Nexus Spring 2004


Published on

Published in: Education, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Nexus Spring 2004

  1. 1. warwick business school alumni association magazine: spring 04 the marketing issue
  2. 2. spring 2004 4 6 Academic Fund for Excellence Brands, Identity and the Postmodern Consumer news: 8 12 Super marketing Sales and Account Management Strategy VP appointment 14 Olympic challenge International biopharmaceutical company, Cephalon Inc. 15 Rankings appointed WBS alumna Dr Susan Sullman (DLMBA 1986–89), 16 Project MBA as Vice President of Regulatory Affairs – Europe, in July. Susan has 17 Careers and networking more than 25 years experience in the pharmaceutical industry, 18 Event reviews working with several multinational companies. In her latest role, she has responsibility for regulatory affairs throughout Cephalon’s Dr Susan Sullman European operations and is located at the company’s UK office in Guildford. Susan earned her PhD from London University and her BSc in Microbiology and Biochemistry at Leeds. diary good odds CBI profiles In the Winter issue of In Business, CBI West Midlands Councillor Profiles featured full page interviews with two The Times reported the return to the winner’s circle of WBS alumni Nick Horler SINGAPORE EVENT WBS alumnus David Harding (MSc Marketing (DLMBA 1987–91), Powergen’s 9 March 2004 Management 1980–81) on 9 September. Now Chief Managing Director, Retail and Host: Professor Bob Johnston Executive of William Hill Bookmakers, David gambled Geoff Percy (EMBA 1985–89), BANGKOK EVENT Chief Executive, Accantia successfully on a return to profit for the company, 16 March 2004 which joined the stock market in June last year. Health and Beauty Limited. Host: Professor Bob Johnston LONDON EVENING SEMINAR 24 March 2004 Speakers: Professors Stewart Hodges and Mark Salmon army family new year’s honours Second Lieutenant Katherine Topic: New research related to Allt (MA Organisation Studies Our congratulations to Monder Ram (MAIR 1988, PhD measuring market risk 2001–02) made news in The 1992), who was awarded the OBE for services to black MIDLANDS REGIONAL EVENT Sussex Express as the fourth 25 March 2004 and ethnic minority business in the New Year’s generation of her family to Speaker: Stuart Chambers Honours. Now Professor of Small Business at De Montfort University, serve in the Army. Her mother Topic: SME’s and co-ordinator of small business research at DMU Business School, was the first woman to Venue: tbc Leicester, Monder has extensive experience of working in, researching, command a signals corps, her BEIJING EVENT Brigadier grandfather was also and acting as a consultant to ethnic minority businesses. He is 17 April 2004 a Royal Signaller and her co-author of ‘Managing to Survive – Working Lives in Small Firms’, and Speaker: Dr Simon Collinson great-grandfather served with ‘Ethnic Minorities in Business’ and is the only academic to be appointed SHANGHAI EVENT the Royal Engineers. Katherine to the Department of Trade and Industry’s advisory forum on ethnic 20 April 2004 joined the 21st Signal minority businesses. Speaker: Dr Simon Collinson Regiment (Air Support). HONG KONG EVENT 24 April 2004 Speaker: Dr Simon Collinson An interview with WBS alumna Louise Liu (FMBA 2000–01) appeared in the Hong Kong Economic Times in September. keep in touch In the article, Louise explains how, when choosing WBS, she To get the full benefits of your WBS ANNUAL DINNER 13 May 2004 considered course content, ranking reputation and location. membership, please check that IoD, London Talking about her experience of studying in the UK, she says, your details are up to date by “The good learning atmosphere helped to develop my using our online facility at MBA SUMMER BALL 16 July 2004 thinking ability and meeting students from all over the world w Stratford Moat House broadened my horizons, enhancing a better understanding of and follow the links for ‘Your different cultures.” A view of WBS lecture theatre M1 appeared membership’ or by emailing alongside the article. E Designed by Parenthesis +44 (0)24 7622 9658
  3. 3. WBS in the news WBS appeared regularly in international, national and regional press, magazines and broadcast media during the last year, increasing slightly over the previous year’s coverage. An encouraging trend was that international coverage almost doubled, now accounting for almost 20% of the total media coverage. National coverage came in at 54%, and regional at just over 26%. Who is it who can take the credit for getting WBS in the news? Just over half (53%) is achieved by ongoing teaching and research activity. This means that just under half is down to alumni rise in world rankings for WBS and current students. WBS is very grateful to the many alumni and students who are willing to take In the Financial Times full-time MBA world rankings published 26 January 2004, time to talk to journalists and whose achievements Warwick Business School has gained a further two places from last year and is now and honours lead to this coverage. placed at 32 in the world. Only two other UK schools were placed higher than WBS, In addition to the PR activity we also have a London and Oxford. Additionally, the WBS Doctoral programme has been confirmed carefully targeted advertising schedule for the MBA as number one in the world. programme that is both international, eg The “We are delighted at our rise in these rankings. It is a deserved recognition of the Economist and the Financial Times (to fit with our quality and efforts of our staff, our current and former students, and our corporate recruitment fairs) and UK national, eg The Times. partners, who have all contributed to this good result,” said Professor Howard Plus we have a new flexible WBS ad style that is Thomas, Dean of WBS. being used consistently across programme and recruitment ads. So you will have seen WBS promoted in The Times, The Guardian, BizEd and obituaries The Economist during December for various activities. It is with great sadness that we report the recent deaths of five WBS alumni. Dame Sheila McKechnie (MAIR 1970–72) died after a long battle with cancer on 2 January 2004. Sheila was appointed Director of the Consumers’ Association in 1995. WBS host high level DTI forum For the second year, WBS Industrial Relations She was also awarded an OBE in 1995 and created a Dame in 2001. A detailed obituary for Sheila appears on w Research Unit (IRRU) organised and hosted high level round table discussions on Jonathan Smout, (FMBA 1998–99), tragically died in a skiing accident whilst on holiday controversial draft employment legislation at in France over the Christmas break. Jonathan lived in Leamington Spa and worked at the request of the Department for Trade and Barclays on the Westwood Heath site. Industry (DTI). Professor Paul Marginson, Asim Humayun (FMBA 1998–99) died in London as a result of a tragic accident on director of IRRU, chaired the meeting and 23 