Marketing Theory: A Student Text

Marketing Theory: A Student Text

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Edited by: Michael J. Baker & Michael Saren

Abstract

As a relatively young, applied discipline, one major challenge for marketing has been to build its own distinct body of theory. One problem for teachers of the subject is that many students find books on marketing theory dense and difficult to follow. Most are written for academics and researchers, not for undergraduates and taught postgraduates. The first edition of Marketing Theory: A Student Text aimed to fill this gap.

Building on the popularity of the first edition, published in 2000, Michael J. Baker has teamed up with co-editor Michael Saren to lead a fully updated, second edition. Tackling the roots of marketing theory, and unraveling the many influences and debates that have come to define the discipline, this book is a must-have student text.

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    List of Contributors

    Thomas Boysen Anker trained as a philosopher, is currently doing his PhD in marketing ethics at the University of Copenhagen. His research covers topics such as ethics in branding, marketing communications and autonomy, commercial social marketing and the societal impact of commercial health branding. His interest in the social aspects of marketing led him to the Institute for Social Marketing, University of Stirling, which he is currently working with on various projects.

    Michael J. Baker is Emeritus Professor of Marketing at the University of Strathclyde where he founded the Department of Marketing in 1971. Author/Editor of more than 50 books, most recently ‘Business and Management Research’, 3rd Edition 2009 with Anne Foy. He is the Founding Editor of the Journal of Marketing Management and currently Editor of the Journal of Customer Behaviour.

    Roderick J. Brodie (PhD) is Professor in the Department of Marketing at the University of Auckland Business School, New Zealand. His publications have appeared in leading international journals including; Journal of Marketing, Journal of Marketing Research, International Journal of Research in Marketing, Management Science, Journal of Service Research. He is an area editor of Marketing Theory and on the Editorial Boards of the Journal of Marketing, the International Journal of Research in Marketing, the Journal of Service Research, and the Australasian Journal of Marketing.

    Abraham Brown is a research fellow at the Institute for Social Marketing, University of Stirling. He completed his PhD in Social Marketing in July 2009 at the University of Stirling. Abraham's research interests include tobacco control, social norms, and the application of statistical modelling to change health behaviour. He is a member of the International Tobacco Control Policy Evaluation Project, a collaboration of over 70 researchers from 20 countries who are conducting research to evaluate the impact of national-level tobacco control policies of the Framework Convention on Tobacco Control, the first-ever international treaty on health.

    Sally Dibb is Professor of Marketing and joint Head of the Marketing and Strategy Research Unit at the Open University Business School, Milton Keynes, UK. She was awarded her PhD (Marketing) from the University of Warwick, where she was previously Associate Dean. Sally's research interests are in marketing strategy, segmentation and consumer behaviour, areas in which she has published and consulted extensively. Sally is currently involved in social marketing research with the Institute for Social Marketing, examining targeting strategies, and research examining consumer behaviour in China. She has co-authored nine books and her journal publications include articles in the Journal of the Academy of Marketing Science, European Journal of Marketing, Industrial Marketing Management, Services Industries Journal, Long Range Planning, Journal of Marketing Management and OMEGA, among others. Sally is co-chair of the Academy of Marketing's Special Interest Group in Market Segmentation.

    Thomas Foscht studied business administration at Karl-Franzens-University Graz, Austria, where he also earned his PhD and his habilitation degree. He was an assistant and associate professor of marketing at Karl-Franzens-University Graz, Austria before he became full professor of marketing at California State University, East Bay (San Francisco), USA. Currently he is a full professor of marketing and chair of the marketing department at Karl-Franzens-University Graz, Austria. He was also a visiting professor at Johannes-Kepler-University, Linz, Austria. As a guest speaker he lectured amongst others at Columbia University, New York, Temple University, Philadelphia, USA, and ETH Zurich (Swiss Federal Institute of Technology). He co-authored a textbook on consumer behaviour, which is written in German and in its third edition and also the book ‘Reverse Psychology Marketing’, which has been published in English, Spanish and Korean. His papers have been published in leading international academic journals like International Journal of Retail & Distribution Management, Journal of Retailing and Consumer Services, International Journal of Bank Marketing, Journal of Product and Brand Management, Journal of Fashion Marketing and Management, Journal of International Food & Agribusiness Marketing as well as in a number of German Journals.

