The Marketing Firm
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The Marketing Firm

Economic Psychology of Corporate Behaviour

Kevin J. Vella and Gordon Foxall

This book provides an expert analysis of the theory of the marketing firm by drawing upon operant psychology, economic theory and marketing to argue that all firms exist in order to market. The authors explore the nature of bilateral interdependence and suggest a framework to analyse the collaborative and competitive mutually reinforcing relationships within which the firm acts.
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Appendix 5: Reflections on 'The Marketing Firm'

Kevin J. Vella and Gordon Foxall


Appendix 5. Reflections on ‘the marketing firm’ A5.1 MANAGERIAL BEHAVIOUR SETTING: MANUFACTURERS ● ● ● ● ● ● ● ● ● Legally binding undertakings imposed by regulator: for example, outlet exclusivity can only be requested by retailers. Sales, profit and growth rules set by mother company: for example, 33 per cent growth required by Unilever. Plans and objectives set by management as self-rules: for example, the entire deliberative process BEW passed through, including its plans and proposals to Unilever for the setting up of Wall’s Direct. The report contains several appendices in this respect. Contractual rules, duties and obligations to distributors, retailers and other channel members. Terms and conditions of supply. Degree of retailer and distributor approach as a function of consumer demand/popularity, brand rates of sale, retail penetration and market share: for example, the theme underlying BEW’s restrictive practices is the strengths of its brands and profitability. Patterns of consumer choice, seasonality and its impact on demand: related rules including winter and late summer production depending upon demand; centralised storage and springtime stocking behaviour; pre-season special offers to retailers to stock freezers early; the necessity of cold-chain storage and cold-chain delivery to maintain a quality product. Rules due to past consequences, for example, focus on other ice-cream markets by Mars in a bid to fill up otherwise idle capacity, on cost reduction by Nestlé, on retail, cabinet and distribution sovereignty by BEW and increasing Wall’s Direct scale of operations. Sales revenues, profitability and other performance-related factors, including working capital for daily operations, as attested, for example, by the...

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