MARKETS-AS-PRACTICE Carolina Appelqvist - 40090 Helena Brodbeck – 40093 Robin Hesselstad - 20878 Magnus Karlsson -20796 EleniMiliou - 40099 RiikkaMurto - 40097
AGENDA• On the nature of markets and their practices - Training session 1• Article 2 - Training session 2• Article 3 - Training session 3• Article 4 - Training session 4• Break (10 minutes)• Sum up•
ON THE NATURE OF MARKETSAND THEIR PRACTICESKjellberg&Helgesson (2007)
MARKET PRACTICE?What is shaped?How is it shaped?“all activities that contribute toconstitute markets”
PERFORMATIVITY “how ideas about markets and market tools take part in shaping markets” Callon“is a set of concepts, routines, habits or practices which are submerged in shaping a social setting” Finch &Acha
EXCHANGE PRACTICES• Idiosyncratic and general• Norms affecting: Ex. New Public Management• Re-presentations affecting: Ex. Stock market
REPRESENTATIONAL PRACTICES• Images of markets and how they work• Norms affecting: Ex. Swedish competition law• Exchange affecting: Ex. SAS
NORMALIZING PRACTICES • Rules of competition and marketing • Exchange affecting: Ex. retailers opposed a ban • Re-presentations affecting: Ex. Swedish food distribution
TRAINING SESSION 1Discuss the main points of: • Exchange practices • Representational practices • Normalization practices
EXAMPLE FROM NON-ALCOHOLICBEVERAGES• Representational practices – flavored waters are soft drinks with mineral water as an ingredient• Normalizing practices - how sugar content should be measured• Exchange practices – where brands should be placed in relation to each other
MAKING AND EXCHANGING ASECOND-HAND OILFIELD, CONSIDERED IN ANINDUSTRIAL MARKETINGSETTING Finch &Acha (2008)
MAIN IDEAS• Builds on Callons ideas and mainly on the Actor Network Theory (ANT)• Until now: ANT only applied to retailing and financial markets• Main goal of article: transfer ANT to industrial and B2B settings• For this purpose production plays an important role and shouldnt be considered as a spillover.
4 SIGNIFICANT THEMESFollowing critical aspects need to be considered:1. Singularizing/totalizing2. Framing and overflowing3. Performativity and calculation4. Multiple versions
SINGULARIZING/TOTALIZING• Singularizing: "a pattern of actions in which an object of production becomes translated into an object of a market, so qualifying as a good and being of interest to consumers”.• Totalizing: Markets establish a limited number of criteria on the basis of which goods can be related and compared to one another. “Markets make comparable what was previously incomparable” M.Callon
FRAMING AND OVERFLOWING• Framing: The market is framed, cut or disentangled from the wider social network through goods attaching themselves to a ranking based on certain characteristics.• Overflowing: Potential goods and potential characteristics inevitably overflow from the market, becoming unattached as residuals. The market‟s boundary is marked by overflowing.
PERFORMATIVITY AND CALCULATION• Performativity: "a set of concepts, routines, habits or practices which are immediately submerged in shaping a social setting"• Calculation: the process by which the value of a markets goods is being defined.• Example: Monte Carlo simulation as the result of performativity for the oil and gas industry was used to calculate value of oil fields
MULTIPLE VERSIONS• Law and Singleton: "An object is different according to the different sets of others arranged around it in different settings"• Callon et al.: different careers for objects in production and in use (product vs. good)• Kjellberg and Helgesson: seemingly contradictory practices co-exist (singularizing vs. totalizing)• Bowker and Star: markets „sort things out‟ by means of calculation, but there can be different calculations.
TRAINING SESSION 3• Come up with a similar opportunity in retailing and industrial context where you can view a product differently (than other actors in the market).• Explain how your example illustrates the concept of singularization.
SEGMENTING A MARKET IN THEMAKING: INDUSTRIAL MARKETSEGMENTATION ASCONSTRUCTIONDebbie Harrison, Hans Kjellberg (2009)This article discusses the case of Biacore, which engaged in segmentingactivities while shaping the market for its new product technology.
EXISTING LITERATURE ON SEGMENTATIONClassical approaches:• Segmentation = "process of identifying relatively homogeneous customer groups within a defined market"• Assume that the market is already made up of (potential) customers -> descriptive• Priority: identification of segments for which an effective marketing program can be developed• Assumed one way causal relationship between description of the market and the marketing programRecent approaches to segmenting industrial markets in themaking:• Acknowledge the interaction between multiple customers and the supplier• Active networking approach• However: still assume existing markets
CASE STUDY1984 – 1989: Biacore as a development project of different companies• Target application area: diagnostics• Second potential market: research tool -> set of potential customers different and smaller• Company linked to the diagnosis market withdrew from the project -> access to diagnostic market was cut off• Production volume had to be reduced
CASE STUDY1990 – 1995: Co-development in interaction with users• Activities centered on launch for research market• Interested potential customers were invited to experiment with the biosensors• Free after-sales discussion of results developed close relationships• New ways of using the machine were discovered by customers and documented by Biacore• New versions of the instrument were developed
CASE ANALYSIS• New focal segment was not well definable and homogeneous like initially thought, descriptive techniques could not be applied• New product development meant no assistance from competitors or co- creators• A long-term, iterative process during which product characteristics and uses, customer identities and interaction patterns gradually evolved• Knowledge and identity for Biacore was created• Once usage patterns were established, move from ‟segment of one‟ to „segment of many‟
CASE ANALYSIS• Suggests that markets in the making need preliminary activities before the can be segmented• Suggests industrial segmentation is neither one-way, nor exclusively descriptive but also constructive
1995 – 1999: becoming a formally independent company• 2 main customer groups were established• Change to more cost-efficient marketing approach• Sampling was replaced by shifting new customers to existing publications
TRAINING SESSION 4Can you think of other traditional marketing tools that may be affected bythe markets as practice approach and how they can be adapted andapplied to the new view?
STABILITY AND CHANGE• Examples of market practices from retail and industrial contexts• A paradox: contradictory versions of the market co- exist but need to be partially reconciled for markets to work• Singularizing/totalizing• Framing and overflowing
MARKETING TOOLS AND THE SHAPING OFMARKETS• Segmentation as market construction• Performativity and calculation• Practical implications to marketers?
JEOPARDY / MILLIONAIRE RULES• 3 participants up on stage• We give the answers you ask the question• Each question start by What is/Who is/When is/Where is…• Each participant given an animal sound• Participant continue to choose question if correct• Loses points if wrong• Life lines o Ask a friend in audience o Ask audience
• Definitions• Practical examples of...• Name the practice• Name the market perspective