger A., and Varadarajan, P. Rajan (1992) ”Marketing 's Contribution to the Strategy Dialogue; Marketing 's Contribution to the Strategy Dialogue Revisited; Marketing 's Contribution to Strategy: The View from a Different Looking Glass,” Journal of the Academy of Marketing Science, Fall, 232-343. ---, Reibstein, D. J. and Gunther, R. E. (1997) “Introduction,” in G.S. Day, D.J. Reibstein, and R.E. Gunther (eds) Wharton on Dynamic Competitive Strategy. New York: John Wiley & Sons. Deshpandé, Rohit, Farley, John U., and Webster, Frederick E. Jr. (1993) “Corporate Culture, Customer Orientation, and Innovativeness in Japanese Firms: A Quadrad Analysis,” Journal of Marketing, 52, 23-36. Doyle, Peter (2000) Value-Based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value. Chichester: John Wiley & Sons. Haeckel, Stephan H. (1997), “Preface”, in Reflections on the Futures of Marketing. Lehmann, D. R. and Jocz, R. (eds) Cambridge, MA: Marketing Science Institute, ix- xvi. Homburg, Christian, Workman, John P. Jr, and Krohmer, Harley (1999) “Marketing’s Influence within the Firm,” Journal of Marketing, 63(2), 1-17. ---, Workman, John P. Jr, and Jensen, Ove (2000) “Fundamental Changes in Marketing Organization: The Movement Toward a Customer-Focused Organizational Structure,” Journal of the Academy of Marketing Science, 28(4), 459-78. Hutt, Michael D., and Speh, Thomas W. (1984), “The Marketing Strategy Center: Diagnosing the Industrial Marketer’s Interdisciplinary Role,” Journal of Marketing, 48 (Fall), 53-61. Jaworski, Bernard J., and Kohli, Ajay K. (1993) “Market Orientation: Antecedents and Consequences,” Journal of Marketing, 57, 53-70. Kohli, Ajay K., and Jaworski, Bernard J. (1990) “Market Orientation: The Construct, Research Propositions, and Management Implications,” Journal of Marketing, 54 (April), 1-18. ---, Jaworski, Bernard J., and Kumar, Ajith (1993) “MARKOR: A Measure of Market Orientation,” Journal of Marketing, 54, 1-18. McKenna, Regis (1997) Real Time: Preparing for the Age of the Never Satisfied Customer. Boston: Harvard Business School Press. Moorman, Christine, and Rust, Roland T. (1999) “The Role of Marketing,” Journal of Marketing, 63 (Special Issue), 180-97. Naccarato, John L., and Neuendorf, Kimberly A. (1998) “Content Analysis as a Predictive Methodology: Recall, Readership and Evaluation of Business-to-Business Advertising,” Journal of Advertising Research, 38 (May/June), 19-33. Narver, John C., and Slater, Stanley F. (1990) “The Effect of Market Orientation on Business Profitability,” Journal of Marketing, 54 (October), 20-35. Piercy, Nigel (2000) Market-Led Strategic Change. Transforming the Process of Going to Market. Oxford: Butterworth-Heinemann. --- (1998), “Marketing Implementation: The Implications of Marketing Paradigm Weakness for the Strategy Execution Process,” Journal of the Academy of Marketing Science, 26(3), 222-236. Rachal, J. R., and Sargent, S. F. (1995) “Publication Productivity of North American Institutions in Selected Adult Education Journals,” Adult Education Quarterly, 45, 63-78. Ruekert, Robert W., and Walker, Orville C. Jr. (1987), “Marketing’s Interaction with other Functional Units: A Conceptual Framework and Empirical Evidence,” Journal of Marketing, 51 (January), 1-19. Shaw, Robert (1999) Improving Marketing Effectiveness: The Methods and Tools that Work Best. London: The Economist Books. Sheth, J.N., R.S. Sisodia, and A. Sharma (2000), “The Antecedents and Consequences of Customer-Centric Marketing,” Journal of the Academy of Marketing Science, 28(1), 5566. Slater, Stanley F., and Narver, John C. (2000) “The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication,” Journal of Business Research, 48, 69-73. Srivastava, Rajendra K., Shervani, Tasadduq A., and Fahey, Liam (1998) “Market-Based Assets and Shareholder Value: A Framework for Analysis,” Journal of Marketing, 62(1), 2-19. Varadarajan, P. Rajan, and Jayachandran, Satish (1999) “Marketing Strategy: An Assessment of the State of the Field and Outlook,” Journal of the Academy of Marketing Science, 27(2), 120-143. Webster, Frederick E., Jr. (1997), “The Future Role of Marketing in the Organization”, in Reflections on the Futures of Marketing. Donald R. Lehmann and Katherine Jocz, eds. Cambridge, MA: Marketing Science Institute. --- (1992), “The Changing Role of Marketing in the Corporation,” Journal of Marketing, 56 (October), 1-17. --- (1981) “Top Management’s Concerns About Marketing: Issues for the 1980’s,” Journal of Marketing, 45(3), 9-17. ---, and Robertson, Thomas S. (1983), “Marketing Strategy: New Directions for Theory and Research,” Journal of Marketing, 47 (Spring), 12-25.

