Svend Hollensen

Assessing the implications on performance when aligning customer lifetime value calculations with religious faith groups and afterlifetime values – a Socratic elenchus approach

Customer lifetime value (CLV) is an established relationship marketing-centric approach to evaluating performance: based upon the significance of a customer, and what resources should be allocated towards maintaining relations - beyond short-term transactional views. The conceptual argument presented in this paper contributes one very simple, yet significant argument, which is both transactional and relational. Namely, a large portion of humanity believes in a life beyond current existence - the afterlife. Therefore, death in the psyche of such a person does not terminate benefit seeking, and there is value in the afterlife. The aim here is to refine value-based calculations, drawing from varying religious perspectives: reincarnation, heaven, and enlightenment, amongst others. A particular focus has been given to Islamic schools of thought and practices, as a test case and in response to market growth and interest trends. The method adopted uses a conceptual Socratic elenchus approach - drawing from interpretive phenomenological analysis and syllogisms, building on allegorical anecdotal evidence. The paper ends with a proposal for a four-step managerial decision model that may reformulate branding strategies, based upon maximising the sum of CLV and customer afterlife time value (CALV).

Saipa Group, Iran – using strategic brand extensions to build relationships

Purpose – The purpose of this paper is to provide insight into how branding is used in an innovative manner, when looking to generate equity and strengthen stakeholder relations – by a global car manufacturing company, governed by Iranian Islamic law. Following this, suggested areas of discussion are offered, in the interests of stimulating new thinking and further knowledge – surrounding marketing and branding in a Muslim context; Iranian culture; and the differences between Arab and Persian‐centric approaches, towards an adherence to Islamic ethic.Design/methodology/approach – Inductive reasoning and syllogisms, as a basis for conceptual metaphor theory and critical discourse analysis. Evidence was gathered via in‐depth interviews, personal observations and experiences; as a result of meetings and the in‐house training of senior decision makers, over a three‐year period. This is further supported by anecdotal evidence; systematic literature reviews; and existing empirical data.Findings – In the face of ...

Selection of Celebrity Endorsers : A case approach to developing an Endorser Selection Process Model

Purpose – This paper aims at shedding some light on the various avenues marketers can undertake until finally an endorsement contract is signed. The focus of the study lies on verifying the generally held assumption that endorser selection is usually taken care of by creative agencies, vetting several candidates by means of subtle evaluation procedures.Design/methodology/approach – A case study research has been carried out among companies experienced in celebrity endorsements to learn more about the endorser selection process in practise. Based on these cases theory is inductively developed.Findings – The research suggests that the generally held assumption that endorsers being selected and thoroughly vetted by a creative agency may not be universally valid. A normative model to illustrate the continuum of the selection process in practise is suggested and the two polar case studies (Swiss brand Lindt and Austrian Vitatherm) are presented in depth.Research limitations/implications – As the results of the...

Entry Mode Strategies into the Brazil, Russia, India and China (BRIC) markets

This article explores the relevance of different entry modes for Danish exporting small and medium enterprises (SMEs). Internal and external resources that influence the choice of entry modes into the Brazil, Russia, India and China (BRIC) markets are investigated from both a resource-based view (RBV) and a market-based view (MBV). The survey conducted by the University of Southern Denmark in 2012 is based on a sample of 177 Danish SMEs. Our results of this study show that Danish companies entering the BRIC markets mainly prefer low commitment modes. The more traditional internal factors (control, flexibility and risk) were evaluated less important than personnel and financial resources for the BRIC markets. The most important external factor was market potential whereas the trade barriers, cultural distance as well as the political and economical risk are viewed as main obstacles when internationalizing into distant markets. Managers can compensate the loss of control when choosing the lower commitment modes into distant markets by forming business networks and thereby gaining local knowledge.

The Blue Ocean that disappeared – the case of Nintendo Wii

Purpose – The purpose with this article is to analyze the “Blue Ocean” phenomenon in depth. The goal is to better understand the underlying dynamic strategies in the form of interactions between theory and management practices. Design/methodology/approach – Single case study, Nintendo, which strategy is being confronted with the strategies of the two competitors, Sony and Microsoft. This is done in order to distinguish the value propositions of the three players in the game console industry Findings – The main finding is that even if a company can create a Blue Ocean very fast with the right value proposition at the right time, it may be short-termed and may be transformed into a Red Ocean again within 1-2 years, unless the companys competitiveness is safe-guarded. Practical implications – The results show, that Nintendo started out with a Red Ocean around 2005 with their GameCube. Then they turned it into a Blue Ocean with their introduction of “Wii” in November 2006. But Nintendo could not prevent Sony...

