Marketing planning and digital customer loyalty in small business

Christina Donnelly, Geoff Simmons, Gillian Armstrong, Andrew Fearne

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Purpose – Retailer loyalty card marketing intelligence presents actual customer purchasing preferences, competitor activities and performance. Typically, extant literature implies that larger firms with formal marketing planning approaches will be more able to leverage it, structured as it is within a formalized statistical format. Small business literature on the other hand emphasizes their more informal approach to marketing planning. The purpose of this paper is to consider, for the first time, the potential relationship between retailer loyalty card marketing intelligence and small business market orientation. Design/methodology/approach – A conceptual model is developed which diagrammatically interprets how retailer loyalty card marketing intelligence can relate to small business market orientation. Propositions provide a basis for further discussion with applied and research implications. Findings – A pertinent aspect of the conceptualization is the role of small business owner-manager insight and intuition within an experiential learning context. A complementary relationship is posited in the leveraging of retailer loyalty card marketing intelligence to enhance small business market orientation, which with higher levels of entrepreneurship orientation can lead to positive organizational outcomes, such as facilitating more successful and informed engagement with larger suppliers. Originality/value – The paper addresses the increasing pressure small businesses face in dealing with retailer loyalty card marketing intelligence. Generally, literature has yet to adequately address marketing planning implications for firms. The informal/formal tension when considering small businesses presents a particularly interesting area of conceptual development, integrating market orientation literature and also recent developments which point to interaction between market and entrepreneurship orientations. This paper therefore provides a basis for a new small business research agenda in an area which is highly topical and important, with a synthesis of the extant literature in developing a conceptualization and propositions. The conceptualization and propositions can facilitate the development of new research and thinking in this potentially fruitful area of future enquiry.
LanguageEnglish
Pages515-534
JournalMarketing Intelligence and Planning
Volume30
Issue number5
DOIs
Publication statusPublished - Mar 2012

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Small business
Marketing planning
Customer loyalty
Marketing intelligence
Retailers
Loyalty cards
Market orientation
Business markets
Conceptualization
Entrepreneurship
Owner-managers
Large firms
Market interaction
Leverage
Research agenda
Organizational outcomes
Intuition
Conceptual model
Suppliers
Competitors

