Professional Documents
Culture Documents
Jaqueline Pels
Universidad Torcuato Di Tella, Minones, Argentina
Abstract
Purpose This study aims to examine the nature of business-to-business marketing practices in two West African nations, Ghana and Ivory Coast, and
compare them with marketing practices in another emerging market economy (Argentina) and a developed economy (the USA).
Design/methodology/approach Survey data were collected in both West African nations, Argentina and the USA, using a standard survey
instrument used in previous contemporary marketing practice (CMP) studies. Descriptive statistics were used to determine cross-national differences in
intensity of use of various CMP activities in Ghana and the Ivory Coast in comparison with Argentina and the USA. Then, cross-national differences in
various combinations of marketing practices were identified using cluster analysis.
Findings Business-to-business marketing practices in West African nations conform with the CMP framework in that firms practise both transactional
marketing and relationship marketing simultaneously. However, there are differences in the intensity and scope of business-to-business marketing practices
in Ghana and the Ivory Coast in comparison with Argentina and the USA. While West African business-to-business firms emphasize traditional
transactional marketing with some network marketing components, Argentine firms have a greater emphasis on pluralistic marketing and interaction
marketing. By contrast, US firms practise pluralistic marketing (transactional, database, interaction, and networking) with some transactional marketing
activities. In addition, West African business-to-business firms are similar to Argentine firms in that a proportion of firms practise marketing at a low level of
intensity and rarely use database marketing. These differences are attributable to the nature of market conditions in West Africa.
Research limitations/implications The CMP results generalize to West African nations. However, a direct correspondence is unlikely because of the
dominance of transactional marketing practice among West African firms. Further research needs to investigate a broader set of institutional
environments in order to provide a clear link between CMP and environmental conditions in emerging African markets.
Practical implications Managers can determine the appropriateness of international benchmarks for West African market conditions.
Originality/value Linking CMP to market conditions in the paper provides an extension to the validity of the CMP framework.
Keywords Marketing strategy, West Africa, Argentina, United States of America, Emerging markets, Business-to-business marketing
Paper type Research paper
Introduction
Changes taking place in the business environment worldwide
have led to a resurgence of academic debate about the nature
of marketing practice and its validity within the contemporary
business environment (Brown, 2005; Day and Montgomery,
1999; Gronroos, 1991; Kotler, 1992; Webster, 1992). The
extant literature suggests that marketing has gradually evolved
from the classic transactional marketing paradigm to a more
process-based relational marketing paradigm. However, some
scholars have questioned the relevance of the academic
literature (Coviello et al., 2002; Sheth and Sisodia, 1999;
Price and Arnould, 1999; Varadarajan and Jayachandran,
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0885-8624.htm
The data for the Ivory Coast were collected as part of a collaborative effort
with the University of Cocody under USA Information Agency Grant No.
IA-ASJL-G8190027, and with the financial support of the Center for
Business and Industrial Marketing at Georgia State University. The
authors would like to thank Ralf Wagner and Rod Brodie, Andre Torres
Urdan and other JBIM reviewers for helpful comments on an earlier draft
of this paper, and Seth Buatsi for help in data collection.
115
USA
Ghana
Ivory Coast
Argentina
296.5
13,000.0
3.5
43,740
22.2
10.7
5.8
450
18.2
16.1
2 0.3
850
38.7
183.3
9.2
4,470
Structure
Industry (%)
Services (%)
Agriculture (%)
Number of internet users (per 1,000)
24.2
74.6
1.2
630
24.6
36.6
38.8
17
Starting a businessb
Procedures (number)
Time (in days)
Cost to import (US$/container)
Procedures (number)
10
5
625
17
12
81
842
29
21.20
57.5
21.7
16.8
11
45
1,395
25
35.6
54.0
10.4
133.4
15
32
1,750
33
Methodology
To examine marketing practices in West Africa in comparison
with marketing practices in Argentina and the USA, we
conducted field surveys of business marketing practices in
Ghana, the Ivory Coast and the USA, using the same
instrument employed by Pels et al. (2004) for their study in
Argentina.
Data collection procedures and sample characteristics
The data used for this research were collected following the
procedure used by Coviello et al. (2002). Following the CMP
protocol (see http://cmp.auckland.ac.nz/), the survey was
administered by working MBA students in to managers in
their firms. Participants received the survey during the first
week of a marketing class and were asked to collect the data as
a take-home project. This non-probabilistic data
administration process allowed for close supervision by the
instructors as part of their class projects, an approach that is
common in international marketing studies (Neelankavil et al.,
2000), where controlling the potential effect of field
conditions on the quality of the data is very critical (Dadzie
et al., 2002).
In all countries, steps were taken to minimize potential bias
from the use of student interviewers. Students were trained on
how to administer the surveys, as well as the importance of
administering the survey to the most senior marketing
manager in the company who was most knowledgeable
about the firms marketing activities.