December 2003. After attending the Warwick MBA as a Chevening Scholar, Asim Gerry Sutcliffe MP, the DTI minister returned to Pakistan and became Vice President of AMZ Technologies, Karachi. responsible for employment relations, competition and consumers, outlined the We have also been notified that Colin Dixon (MA Industrial Relations 1985–86) government’s approach to the draft and Lynn Fordham (PG Diploma Business Administration (DL) Class of 1991) Regulations and heard participants’ views. died in November 2003. The staff and alumni of WBS extend deepest sympathy to their families and friends. Major Award for Warwick Professor Alyson Warhurst, Professor of Strategy and outstanding feedback International Development at WBS has been awarded the first European Faculty Pioneer A huge thank you to everyone who Requests for more academic articles have Award by the European Academy of Business responded to our invitation to feedback been addressed, as this issue features in Society (EABIS) as part of a global initiative on the ‘new look’ Nexus last issue. articles from two of our new professors ‘Beyond Grey Pinstripes’ and in conjunction As well as much appreciated approbation – in Marketing, and details of some of the a particular favourite was ‘it stands out current research being carried out at WBS. with the US-based Aspen Institute and the nexus: spring 2004 from the rest, just like WBS’; we also World Resources Institute. The award took So keep that feedback coming, we want to received ideas and suggestions for content place at the 2nd colloquium of EABIS in hear your views on your magazine. and design. Copenhagen, Denmark. E 03
  4. 4. a message from the Dean : Marketing. Nigel was a recent recipient of the highest academic degree of DLitt, from Edinburgh Business School and the School of Management at Heriot-Watt University. In this issue Nigel discusses his Closer to home, we have been addressing the complexity of marketing Warwick Business School for some time. I am pleased to announce that by the time you receive this copy of Nexus we should have appointed reputation of the School as Professor John McGee describes in his article on Surveys & Rankings. I think that you’ll agree that, as ever, we continue to make exciting progress as one of the world’s to the new position of Director of research into an area of marketing foremost business schools. To help Marketing. This role will afford us that often accounts for the largest advance WBS’ development, I the ability to not only co-ordinate proportion of budgets and would encourage you to contribute our diverse marketing activities The year 2004 sees a further step headcount – sales – and discusses to the Fund for Academic into a coherent strategy for the change in the breadth and depth the future evolution of the sales Excellence, details of which are School but will crucially enable of our faculty and support staff. organisation. Richard expands on provided below. With the support us to raise the awareness of This is particularly evident in the the socio-cultural approach of his from our strong alumni network, Warwick Business School in our area of Marketing, the theme for research and in particular, how the vision for 2004 and beyond target markets. this edition of Nexus. people use brands in a will be accomplished. postmodern consumer culture. As part of the overall marketing Warwick Business School has a I wish you all belated best wishes effort, the strengthening of the strong reputation for quality both As well as academic research, for the year ahead and look Alumni network and your in its research and teaching of we hear from senior marketing forward to meeting you at one participation in events is Marketing. Therefore in Autumn practitioners who exemplify the of our many events throughout extremely important and I would 2003 we strengthened the greater kudos that marketing now the year. Thank you for your urge you to attend at least one of Marketing expertise of the faculty enjoys in the corporate world at continued support. the regional or national events with two new appointments: senior board level. Tim Mason – this year. If you are a recent MBA Richard Elliott – Professor of WBS Advisory Board Member – graduate (less than three years Marketing & Consumer Research; shares with us his philosophy as since graduation) you can make Nigel Piercy – Professor of Marketing Director at Tesco. an even more direct impact to the Howard Thomas the WBS Fund for Academic Excellence advancing the future of business knowledge Warwick Business School has developed into a leading European WBS is already in a unique position within Europe as a leading business school, with acknowledged excellence in teaching and business school providing academic excellence spanning the research. As such, it offers a comprehensive provision of degree full-line provision of teaching and research. Your gift will help programmes at undergraduate, postgraduate and doctoral level. further WBS’ success and ensure our future. WBS has also formed significant partnerships with global, national If you are interested in the WBS Fund for Academic Excellence and local organisations for executive development and research. or would like to make a gift, please contact Ben Plummer, Those who have studied at Warwick chose WBS for its quality and Development Executive by emailing E its teaching and research excellence. We are committed to or telephone t +44 (0)24 7652 2813 improving our performance over the next five years to become the best European Business School. Your continued commitment can help us achieve this goal. Ben Plummer has recently joined the University and an institution of academic Dean’s Office at WBS as our Development excellence that continues to develop from We are most grateful to those of you who have already supported Executive. He has moved from the strength to strength. Additional investment us, from attending alumni events, to making generous gifts. University’s International Office where will ensure that WBS, and the University at Building upon this foundation, we are pleased to establish the he worked as a Liaison Officer. large, are able to secure their futures as WBS Fund for Academic Excellence. Through this fund, your leading international institutions. “I’m delighted to be joining WBS. Having Combining our current resources with the contributions can help to enrol and teach the very best students; studied at Warwick and worked within the generous gifts that our alumni are making recruit and retain the best academic staff; and to help develop and main University administration, more than will ensure that WBS’ vision is realised.” maintain the highest quality facilities. ever I believe Warwick to be a fantastic
