Gregory S. Carpenter

Measuring Marketing Productivity: Current Knowledge and Future Directions

For too long, marketers have not been held accountable for showing how marketing expenditures add to shareholder value. As time has gone by, this lack of accountability has undermined marketers’ credibility, threatened the standing of the marketing function within the firm, and even threatened marketings existence as a distinct capability within the firm. This article proposes a broad framework for assessing marketing productivity, cataloging what is already known, and suggesting areas for further research. The authors conclude that it is possible to show how marketing expenditures add to shareholder value. The effective dissemination of new methods of assessing marketing productivity to the business community will be a major step toward raising marketings vitality in the firm and, more important, toward raising the performance of the firm itself. The authors also suggest many areas in which further research is essential to making methods of evaluating marketing productivity increasingly valid, reliable, and practical.

LATE MOVER ADVANTAGE : HOW INNOVATIVE LATE ENTRANTS OUTSELL PIONEERS

Although pioneers outsell late movers in many markets, in some cases innovative late entry has produced some remarkably successful brands that outsell pioneers. The mechanisms through which innovat...

Why Is the Trivial Important? A Reasons-Based Account for the Effects of Trivial Attributes on Choice

Consumers sometimes treat trivial attributes as though they were critically important in the sense that they have a significant impact on choice. We propose a reasons-based account to explain the valuation of trivial attributes and in particular why valuation is in some cases positive and in others negative. We suggest that consumers treat trivial attributes as though they had value when such valuation is instrumental, that is, helps accomplish a task goal. The valence of the effect can depend on whether a positive or negative reason provides a clearer justification for preferring a single brand over its competitors. Thus the same trivial attribute can generate a positive or negative valuation depending on the choice setting. Such valuation is not always driven by inferences about the attribute itself but can reflect transitory reasoning about the brand as a whole, based on the way it is differentiated from its competitors. Results from two experiments support the reasons-based model and help resolve some apparently conflicting effects previously reported for trivial attributes. Copyright 2000 by the University of Chicago.

The advantages of entry in the growth stage of the product life cycle: An empirical analysis

In this article, the authors examine how the stage of product life cycle in which a brand enters affects its sales through brand growth and market response, after controlling for the order-of-entry...

Handbook of Marketing Strategy

Contents: PART I: INTRODUCTION Introduction 1. Introduction to Handbook of Marketing Strategy Venkatesh Shankar and Gregory S. Carpenter PART II: CONCEPTS AND ORGANIZATIONAL ASPECTS OF MARKETING STRATEGY 2. Strategic Marketing and Marketing Strategy Rajan Varadarajan 3. Market Orientation Gary F. Gebhardt PART III: UNDERSTANDING COMPETITION 4. Competitor Analysis John Czepiel and Roger Kerin 5. Competition and Implications for Marketing Strategy Gaurav Sabnis and Rajdeep Grewal 6. Models of Retail Competition Ram C. Rao PART IV: CUSTOMER BASED MARKETING STRATEGY 7. Customer Lifetime Value Management V. Kumar and Bharath Rajan 8. Multichannel Customer Management Strategy Peter C. Verhoef PART V: MARKETING STRATEGY DECISIONS 9. Strategic Allocation of Marketing Resources Venkatesh Shankar 10. New Product Development in a Strategic Context John Roberts 11. Advertising Strategy Derek D. Rucker 12. Social Media Strategy Donna Hoffman and Thomas Novak 13. Mobile Marketing Strategy Venkatesh Shankar 14. Channel Relationship Strategy Todd S. Arnold and Robert W. Palmatier 15. Behavioral Perspectives on Pricing Strategy Russell S. Winer 16. Managing Customer Satisfaction Vikas Mittal and Carly Frennea PART VI: BRANDING AND BRAND STRATEGIES 17. Brand Strategy Kevin Lane Keller 18. Cultural Branding Strategy Douglas B. Holt 19. Private Label Strategies Raj Sethuraman and Jagmohan Raju PART VII: MARKETING STRATEGY DYNAMICS 20. First Mover/Pioneer Strategies Marvin B. Leiberman and David B. Montgomery 21. Late Mover Strategies Gregory S. Carpenter and Venkatesh Shankar 22. Diffusion and its Implications for Marketing Strategy Gerard Tellis and Deepa Chandrasekharan 23. International Market Entry Strategy Katrijn Gielens, Kristiaan Helsen and Marnik Dekimpe PART VIII: IMPACT OF MARKETING STRATEGY 24. Marketing Strategy and Firm Value Venkatesh Shankar 25. Productivity of Marketing Strategy Brian T. Ratchford 26. Short-term and Long-term Effects of Marketing Strategy Dominique M. Hanssens and Marnik G. Dekimpe 27. Marketing and Democracy John A. Quelch and Katherine E. Jocz

