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

146 Pages·1981·12.707 MB·English
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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

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