  5. 5. hot off the press Nigel Piercy, Professor in Marketing at WBS, Fourth edition: Operations Management, Slack, Members of the Corporate Citizenship Unit have has recently published Total Integrated Marketing: Chambers and Johnston. Published contributed chapters to Business and Human Breaking the Bounds of the Function, with by Financial Times Prentice Hall. Rights – Dilemmas and Solutions. Published by colleagues from Columbia Business School, This revised and fully updated edition of Greenleaf. From the inside looking out: a Mac Hulbert and Noel Capon. Published by Operations Management by WBS Professors management perspective on human rights The Free Press in New York and in the UK by Nigel Slack, Stuart Chambers and Bob Rory Sullivan, Insight Investment, UK, and Kogan Page. The focus of the work is on the Johnston continues to provide a clear, Nina Seppala, WBS. Elimination of child labour: managerial challenges in moving from well-structured and comprehensive Business and local communities Bahar Ali Kazmi marketing as a department to marketing as a treatment of the subject, balancing a logical and Magnus Macfarlane, WBS. set of cross-functional and cross-boundary approach with the insights that come from w processes to deliver superior customer value. operations practice around the world. w w Howard Davis of the Local Government Centre has contributed a chapter on Ethics and WBS Professor of Finance Lucio Sarno, in Simulation: The Practice of Model Development and standards of conduct to the publication: Public collaboration with Professor Mark P Taylor has Use, by Stewart Robinson. Publishers John Wiley Management and Governance edited by Tony a new publication The Economics of Exchange & Sons Ltd. Dr Stewart Robinson, Senior Bovaird and Elke Löffler and published by Rates, published by Cambridge University Press. Lecturer in Operational Research, offers guidance Routledge. He has also just published a report This publication provides a selective coverage of through the key stages in a simulation project in of the Local Government Association’s the literature on exchange rates, focusing on terms of both the technical requirements and ‘Six Commitments’ initiative. Howard led this developments from within the last fifteen years. the project management issues surrounding it. project and the work was undertaken by a small Clear explanations of theories are offered, Readers will emerge able to develop appropriate team from Warwick and Birmingham. alongside an appraisal of the literature and valid conceptual models, perform simulation suggestions for further research and analysis. experiments, analyse the results and draw w insightful conclusions. research news This is merely a selection of close working relationships not Dr Martin Corbett (Industrial organisation. Martin’s research some of the research contracts only provide customers with Relations & Organisational warns of the dangers of getting and programmes recently better service, but also enhance Behaviour) has received much these motivational songs wrong, started at WBS: employee performance. His new media coverage for his research on including derision from report ‘Delivering Service the use of music in the corporate competitors and customers, Launched in London in November Excellence: The View From the world, including ‘aural branding’ and loss of morale within with a keynote address from Lord Front Line’, explains among other – the use of an anthem or adapted the organisation. Sainsbury, Under-Secretary of State things how the mechanic who pop song to promote an at the Department for Trade and keeps up a constant stream of Industry, a new research repartee while working under the programme at WBS is bonnet of your car may hold the Research by Dr Scott Dacko, planning and organisation, investigating UK firms’ ability key to world-class customer Marketing & Strategic leadership skills, and for their to adapt to the demands of a relations. “It all comes down to Management Group, shows that written and analytical abilities. knowledge-based economy. the personal touch and a large Warwick MBA participants up Scott confirms, “This is the only Professor Harry Scarbrough, part of that is the use of banter.” their skill levels by over 30% in study of its kind in the UK. who leads the Evolution of he says. (It’s good to talk!) vital management competencies. Given the enormous investment Business Knowledge programme, Scott’s research, now in its of time, money, and energy that warns that the loss of call centre A research contract worth almost third year, examines the goes into studying for the and similar jobs to countries such £1 million has been won by perceptions of both the full-time Warwick MBA, it is vital that as India will hit the UK low-skill Professor Jean Hartley and the participants, and, crucially, of the we develop our participants’ sector, and that UK firms will Local Government Centre to companies for whom they skills to make them the best need to be ready to adapt to these undertake a five year evaluation undertake their management leaders and managers of the coming changes. of the Beacon Council Scheme, consultancy project. future. We are making sure that to raise standards in local Latest research on service both employers and participants government by identifying Employers rated initiative as a nexus: spring 2004 management and quality from get the best return on their innovative and excellent particular strength exhibited by Professor Bob Johnston investment in terms of time, performing councils and helping our participants, as well as (Operations Management) has talent, and money.” them spread best practice. marking them highly for demonstrated that team-work and 05
  6. 6. brands, identity and the postmodern consumer by Richard Elliott Professor of Marketing and Consumer Research t he research I have undertaken adopts a socio-cultural approach which draws on contemporary cultural studies, anthropology and social theory rather than relying on just the cognitive, information-processing approach traditionally taken in marketing. In particular, I am interested in how people use brands in a postmodern Central to postmodernism is the recognition that the consumer does not make consumption choices solely from products’ utilities but from also from their symbolic meanings. As consumption plays a central role in supplying meanings and values for the creation and maintenance of the consumer’s personal and social world, so advertising is recognised as one of the major sources of these symbolic Brands can be used by the consumer as resources for the symbolic construction of the self. The symbolic consumption of brands can help establish and communicate some of the fundamental cultural categories such as social status, gender, age, and such cultural values as family, tradition and authenticity. But brands can also be used to counter some of the threats to the self posed consumer culture. meanings. These cultural meanings are by postmodernity, such as fragmentation, transferred to brands and it is brands which loss of meaning and loss of individuality. are often used as symbolic resources for the construction and maintenance of identity.