    Mark S. Glynn is a Senior Research Lecturer in the Faculty of Business and Law at Auckland University of Technology, Auckland, New Zealand. He has a Master of Commerce degree with first class honours and a PhD in Marketing from the University of Auckland. Prior to his academic career, Mark had fifteen years business experience in marketing and brand management. His research experience is in the areas of branding, relationship marketing, business-to-business marketing, and retail channels. In 2006, Mark won the Emerald/EFMD best thesis award for outstanding doctoral research in the category of Marketing Strategy. Mark has published in the Australasian Marketing Journal, Industrial Marketing Management, International Journal of Retail & Distribution Management, Journal of Product and Brand Management, Journal of Business & Industrial Marketing, as well as Marketing Theory. Mark is also co-editor of Business-to-Business Brand Management: Theory, Research and Executive Case Study Exercises which is Volume 15 of the Advances in Business Marketing and Purchasing Series. He reviews for several international journals and serves on the editorial boards of Industrial Marketing Management and Journal of Business & Industrial Marketing.

    Kjell Grønhaug is Professor of Business Administration at the Norwegian School of Economics and Business Administration, Bergen-Sandviken. He holds an MBA and a PhD in marketing from the School, an MS in sociology from the University of Bergen, and did his postgraduate studies in quantitative methods at the University of Washington. He has been Visiting Professor at the universities of Pittsburgh, Illinois at Urbana-Champaign, California, Kiel and Innsbruck and several other European institutions. Grønhaug is also Adjunct Professor at the Helsinki School of Economics and associated with the Institute of Fishery Research at the University of Tromsø. He is honorary doctor at Turku School of Economics and Business Administration, and the recipient of the prize for excellence in research at his own institution awarded every fifth year. He has acted as a consultant to business and governmental institutions both in Norway and abroad. Over the years he has been involved in a number of research projects related to a variety of marketing problems, corporate strategy, industry studies and multiple evaluation studies. His publications include 18 authored and co-authored books, and numerous articles in leading American and European journals and contributions to many international conference proceedings. His present research interests relate to cognitive aspects of strategy, creation and use of knowledge, marketing strategies in novel, hi-tech markets and methodological issues.

    Evert Gummesson is Emeritus Professor of Marketing and Management at the Stockholm University School of Business, Sweden; Honorary Doctor of the Hanken School of Economics, Helsinki, and a Fellow of Tampere University, Finland. His interests especially embrace service, relationship marketing and CRM, and a network approach to marketing, reflected in his latest book Marketing as Networks: The Birth of Many-to-Many Marketing. His book Total Relationship Marketing was published in its 3rd and revised edition in 2008. In 2000 he received the American Marketing Association's (AMA) Award for Leadership in Services, and his article (with Christopher Lovelock) ‘Whither Services Marketing?’, in the Journal of Service Research, won the AMA Award for Best Article on Services in 2004. He is one of the 50 most important contributors to the development of marketing included in the guru list of the Chartered Institute of Marketing (CIM), UK. Dr Gummesson also takes a special interest in research methodology and the theory of science. He has spent twenty-five years as a business practitioner and is a frequent speaker at conferences, business meetings and universities around the world.

    Professor Susan Hart (BA Hons., PhD, DipMRS, FRSE) is Dean of Strathclyde Business School. Formerly Professor of Marketing and Head of Department at Strathclyde (2002–2004), and Vice Dean for Research (2005–2008). Previous posts held were Professor of Marketing and Head of Department at the University of Stirling from 1995–98, and Professor of Marketing at Heriot Watt University from 1993–95. In addition, Susan Hart has worked for a variety of private sector companies, ranging from multinational to small manufacturers in consumer and industrial enterprises.

