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The use and abuse of marketing experiments: Organizational initiatives
130
Long Range Planning Vol. 14
June 1981
caused the neglect of other, more common approaches to business behaviour. This is an attempt to reconcile alternative approoches with actual managerial practice. STEWART, T. J. A Descriptive Approach to Multiple-criteria Decision Making OR, 32 (1) 45-53 Oanuary 1981). Certain concepts from multivariate statistical analysis are applied to problems in multiple-criteria decision making. The aim of this approach is to identify basic relationships and conflicts between the available decision alternatives and between criteria. If these aspects can be clearly identified and conveyed to the responsible decision maker, he may well be in a posi tion to make an intelligent selection of a course of action, without the need for formal utility analysis, computation of Pareto optimal sets, etc. Two approximate multivariate statistical techniques are introduced to illustrate the approach, and each technique is applied to two sample problems.
PLANNING IN SPECIFIC MANAGEMENT AREASPRODUCT PLANNING LAWTON, L. and PARASUROMAN, A.
So You Want Your New Product Planning to be Productive Business Horizons, 23 (6), 29-34 (December 1980). The introduction of a new product can be a disaster. The impact of product source ideas is examined on the nature and success of new products, and the role played by marketing research is described. The conclusion is drawn that appropriate use of R&D and marketing research can greatly improve the productivity of new product planning. CRAWFORD, C. M. Defining the Charter for Product Innovation Sloan Management Review, 22 (1), 3-13 (Autumn 1980). Strategic planning techniques have provided direction for established business functions such as marketing, production and finance. Today, many companies are using these techniques to guide new product development. A study of new product planning in 125 American firms is described. Based on the information obtained from both the business press and personal interviews a key element in this planning is identified-the Product Innovation Charter. An approach can provide a comprehensive activity and directional mandate for managers, and can ensure a coordinated and integrated plan for any new product function. HEELER, R. M. and HUSTAD, T. P. Problems in Predicting New Product Growth for Consumer Durables Management Science, 26 (10), 1007-1020 (October 1980). A popular model of new product diffusion is applied in an international setting. Several limitations on its use are noted: instability with limited date, environmental differences, and systematic under reporting of estimated time to attain peak level of first purchase sales. OREN, S. S., ROTHKOPF, M. H. and SMALLWOOD, R. D. Evaluating a New Market: a Forecasting System for Non-impact Computer Printers Interfaces, 10 (6), 76-87 (December 1980) In 1975, Xerox called a halt and nearly cancelled the development of a high speed xerographic-scanning laser computer printer because earlier market research had not shown that the company could profitably sell such a product. A group made up of Management Scientists, market researchers and product planners designed and put into
practice a market research based forecasting system for high speed computer printers. Use resulted in a credible analysis of the market and based on this analysis Xerox decided to develop, announce and manufacture the 9700 Electronic Printing System.
PLANNING IN SPECIFIC MANAGEMENT AREASSOCIAL RESPONSIBILITY
Bum K. J. Social Responsibility and the Industrial Market Management Decision, 18 (5), 246-253 (1980). There is a growing discussion of industry's social responsibilities. The causes of this are numerous and results in the main from discussions and reports in the press of the impact of actions taken by particular industries and firms. A framework is therefore needed to give individuals help in structuring their thoughts about particular issues. Consideration is given to how eXisting economic and technological structures create and affect issue. There is much constructive thought on the topic.
LESSEM, R. Economic Revitalization and the Management of Transition Journal oj General Management, 6 (2), 16-23 (Winter 1980J1981). America's economic and managerial ills have recently been summarized thus: a drastic loss of competitive strength; short-term corporate strategies; over-scientific management; expectations that can no longer be met and incoherent government policy. What is lacking not only in America but in Britain also, is self-assertiveness, vision, risk-taking, imagination and will. There has been no absence of entrepreneurial thinking, it seems, in management literature. Why has this been so lacking in practice? The blame lies with management education which emphasizes congnitive processes at the expense of channelling personal feelings and developing will-power.