  7. 7. Brands, Trust and Fragmentation childhood. It seems that there is a ‘sensitive reading. This openness relates to a lack of period effect’ for products, where early specific narrative direction and explicit One of the prime features of the postmodern childhood and, particularly, adolescence are meaning context. Instead these open ads experience is fragmentation, where the periods when we are most likely to develop feature the product and simply evoke a inherited self-identity of history is no longer preferences. Brands that we have lived positive general response to the ad from the a stable, secure fact but requires active experience with during sensitive periods may consumer, by using music or imagery for construction: ‘A self-identity has to be created acquire a depth of meaning unattainable by example. The consumer views the deliberately and more or less continually reordered against brands at later stages in our lives. If we have ‘open’ ad and because it lacks any strong the backdrop of shifting experiences of day-to- frequent sensual experience, particularly, intended meaning is empowered to perform day life and the fragmenting tendencies of olfactory experience with brands during a very strong reading of it. As a result modern institutions.’ This construction is childhood, then at later stages of our lives we the consumer derives a very personal achieved partly through developing coherent may use them in nostalgic activity, and/or to interpretation of the ad’s meaning related narratives of the self and partly through restore a sense of security. to their own individual life situation finding opportunities for the investment and history. of trust in institutions other than the Again, behavioural signification through lived traditional ones such as the church. experience with a brand seems by far the most At this point, in need of the social potent source of meaning, but advertising can confirmation all X’ers crave, the consumer Brands offer consistency in an ever-changing provide a narrative structure for concretising discusses the meaning of the ad with others world and this reassurance is a vital element these emotional meanings. Hovis bread and who share the same basic interpretation of in their added value. As in human social Yorkshire tea are both masters at providing advertising. Thus an advertising literacy event relationships, from consistency over time consumers with a narrative identity that occurs and the individuals form an develops predictability, then dependability encapsulates both nostalgic reverie and ‘interpretative community’, not purely by and eventually trust in the brand. In large current life situations. The adolescent demographic or psychographic factors but by part, trust in a brand evolves from the sensitive period is perfectly captured by Levi’s their shared interpretation of the meaning of delivery of consistent benefits over time, with their provision of symbolic meaning the advertisement. These interpretive that is from lived experience of using a brand. through heavy advertising support which communities have the potential to provide However, the viscous meaning derived from provides teenagers with ‘scripts for living’. exciting new ways to segment markets and the mediated experience of advertising can build profitable ‘icon brands’. enhance the consumer’s experience and give Mass-Market Brands — a narrative coherence to it by giving words to Individual Meanings thoughts they ‘may know but can only speak The ubiquity of brands in developed of incompletely’. Volkswagen has captured capitalist societies is such that we live in a perfectly this ability of the brand to replace other less reliable relationships: ‘If only rich ‘brandscape’ from which we must select profile a personal ‘brandspace’ in which to live. everything in life was as reliable as In large part, the creation of personal a Volkswagen.’ Richard Elliott is a visiting brandspace will be achieved through the professor at ESCP-EAP Paris, ESSEC Brands and Deep Meaning creation of deep meaning and the Paris, Université Paris II, and development of trust, but brands can also Brands can acquire deep meaning for Thammasat University, Bangkok. facilitate the development of personal consumers by their involvement in the He is also Associate Editor of the involvement by the encouragement of the socialisation process, and from then on British Journal of Management and meaning transfer processes of personal ritual brands can evoke profound feelings of European Editor of the Journal of and social interaction. nostalgia and provide comfort from insecurity. Product and Brand Management. The history of brand use, brand loyalty and Four ritual activities are important in intergenerational transfer in families with a transferring meaning from consumer goods Richard is very active in his research recent history of emigration has shown that to the individual: exchange, possession, which focuses on the symbolic certain moments in our lives become powerful grooming and divestment rituals. Each ritual meaning of brands, consumer memories that connect brands, people and presents an opportunity for the individual to culture and identity, and the places and that ‘family brands become part of affirm, assign or revise the meanings derived dynamics of brand ecology. the tool chest in strategies for survival during from advertising and construct an individual He has published books on Strategic critical life passages.’ meaning for themselves. Advertising Management, and Interpretive Consumer Research. He has Consumers have been found to buy brands The elusive audience of Generation X that evoke memories of their grandparents, also published over 100 research nexus: spring 2004 may be encouraged to actively interpret often through the smell which instantly papers in many and various journals. advertising by using deliberately ‘weak’ returned them to the time and place of their advertising texts which encourage ‘strong’ 07