Managing Turbulence: Business Model Development in a Family-Owned Airline

How can a family business reduce environmental uncertainty and dependence by developing its business model, changing the logic of creating and capturing value through its activities? Cimber, a Denmark-based family-owned airline, has developed different business models since its establishment in 1950. Resource dependence theory can help illuminate the actions that Cimber took in this process. The family played an important role in balancing internal and external influences, shaping the scope and complexity of the business model, and creating specific path dependencies.

Marketing and Marketing Management: A First Basic Understanding

Many people think of marketing as only sales and advertising! Every day we are bombarded with TV commercials, flyers, catalogues, sales calls, and commercial e-mail. However, selling and advertising are only one element of marketing. Today, marketing must be understood not in the old sense of making a sale but in a contemporary and holistic sense of satisfying customer needs. Marketing guru Philip Kotler defines marketing as societal and managerial process by which individuals and organizations obtain what they need and want through creating and exchanging value with others. While marketing originally concentrated on physical goods (especially consumer goods), today many more types of ‘goods’ are marketed. Marketers market ten main types of entities: goods, services, events, experiences, persons, places, properties, organizations, information, ideas. A company has to decide which philosophy should guide their marketing efforts. There are five alternative concepts: the production concept, the product concept, the selling concept, the marketing concept and the relationship marketing concept. The concept of internal marketing is of key importance: it refers to the managerial actions necessary to make all members of the organization understand and accept their individual roles in implementing marketing strategy.

Step 1: Market Analysis: Structuring and Evaluating the Market Information

Marketing research is an organisational activity that plays an important role in implementing this marketing philosophy. It helps in improving management decision making by providing relevant, accurate, and timely information. There are three different types of research: descriptive, explorative and explicative research. The researcher can gather two types of data collection: secondary data and primary data. Marketer collect primary data in five main ways: through observation, focus groups, surveys, behavioural data, and experiments. Marketing researchers have a choice of basically three main research instruments in collecting primary data: questionnaires, qualitative measures, and technological devices. Customer buying behaviour refers to the buying behaviour of final consumers - individuals and households who buy goods and services for personal consumption. Consumer behaviour may be described with the help of the stimulus-organisms-response model (S-O-R model). A key determinant of the extent to which consumers evaluate a brand is their level of involvement. Different buyers may engage in different types of decision-making processes depending on how highly involved they are with the product: in this context, we distinguish high-involvement products from low-involvement products. The SWOT analysis breaks down the available information into four areas: Strengths, Weaknesses, Opportunities, and Threats. The macro environment consists of a number of broad forces that influence not only the company but also the other stakeholders and actors in the micro-environment. Traditionally, four forces – political/legal, economic, social/cultural and technological – have been the focus of attention, with the result that the term PEST analysis has been used to describe the macro-environmental analysis. The firm’s value chain provides a systematic means of displaying and categorizing activities. The activities performed by a firm in any industry can be grouped into the some generic categories.

Step 2: Strategic and Operative Marketing Planning—Segmenting, Targeting, Positioning

Marketing Planning covers the strategic and operative areas of segmentation, targeting and positioning. Strategic segmentation of markets can be done via the portfolio analysis whereas the different targeting strategies can be derived from the Ansoff product/market matrix. The strategic approach is completed with the positioning within markets which can be done via Porter’s Five Forces. The operative marketing planning is usually made via the traditional 4P Marketing Mix: Product, Price, Place and Promotion. It can be expanded into the 7 Ps for Services by Personnel, Physical Facilities and Process Management. In addition to this classic issues there are two further aspects of relevance: Marketing Planning on worldwide levels demands strategic and operative issues of Global Marketing, and Marketing Planning on virtual levels has to be considered within the topic of Social Media Marketing.

Step 3: Marketing Implementation—Executing the Marketing Plan

Implementation of the marketing plan is the real test for all your analysis. Basically, the marketing plan is about creating and retaining relationships to your current and new customers. Customer Relationship Management (CRM) aims at optimizing profitability by organizing your company around your most attractive customer segments. With Key Account Management (KAM) you try to achieve long-lasting relationships to your most important (national) customers. Global Account Management (GAM) focuses on dealing with the needs of your most important global customers, which have a global network. By utilizing this network you can get ‘global’ very fast. Marketing budgeting is an organization process that involves estimating (forecasting) the financial consequences based on the proposed marketing plan. The final, but often neglected stage of market planning, is the control process. Not only is control important to evaluate how we actually performed, against our budget, but it completes the circle of planning by providing the feedback necessary for the start of the next planning cycle. A proactive feed-forward control system monitors variables other than performance; variables that may change before performance itself changes.