PLANNING IN SPECIFIC MANAGEMENT AREASMARKETING DOYLE, P. and SAUNDERS, J.
The Future of Marketing: Views from two Ivory Towers Management Decision, 18 (5), 254 (1980). All people of responsibility in marketing need to plan for the future. The Marketing Manager has to ensure that his company has the resources and products that will be needed. A recent American survey concluded that we are entering a period of increased change and uncertainty. There would be increasing pressure on business from consumerism, restrictive legislation and shortages of resources. To operate in this environment would mean making change in the priority given to Marketing strategies. A similar study was done in the U.K. The results are compared. EMSHOFF, J. R. and CARROLL, V. P. The Use and Abuse of Marketing Experiments: Organizational Initiatives Sloan Management Review, 22 (1), 23-35 (Autumn 1980). There are several approaches corporations have taken toward marketing experimentation. Pitfalls are identified that typically result in diminished returns on investments made in experimentation programmes-the organizational forces shaping the experiments, judgmental factors underlying their design, and the timing and scope of their execution. Specific recommendations are proposed in the critical areas of
A Current Awareness Service for Long Range Planning management system integration, the motivation of personnel involved, and the development and communication of a clear philosophy of experimentation.
PLANNING IN SPECIFIC MANAGEMENT AREASMANPOWER ZANAKIS, S. H. and MARET, M. W.
A Markovian Goal Programming Approach to Aggregate Manpower Planning OR, 32 (1), 55-63 Oanuary 1981). The combination of a manpower supply model (a Markov type model based on historical probabilities of losses, promotions and gains) and goal programming with preemptive priorities provides a useful tool for developing a future year manpower plan under conflicting socio-econoorganizational objectives. Successful utilization requires a close management involvement in adjusting probabilities and specifying goals, priorities and impending policy changes. Such an approach is presented and illustrated by means of an industrial case study example. The presentation is kept simple, yet detailed and unified, so that it is easily understood by practitioners and students of operational research! management science. HOLz, B. W. and WROTH, J. M. Improving Strength Forecasts: Support for Army Manpower Management Interfaces, 10 (6), 37-49 (December 1980). Through innovative use of Management Science, manpower maflagement in the Army has been significantly improved. A computer system has been developed by General Research Corporation that is used by Headquarters, Department of the (U.S.) Army, for manpower planning, budgetting policy development, and monitoring the progress of manpower programmes. Use of the system, called ELIM-COMPLIP, is central to the management of Army manpower and has been credited by senior Army officials with making several important contributions to improved national defense, including annual savings of more than $100m in the Army's budget for military personnel, and enabling the number of Army divisions to rise from 13 to 16. PLANNING IN SPECIFIC MANAGEMENT AREASINVESTMENT BUZZELL, R. D. and WIERSEMA, F. D.
Successful Share-building Strategies Harvard Business Review, pp. 135-144 Oanuary-February 1981). Market share has always been a primary determinant of return on investment. New data suggest that the most successful market share building strategies are ones that emphasize product quality, new product activity, and the level of marketing expenditures. Most of these are additional approaches for increasing market share. WIND, Y. and MAHAJAN, V. Designing Product and Business Portfolios Harvard Business Review, pp. 155-165 Oanuary-February 1981). Portfolio models can help corporate executives formulate consistent and profit enhancing strategies along product and business lines. There are several questions which should be asked, such as the choice of model-should it be idiosyncratic or predetermined? What dimensions will be selected? How does the portfolio model influence resource allocation among products? There are some guidelines given for exploiting all aspects of portfolio analysis.
131
PLANNING IN SPECIFIC MANAGEMENT AREASLOCATION LEDERER, T. F.