  8. 8. super marketing Tim Mason Marketing Director, Tesco
  9. 9. t esco reigns supreme in the battle of the supermarket giants. Warwick alumnus Tim Mason, Marketing Director, provides a unique insight into the strategy that keeps Tesco ahead of the rest. “The most important thing is that the business is genuinely customer focused the manager. It is all about feeling empowered and learning life skills. Helping people to understand they can choose the attitude that they bring to work, which they are finding incredibly helpful in managing both work and personal life.” To obtain direct feedback from customers, Tesco also host Customer Question Times, behind Tesco’s continued commitment to this method of creating more value for customers. “We trialled Clubcard for a long time and basically what we found was that people enjoy using it. Previous to this, we were talking about an industry that didn’t know the names and addresses of people who spend thousands of pounds in their stores. This means, in fact that you don’t and then that it actually does something where customers are invited into their know very much about the business that about what it learns about its customers. local store to talk to store managers and you run. We would find it unthinkable to What we say at Tesco is that our job is to head office managers about what their operate without this information today create value for our customers, to earn shopping experience in that store. Tim because it enables us to do a much better their lifetime loyalty,” affirms Tim. says, “What you find out is that customers job for our customers.” To achieve this Tesco abide by the ethos: say exactly what the staff say to you ‘nobody tries harder for their customers’ because the customers tell them (the staff), Tim quotes an example: “About 18 months and ‘treat people in the way that we like for example, when there is no bread or ago, we launched a range of ‘Free From’ to be treated.” products have been moved. This goes back products, for people with lactose or wheat to treating people how we would like to be intolerance. It did reasonably but not In a service industry, it is vital to know treated ourselves. When members of staff fantastically well. So we said, let’s just have what both customers and staff are thinking tell us something is wrong, we need to a look at who is buying these products, and make sure something is done act on it.” whether new or existing customers and about it. So it is most important to whether they are spending more or less maximise staff feedback and one of the “To be good at marketing is to with us. What we found was that quite a things Tesco take very seriously is face to face communication. understand customers and what lot of people purchasing this range were new customers and that existing customers Tim explains one of the current initiatives, they want.” were spending significantly more. So if you which is proving extremely successful, “We Higher quality market research and the did not have a store card and therefore have a programme going on in stores at the development of their loyalty Clubcard, access to customer buying information, moment called ‘Living Service’, which aims ensure Tesco has the information about the you could make the decision to stop at getting all levels of people working in shopping habits of its customers necessary selling some slow-moving lines.” stores to work together to improve the to achieve its marketing goal. “To be good Just how much information Tesco knows customer service in the business. One of at marketing is to understand customers about the contents of its customers nexus: spring 2004 the things it has definitely achieved is to and what they want,” Tim emphasises. shopping trolley becomes clear when make the store more free flowing in terms As some rivals opted out of customer Clubcard holders receive the money off of communication and to encourage loyalty schemes, Tim explains the thinking vouchers with their quarterly statement, people from the frontline to grab hold of 09
  10. 10. super marketing continued: profile Tim is a keen supporter of WBS. He is many of which relate to items they Eight years ago, Tesco was the first a member of the Advisory Board and purchase on a regular basis. The statement company in the UK to provide internet came to campus in January to speak at is addressed personally, with a message shopping, which has proved a fantastic a WBS Forum. from Tim in his role as Clubcard Director. success. They took a purely pragmatic A keen rugby player, Tim played for the approach by using their stores rather than University in his first and second year. Sustainable competitive advantage lies in warehouses and their staff rather than the From Warwick he went to Unilever as a customer retention by constantly meeting robots used by others. This enabled the trainee, joining Tesco three years later, their needs. Tesco is now about much more building of a business for virtually no where he held a number of positions than groceries, as can be seen by the vast capital outlay and the business is still before being appointed Marketing and array of products in the Clubcard deals growing at an incredible rate. Taking more E-Commerce Director, Tesco plc, with scheme, from Air Miles to leisure breaks, than 110,000 orders per week, responsibility for Property and Ireland for which vouchers can be exchanged, is the world’s largest on-line grocery in 1995. He also has responsibility for increasing their value to the customer. retailer. The service covers 96% of the UK Tesco’s Personal Finance and Telecoms Moving on to advertising, Tim maintains, population and