International Marketing and Purchasing: A Survey among Marketing and Purchasing Executives in Five European Countries

146 Pages·1981·12.71 MB·English

by  Peter W. Turnbull

International Marketing and Purchasing
International Marketing
and Purchasing
A Survey among Marketing
and Purchasing Executives
in Five European Countries
Edited by
Peter W. Turnbull and Malcolm T. Cunningham
in association with I. D. Ford and Elling Homse
© Peter W. Turnbull and Malcolm T. Cunningham 1981
Softcover reprint of the hardcover 1s t edition 1981
All rights reserved. No part of this publication may be
reproduced or transmitted, in any form or by any means,
without permission
First published 1981 by
THE MACMILLAN PRESS LTD
London and Basingstoke
Companies and representatives
throughout the world
ISBN 978-1-349-05477-0 ISBN 978-1-349-05475-6 (eBook)
DOI 10.1007/978-1-349-05475-6
1ransferred to digital printing 1999
02/790
To our colleagues in the IMP group who made the research both
enjoyable and stimulating
Contents
Preface xi
Acknowledgements xv
1 A New Approach to Industrial Marketing and Purchasing 1
1. 1 Objectives 1
1.2 Marketing and Purchasing in Perspective 3
1.3 Export Marketing and International Purchasing 5
1.4 The Importance of Individual Attitudes 6
1.5 Research Method 10
1.5.1 Research Assumptions 10
1.5.2 Sample Selection 11
1.5.3 Respondents 13
1. 5.4 Questionnaire Design 14
1.5.5 Data Analysis Process 15
1.5.6 Representativeness of Results 17
2 Marketing in Europe: the Performance of British
Companies 19
2.1 The Need for Effective Marketing 19
2.2 Marketing Organisation and Style 20
2.2.1 Marketing Organisation 21
2.2.2 Marketing Style 23
(i) Emphasis on new business 23
(ii) Customer orientation 24
(iii) Price 25
(iv) Product appearance 26
2.3 Reputation and Competence 27
2.3.1 General Reputation 28
2.3.2 Technical Competence 30
(i) Technical innovation 30
(ii) Product adaptation 31
(iii) Consistent quality 33
(iv) Provision of technical information 34
vii
viii Contents
2.3.3 Commercial Competence 34
(i) Delivery performance 35
(ii) Stock holding and after-sales service 38
(iii) Sales and communications 39
2.3.4 Summary 42
2.4 The Quality of Relationships 42
2.4.1 British Suppliers Compared with their
Competition 44
2.4.2 Features of Relationships 45
(i) Liking 45
(ii) Trust 47
(iii) Understanding and co-operation 48
(iv) Personal relationships 48
(v) Language barriers 49
2.4.3 Summary 50
2.5 The Marketing Environment 50
2.6 Summary of Main Findings about British Marketing 53
2.6.1 Marketing Organisation and Style 54
2.6.2 Selling in the Home Market 54
2.6.3 Reputation and Competence 54
2.6.4 Relationships with Customers 55
2.6.5 Language Requirements 56
2.6.6 Overall Marketing Performance 56
3 Purchasing in Europe: the Performance of British
Companies 58
3. 1 Introduction: the Contribution of Purchasing to
Business Performance 58
3.1. 1 Purchasing in Unit Production Industries 60
3.1.2 Purchasing in High Volume Manufacturing
Industries 61
3.1.3 Purchasing in Process Industries 62
3. 1.4 Contents of the Chapter 62
3.2 Purchasing Organisation and Style 63
3.2.1 Purchasing Organisation and Decision Making 64
3.2.2 Buying Style 66
3.3 Reputation, Competence and Requirements of British
m
B~~
3.3. I General Reputation and Competence 69
3.3.2 Technical Reputation and Requirements of
British Buyers 70
Contents ix
(i) Technical innovation 70
(ii) Adaptability 71
(iii) Emphasis on quality 73
(iv) Product appearance 74
3.3.3 Commercial Reputation and Requirements of
British Buyers 75
(i) Communication with suppliers 76
(ii) Delivery requirements 78
(iii) Stock holding and service requirements 79
(iv) Preferences about nationality of salesmen 79
3.3.4 Summary 80
3.4 The Quality of Relationships 81
3.4.1 British buyers Compared with other Europeans 82
83
3.4.2 Aspects of Relationships
(i) Liking, trust and loyalty 83
(ii) Understanding and co-operation 85
(iii) Personal relationships 86
(iv) Language barriers 86
3.4.3 Summary 87