You May Also Find These Documents Helpful

  • Better Essays

    BUS 640 Week 5 Assignment

    • 1360 Words
    • 6 Pages

    Narver, J. & Slater, S. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54, 4. 20-35…

    • 1360 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Silk, A. J. (2006). What is Marketing?. Boston, Massachusetts: Harvard Business School Publishing Corporation. Retrieved from…

    • 1226 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Syllabus includes Course Description, Rationale, Expected Student Outcomes, Responsibilities of Instructor and Student, Course Prerequisites and Credit Hours, Required Course Materials including Textbook, Course Content and Grading Policies.…

    • 1340 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    SWOT ANALYSIS MCDONALDS

    • 1346 Words
    • 5 Pages

    Avlonitis, G.et al. (1999) 'Marketing Orientation and company Performance:Industrial vs Consumer goods Companies ', Industrial Marketing Management,26(5),pp.385-402.…

    • 1346 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Main Idea: This article discusses the transformations of strategic marketing. Marketing is not what one initially assumes it is, and with the technological changes and innovations coming about, marketing has faced several barriers and future impact.…

    • 1510 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The role of marketing and the character of marketing activities within an organization are strongly influenced by its philosophy and orientation. A production-oriented organization focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. A sales orientation is based on the beliefs that people will buy more products if aggressive sales techniques are used and that high sales volumes produce high profits. A market-oriented organization focuses on satisfying customer wants and needs while meeting organizational objectives. A societal marketing orientation goes beyond a market orientation to include the preservation or enhancement of individuals’ and society’s long-term best interests.…

    • 3321 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Kern, R.A., Hartley, S.W., Berkowitz, E.N, Rudelius, W., (2005). Marketing. [University of Phoenix Custom Edition e-text]. The McGraw-Hill Companies. Retrieved October 26, 2005 from University of Phoenix, Resource, MKT/551 – Marketing Management Web site: https://ecampus.phoenix.edu/secure/resource/resource.asp…

    • 1780 Words
    • 8 Pages
    Better Essays
  • Better Essays

    History Marketing

    • 1351 Words
    • 6 Pages

    According to Marketing Association (1985, as cited D. Hall and R. Jones 2010: 48) "Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange and satisfy individual and organizational objectives". Hall D (2010: 48) points out that the objectives of marketing are to satisfy consumer needs, determine requirements of potential buyers, understand and identify demands, tastes and preferences; to cope with arisen problems in sales, to compete with the competitors and finally and most important to get a profit. As Bartels (1976, as cited Egan, 2011: 6) argues the history began from the Industrial Revolution in the end of nineteenth century, where marketing had its first sprout, due to increased quantity of the production and hence decreasing the prices. Partly marketing had its roots from economics, however it was self-depended. Jean-Baptiste Say (1803, as cited Egan, 2011: 6) states Economists argued that there can't be any demand without supply. However, marketers found that demand includes not only the ability to purchase, but also aspiration of the consumer, therefore it was suggested that there plenty ways to increase the desire of people to consume more through such factors as advertising, distribution and so on. This essay will discuss the history of marketing and how it was changed through the years and in what socioeconomic situation it was discovered; and finally how it should be changed in order to cope with future marketing standards.…

    • 1351 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Market Concept Essay

    • 1800 Words
    • 8 Pages

    The author uses the example of the high-tech sector and explains why he feels the marketing concept applied in this way is no longer relevant, then goes into detail about how it is not just limited to the high-tech sector.…

    • 1800 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    MN5051 course outline

    • 1893 Words
    • 8 Pages

    This course offers an advanced programme in marketing management principles. Taking classic marketing concepts as its point of departure it engages with the growing critical literature in the field to explore marketing not only as a practical field but also as an intellectual tradition strongly associated with values of neo-liberalism and managerial ideology. The course will explore the practical utility, ethical status and intellectual standing of traditional marketing concepts and principles. Students will become familiar not only with the normative thrust of marketing as a prescriptive management discipline but also with its counterpoints in the critical literature which interrogate the typical managerial marketing approach on ethical, practical, ideological and intellectual grounds.…

    • 1893 Words
    • 8 Pages
    Best Essays
  • Good Essays

    According to Darymple and Parsons, “marketing is one of the essential ingredients employed by businessmen in their never-ending search for survival, growth, and profits”. The main purpose of this paper is to inform the reader about some issues and trends that are affecting marketing management and how they have influence organizational planning.…