    Professor Hart's research areas of interest include innovation and product-service development, marketing and competitive success and marketing performance measurement. She has been awarded research grants by The Leverhulme Trust, Economic and Social Research Council, Science and Engineering Research Council, Design Council Scotland, the Chartered Institute of Management Accountants and Scottish Enterprise. Journal articles have appeared in the Journal of Product Innovation Management and Industrial Marketing Management and two recent books include Product Strategy and Management and The Marketing Book. A member of the Executive Committee of the Academy of Marketing and the Senate of the Chartered Institute of Marketing, as well as a Fellow of the Marketing Society. Recently elected to the Royal Society of Edinburgh. She edits the Journal of Marketing Management, an international, peer review journal. Professor Hart is a Director of The Royal Scottish National Orchestra and a member of the Universiti Putra Malaysia Advisory Board.

    Gerard Hastings is the first UK Professor of Social Marketing and founder/director of the Institute for Social Marketing and Centre for Tobacco Control Research at Stirling and the Open University. He researches the applicability of marketing principles such as consumer orientation, relationship building and strategic planning to the solution of health and social problems. He also conducts critical marketing research into the impact of potentially health damaging marketing, such as alcohol advertising, tobacco branding and fast food promotion.

    Prof Hastings teaches and writes about social and critical marketing both in the UK, where he has run Masters and Honours level programmes, and internationally in North America, South East Asia, the Middle East and Europe. He has published over a hundred refereed papers in major journals such as the European Journal of Marketing, the International Journal of Advertising, the Journal of Macromarketing, Psychology and Marketing, Social Marketing Quarterly, the British Medical Journal, the British Dental Journal. His book Social Marketing: Why Should the Devil have all the Best Tunes? was published by Butterworth Heinemann in May 2007. In 1997 Prof Hastings became the first Andreasen Scholar in Social Marketing and in 2009 was awarded the OBE for services to health care.

    Brian Jones is Professor of Marketing at Quinnipiac University. He is Editor of the Journal of Historical Research in Marketing and serves as Treasurer and Past President of the Conference on Historical Analysis & Research in Marketing (CHARM) Association. His research has been published in the Journal of Marketing, Journal of the Academy of Marketing Science, Journal of Historical Research in Marketing, Journal of Macromarketing, Marketing Theory, Journal of International Marketing, Psychology & Marketing, Accounting History, and other publications. He is also co-editor, with Mark Tadajewski, of the (2008) three-volume set of readings titled The History of Marketing Thought.

    William E. Kilbourne (PhD) received his degree from the University of Houston in 1973. He is a Professor of Marketing at Clemson University, and his research interests are in materialism, globalization, and environmental issues in marketing. Most recently, his attention has been directed to developing, both theoretically and empirically, the role of a society's Dominant Social Paradigm in environmentally relevant consumption behaviour and in materialistic values. The research agenda entails the cross-cultural comparison of both environmental and materialistic values. He has published 40 articles in refereed journals and more than 100 papers in national and international conferences. He is currently the Global Policy and Environment section co-editor for the Journal of Macromarketing.

    Allan J. Kimmel is Professor of Marketing at ESCP Europe in Paris, France. He holds MA and PhD degrees in social psychology from Temple University (USA). He has served as a visiting professor at Université Paris IX-Dauphine (Paris), TEC de Monterrey (Mexico), Universidad de San Andrés (Buenos Aires, Argentina), Turku School of Economics (Finland), and the University of Vaasa (Finland). He has research and writing interests in marketing and research ethics, deception, consumer behavior, marketing communication, commercial rumors, and connected marketing and word of mouth. He has published extensively on these topics, including three books on research ethics, and articles in the Journal of Consumer Psychology, American Psychologist, Psychology & Marketing, Journal of Behavioral Science, Business Horizons, Ethics & Behavior, Journal of Marketing Communications, and European Advances in Consumer Research, among others. His latest books are Rumors and Rumor Control: A Manager's Guide to Understanding and Combatting Rumors (2004), Marketing Communication: New Approaches, Technologies, and Styles (2005), and Connecting With Consumers: Marketing for New Marketplace Realities (2010). Kimmel is an ad hoc reviewer for several research journals and currently serves on the editorial board of The Open Ethics Journal.