also operates in South business. Tim featured in the September “Retailers relatively speaking do not spend Korea, the Republic of Ireland and as issue of Marketing under the headline as much money as other industries on Groceryworks on the West Coast of ‘Marketers who have made it to the Top.’ advertising.” He then points out that the America. For the six months up to August key criteria are accessibility to a modern, 2003 sales grew by 32% with profits of Tesco — Facts and Figures clean local store, staffed by well-trained £11 million. Tesco made almost the same Tesco plc operates in 13 countries, and committed, local people. profit in the first six months of 2003 as it including the UK, employing 300,000 did in the whole of 2002. “Actually we do a bit of advertising,” Tim staff across 1,245 stores. The group looks adds. “or us it is very important that our According to Tim, “Tesco is certainly the after almost 32 million customers per advertising is likeable. In the case of our most profitable e-grocer in the world by a week, who generate annual sales of £15 TV advertising, that it makes you laugh or long way. Internet shopping is a business billion. In their interim statement of smile. There is no doubt that the ‘Dotty’ we manage a lot better for having had the results for the 24 weeks ended 9 August TV ad campaign is very popular. You see loyalty card. is about managing 2003, pre-tax profit increased by 21.3% Dotty you know it is Tesco.” Prunella customers as individuals. Supermarkets are on 2002 with sales enjoying a 17% uplift Scales plays Dotty with Jane Horrocks as essentially self-service but we have been in the same period. her long-suffering daughter in the long- learning to look at customers as w running campaign by top ad agency Lowe. individuals and have been able to build Tesco has stores in Ireland, Czech ‘Every little helps’ is the slogan that that learning and thinking into our Republic, Hungary, Poland, Turkey, denotes Tesco, it features on all the business.” Slovakia, South Korea, Thailand, Taiwan, advertising and the Clubcard, signifying Japan and Malaysia. value for money and a caring organisation. glowing report Congratulations to Annie Frères (BSc International Paris, she found herself designing a database and Business 1999–2003), who won the Association producing the company export newsletter. of Business School’s undergraduate award and Her fluent French proved invaluable in the PR a £3,000 prize in their 2003 Awards for Business work she carried out for the launch of the and Management Students, sponsored by The Jennifer Lopez range, Glow by JLo. Guardian. In the finals of the National Business “The prize money has come in very useful for Awards she came a close second in the UK fundraising and buying the kit I need for my trip Business Student of the Year Competition. to Chile with Raleigh International”, reports A Belgian brought up in Germany, Annie did her Annie. “I’ll be working on conservation and Annie Frères international baccalaureate in Oxford before environmental projects in the national parks, choosing WBS. During her work placement in the as well as improving the infrastructure in remote export department of cosmetics giant Coty in villages by building community halls.”
  11. 11. As a director and an MBA, you are just a short step from qualifying as a Chartered Director The IoD and WBS Alumni Association are offering a special opportunity for you to qualify as a Chartered Director, the professional qualification for directors. CIS strongly supports the Chartered Director programme, which provides a ’gold’ standard in director training and development. When voting on the election of directors and assessing candidates’ suitability, we shall take a very positive view of those who have achieved Chartered Director status. CIS, founded in 1867, have 4.5 million customers and over £20 billion of investments Call us now to find out more nexus: summer 2003 ARE YOU QUALIFIED TO BE A DIRECTOR? T 020 7766 8842 E W Quote ref: wbs03 19
  12. 12. sales and account management strategy great potential for research and management impact by Nigel Piercy Professor of Marketing m any approaches to how we teach and research marketing tend to ignore the fact that the largest area of employment in marketing is the sales function, and for many companies sales and account management costs vastly outweigh resources devoted to other more In fact, the potential for innovative and insightful research activities in this large but neglected area of economic activity is huge. It is also an area where there is substantial management interest in research findings that enhance understanding of the factors driving effectiveness in the sales organization. In an era where business strategy However, cynical observers might suggest that the time has passed for the sales organization – perhaps the only real interest is how rapidly sales operations can be downsized. Certainly, there is a scenario where the role of the traditional sales organization appears doomed. The figure below identifies this scenario. As direct sales channels and Internet initiatives visible areas of marketing. emphasizes new forms of buyer-seller provide more effective ways to handle relationship and partnering, it follows that customers with low service and Correspondingly, the amount of research there is intense interest in managing sales relationship requirements, and key attention given to the sales area by major operations to deliver superior customer account management structures handle business schools has been very limited, value, not simply to take and process the most important customers, there and sales rarely features prominently in orders from customers. seems indeed to be a shrinking domain how marketing is taught. for the traditional sales organization.
