By Richard Earles; Anne Fanatico; Appropriate Technology Transfer for Rural Areas (Organization)
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Clearly, as producers struggled to avoid becoming virtually passive pawns of market forces they declined to accept the ‘rules’ of perfect competition and it was this behaviour which was described by Chamberlin and Robinson under the pejorative title of ‘imperfect’ competition. Shades of the ‘hidden persuaders’ and ‘waste makers’ to come. The outbreak of war and the reconstruction which followed delayed the first clear statement of the managerial approach which was to displace the production orientation.
Against this background, the Marketing Science Institute in the USA identified ‘Marketing Metrics’ as the most important research issue in its programme for the years 2000 to 2004. This, then, is the theme of Chapter 21 and who better to address it than Tim Ambler, Senior Fellow, London Business School who has written extensively on the subject. As he explains in his introduction, ‘Marketers have long felt marginalized or at least under pressure to justify their plans. They may not look for accountability but there is increasing acceptance that quantification, preferably in financial terms, of plans and performance is an increasing factor in marketing .
Similarly, the Hollywood movie moguls ignored the threat of television until it was almost too late because they saw themselves as being in the cinema industry rather than the entertainment business. Levitt proposes four factors which make such a cycle inevitable: 1 A belief in growth as a natural consequence of an expanding and increasingly affluent population. 2 A belief that there is no competitive substitute for the industry’s major product. 3 A pursuit of the economies of scale through mass production in the belief that lower unit cost will automatically lead to higher consumption and bigger overall profits.
Alternative beef marketing by Richard Earles; Anne Fanatico; Appropriate Technology Transfer for Rural Areas (Organization)