In Ghana the questionnaire was administered in English
and in French to the Ivory Coast samples because these are
the business languages used. The Ivory Coast survey was a
translated version of the English version used in Ghana. For
the West African surveys additional questions were included
to obtain information about the influence of the changing
nature of the marketing environment and the consequences of
the market liberalization polices in these nations. These were
the influences of changing demand, increased competition,
and increased availability of technology. The survey
instrument was examined for face and content validity by
selected professors in each country before the pre-test in each
country. Based on the pre-test results, further changes were
made, including the length of the questionnaire, which was
shortened by eliminating some of the items related to
environmental conditions. The data collection process for
Argentina is provided by Pels et al. (2004).
Table II provides a summary of the profiles of firms in the
different samples. The distribution of responding firms
focusing on goods versus services is similar for the West
Firm type
Bus-to-bus goods
Bus-to-bus services
Both
25.3
39.7
35.0
46.6
26.4
27.0
43.7
25.0
31.3
36.1
63.9
NAa
Age (years)
5 and under
6-10
Over 10
22.8
8.8
68.4
15.4
29.4
54.2
19.2
30.3
50.5
18.7
32.5
48.8
Employees
20 and fewer
21-100
Over 100
29.2
30.7
40.1
44.3
14.5
41.2
42.5
15.2
42.3
19.0
32.9
38.1
Ownership
Locally owned
Foreign
Joint venture
86.4
7.3
6.3
56.3
5.9
37.8
54.4
20.5
30.1
51.6
NAa
48.4
50.0
10.3
39.7
50.4
37.1
12.5
49.5
38.0
12.5
48.4
25.6
26.0
Findings
Incidence of business-to-business marketing practices
The comparisons of the CMP indices are presented in
Table III. For TM, intensity of practice was rated as medium
to high by 68 percent of USA firms, 59 percent of West
African firms and 52 percent of Argentine firms. This pattern
of practice suggests that TM is very actively practiced in all
four countries. However, for DM, the index for medium and
high intensity of practice was highest among USA firms (67
percent), while all the corresponding indices for West African
and Argentine firms were lower at 30 percent and 39 percent,
respectively. This finding also suggests that DM is rarely
practiced in this sample of emerging market nations. With
respect to IM, the medium-high indices were 90 percent for
USA firms and Argentine firms, but only 65 percent for the
West African firms, while the corresponding figure for NM
were 64 percent, 68 percent, and 76 percent for the USA,
West Africa, and Argentina, respectively.
Combinations of business-to-business marketing
practices
Following Pels et al. (2004), the K-mean cluster algorithm
was used to identify common combinations of marketing
practices in each country. The final number of clusters for the
analysis was based on cluster interpretability and
homogeneity. The analysis yielded three clusters of
marketing practices in each country, with the Ghana and
Ivory Coast samples combined. The results for the cluster
analysis for the USA and West African samples are provided
Pluralistic
IM/NM
TM
0.83
0.81
0.90
0.86
31
0.67
0.65
0.86
0.77
51
0.70
0.60
0.71
0.58
18
0.73
0.69
0.82
0.74
Transactional marketing
Low
Medium
High
32
38
30
40
30
30
48
40
12
Database marketing
Low
Medium
High
32
47
21
70
30
0
60
31
9
Transactional
Database
Interaction
Network
Percentage of firms
Interaction marketing
Low
Medium
High
10
65
25
35
15
50
35
15
50
Network marketing
Low
Medium
High
Cluster
36
28
36
24
14
54
Transactional
Database
Interaction
Network
Percentage of firms
24
14
54
Note: Index scores less than 0.60 categorized as low, 0.60 to 0.79 as
medium and 0.80 or above as high
Source: a Pels et al. (2004, p. 392)
TM/NM
TM
Low
0.78
0.52
0.47
0.70
32
0.69
0.42
0.39
0.50
48
0.43
0.32
0.27
0.40
20
0.63
0.42
0.38
0.53
Pluralistic
IM/NM
Low
0.68
0.67
0.80
0.73
32
0.51
0.46
0.82
0.71
50
0.60
0.51
0.61
0.51
18
0.61
0.57
0.76
0.68
119
Managerial implications
The results have several managerial implications. The first
implication is the need for caution when seeking to improve
business-to-business marketing practices under current
conditions of free-market polices and reforms in West African
nations. The study results suggest that managers need to be
cognizant of the fact that some of the international benchmarks
reflected in other emerging market economies, such as
Argentina, and the industrialized nations, such as the USA,
may lack relevance for West African firms. This is especially true
of database marketing. Hence, heavy investment in database
technology may not be the most effective use of limited
resources for most West African firms. Similar implications are
suggestive of our findings relating to interaction marketing
activities. Firms in this study make less use of interaction
marketing activities, perhaps as an adaptation to the low level of
dynamism in the current marketing environment, while
interaction marketing is relatively more important in
Argentina. Hence, the usefulness of interaction marketing may
increase as the marketing environment becomes more dynamic.