Cite this

Donnelly, Christina ; Simmons, Geoff ; Armstrong, Gillian ; Fearne, Andrew. / Marketing planning and digital customer loyalty in small business. In: Marketing Intelligence and Planning. 2012 ; Vol. 30, No. 5. pp. 515-534.
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title = "Marketing planning and digital customer loyalty in small business",
abstract = "Purpose – Retailer loyalty card marketing intelligence presents actual customer purchasing preferences, competitor activities and performance. Typically, extant literature implies that larger firms with formal marketing planning approaches will be more able to leverage it, structured as it is within a formalized statistical format. Small business literature on the other hand emphasizes their more informal approach to marketing planning. The purpose of this paper is to consider, for the first time, the potential relationship between retailer loyalty card marketing intelligence and small business market orientation. Design/methodology/approach – A conceptual model is developed which diagrammatically interprets how retailer loyalty card marketing intelligence can relate to small business market orientation. Propositions provide a basis for further discussion with applied and research implications. Findings – A pertinent aspect of the conceptualization is the role of small business owner-manager insight and intuition within an experiential learning context. A complementary relationship is posited in the leveraging of retailer loyalty card marketing intelligence to enhance small business market orientation, which with higher levels of entrepreneurship orientation can lead to positive organizational outcomes, such as facilitating more successful and informed engagement with larger suppliers. Originality/value – The paper addresses the increasing pressure small businesses face in dealing with retailer loyalty card marketing intelligence. Generally, literature has yet to adequately address marketing planning implications for firms. The informal/formal tension when considering small businesses presents a particularly interesting area of conceptual development, integrating market orientation literature and also recent developments which point to interaction between market and entrepreneurship orientations. This paper therefore provides a basis for a new small business research agenda in an area which is highly topical and important, with a synthesis of the extant literature in developing a conceptualization and propositions. The conceptualization and propositions can facilitate the development of new research and thinking in this potentially fruitful area of future enquiry.",
author = "Christina Donnelly and Geoff Simmons and Gillian Armstrong and Andrew Fearne",
note = "Reference text: Alpkan, L., Yilmaz, C. and Kaya, N. (2007), “Market orientation and planning flexibility in SMEs: performance implications and an empirical investigation”, International Small Business Journal, Vol. 25 No. 2, pp. 152-72. Anstead, J., Samuel, J. and Crofton, A. (2008), “dunnhumby – a retailer’s secret weapon”, Citigroup Global Market, Vol. 60 No. 60, pp. 1-25. Argyris, C. (1977), “Double loop learning in organizations”, Harvard Business Review, Vol. 55 No. 5, pp. 115-25. Armario, J.M., Ruiz, D.M. and Armario, E.M. (2008), “Market orientation and internationalisation in small and medium-sized enterprises”, Journal of Small Business Management, Vol. 46 No. 4, pp. 485-512. Atuahene-Gima, K. and Ko, A. (2001), “An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation”, Organization Science, Vol. 12 No. 1, pp. 54-74. Avlonitis, G.J. and Gounaris, S.P. (1997), “Marketing orientation and company performance”, Industrial Marketing Management, Vol. 26, pp. 349-60. Baker, W.E. and Sinkula, J.M. (1999), “The synergistic effect of market orientation and learning orientation on organizational performance”, Journal of the Academy of Marketing Science, Vol. 27 No. 4, pp. 411-27. 528 MIP 30,5 Baker, W.E. and Sinkula, J.M. (2009), “The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses”, Journal of Small Business Management, Vol. 47 No. 4, pp. 443-64. Becker, H.S. (1982), Art World, University of California Press, Berkeley, CA. Bhide, A. (1994), “How entrepreneurs craft strategies that work”, Harvard Business Review, Vol. 72 No. 2, pp. 150-61. Blankson, C. and Cheng, J.M.S. (2005), “Have small businesses adopted the market orientation concept? The case of small businesses in Michigan”, Journal of Business and Industrial Marketing, Vol. 20 No. 6, pp. 317-30. Blankson, C. and Omar, O.E. (2002), “Marketing practices of African and Caribbean small businesses in London, UK”, Qualitative Market Research: An International Journal, Vol. 5 No. 2, pp. 123-34. Blankson, C. and Stokes, D. (2002), “Marketing practices in the UK small business sector”, Market Intelligence and Planning, Vol. 20 No. 1, pp. 49-61. Blankson, C., Motwani, J.G. and Levenburg, N.M. (2006), “Understanding the patterns of market orientation among small businesses”, Market Intelligence and Planning, Vol. 24 No. 6, pp. 572-90. Cacciolatti, L., Donnelly, C., Fearne, A., Ihua, U., Yawson, D., Armstrong, G. and Simmons, G. (2009), “Use of supermarket panel data amongst small and medium sized business in the food industry”, Academy of Marketing Conference, Leeds Metropolitan University, Leeds, July 7-9. Cambra-Fierro, J., Florin, J., Perez, L. and Whitelock, J. (2011), “Inter-firm market orientation as antecedent of knowledge transfer, innovation and value creation in networks”, Management Decision, Vol. 49 No. 3, pp. 444-67. Camerer, C. and Vepsalaien, A. (1988), “The economic efficiency of corporate culture”, Strategic Management Journal, Vol. 9, pp. 115-26. Carson, D. and Gilmore, A. (2000), “Marketing at the interface: not ‘what’ but ‘how’”, Journal of Marketing Theory and Practice, Vol. 8 No. 2, pp. 1-7. Chandy, R., Prabhu, J. and Antia, K. (2003), “What will the future bring? Technology expectations, dominance, and radical product innovation”, Journal of Marketing, Vol. 66 ( July), pp. 1-18. Clarke, J., Thorpe, R., Anderson, C. and Gold, J. (2006), “It’s all action, it’s all learning: action learning in SMEs”, Journal of European Industrial Training, Vol. 30 No. 6, pp. 441-55. Corbett, A.C. (2005), “Experiential learning within the process of opportunity identification and exploitation”, Entrepreneurship Theory and Practice, Vol. 29 No. 4, pp. 473-92. Cortin˜as, M., Elorz, M. and Mu´gica, J.M. (2008), “The use of loyalty-cards databases: differences in regular price and discount sensitivity in the brand choice decision between card and non-card holders”, Journal of Retailing and Consumer Services, Vol. 15 No. 1, pp. 52-62. Day, G.S. (1994), “The capabilities of market-driven organisations”, Journal of Marketing, Vol. 58 No. 4, pp. 37-61. Deshpande, R. and Farley, J.U. (1998), “Measuring market orientation: generalisation and synthesis”, Journal of Market-focused Management, Vol. 2 No. 3, pp. 23-37. Doern, R. (2009), “Investigating barriers to SME growth and development in transition environments”, International Small Business Journal, Vol. 27 No. 3, pp. 275-305. Drucker, P.F. (1954), The Practice of Management, Heron Books, London. Dunn, E. 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Further reading Hult, T.M.G. and Ketchen, D.J. (2001), “Does market orientation matter: a test of the relationship between positional advantage and performance”, Strategic Management Journal, Vol. 22 No. 9, pp. 899-906. Ziliani, C. (2006), “Target promotions: how to measure and improve promotional effectiveness through individual customer information”, Journal of Targeting, Measurement and Analysis for Marketing, Vol. 14 No. 3, pp. 249-59. 533",
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month = "3",
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language = "English",
volume = "30",
pages = "515--534",
journal = "Marketing Intelligence and Planning",
issn = "0263-4503",
number = "5",

}

Marketing planning and digital customer loyalty in small business. / Donnelly, Christina; Simmons, Geoff; Armstrong, Gillian; Fearne, Andrew.

