Post on 12-Jan-2016
Assessing Marketing Strategies of Enterprises by
Using Color Based Marketing Strategies (CBMS) Model
Omer LIVVARCIN, Muge CEVIK, Lebriz Tosuner FIKES,
Yeditepe University, Istanbul, TURKEY
Nilgun GÜRKAYNAK
Izmir University of Economics, Izmir, TURKEY
Objective of the Study
To provide a simple visual framework for evaluation of marketing strategies
For identifying the perceived typology of companies
To assess the congruence between the perceived versus intended positioning of companies.
The need Free flow of information as a multidirectional
process
Adopting an open, transparent and accountable perception is a requisite
Easily bored customers circulate around products&services
The new market orientation calls for a wiser description of organizations
Background
Organizations are similiar to living organisms (e.g. Keeley, 1980; Young, 1990; Bloom, 1995; Pech, 2001;Fekete, 2003)
Psychological concepts are in use, recently organizations are defined by human attributes
This study matches with earliest trait theories introduced by Jung (1976) and redefined by Myers and Briggs (1980).
Background First two umbrella concepts used in the study
are extrovert versus introvert. These terms show how a person orients and
receives energy.
Extroverted- is sociable person with preferred focus on other people and things.
Introverted- draw its energy from the inner world of information, thoughts and ideas.
Background For some, organizational focus is derived
through external factors; markets, competitors, customers In highly competitive industries (Fekete, 2003)
Others have an introverted sensibility focused on; its employees, inventions and values In high tech industries and specialized consumer
markets
Background The other two umbrella concepts used in the study
are innovative versus conservative. Innovation- one of the major business functions in
today’s world; a strategic obligation rather than an option
Innovation- can be a product or a process; is a new business concept that creates wealth (Drucker,1985; Hamel, 2000)
This study focuses on how companies’ innovativeness is perceived
Proposed Model
CBMS Model
A simple and visual model for assesment of customer perceptions on marketing strategies.
Uses model dimensions as umbrella concepts
Allows flexible interpretation of those concepts
CBMS Model
Vertical axis ‘Extrovert’- a sociable and assertive company, interacts with its environment. ‘Introvert’ - a more reserved company, focused on inner resources
Horizontal axis ‘Innovative’- productive of new systems, products, services and ideas ‘Conservative’- favor traditional views or values & tend to oppose change or innovations
CBMS Model
•Graphical illustration; shows the difference between intended and perceived marketing strategy
Methodology
Sample- 10 multinational companies selected randomly from
Forbes 2008 list Repondents- 263 randomly selected people
Questionnaire; self-developed 6 questions that repeat for 10 companies 6 demographic questions 9-point scale
ApplicationIntrovert-Extrovert Innovative-Conservative
Coca Cola 0,787 0,878
Pepsi 0,829 0,917
Microsoft 0,847 0,948
Google 0,795 0,899
Nokia 0,868 0,959
Samsung 0,887 0,836
Nike 0,847 0,944
Adidas 0,902 0,964
Toyota 0,897 0,959
Mercedes 0,847 0,918
• All Cronbach’s Alpha values are greater than 0.7
Application
• All single factor eigenvalues are greater than 1
Findings
Findings Companies are cumulated at the
upper right corner Coca Cola & Pepsi- at the Low
extrovert and Low innovative section Google- at the High extrovert and
High innovative section Toyota- at the border deviating from
upper cluster Samsung- at the lower end of
innovativeness ( when compared to Nokia)
Nike & Addidas shows similar pattern
Findings
• Perception of Innovativeness fall for all companies in higher income levels.
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4,5
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5,5
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6,5
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7,5
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8,5
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1 2 3 4 5
Income level
Inn
ova
tive
nes
s
Coca Cola
Pepsi Cola
Microsoft
Nokia
Samsung
Nike
Adidas
Toyota
Mercedes
Findings
• Extrovertiveness perception for all companies except Samsung demonstrates decreasing tendency at highest income level
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4
5
6
7
8
9
1 2 3 4 5
Income Level
Ext
rove
rtin
ess
Coca Cola
Pepsi Cola
Microsoft
Nokia
Samsung
Nike
Adidas
Toyota
Mercedes
Findings • Innovativeness perception for Coca Cola & Pepsi diversify significantly from other companies as education level changes
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4,5
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5,5
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6,5
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7,5
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8,5
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1 2 3 4 5
Education level
Inn
ova
tive
nes
s
Coca Cola
Pepsi Cola
Microsoft
Nokia
Samsung
Nike
Adidas
Toyota
Mercedes
Findings
•The perceived extrovertiness varies significantly at lower education levels• It gathers at higher education levels
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4
5
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1 2 3 4 5
Education Level
Extr
overt
iness
Coca Cola
Pepsi Cola
Microsoft
Nokia
Samsung
Nike
Adidas
Toyota
Mercedes
Findings High correlation between the perceived
extrovertiveness and innovativeness (0.918) ‘Companies that are perceived innovative are also
perceived as extrovert’. On the other hand, there is strong corelation between
introvertiveness and innovativeness (Fekete, 2003).
No correlation were found between the perceived extrovertiness/innovativeness and company brand value
Androgeny- No gender variance differences were found.
Conclusions This research is a pilot study that tested the applicability
of the Color Based Marketing Strategy (CBMS) Model.
The CBMS model can be used by both academicians as well as members of the private and public sector.
It is simple to apply, to evaluate, to understand.
May be used by companies for quick benchmarking.
Enables companies also to monitor their perceived marketing status and to evaluate the gap between where they are and where they want to be.
Conclusions Innovation literature- Innovativeness has often been
operationalized as the development team’s satisfaction with the outcomes of innovation (e.g., More, 1982; Rothwell and Gardiner, 1988; Cooper and Brentani, 1991; Van Der Vegt and Janssen, 2003; Blazevic and Lievens, 2004) or as internal evaluations of consumers’ likely responses ( Seith et al., 2001)
With this study we view marketing strategies (innovativeness and extrovertiness) of a firm through the eye of the consumer ( existing or potential).
Through CBMS Model we suggest that evaluation of marketing strategies take both inside-out ( application of PIG) and outside-in ( CBMS model used in the study) approaches.
Conclusions Local marketing strategies of global enterprises will
determine how innovative and extrovert they are perceived by local people in that specific country or region.
Because our application was performed only in Turkey our results may be tentative in other countries.
It is not only due to the variant culture based perceptions of people in different countries but also due to the diverse marketing strategies of companies in those countries.
Further Research
Our results need to be further tested across markets- i.e. countries and products.
Perception differences between local companies and multinationals from same sector can be investigated.
Managers of the companies involved in this study could be surveyed using a parallel approach proposed by Community Innovation Surveys ( CIS-3, CIS-4) to fulfill the gaps discussed by Arundel (2007).
Androgeny may also be an important area to investigate.
Thank you...