Relocation or Dislocation?---a Planned Approach to Location Long Range Planning, 13 (6), 10-17 (December 1980). The location of business operations is a key ingredient to operating efficiency and profitability, yet few organizations give the decision the importance it merits. A location audit can be helpful in deciding whether to move, and, if so, where and when. A successful relocation is not a mechanistic exercise and staff considerations playa vital role. Enquiries in feasible new locations must include information on demographic trends, culture etc. The efficient planning and implementing of the actual move requires the appointment of a project manager to take command of the operation.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-PAPER INDUSTRY PRICE, D. H. R. and THILLAINATHAN, V.
Policy Experiments With a Paper Industry Model Long Range Planning, 14 (1) (February 1981). A continuous simulation model of the paper industry was developed to investigate the effectiveness of a number of types of policy change designed to reduce the impact of demand fluctuations on the industry. The policy changes examined by the model were by no means exhaustive. Given an adequate data base, the model could be used for other applications.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-NATIONALIZED INDUSTRIES HARRIS, D. J. and DAVIES, B. C. L.
Corporate Planning as a Control System in United Kingdopl Nationalized Industries Long Range Planning, 14 (1), 15-22 (February 1981). Since the late 1960s some U.K. nationalized industries have undertaken corporate planning as a means of exercising control. To the Government initiatives there has been a variety of planning responses from the nationalized sector. The corporate planning function at headquarters is generally small in numbers. Most of the industries have instituted systems that concentrate on the iterative nature of planning, over varying periods of time and for the organization as a whole. There is one major exception in the area of defining needs, values, policies and objectives.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-MU LTINATIONALS GOTCHER, J. W.
Strategic Planning for Multinationals-the Views of Governments and Scientists Long Range Planning, 14 (1), 23-31 (February 1981). It is important to explore the interrelationships between industrial planning at the national level and strategic planning for multinationals. National approaches can be quite different-the Belgian is significantly distinct from the French or the Dutch. The influence of industry wide planning on multinationals is weak. Government planning which led to recommendations carried little force. Multinationals could not take into account various government plans with divergent objectives and policies.
Long Range Planning Vol. 14
June 1981
caused the neglect of other, more common approaches to business behaviour. This is an attempt to reconcile alternative approoches with actual managerial practice. STEWART, T. J. A Descriptive Approach to Multiple-criteria Decision Making OR, 32 (1) 45-53 Oanuary 1981). Certain concepts from multivariate statistical analysis are applied to problems in multiple-criteria decision making. The aim of this approach is to identify basic relationships and conflicts between the available decision alternatives and between criteria. If these aspects can be clearly identified and conveyed to the responsible decision maker, he may well be in a posi tion to make an intelligent selection of a course of action, without the need for formal utility analysis, computation of Pareto optimal sets, etc. Two approximate multivariate statistical techniques are introduced to illustrate the approach, and each technique is applied to two sample problems.
PLANNING IN SPECIFIC MANAGEMENT AREASPRODUCT PLANNING LAWTON, L. and PARASUROMAN, A.
So You Want Your New Product Planning to be Productive Business Horizons, 23 (6), 29-34 (December 1980). The introduction of a new product can be a disaster. The impact of product source ideas is examined on the nature and success of new products, and the role played by marketing research is described. The conclusion is drawn that appropriate use of R&D and marketing research can greatly improve the productivity of new product planning. CRAWFORD, C. M. Defining the Charter for Product Innovation Sloan Management Review, 22 (1), 3-13 (Autumn 1980). Strategic planning techniques have provided direction for established business functions such as marketing, production and finance. Today, many companies are using these techniques to guide new product development. A study of new product planning in 125 American firms is described. Based on the information obtained from both the business press and personal interviews a key element in this planning is identified-the Product Innovation Charter. An approach can provide a comprehensive activity and directional mandate for managers, and can ensure a coordinated and integrated plan for any new product function. HEELER, R. M. and HUSTAD, T. P. Problems in Predicting New Product Growth for Consumer Durables Management Science, 26 (10), 1007-1020 (October 1980). A popular model of new product diffusion is applied in an international setting. Several limitations on its use are noted: instability with limited date, environmental differences, and systematic under reporting of estimated time to attain peak level of first purchase sales. OREN, S. S., ROTHKOPF, M. H. and SMALLWOOD, R. D. Evaluating a New Market: a Forecasting System for Non-impact Computer Printers Interfaces, 10 (6), 76-87 (December 1980) In 1975, Xerox called a halt and nearly cancelled the development of a high speed xerographic-scanning laser computer printer because earlier market research had not shown that the company could profitably sell such a product. A group made up of Management Scientists, market researchers and product planners designed and put into
practice a market research based forecasting system for high speed computer printers. Use resulted in a credible analysis of the market and based on this analysis Xerox decided to develop, announce and manufacture the 9700 Electronic Printing System.
