Relationship Marketing in Professional Services: A Study of Agency-Client Dynamics in the Advertising Sector

388 Pages·1996·2.24 MB·English

by  Aino Halinen

RELATIONSHIP MARKETING IN
PROFESSIONAL SERVICES
This is a fascinating analysis of the challenging marketing concept of the decade –
relationship marketing. In a five-year ‘fly on the wall’ case study Aino Halinen
explored the relationship between a Helsinki advertising agency and its international
client.
Using existing theory and her unique case study, she injects brand new ideas
into the creation of a model for understanding agency–client relationships and
looks at the most successful way to develop business relationships.
Both the context and content for relationships are described, concept by concept.
The roles of interaction style and relational bonds – attraction, trust and commitment
– are seen as essential elements in ongoing contacts. Halinen further advances
new ideas for understanding the development process by identifying critical events,
phases and cycles.
Written with clarity and insight, this book yields a rich topical harvest for
advertising and other professional service sectors and will be an excellent source
book for business school academics and advanced marketing students interested
in processual research.
Aino Halinen (Ph.D.) is Assistant Professor in Marketing at Turku School of
Economics and Business Administration in Finland. Her 1994 doctoral thesis
discusses relationship development in the advertising sector. She has published
articles and chapters in international books on longitudinal research methodology,
professional service relationships and service quality. Her current research focuses
on the dynamics of international business networks.
ROUTLEDGE ADVANCES IN MANAGEMENT AND
BUSINESS STUDIES
1 MIDDLE MANAGERS IN EUROPE
Yves Frédéric Livian and John G. Burgoyne
2 MARKETING APOCALYPSE
Eschatology, escapology and the illusion of the end
Edited by Stephen Brown, Jim Bell and David Carson
3 RELATIONSHIP MARKETING IN PROFESSIONAL SERVICES
A study of agency–client dynamics in the advertising sector
Aino Halinen
RELATIONSHIP
MARKETING IN
PROFESSIONAL
SERVICES
A study of agency–client dynamics in the
advertising sector
Aino Halinen
London and New York
First published 1997
by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001
This edition published in the Taylor & Francis e-Library, 2001.
© 1997 Aino Halinen
All rights reserved. No part of this book may be reprinted or reproduced or utilized in any
form or by any electronic, mechanical, or other means, now known or hereafter invented,
including photocopying and recording, or in any information storage or retrieval system,
without permission in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
A catalogue record for this book has been requested
ISBN 0–415–14607–0 (Print Edition)
ISBN 0-203-02551-2 Master e-book ISBN
ISBN 0-203-13021-9 (Glassbook Format)
CONTENTS
List of figures viii
List of tables xi
Preface xii
Acknowledgements xiii
1 INTRODUCTION 1
1.1 Research area 1
1.2 The business relationship concept 3
1.3 Existing models of the development of business relationships 5
2 THE RESEARCH SETTING 15
2.1 The purpose of the study and its theoretical underpinnings 15
2.2 Research strategy 18
2.3 Structure of the study 23
3 AN INTERACTION FRAMEWORK FOR THE
DEVELOPMENT OF ADVERTISING AGENCY–CLIENT
RELATIONSHIPS 24
3.1 The nature of advertising markets and advertising services 26
3.2 Context of advertising agency–client relationships 32
3.3 Prerequisites for starting a business relationship 44
3.4 The content and development process of advertising
agency–client relationships 47
3.5 Critical events in relationship development 65
3.6 Summary of the framework – the a priori process model 66
4 EMPIRICAL RESEARCH DESIGN 71
4.1 Selection of the empirical case 71
4.2 The research process 74
4.3 Data collection 76
4.4 Data analysis 83
4.5 Data quality 85
v
CONTENTS
5 DEVELOPMENT OF THE ADVERTISING AGENCY–CLIENT
RELATIONSHIP STUDIED 90
5.1 The interacting companies and their development 90
5.2 Development of the business relationship between the marketing
unit of Fiskars Oy Ab and Markkinointi Topitörmä Oy 98
5.3 Development of the business relationship between the Finnish
sales unit of Fiskars Oy Ab and Markkinointi Topitörmä Oy 140
5.4 Development of the business relationship between the Head
Office of Fiskars Oy Ab and Markkinointi Topitörmä Oy 161
6 A MODIFIED PROCESS MODEL OF ADVERTISING
AGENCY–CLIENT RELATIONSHIPS 179
6.1 Prerequisites for a business relationship 181
6.2 Interaction processes and interaction styles 186
6.3 Evolving relational infrastructure 208
6.4 Perceived outcomes of interaction processes 227