3.5 The Purchasing Environment 89
3.6 Summary of main findings about British Purchasing 92
3.6.1 Organisation and Decision-Making
92
Characteristics
3.6.2 Style of Buying 93
3.6.3 Reputation, Competence and Requirements of
British Buyers 93
3.6.4 Relationships with Suppliers 94
3.6.5 Language Barriers for British Buyers 95
3.6.6 Problems Facing Foreign Suppliers 95
96
4 Implications for Management
4.1 Marketing Implications 97
4.1. I Improving Competence and Reputation 98
(i) Selling on technical superiority and
not an price 98
(ii) Emphasising technical innovativeness 99
(iii) Increasing understanding and flexibility 100
4.1.2 Integrated Teamwork 100
4.1.3 Strategic and Operational Marketing 102
4.1.4 Organisational Position of Export Marketing 102
4.1.5 Relationships and their Management 103
x Contents
4.1.6 Resource Investment 104
4. 1. 7 Commitment to Exporting 105
4.1.8 Selection of Export Markets 105
4. 1.9 Learning from Experience 106
4.1.10 Dangers of Institutionalisation 107
4.1.11 Language Skills 108
4.1.12 The Importance of Purchasing 108
4.1.13 Characteristics of European Markets 109
(1) Marketing to Sweden 110
(ii) Marketing to Germany 111
(iii) Marketing to France 111
(iv) Marketing to Italy 112
(v) Marketing to British Customers 113
4.2 Purchasing Implications 114
4.2.1 The 'Total Purchasing Concept' 115
4.2.2 Strategic and Operational Purchasing 116
4.2.3 Managing Supplier Relationships 117
4.2.4 The Exercise of Purchasing Power 118
4.2.5 The Professionalism and Status of Buying 120
4.2.6 Raising Supplier Performance Standards 121
4.2.7 Selectivity and Concentration of Purchasing
Resources 121
4.2.8 Buying in Europe: Characteristics of European
Supply Markets 122
(i) Buying from Sweden 122
(ii) Buying from Germany 123
(iii) Buying from France 124
(iv) Buying from Italy 124
(v) Buying from Britain 124
4.3 Final Remarks 125
129
Index
Preface
This book identifies important lessons to be learnt by managers of
companies selling to and buying from Europe. Recommendations for
action by British management are made based on the results of this
unique research study of over 300 companies in France, Germany,
Italy, Sweden and Britain.
The products and industries surveyed represent vital sectors of
trade between the five countries and are drawn from a cross-section of
industrial goods such as raw materials, components and capital
equipment. Although a main focus of the book is the export
marketing activities taking place between these five countries, the
book is not only concerned with marketing. It also examines the
vitally important purchasing function. Thus, the discussion concen
trates on the style, reputation and performance of British marketing
and purchasing, as seen by their customers and suppliers throughout
Europe. The data is presented in such a way as to facilitate a
comparison between the activities of British companies and those of
their major competitors in Europe.
Progressively, companies throughout the world are extending both
their marketing and purchasing activities into foreign markets. The
industrial markets of Western Europe are particularly attractive and
are becoming increasingly international and competitive. The high
and growing import penetration of the British market by European
competitors bears witness to this trend, which has been stimulated by
Britains entry into the EEe. British firms who wish to begin exporting
or increase their level of export activity are now more often looking to
Western European markets than to the traditional English speaking
markets of North America, Australia, etc. Yet they do so at a time
when competition is increasing and the growing threat from Japanese
manufacturers cannot be ignored. Furthermore, as the results of this
research indicate, this is occurring at a time when the reputation of
British companies for their product technology, performance and
service, is comparatively poor. These problems are exacerbated by
the recent strength of sterling, which has considerably reduced the
xi