    Ingeborg Astrid Kleppe is Associate Professor at the Norwegian School of Economics and Business Administration, Bergen, Norway. She holds an MBA and a PhD in marketing from the School, and MS in sociology from the University of Bergen. Kleppe has extensive international experience from universities in the USA, Sweden, and Australia. In her current research she collaborates with researchers from School of Economics, University of Gothenburg; University of Sydney; Schülich School of Business York University, Toronto; and Leeds University Business School. She has also worked in the World Bank doing poverty research in sub-Saharan Africa. Kleppe has taken her interdisciplinary and international experience into her research on different topics in consumer behaviour. Currently she is doing research on consumer communities in the social media and consumers' adoption to public health interventions in developing countries. Kleppe has also published on country-of-origin and national images in tourism and international marketing journals.

    Rob Lawson is Professor of Marketing at the University of Otago, where he has worked for over 20 years. Rob's education and early career were at the universities of Newcastle and Sheffield in the UK and, though he has published over 100 papers across a wide range of topics in marketing, his main area of interest is consumer behaviour. Much of his current work looks at household energy behaviours and understanding the adoption of energy efficient practices and technologies. Most of Rob's teaching is now at graduate level, including extensive PhD supervision. He is the immediate past-president of ANZMAC and was granted Distinguished Membership of the Academy in 2007. He has also worked as research dean at the University of Otago and was a member of the PBRF Business and Economics assessment panel for research quality New Zealand in both 2003 and 2006.

    Professor Kam-hon Lee is Professor of Marketing and Director, School of Hotel and Tourism Management at The Chinese University of Hong Kong, Shatin, Hong Kong. His research areas include business negotiation, cross-cultural marketing, marketing ethics, social marketing and tourism marketing. He obtained his B.Com. and M.Com. at The Chinese University of Hong Kong, and his PhD in Marketing at Northwestern University in Evanston, Illinois, USA. Professor Lee has taught in executive programs or rendered consulting services to different institutions including the World Bank, Hang Seng Bank, Giordano, K-Wah, Ryoden, Coca-Cola (China), Procter & Gamble (Guangzhou), Digital Equipment Corporation, Du Pont Asia Pacific Ltd., Dentsu Advertising Agency, Chinese Arts & Crafts (H.K.), Hong Kong Tourism Association, Hong Kong Hotels Association and Hong Kong Travel Industry Council. Professor Lee has also served on various government and social service committees, including Advisory Committee on Social Work Training and Manpower Planning, Tourism Strategy Group, Advisory Committee on Travel Agents and Steering Committee on MICE. Professor Lee has published in Journal of Marketing, Journal of International Business Studies, Journal of Management, Journal of Business Ethics, European Journal of Marketing, International Marketing Review, Psychology and Health, The World Economy, Cornell HRA Quarterly and other refereed journals.

    Kristian Möller is a Research Professor and Director of the Business Networks Domain at the Aalto School of Economics (formerly the Helsinki School of Economics). He chairs the executive board of the Finnish Doctoral Program in Business Studies. Formerly the President of the European Marketing Academy and the Head of the Marketing and Management Department of the HSE, Dr. Moller is an active member of the international research network. He has been a visiting research scholar at Penn State, Aston Business School, University of Bath, and the European Institute for Advanced Studies in Management in Brussels. His current research is focused on business and innovation networks, competence-based marketing, and marketing theory. His work has been published in California Management Review, European Journal of Marketing, Industrial Marketing Management, International Journal of Research in Marketing, Journal of Business Research, Journal of Management Studies, Journal of Marketing Management, and Marketing Theory.

    Christopher M. Moore is Vice-Dean and Chair in Marketing & Retailing at Glasgow Caledonian University, Glasgow. Previously, he was Professor in Retail Marketing at the George Davies Centre for Retail Excellence, at Heriot Watt University, Edinburgh. A graduate of Glasgow and Stirling universities, his doctoral research was in the area of fashion retailer internationalisation. Current research interests include luxury brand marketing, fashion retailer internationalisation, country-of-origin impact on luxury branding and buying & branding strategies within the fashion sector. Professor Moore has provided consultancy support to a wide range of international fashion retailers, luxury brands companies, as well as consumer-facing organisations within the financial services, transport and public service sectors.