  13. 13. effectiveness – but often not the Together these research programmes are LARGE ➡ stereotypical behaviour and characteristics building into a major challenge to associated with the traditional salesforce. conventional management approaches Key/Global in the sales organization. That challenge account Sales management – in conventional sales The shrinking suggests the need for managers to address ➡ management ➡ Customer Sales domain for organizations, sales management focuses Level/Potential the traditional a quite different agenda to that of the past Direct salesforce? on commanding and scorekeeping, while channels/ in seeking effective buyer-seller internet-based the research indicates that in the most sales relationships in the new environment ➡ effective sales organizations managers they face. The transformation of the sales devote substantial efforts to managing SMALL organization from order taking to the LOW Customer Service/Relationship Requirements HIGH salesperson behaviours, i.e. monitoring, management of customer relationships in directing, evaluating and rewarding a global setting demands quite different activities, not simply crude control against Certainly there have been a number of approaches to managing sales operations. outcomes. The move from outcome-based prominent traditional salesforce closures to behaviour-based sales management We plan to focus research efforts on these and downsizing in many sectors like control strategy is controversial, but the issues through the formation of a new financial services. But the paradox is that research suggests numerous gains, and research unit at WBS – Sales and Account at leading Internet companies like Dell sometimes surprising benefits, for those Management Strategy (SAMS) – to Computers, the view is that the Web does who pursue this direction. continue the stream of research studies not remove the need for salespeople – it listed above and to extend them. frees them to sell and manage customer Sales compensation systems – there is International collaborators exist in relationships, which is what they were widespread belief in the need for financial business schools in the US, Europe, there to do in the first place. incentives to achieve superior salesperson Australia, as well as the UK. The potential performance, usually in the form of However, as the function of the traditional for SAMS extends to a manager and volume-based commission. Our research sales organization moves from order company network as a framework for the suggests very weak links between financial taking to the more complex role of dissemination of research results and a incentivization and performance. When managing customer relationships, there means to identify productive and relevant customer relationship-building matters, is an urgent need for new knowledge and new research directions. effective sales control strategy requires understanding about the factors more than volume-based commission. It really does seem time that sales and impacting effectiveness in this new account management came in from the business scenario. For this reason, our International comparisons – companies cold. As the largest employer of people in current research projects address issues in the US and Europe have tended to marketing and one of the most expensive like the following: export their sales management parts of marketing, the sales area is approaches into international operations. Salesperson performance – traditionally overdue for systematic research attention Our multi-country research suggests salespeople have been evaluated in terms and an established place in the business that culture and tradition in many of outcomes (sales, share of customer, school curriculum. overseas markets mandates different costs, and so on), but research indicates management approaches to achieve sales that it is salesperson behaviours of several organization effectiveness. kinds that drive outcomes and profile Prior to joining WBS, Nigel was Professor of Strategic He is currently working with international collaborators Marketing and Head of the Marketing Group at Cranfield on various research projects related to sales organisation School of Management, and previously held the Sir Julian effectiveness and the sales/marketing interface. Piercy has Hodge Chair in Marketing and Strategy at Cardiff University. published sixteen books and over 200 articles and papers in He has been a Vice Chair of the American Marketing management literature globally. He is author of Market-Led Association’s Marketing Strategy Special Interest Group, and Strategic Change: A Guide To Transforming the Process of Going a Vice Chair of the Academy of Marketing Science in the US. to Market (Butterworth-Heinemann, 2002), and is nexus: spring 2004 co-author with David W Cravens of Strategic Marketing His research interests span several areas related to the (McGraw-Hill/Irwin, 2002). development and implementation of marketing strategy. 13
  14. 14. strategy olympic challenge from scratch Vassilis Lazaris WBS alumna Michelle internal and external August 2004 will see Athens hosting the Games Sartorio (FMBA communications within an of the XXVIII Olympiad. Planning for this momentous 1999–2000) discusses organisation like this. Most other event began back in 1999 and Vassilis Lazaris (FMBA the challenges she countries only have one British 1995–96) plays a vital role in the organisation. faces in her new role as Marketing Council office! We always analyse Vassilis joined the Planning Division of the Organising Communications Manager for the experience of other offices British Council, Brazil. Committee Games of Athens in 1999. From September before taking a strategic decision: 1999 to March 2001 he covered the key position of I’ve found myself asking for “Having had three hectic but General Manager for Security for the Games. Planning research documents from British fantastic years working in Marketing began in earnest in March 2000, and the final pieces Council, India and for online within the Telecommunications are now in place to ensure safety and security for all at newsletters from Singapore.’ sector, at Portugal Telecom, then the event. Intelig Telecomunicações, Another challenge Michelle I was attracted to this particular post recognises is the diversity of themes Vassilis explains, “The role involves co-operation because of the challenge of creating and areas British Council wants to with the security community here and abroad. a marketing communications promote. “From music and arts This includes the CIA, FBI, British, French, and Israeli strategy from scratch working with events to missions of State Secretaries security services, among others. They have been able the Head of Comunications to to the UK, it is always hard to to offer advice on potential risks and help my define our targets. British Council, determine priorities and find the fact finding.” Brazil is only just now starting to right way to promote each of them, Elements that Vassilis had to consider include planning appreciate marketing considering we want always to use and policy issues such as disaster and crowd control, communications as a tool to leverage an integrated marketing and communications, intelligence, and co-operation, as well its works,” explains Michelle. communications strategy for as security measures and administration and support. each event.” The aim of British Council, Brazil is He said, “We took a structured approach, linking each to build lasting relationships between However, Michelle is confident in stage from policy to procedure and working Brazil and the UK. It works to her team and her secret weapons: collaboratively with all relevant authorities.” connect people and learning “Hopefully the communications He continued, “The committee have created a opportunities from both countries. team in Brazil and I will build a According to Michelle, “My main masterplan, not for world domination, but to cover well-structured and operational responsibility is to define and audit for human resources and technology, budget, communications plan. My Kotler manage national communications book, WBS online Business Source timelines, detailed actions etc as well as tactical elements strategy in order to increase British Premier journals, and MBA such as risk assessments and procedure design. We’ve Council’s exposure to its wide range Marketing folders, are all standing had to cover both internal and external security of stakeholders and customer, or me in good stead!” she confirms. issues too.” ‘target groups’, as defined by the Vassilis was able to draw heavily upon the business organisation. These groups include strategy he learnt at WBS. “I started with Peter Doyle’s British Council, UK, as well as voice ringing in my ears ‘what do you need to formulate strategic partners such as governors, strategy?’ I remembered his advice about the importance professors, artists, alumni, and of good intelligence and getting hold of it. Vassilis students interested in studying combined this approach with military tactics learnt in the UK.” from textbooks – another of his passions. Thanks to Expanding on the main challenges WBS and military planning, come 13 August 2004 8pm of her new role, she says, “There’s a we’ll be ready!” he confirms. huge geographic distance between Michelle Sartorio the five British Council offices in For further information regarding the Brazil, a country with continental Athens Olympic Games visit proportions and differences, so w there are difficulties in aligning
  15. 15. the best course Gary Jackson was one of the first 12 students PGA required someone to manage and but, apart from commercial market to undertake the MA in Organisation Studies develop their business management training research, it seems to be little studied. when it was launched in 1996. As a mature programmes, I applied. Fortunately, my So he has two questions: student, he sacrificed a year’s earnings as a qualifications, background in business 1) Does anyone know of any academic Business Lecturer in further education to help education and my love of sport were just studies into any aspect of the golf business? enhance his career prospects. Not only did he what the PGA wanted and I duly started the enjoy the course immensely and learn a great job in August 2002 (5 weeks before the Ryder 2) Is anyone interested in doing research deal, his decision eventually resulted in his Cup – but that’s another story!).” into the golf business? career taking an unexpected turn. If you wish to respond to either question, Gary is now responsible for managing the Gary explains, “Mention the Belfry to most business training of 1000 trainee golf then Gary would be delighted to hear from sport-minded people and they instantly professionals, 50 students on the Applied Golf you. Please email e alumni associate it with some of the greatest Management Studies degree in conjunction in the first instance. moments in Ryder Cup history. The deeds with Birmingham University and contributing of Christy O’Connor Jnr, Sam Torrance, to the development of a Continuous Paul McGinley et al will be etched on the Professional Development programme for For further memories of European golf fans forever. over 5000 golf professionals working in over information What most people probably don’t realise is 50 countries. (And no, he doesn’t have much regarding the that the Belfry is also the Headquarters of the time to play golf!). PGA and the Professional Golfers’ Association and houses National Training One of the things Gary has discovered in his the National Training Academy. I was only Academy visit year in the job is that the golf business seems vaguely aware of this fact as a result of some w to be sadly under-researched. It is estimated students I had taught but, when I saw the that worldwide the industry is worth $60bn rankings: The Financial Times published by Professor Howard Thomas, Dean of WBS and Professor John McGee, Associate Dean, MBA Programmes schools relate to criteria that of making further progress. the questions in the survey its rankings of full-time MBA the FT regards as indicative of We are especially concerned to must be answered for your programmes in January 2004 and quality, namely proportion of improve our position on the response to be valid. This does of executive MBA programmes in women faculty, the international executive MBA rankings (for us mean being explicit about data October 2003. Warwick Business character of the school in terms this means the Evening and that is both personal and School has been steadily of curriculum, students, Modular MBA programmes) confidential. But please be improving on its rankings over faculty and governing body, where we believe that the reassured that the FT guards the the last four years. We are now and research. fundamental quality of the data very carefully and does not ranked 32nd in the world, 9th programmes is not adequately under any circumstances release At WBS, we take rankings very in Europe, and 3rd in the UK for reflected in the current ranking. it to third parties. seriously. We all know that all full-time programmes and 35th in the world, 9th in Europe, and rankings schemes have problems What can you do to help? You may also be contacted by and difficulties and that the other publications that conduct 5th in the UK for executive We would very much appreciate diversity of business schools and rankings, for instance, The Wall MBA programmes. your help in contributing to the their market positioning cannot Street Journal, The Economist, FT surveys. You will be surveyed The Financial Times uses a set of be fully captured by a common Forbes, and Business Week. three years after graduation and key indicators that it believes set of criteria. However, rankings Not all of these rely on alumni your responses will be retained demonstrate a high quality MBA do reflect some important surveys to the same degree as over three years of surveys in a programme. These indicators can characteristics of MBA education the FT but we do urge you to moving three year average. be divided into two broad classes. the most obvious one being the respond when asked. The first is based on surveys of employability of its graduates. It is very important that we Rankings may be imperfect and business school alumni. The Rankings should not and do not have a high response rate to the indeed different rankings second is based on returns from drive our fundamental strategy FT surveys. To give a truly measure very different attributes business schools about the nature but they do have an important representative picture we should of business schools. But they do of the school, its programmes effect on external perceptions of achieve a 75% response rate from impact directly on the School’s and its faculty. The alumni WBS and to some extent on our alumni. This enables the reputation and the reputation of survey is by a questionnaire that morale in the school and in the surveys to pick up both the range its graduates in employment covers salary data and other alumni body. We have been of salaries and their rate of nexus: spring 2004 markets. Therefore we hope that career related information. pleased by our progress up the increase over time. At present the you will be able to join with us This accounts in total for about FTMBA rankings over the last response rate is only 45%. It is in advancing all our reputations. 50% of a school’s final ‘score’. four years (moving upwards by also important to realise that all The returns made direct from the 25 places) but feel we are capable 15