Market expansion, cannibalization, and international airline pricing strategy

Abstract We analyze market response and pricing of air travel on the Paris-Abidjan, Ivory Coast route operated by a French airline, Union des Transports Aeriens (UTA). We measure the impact of price on the overall size of the market, and examine the nature, pattern, and extent of cannibalization using a set of econometric models for overall passenger volume and for each fare class share. Our analysis shows that (1) only one class of fares expands the market; (2) cannibalization is very significant and highly asymmetric; (3) even small deviations from optimal prices substantially reduce profit. Based on these estimated models, we forecast demand for air travel and calculate optimal fares. We discuss how these models and results were used by UTA and the impact they had on pricing strategy.

A stochastic multidimensional unfolding approach for representing phased decision outcomes

This paper presents a stochastic multidimensional unfolding (MDU) procedure to spatially represent individual differences in phased or sequential decision processes. The specific application or scenario to be discussed involves the area of consumer psychology where consumers form judgments sequentially in their awareness, consideration, and choice set compositions in a phased or sequential manner as more information about the alternative brands in a designated product/service class are collected. A brief review of the consumer psychology literature on these nested congnitive sets as stages in phased decision making is provided. The technical details of the proposed model, maximum likelihood estimation framework, and algorithm are then discussed. A small scale Monte Carlo analysis is presented to demonstrate estimation proficiency and the appropriateness of the proposed model selection heuristic. An application of the methodology to capture awareness, consideration, and choice sets in graduate school applicants is presented. Finally, directions for future research and other potential applications are given.

Optimal Multiple-Objective Marketing Strategies

Brand managers often design strategies to achieve multiple objectives, but how managers choose among alternatives and consequently how multiple objectives should be incorporated into models of marketing strategy have received little attention. This paper explores the incorporation of multiple objectives into models of optimal marketing strategies. We focus on one marketing strategy issue, defensive marketing strategy, and develop a multi-objective marketing strategy model. We derive optimal changes in price and advertising spending given the defending brands multiple objectives. Our analysis produces new descriptive insights about the links between decision making and competition, as well as new insights into defensive marketing strategy. We also discuss the potential for future work along these lines and extensions in other areas of marketing strategy.

Market pioneering and competitive positioning strategy

Market pioneering and competitive positioning strategy are fundamentally related. Positioning is a crucial strategic decision for pioneers or brands that compete with them because pioneers often dominate competition, sometimes for decades. Successful strategy design requires an understanding of how and why pioneers influence competition so greatly for so long. This paper reviews theories of pioneering advantage, with an emphasis on recent developments, to suggest testable implications for competitive positioning strategies for early and late entrants, as well as other directions for future research.RésuméIl existe un lien étroit entre la création de nouveaux marchés par des pionniers et les stratégies de positionnement compétitif. Le positionnement est en effet une décision stratégique cruciale pour les pionniers comme pour les entreprises qui entrent en concurrence avec eux: les pionniers dominent souvent la compétition, parfois même pendant des décennies. Il est donc nécessaire, pour définir une stratégie efficace, de comprendre comment et pourquoi les pionniers influencent la compétition si profondément et pendant si longtemps. Cet article passe en revue les théories sur les avantages dont bénéficient les pionniers, en insistant sur leurs développements les plus récents. Il en tire des conséquences testables sur les stratégies de positionnement compétitif des premiers entrants et de leurs successeurs, ainsi que des indications pour l’orientation des recherches futures.

Status Games: Market Driving Through Social Influence in the U.S. Wine Industry

Research on market orientation finds that market-driven firms succeed by identifying and appealing to consumer needs. Yet many technologically innovative firms achieve remarkable success by taking a market-driving approach. The ways that firms drive markets without disruptive innovation, however, remain unclear. Adopting a market-systems perspective, the authors conduct an ethnographic analysis of producers, distributors, retailers, critics, and consumers in the U.S. wine market. They find that firms drive the market by playing a status game. Firms pursue a vision and advance that vision among influencers inside and outside the industry to gain recognition. Winners of the status game influence and drive social consensus by setting benchmarks and shaping consumer preferences to the firms advantage. High status is difficult to imitate, creating an advantage that can endure for years or decades.