In addition, firms in more dynamic markets need to benchmark
their marketing activities in the transactional and relational
marketing areas, as happens in Argentina. For the majority of
firms, however, the traditional transactional marketing activities
may be the norm. For other firms facing increasing customer
demand and competition, the development and configuration of
network relationships with other firms and government agencies
may be critical for survival.
Another implication derives from the narrow focus of West
African business-to-business marketing practices in
comparison to that of the industrialized Western markets,
such as the USA. While our study suggests that the narrow
focus may be a function of the lack of competitive pressure, a
myriad of other factors may also account for this focus.
Therefore, this finding cannot be asserted with confidence
until the influence of other environmental factors, (such as the
nature of state control on marketing decisions and activities,
organizational culture, leadership influences, etc.), have been
considered.
Implications
Empirical results
Given the changes taking place in the global environment,
there is interest in determining whether changes in marketing
practices are uniform between firms in the developed nations
and emerging market economies (Pels et al., 2004). Our
findings support this claim in that we consistently found that
some firms combine both dimensions of marketing while other
firms emphasize one or the other in all four countries Ghana,
the Ivory Coast, Argentina, and the USA. From the perspective
of emerging African economies, our findings suggest that both
local and foreign competition may use the international
benchmarks in establishing marketing programs in Ghana and
the Ivory Coast. As in the case of Argentina, some low level of
marketing activity occurs for a certain proportion of firms in
Ghana and the Ivory Coast, while a combination of
transactional and relationship marketing is the norm.
There are distinct differences between West African
practices and the international benchmarks involving
Argentina and the USA One such difference is the emphasis
on transactional over pluralistic marketing obtained in the
USA and Argentina. While the CMP framework proposes
that pluralistic marketing is one of the major international
benchmarks across all markets, the West African results
suggest that pluralistic marketing is not that common. Rather,
transactional marketing is more the norm.
Thus the question arises why is transactional marketing
more prevalent than relational marketing in West Africa? The
Table VII Environmental profile of West African clusters
Cluster
a
Level of competition
Technological changea
Changing demand pressuresa
TM/NM
TM
Low
3.3
3.5
3.2
3.1
1.5
1.9
1.0
2.2
1.7
Theoretical implications
Our study has important theoretical implications, especially as
it relates to the applicability of the CMP framework in a
global context involving small emerging markets economies,
big emerging market economies and industrialized market
economies. We found that, although firms practice pluralistic
marketing regardless of the type of economy (SEM, BEM,
120
Note
1 The CMP web page provides a complete description of
the CMP project, aims, research program and list of
publications http://cmp.auckland.ac.nz
References
Akaah, I.P., Dadzie, K.Q. and Riordan, E.A. (1988),
Applicability of marketing concepts and management
activities in the Third World: an empirical investigation,
Journal of Business Research, Vol. 16 No. 2, pp. 134-47.
Arnold, D.J. and Quelch, J.A. (1998), New strategies in
emerging markets, Sloan Management Review, Vol. 40
No. 1, pp. 7-20.
Arnould, E.J. and Mohr, J.J. (2005), Dynamic
transformations for base-of-the-pyramid market clusters,
Journal of the Academy of Marketing Science, Vol. 33 No. 3,
pp. 254-74.
Bonsu, S.K. and Belk, R.W. (2003), Do not go into that good
night: death-ritual consumption in Asante, Ghana, Journal
of Consumer Research, Vol. 30, June, available at: www.
journals.uchicago.edu/JCR/journal/issue/v30nl/300104/
300104.text.html
Brodie, R.J., Coviello, N.E. and Winklhofer, H. (2008),
Contemporary Marketing Practices research program: a
review of the first decade, Journal of Business & Industrial
Marketing, Vol. 23 No. 2, special issue, contemporary
marketing practices, pp. 84-94.
Brodie, R.J., Winklhofer, H., Coviello, N.E. and Johnston, W.J.
(2007), Is e-marketing coming of age? An examination of
the penetration of eM and firm performance, Journal of
Interactive Marketing, Vol. 21 No. 1, pp. 2-21.
Brown, S.W. (2005), When executives speak, we should
listen and act differently, Journal of Marketing, Vol. 64
No. 4, pp. 1-4.
Cateora, P.R. and Graham, J. (2007), International Marketing,
McGraw-Hill/Irwin, New York, NY.
Coviello, N.E., Brodie, R.J., Danaher, P.J. and Johnston, W.J.
(2002), How firms relate to their markets: an empirical
examination of contemporary marketing practices, Journal
of Marketing, Vol. 66, July, pp. 33-46.