    Patrick E. Murphy is Professor of Marketing at the University of Notre Dame in Indiana, USA. He specializes in marketing and business ethics issues. His recent work has focused on normative perspectives for ethical and socially responsible marketing, distributive justice as it relates to marketing decision making, emerging ethical concerns in advertising, and the ethical foundations of relationship marketing. His research has appeared in leading academic journals in the US and Europe. Professor Murphy's articles have won ‘best paper’ awards from the Journal of Advertising, Journal of Macromarketing and the European Journal of Marketing. He served as editor of the Journal of Public Policy & Marketing and is now a member of four editorial review boards. Professor Murphy teaches courses in business ethics, marketing ethics and corporate sustainability. He has taught previously at Marquette University and spent sabbaticals at the Federal Trade Commission, University College Cork in Ireland and University of Lille 2 in France. His PhD is from the University of Houston, MBA from Bradley University and BBA from Notre Dame.

    Michael Saren is Professor of Marketing at the School of Management, University of Leicester, UK and holds a PhD from the University of Bath. He previously held Chairs in Marketing at the Universities of Stirling and Strathclyde. He was a founding editor in 2001 of the Sage journal Marketing Theory and co-editor of Rethinking Marketing, (Brownlie et al, 1999, Sage), Marketing Theory, Volumes I, II & III, Sage Library in Marketing Series (Maclaran et al, 2007), Critical Marketing: Defining the Field (Saren et al, 2007, Elsevier) and the Sage Handbook of Marketing Theory (Maclaran et al, 2010). His introductory text is Marketing Graffiti (2006, Butterworth Heinemann). He has also published many articles in academic journals including the International Journal of Research in Marketing, Marketing Theory, Consumption, Markets and Culture, Industrial Marketing Management, British Journal of Management, Australasian Marketing Journal, Journal of Business Ethics, Journal of Macromarketing, European Journal of Marketing, Journal of Business and Industrial Marketing, the Service Industries Journal and the Journal of Management Studies.

    Cass Shum is a PhD student in the Department of Management at the Hong Kong University of Science and Technology. She graduated from the School of Hotel and Tourism Management at The Chinese University of Hong Kong and she formerly served as a project officer at the Center for Hospitality and Real Estate Research at The Chinese University of Hong Kong. Her research interests are flexible workforce, strategic human resources management and social exchange theory.

    Lyndon Simkin is Professor of Strategic Marketing at Oxford Brookes University. Previously he was at Warwick Business School, where he was Director of the MSc in Marketing & Strategy and versions of Warwick's MBA Programme. In addition to many journal articles, Lyndon has authored numerous books, including two addressing the theme of this chapter, market segmentation. Lyndon is consultant to many blue chip corporations, including QinetiQ, GfK, Fujitsu, Raytheon and IKEA, plus he is a recognised High Court expert witness in cases of marketing and business planning litigation. He is also co-chair of the Academy of Marketing's Special Interest Group in Market Segmentation. Lyndon has published in many journals, including the European Journal of Marketing, Industrial Marketing Management, Services Industries Journal, Journal of Marketing Management, Journal of Industrial & Business Marketing, Journal of Strategic Marketing and the International Journal of Advertising.

    Dr Richard Varey is Professor of Marketing at The Waikato Management School, Hamilton, New Zealand. He inquires on society and marketing, human interaction in commercial situations, and systems of managed communication. His scholarly project is “marketing for sustainable prosperous society”. He is Associate Editor (Asia-Pacific) for the Journal of Customer Behaviour, and a member of the editorial boards of Marketing Theory, the European Journal of Marketing, the Journal of Communication Management, the Journal of Marketing Communications, the Australasian Marketing Journal, the Corporate Reputation Review, the Journal of Management Development, the Journal of Business Ethics (sustainability panel), and the Atlantic Journal of Communication. He is Book Reviews Editor for Prism: The Online Public Relations Journal, and former Editor of the Australasian Marketing Journal. He is a member of the Expert Panel of the TechCast virtual think tank on technology futures. Richard was a Principal Investigator on the FRST-funded “Socially & Culturally Sustainable Biotechnology in New Zealand” research programme. He was Secretary of ANZMAC in 2006–7, and is a Fellow of the Academy of Marketing Science. Richard's research interests are marketing as a social interaction system, the political economy of market systems, and participatory and ethical communication and information systems management.