In: Marketing Intelligence and Planning, Vol. 30, No. 5, 03.2012, p. 515-534.

Research output: Contribution to journalArticle

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T1 - Marketing planning and digital customer loyalty in small business

AU - Donnelly, Christina

AU - Simmons, Geoff

AU - Armstrong, Gillian

AU - Fearne, Andrew

N1 - Reference text: Alpkan, L., Yilmaz, C. and Kaya, N. (2007), “Market orientation and planning flexibility in SMEs: performance implications and an empirical investigation”, International Small Business Journal, Vol. 25 No. 2, pp. 152-72. Anstead, J., Samuel, J. and Crofton, A. (2008), “dunnhumby – a retailer’s secret weapon”, Citigroup Global Market, Vol. 60 No. 60, pp. 1-25. Argyris, C. (1977), “Double loop learning in organizations”, Harvard Business Review, Vol. 55 No. 5, pp. 115-25. Armario, J.M., Ruiz, D.M. and Armario, E.M. (2008), “Market orientation and internationalisation in small and medium-sized enterprises”, Journal of Small Business Management, Vol. 46 No. 4, pp. 485-512. Atuahene-Gima, K. and Ko, A. (2001), “An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation”, Organization Science, Vol. 12 No. 1, pp. 54-74. Avlonitis, G.J. and Gounaris, S.P. (1997), “Marketing orientation and company performance”, Industrial Marketing Management, Vol. 26, pp. 349-60. Baker, W.E. and Sinkula, J.M. (1999), “The synergistic effect of market orientation and learning orientation on organizational performance”, Journal of the Academy of Marketing Science, Vol. 27 No. 4, pp. 411-27. 528 MIP 30,5 Baker, W.E. and Sinkula, J.M. (2009), “The complementary effects of market orientation and entrepreneurial orientation on profitability in small businesses”, Journal of Small Business Management, Vol. 47 No. 4, pp. 443-64. Becker, H.S. (1982), Art World, University of California Press, Berkeley, CA. Bhide, A. (1994), “How entrepreneurs craft strategies that work”, Harvard Business Review, Vol. 72 No. 2, pp. 150-61. Blankson, C. and Cheng, J.M.S. (2005), “Have small businesses adopted the market orientation concept? The case of small businesses in Michigan”, Journal of Business and Industrial Marketing, Vol. 20 No. 6, pp. 317-30. Blankson, C. and Omar, O.E. (2002), “Marketing practices of African and Caribbean small businesses in London, UK”, Qualitative Market Research: An International Journal, Vol. 5 No. 2, pp. 123-34. Blankson, C. and Stokes, D. (2002), “Marketing practices in the UK small business sector”, Market Intelligence and Planning, Vol. 20 No. 1, pp. 49-61. Blankson, C., Motwani, J.G. and Levenburg, N.M. (2006), “Understanding the patterns of market orientation among small businesses”, Market Intelligence and Planning, Vol. 24 No. 6, pp. 572-90. Cacciolatti, L., Donnelly, C., Fearne, A., Ihua, U., Yawson, D., Armstrong, G. and Simmons, G. (2009), “Use of supermarket panel data amongst small and medium sized business in the food industry”, Academy of Marketing Conference, Leeds Metropolitan University, Leeds, July 7-9. Cambra-Fierro, J., Florin, J., Perez, L. and Whitelock, J. (2011), “Inter-firm market orientation as antecedent of knowledge transfer, innovation and value creation in networks”, Management Decision, Vol. 49 No. 3, pp. 444-67. Camerer, C. and Vepsalaien, A. (1988), “The economic efficiency of corporate culture”, Strategic Management Journal, Vol. 9, pp. 115-26. Carson, D. and Gilmore, A. (2000), “Marketing at the interface: not ‘what’ but ‘how’”, Journal of Marketing Theory and Practice, Vol. 8 No. 2, pp. 1-7. Chandy, R., Prabhu, J. and Antia, K. (2003), “What will the future bring? Technology expectations, dominance, and radical product innovation”, Journal of Marketing, Vol. 66 ( July), pp. 1-18. Clarke, J., Thorpe, R., Anderson, C. and Gold, J. (2006), “It’s all action, it’s all learning: action learning in SMEs”, Journal of European Industrial Training, Vol. 30 No. 6, pp. 441-55. Corbett, A.C. (2005), “Experiential learning within the process of opportunity identification and exploitation”, Entrepreneurship Theory and Practice, Vol. 29 No. 4, pp. 473-92. Cortin˜as, M., Elorz, M. and Mu´gica, J.M. (2008), “The use of loyalty-cards databases: differences in regular price and discount sensitivity in the brand choice decision between card and non-card holders”, Journal of Retailing and Consumer Services, Vol. 15 No. 1, pp. 52-62. Day, G.S. (1994), “The capabilities of market-driven organisations”, Journal of Marketing, Vol. 58 No. 4, pp. 37-61. Deshpande, R. and Farley, J.U. (1998), “Measuring market orientation: generalisation and synthesis”, Journal of Market-focused Management, Vol. 2 No. 3, pp. 23-37. Doern, R. (2009), “Investigating barriers to SME growth and development in transition environments”, International Small Business Journal, Vol. 27 No. 3, pp. 275-305. Drucker, P.F. (1954), The Practice of Management, Heron Books, London. Dunn, E. 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Further reading Hult, T.M.G. and Ketchen, D.J. (2001), “Does market orientation matter: a test of the relationship between positional advantage and performance”, Strategic Management Journal, Vol. 22 No. 9, pp. 899-906. Ziliani, C. (2006), “Target promotions: how to measure and improve promotional effectiveness through individual customer information”, Journal of Targeting, Measurement and Analysis for Marketing, Vol. 14 No. 3, pp. 249-59. 533