    • 552 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The History of Marketing

    • 2267 Words
    • 10 Pages

    The modern marketing was largely built-up by the North – Americans (Meek, Ryan, & Lenney, 2010). At the end of 19th century, higher quality products at lower prices were created in the Industrial Revolution which had changed the function of US’ markets: from sellers’ markets to buyers’ markets. From 1910 to 1940, marketing was no longer only referred as part of economics; it was believed to be about “coordination, planning and managing complex relationships” (Meek, Ryan, & Lenney, 2010:7). After World War II, a need to consume products as quick as possible and the picture of the collapse of the economic system in America during the 1950s led to a great need of marketing in order to increase production capacity and guarantee that it worked every time (Eyerman and Lofgren 1995; Packard 1957; Brown 1996, citied in OM&P, 1998). Interests in marketing grew rapidly afterwards, the first concept of the marketing tool – marketing mix consisted of 12 variables including product, price, branding, distribution, personal selling, advertising, promotion, packaging, display, servicing, physical handling, fact finding and analysis was presented by Borden (Meek, Ryan, & Lenny, 2010). Even though, Borden concept was good which set marketing into a management function, it was “considered too long and unwieldy” (Stringer 1997, citied in OM&P, 1998:833). Later, in a seminal work, McCarthy…

    • 2267 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    The definition of marketing has been a strongly debated topic in the new Millenium. For more than 70 years the American Marketer Association’s (AMA) definition has been the guideline for academics and scholars alike. A number of academics have been unsatisfied with the AMA’s 2004 marketing definition , and it has stirred many debates (Grönroos, 2006, Dann 2008). Christian Grönroos in particular focuses on four elements of the AMA 2004 definition he does not approve of. Firstly on the creation of customer value, secondly on managing customer relationships, thirdly on marketing as an organizational function and finally on how marketing is done. The key focus of this paper is to to analyse the problems Grönroos encountered and show that his critique is mostly adequate.…

    • 863 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Kerin, R.A., Mahajan, V. and Varadarajan, P.R. (1990), Contemporary Perspectives on S trategic Market Planning,Allyn & Bacon, Boston, MA. Knight, C.F. (1992), “Emerson Electric: consistent profits, consistently”, Harvard Business Review, January-February, pp. 57-70. Kohli, A.K. and Jaworski, B.J. (1990), “Market orientation: the construct, research propositions, and managerial implications”, Journal of Marketing, Vol. 54, April, pp. 1-18. Kotler, P. (1980), M arketing M anagement: A nalysis, Planning, and Control , Prentice-Hall, Englewood Cliffs, NJ. Labich, K. (1991), “Delta aims for a higher altitude”, Fortune, 16 December, pp. 79-84. Lusch, R.F. and Laczniak, G.R. (1987), “The evolving marketing concept, competitive intensity and organizational performance”, Academy of Marketing Science, Vol. 15 No. 3, pp. 1-11. McNamara, C.P. (1972), “The present status of the marketing concept”, Journal of Marketing, Vol. 36, January, pp. 50-7. Narver, J.C. and Slater, S.F. (1990), “The effect of a market orientation on business profitability”, Journal of Marketing, Vol. 54, October, pp. 20-35. Peters, T. (1987), T hriving on Chaos, Harper & Row, New York, NY. Peters, T.J. (1978), “Symbols, patterns and settings: an optimistic case for getting things done”, Organizational Dynamics, pp. 3-22. Pfeffer, J. (1981), “Management as symbolic action: the creation and maintenance of organizational paradigms”, Research in Organizational Behavior, Vol. 3, pp. 1-52. Pondy, L.R., Frost, R.J., Morgan, G. and Dandridge, T.C. (Eds) (1983), Organizational Symbolism, JAI Press, Greenwich, CT. Saporito, B. (1991), “Is Wal-Mart unstoppable?”, Fortune, 6 May, pp. 50-9. Sathe, V. (1983), “Implications of corporate culture: a manager’s guide to action”, Organizational Dynamics, Vol. 12, pp.…

    • 5640 Words
    • 23 Pages
    Powerful Essays
  • Good Essays

    A deep realization about marketing begins its existence when I was browsing on the Internet. An author named Seth Godin captures my oblivious being in view of marketing with an aphorism that goes this way, “marketing is a contest for people’s attention”. This line must be too short to consider but it carries a lot of denotations which could be branched out to many ideas. Thinking, with respect to my instructor’s introduction of Marketing Management, I was near to set store by shifting my present course into that course, his field of expertise. But he, himself alone enlightened me enough to consider that he was just “marketing” the course.…

    • 1168 Words
    • 4 Pages
    Good Essays