    Walter van Waterschoot was a doctoral student at the Catholic University of Leuven and served as assistant in the European Marketing Programme of Insead/Cedep before earning his PhD at Saint-Ignatius University (Antwerp). Currently he is professor of Marketing and Channel Management at the University of Antwerp. He is a vested author of marketing textbooks written in Dutch. The general marketing management textbook he co-authored is currently in its twelfth edition. He has also contributed numerous chapters in international monographs, including the Oxford Textbook of Marketing (2000). He prepared entries for several encyclopedias, including the International Encyclopedia of Marketing (2000). He published papers in leading academic journals including the Journal of Marketing, the Journal of Retailing, the Journal of Retailing and Consumer Services, the International Journal of Research in Marketing, and Health Marketing Quarterly. His paper on the classification of the marketing mix (The 4P classification of the marketing mix revisited’ with Christophe Van den Bulte, Journal of Marketing 46(4)) was included in the compilation of the most influential articles in the history of marketing published by Routledge (2000).

    Robin Wensley (BA (Cambridge), MSc, PhD (London) is Professor of Policy and Marketing at the Warwick Business School and has been Director of the ESRC/EPSRC Advanced Institute of Management Research based in London since 2004. He is a member of the Sunningdale Institute and was Chair of the Warwick Business School from 1989 to 1994, Chair of Faculty of Social Studies from 1997 to 1999, and Deputy Dean from 2000 to 2004. He was also co-editor of the Journal of Management Studies from 1998 to 2002. He is also Dean of the Senate of the Chartered Institute of Marketing, and was a Board member of the ESRC Research Grants Board from 1991 to 1995 and a council member from 2001 to 2004. His research interests include marketing strategy and evolutionary processes in competitive markets, investment decision making, the assessment of competitive advantage and the nature of choice processes and user engagement in public services. He has published a number of articles in the Harvard Business Review, the Journal of Marketing and the Strategic Management Journal and has twice won the annual Alpha Kappa Psi award for the most influential article in the US Journal of Marketing.

    Preface

    The first edition of Marketing Theory: A Student Text first appeared in 2000 in order to fulfil the need for an advanced text to be used in capstone courses in marketing by students who had studied the subject in some depth, to pull together and consolidate the principal ideas, concepts and theories that underpin the discipline. A selection of 18 chapters was seen as meeting this need and proved to be very successful, with numerous reprints since its first appearance.

    While many of the key ideas and core concepts remain unchanged, the discipline of marketing has continued to evolve and for this reason we have produced a new, revised and extended second edition of this successful text. The authors of some chapters contributed to the original edition, whereas others are completely new.

    Our perspective is that marketing does not depend on a pure’ or single disciplinary base. Instead it may be regarded as an applied social science or synthetic discipline in the original sense of the process or result of building up separate elements, especially ideas, into a connected whole, especially into a theory or system. It follows that if one wishes to be qualified to practice the profession of marketing then one should know and understand the sources of the original ideas and theories on which it is founded.

    For students following a marketing degree programme, marketing theory as a distinct subject or module is generally taught at the final-year level of undergraduate marketing degrees and on taught postgraduate programmes such as the MBA and MSc in Marketing, often as part of the methodological and theoretical preparation for students undertaking marketing dissertations.

    MarketingTheory, second edition, is intended as an authoritative overview of the theoretical foundations and current status of thinking on topics central to the discipline and practice of marketing. It comprises original contributions from an international panel of experts on their individual subject areas. In doing so it brings together in a single text a comprehensive review of the major sub-fields of the discipline which otherwise could only be found by specific reference to the literature of those sub-fields or from major reference texts written for advanced academics and PhD level scholars, involving considerable effort and expense. While clear and concise in its presentation, every chapter is supported by extensive references enabling further in-depth research into the subject matter of the individual chapters.

    Taken together we hope that this text will provide the reader with an accessible, authoritative and broad introduction to the topic.

    Michael J.Baker and MichaelSaren

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