PLANNING IN SPECIFIC MANAGEMENT AREASSOCIAL RESPONSIBILITY
Bum K. J. Social Responsibility and the Industrial Market Management Decision, 18 (5), 246-253 (1980). There is a growing discussion of industry's social responsibilities. The causes of this are numerous and results in the main from discussions and reports in the press of the impact of actions taken by particular industries and firms. A framework is therefore needed to give individuals help in structuring their thoughts about particular issues. Consideration is given to how eXisting economic and technological structures create and affect issue. There is much constructive thought on the topic.
LESSEM, R. Economic Revitalization and the Management of Transition Journal oj General Management, 6 (2), 16-23 (Winter 1980J1981). America's economic and managerial ills have recently been summarized thus: a drastic loss of competitive strength; short-term corporate strategies; over-scientific management; expectations that can no longer be met and incoherent government policy. What is lacking not only in America but in Britain also, is self-assertiveness, vision, risk-taking, imagination and will. There has been no absence of entrepreneurial thinking, it seems, in management literature. Why has this been so lacking in practice? The blame lies with management education which emphasizes congnitive processes at the expense of channelling personal feelings and developing will-power.
PLANNING IN SPECIFIC MANAGEMENT AREASMARKETING DOYLE, P. and SAUNDERS, J.
The Future of Marketing: Views from two Ivory Towers Management Decision, 18 (5), 254 (1980). All people of responsibility in marketing need to plan for the future. The Marketing Manager has to ensure that his company has the resources and products that will be needed. A recent American survey concluded that we are entering a period of increased change and uncertainty. There would be increasing pressure on business from consumerism, restrictive legislation and shortages of resources. To operate in this environment would mean making change in the priority given to Marketing strategies. A similar study was done in the U.K. The results are compared. EMSHOFF, J. R. and CARROLL, V. P. The Use and Abuse of Marketing Experiments: Organizational Initiatives Sloan Management Review, 22 (1), 23-35 (Autumn 1980). There are several approaches corporations have taken toward marketing experimentation. Pitfalls are identified that typically result in diminished returns on investments made in experimentation programmes-the organizational forces shaping the experiments, judgmental factors underlying their design, and the timing and scope of their execution. Specific recommendations are proposed in the critical areas of
A Current Awareness Service for Long Range Planning management system integration, the motivation of personnel involved, and the development and communication of a clear philosophy of experimentation.
PLANNING IN SPECIFIC MANAGEMENT AREASMANPOWER ZANAKIS, S. H. and MARET, M. W.