6.5 Evolving relational bonds 240
6.6 Critical events in relationship development 272
6.7 Phases of relationship development 277
6.8 Cycles of development 282
6.9 Summary of the modified process model and research results 289
7 ASSESSMENT OF THE STUDY 299
7.1 Contribution and conclusions 299
7.2 Validity of the study 305
7.3 Avenues for future research 311
8 SUMMARY 312
APPENDICES
1 Advertising agencies in 1989 316
2 Publications and internal documents used in case selection
and case description 318
3 Interviews and discussions 321
4 Contents of the case study database 323
5 Interview themes and examples of interview questions 324
6 Data display devices 330
7 Codes used in data analysis 331
8 The development of Fiskars Oy Ab in 1980–91 in terms of
turnover, personnel and pre-tax earnings 336
9 The development of Markkinointi Topitörmä Oy in 1980–91
in terms of gross margin, personnel, pre-tax earnings and
market position 338
vi
CONTENTS
Notes 341
References 345
Index 357
vii
LIST OF FIGURES
2.1 An analytical framework for studying processual phenomena 16
2.2 Theoretical positioning of the study 18
2.3 The research strategy 19
3.1 Draft a priori process model of the development of advertising
agency–client relationships 25
3.2 A hypothetical net of an advertising agency–client
relationship 34
3.3 Prerequisites for starting an advertising agency–client
relationship 45
3.4 The interaction processes of an advertising agency–client
relationship 48
3.5 The perceived outcomes of an advertising agency–client
relationship 54
3.6 The evolving bonds in an advertising agency–client relationship 57
3.7 An a priori process model of the development of advertising
agency–client relationships 67
4.1 The research process 75
4.2 Longitudinal research design 77
4.3 Informants from each unit business relationship 79
5.1 The flow of events before the relationship between Billnäs
and Törmä began 100
5.2 The development of the relationship between Billnäs and
Törmä in the initial phase 103
5.3 The development of the relationship between Billnäs and
Törmä in the growth phase 106
5.4 Documented meetings between Billnäs and Törmä 108
5.5 The interacting teams and the frequency of communication
between Billnäs and Törmä in the growth phase 108
5.6 Invoicing between Billnäs and Törmä 112
5.7 Assignments executed between Billnäs and Törmä 113
5.8 The success of the marketing concepts over time, as assessed
` by the client 116
viii
LIST OF FIGURES
5.9 The development of the relationship between Billnäs and
Törmä in the troubled phase 119
5.10 The development of the relationship between Billnäs and
Törmä in the decline phase 124
5.11 The interacting teams and the frequency of communication
between Billnäs and Törmä in the decline phase 126
5.12 The development of the relationship between Billnäs and
Törmä in the new growth phase 129
5.13 The interacting teams and the frequency of communication
between Billnäs and Törmä in the new growth phase 130
5.14 The development of the relationship between Billnäs and
Törmä in the new decline phase 134
5.15 The interacting teams and the frequency of communication
between Billnäs and Törmä in the new decline phase 136
5.16 The development of the relationship between Malmi and
Törmä in the initial phase 142
5.17 The development of the relationship between Malmi and
Törmä in the constant phase 146
5.18 Assignments executed between by Malmi and Törmä 147
5.19 The interacting teams and the frequency of communication
between Malmi and Törmä in the constant phase 149
5.20 Invoicing between Malmi and Törmä 150
5.21 The success of the marketing concepts in Finnish markets
over time, as assessed by the client 152
5.22 The development of the relationship between Malmi and
Törmä in the decline phase 156
5.23 Documented meetings between Malmi and Törmä 158
5.24 The interacting teams and the frequency of communication
between Malmi and Törmä in the decline phase 159
5.25 The development of the relationship between Head Office
and Törmä in the dormant phase 162
5.26 The development of the relationship between Head Office
and Törmä in the active phase 166
5.27 The interacting teams and the frequency of
communication between Head Office and Törmä in the
active phase (1990) 168
5.28 Documented meetings between Head Office and Törmä 171
5.29 Invoicing between Head Office and Törmä 172
5.30 The interacting teams and the frequency of communication
between Head Office and Törmä in the active phase (1991) 176
6.1 The emerging process model of the development of advertising
agency–client relationships 180
6.2 The interaction processes and interaction styles in an
advertising agency–client relationship 187
ix