PY - 2012/3

Y1 - 2012/3

N2 - Purpose – Retailer loyalty card marketing intelligence presents actual customer purchasing preferences, competitor activities and performance. Typically, extant literature implies that larger firms with formal marketing planning approaches will be more able to leverage it, structured as it is within a formalized statistical format. Small business literature on the other hand emphasizes their more informal approach to marketing planning. The purpose of this paper is to consider, for the first time, the potential relationship between retailer loyalty card marketing intelligence and small business market orientation. Design/methodology/approach – A conceptual model is developed which diagrammatically interprets how retailer loyalty card marketing intelligence can relate to small business market orientation. Propositions provide a basis for further discussion with applied and research implications. Findings – A pertinent aspect of the conceptualization is the role of small business owner-manager insight and intuition within an experiential learning context. A complementary relationship is posited in the leveraging of retailer loyalty card marketing intelligence to enhance small business market orientation, which with higher levels of entrepreneurship orientation can lead to positive organizational outcomes, such as facilitating more successful and informed engagement with larger suppliers. Originality/value – The paper addresses the increasing pressure small businesses face in dealing with retailer loyalty card marketing intelligence. Generally, literature has yet to adequately address marketing planning implications for firms. The informal/formal tension when considering small businesses presents a particularly interesting area of conceptual development, integrating market orientation literature and also recent developments which point to interaction between market and entrepreneurship orientations. This paper therefore provides a basis for a new small business research agenda in an area which is highly topical and important, with a synthesis of the extant literature in developing a conceptualization and propositions. The conceptualization and propositions can facilitate the development of new research and thinking in this potentially fruitful area of future enquiry.

AB - Purpose – Retailer loyalty card marketing intelligence presents actual customer purchasing preferences, competitor activities and performance. Typically, extant literature implies that larger firms with formal marketing planning approaches will be more able to leverage it, structured as it is within a formalized statistical format. Small business literature on the other hand emphasizes their more informal approach to marketing planning. The purpose of this paper is to consider, for the first time, the potential relationship between retailer loyalty card marketing intelligence and small business market orientation. Design/methodology/approach – A conceptual model is developed which diagrammatically interprets how retailer loyalty card marketing intelligence can relate to small business market orientation. Propositions provide a basis for further discussion with applied and research implications. Findings – A pertinent aspect of the conceptualization is the role of small business owner-manager insight and intuition within an experiential learning context. A complementary relationship is posited in the leveraging of retailer loyalty card marketing intelligence to enhance small business market orientation, which with higher levels of entrepreneurship orientation can lead to positive organizational outcomes, such as facilitating more successful and informed engagement with larger suppliers. Originality/value – The paper addresses the increasing pressure small businesses face in dealing with retailer loyalty card marketing intelligence. Generally, literature has yet to adequately address marketing planning implications for firms. The informal/formal tension when considering small businesses presents a particularly interesting area of conceptual development, integrating market orientation literature and also recent developments which point to interaction between market and entrepreneurship orientations. This paper therefore provides a basis for a new small business research agenda in an area which is highly topical and important, with a synthesis of the extant literature in developing a conceptualization and propositions. The conceptualization and propositions can facilitate the development of new research and thinking in this potentially fruitful area of future enquiry.

U2 - 10.1108/02634501211251034

DO - 10.1108/02634501211251034

M3 - Article

VL - 30

SP - 515

EP - 534

JO - Marketing Intelligence and Planning

T2 - Marketing Intelligence and Planning

JF - Marketing Intelligence and Planning

SN - 0263-4503

IS - 5

ER -