Dadzie, K.Q. (1989), Demarketing strategies in shortage
marketing environment, Journal of the Academy of
Marketing Science, Vol. 17 No. 2, pp. 157-65.
Dadzie, K.Q., Johnston, W.J., Yoo, B. and Brashear, T.
(2002), Measurement equivalence and applicability of
core marketing concepts across Nigeria, Kenya and US
firms, Journal of Business & Industrial Marketing, Vol. 17
No. 6, pp. 428-55.
Day, G.S. and Montgomery, D.B. (1999), Charting new
directions for marketing, Journal of Marketing, Vol. 63,
special issue, pp. 3-13.
Future research
To compare our results with the CMP study in Argentina, we
limited our study to only business-to-business firms and,
therefore, our findings may not be generalizable to the full
CMP framework proposed by Coviello et al. (2002). So,
future study should replicate the full CMP framework in
emerging markets to fully confirm the generalizability of the
framework in emerging African economies. In addition, many
emerging markets operate under conditions of strong state
intervention in marketing activities, a feature that is not
recognized by the CMP framework. Therefore, future
research could consider the impact of state intervention on
CMP activities, especially among firms characterized as
engaging in low marketing activities.
We believe that expanding the CMP framework to emerging
economies is extremely important for several reasons. First, as
Prahalad and Hart (2002) point out, the GDP of the
emerging economies is collectively (as a market) larger than
the GDP of Japan, Germany, France, the UK and Italy
combined. This market is not to be ignored. Thus, the study
of emerging markets and how marketing is practiced in these
countries are extremely relevant both to academics and to
managers. Second, the dominance of emerging market
nations in the global market economies, especially BEM
nations, may call for a reconceptualization of marketing to
reflect the emerging nations, characterized by consumers with
lower purchasing power. In this regard, the recent efforts of
the CMP studies in Argentina (Pels et al., 2004), Russia
(Wagner, 2005), and in Africa are but an initial step.
Collectively, these studies show the important differences
between developing and transitional markets (i.e. Argentina
versus Russia), between SEM and BEM (West Africa versus
Argentina), and between developed and emerging markets
(USA versus West Africa versus Argentina). The
heterogeneity of our findings suggests that further studies
are needed (i.e. India and China) in order to improve our
understanding of how CMP is conducted in these regions.
Another important aspect that these studies highlight is that
there is a link between contextual and historical factors and
choice of marketing practice. Tying together all the various
contextual factors that influence the practice of marketing
under the variety of global market conditions requires a new
theoretical framework and sound theory. Thus, future work
121
Further reading
2. Nature of communication
Our marketing communication involves:
.
Our organization communicating to the mass market
(TM).
.
Our organization targeting a specifically identified
segment(s) or customer(s) (DM).
.
Individuals at various levels in our organization personally
interacting with their individual customers (IM).
.
Senior managers networking with other managers from
organizations in our market(s) or wider marketing system
(NM).
7. Managerial focus
Our marketing planning is focused on issues related to:
.
Our product/service offering (TM).
.
Customers in our market(s) (DM).
.
Specific customers in our market(s), or individuals in
organizations we deal with (IM).
.
The network of relationships between individuals and
organizations in our wider marketing system (NM).
3. Type of contact
Our organizations contact with our primary customers is:
.
Impersonal (e.g. no individualized or personal contact)
(TM).
.
Somewhat personalized (e.g. by direct mail) (DM).
.
Interpersonal (e.g. involving one-to-one interaction
between people) (IM/NM).
8. Managerial investment
Our marketing resources (e.g. people, time, money) are
invested in:
.
Product, promotion, price, and distribution activities (or
some combination of these) (TM).
.
Technology to improve communication with our
customers (DM).
.
Establishing and building personal relationships with
individual customers (IM).
.
Developing our organizations network relationships
within our market(s) or wider marketing system (NM).
4. Duration of exchange
When a customer buys our products we believe they expect:
.
No future personalized contact with us (TM).
.
Some future personalized contact with us (DM).
.
One-to-one personal contact with us (IM).
.
Ongoing one-to-one personal contact with people in our
organization and wider marketing system (NM).
9. Managerial level
In our organization, marketing activities are carried out by:
.
Functional marketers (e.g. marketing manager, sales
manager, major account manager) (TM).
.
Specialist marketers (e.g. customer service manager,
loyalty manager) (DM).
.
Non-marketers who have responsibility for marketing and
other aspects of the business (IM).
.
The managing director or CEO (NM).
5. Formality of exchange
When people from our organization meet with our primary
customers, it is:
.
Mainly at a formal, business level (TM).
.
Mainly at an informal, social level (DM).
.
At both a formal, business and informal, social level (IM/
NM).
Corresponding author
Kofi Q. Dadzie can be contacted at: kdadzie@gsu.edu
123
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.