A Markovian Goal Programming Approach to Aggregate Manpower Planning OR, 32 (1), 55-63 Oanuary 1981). The combination of a manpower supply model (a Markov type model based on historical probabilities of losses, promotions and gains) and goal programming with preemptive priorities provides a useful tool for developing a future year manpower plan under conflicting socio-econoorganizational objectives. Successful utilization requires a close management involvement in adjusting probabilities and specifying goals, priorities and impending policy changes. Such an approach is presented and illustrated by means of an industrial case study example. The presentation is kept simple, yet detailed and unified, so that it is easily understood by practitioners and students of operational research! management science. HOLz, B. W. and WROTH, J. M. Improving Strength Forecasts: Support for Army Manpower Management Interfaces, 10 (6), 37-49 (December 1980). Through innovative use of Management Science, manpower maflagement in the Army has been significantly improved. A computer system has been developed by General Research Corporation that is used by Headquarters, Department of the (U.S.) Army, for manpower planning, budgetting policy development, and monitoring the progress of manpower programmes. Use of the system, called ELIM-COMPLIP, is central to the management of Army manpower and has been credited by senior Army officials with making several important contributions to improved national defense, including annual savings of more than $100m in the Army's budget for military personnel, and enabling the number of Army divisions to rise from 13 to 16. PLANNING IN SPECIFIC MANAGEMENT AREASINVESTMENT BUZZELL, R. D. and WIERSEMA, F. D.
Successful Share-building Strategies Harvard Business Review, pp. 135-144 Oanuary-February 1981). Market share has always been a primary determinant of return on investment. New data suggest that the most successful market share building strategies are ones that emphasize product quality, new product activity, and the level of marketing expenditures. Most of these are additional approaches for increasing market share. WIND, Y. and MAHAJAN, V. Designing Product and Business Portfolios Harvard Business Review, pp. 155-165 Oanuary-February 1981). Portfolio models can help corporate executives formulate consistent and profit enhancing strategies along product and business lines. There are several questions which should be asked, such as the choice of model-should it be idiosyncratic or predetermined? What dimensions will be selected? How does the portfolio model influence resource allocation among products? There are some guidelines given for exploiting all aspects of portfolio analysis.
131
PLANNING IN SPECIFIC MANAGEMENT AREASLOCATION LEDERER, T. F.
Relocation or Dislocation?---a Planned Approach to Location Long Range Planning, 13 (6), 10-17 (December 1980). The location of business operations is a key ingredient to operating efficiency and profitability, yet few organizations give the decision the importance it merits. A location audit can be helpful in deciding whether to move, and, if so, where and when. A successful relocation is not a mechanistic exercise and staff considerations playa vital role. Enquiries in feasible new locations must include information on demographic trends, culture etc. The efficient planning and implementing of the actual move requires the appointment of a project manager to take command of the operation.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-PAPER INDUSTRY PRICE, D. H. R. and THILLAINATHAN, V.
Policy Experiments With a Paper Industry Model Long Range Planning, 14 (1) (February 1981). A continuous simulation model of the paper industry was developed to investigate the effectiveness of a number of types of policy change designed to reduce the impact of demand fluctuations on the industry. The policy changes examined by the model were by no means exhaustive. Given an adequate data base, the model could be used for other applications.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-NATIONALIZED INDUSTRIES HARRIS, D. J. and DAVIES, B. C. L.
Corporate Planning as a Control System in United Kingdopl Nationalized Industries Long Range Planning, 14 (1), 15-22 (February 1981). Since the late 1960s some U.K. nationalized industries have undertaken corporate planning as a means of exercising control. To the Government initiatives there has been a variety of planning responses from the nationalized sector. The corporate planning function at headquarters is generally small in numbers. Most of the industries have instituted systems that concentrate on the iterative nature of planning, over varying periods of time and for the organization as a whole. There is one major exception in the area of defining needs, values, policies and objectives.
PLANNING IN SPECIFIC COMPANIES AND SITUATIONS-MU LTINATIONALS GOTCHER, J. W.
Strategic Planning for Multinationals-the Views of Governments and Scientists Long Range Planning, 14 (1), 23-31 (February 1981). It is important to explore the interrelationships between industrial planning at the national level and strategic planning for multinationals. National approaches can be quite different-the Belgian is significantly distinct from the French or the Dutch. The influence of industry wide planning on multinationals is weak. Government planning which led to recommendations carried little force. Multinationals could not take into account various government plans with divergent objectives and policies.