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Title: A comparative study of the effectiveness of marketing practices in foreign and domestic firms in West Malaysia.
Author: Chong, Sin-Jee
Awarding Body: Manchester Business School
Current Institution: University of Manchester
Date of Award: 1973
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Abstract:
The purpose of this study was to examine and analyse the nature of marketing practices, and the marketing effectiveness of foreign and domestic firms operating in the malaysian business environment. Several conceptual models in comparative management and marketing were considered and from these was synthesized the Comparative marketing model used for the study. It consisted of four variables: external environmental factors, corporate system, marketing practices, and marketing offectiveness. By cancelling out the external environmental factors through maintaining coteris paribus conditions (using techniques of sample selection), the researcher went on to examine the effects of the corporate system (defined as consisting of policies and resources of the firm) on marketing practices (defined as the marketing functions of organi.· sation, sales, distribution, advertising and sales promotion, product, and price) and the resultant marketing effectiveness (defined in terms of three marketing indicators: sales and sales growth, market share, and return on sales). A sample of nine matched pairs of firms, foreign versus domestic, was selecteq from a broad range of manufacturing industries in malaysia. firms were matched on the bases of a set of criteria, consisting of industry, firm size, product line, markel conditions, labour force and governmental jurisdiction. The field research consisted of personal interviews and observation of the selected firms. To guide the research study, the following hypotheses were tested: 1. There were distinct differences in the marketing practices ~ and policies of foreign and domestic firms operating in West Malaysia. 2. There were measurable differences in the marketing effectiveness that resulted from these marketing practices and policies. 3. foreign marketing practices and policies, to a considerable extent, could be beneficially applied in the Malaysian bUsiness environment. Findings of the Study 1. The results of the study indicated that all three hypotheses could be accepted. 2. The study revealed that foreign and domestic firms in Malaysia differed in their competitbr relations, product policy, promotional policy, and marketing policy making. 80th foreign and domestic firms used different strategies in penetrating the Malaysian market. 3. On marketing organisation, foreign firms preferred the functional and geographical types whilst domestic firms were heavily oriented toward the geographical type. Foreign firms adopted a broader span of management through use of staff and line specialists compared to a narrower span of management adopted by domestic firms / due to lack of specialists, and centralisation of authority in the marketing or general manager (chief executive). 4. Foreign firms adopted a pull strategy, supplemented by a push strategy whilst domestic firms generally adopted the reverse. Foreign firms tended to specialise their sales force by type of outlets serviced, and paid attention to merchandising work ai retail outlets compared to domestic firms which generally adopted neither of these. 5. Foreign firms focused on the use of international and foreign brand names for creation of brand image and for easy consumer acceptance. Domestic firms did not initially pay attention to such a strategy. 6. In pricing, foreign firms adopted a high price strategy, and tried to sleer clear of direct price competition through use of merchandising, advertising and sales promotion. Domestic firms adopted a low price strategy in lheir competition with foreign firms. 7. An analysis of the nine matched pairs of firms indicated that foreign firms were moro effective in sales growth, market share, and return on sales for the period, 1966 to 1970, in the consumer oriented industries whilst domestic firms warn more effective in the commodity-oriented industries. The supplementary profitsbility indicators revealed that foreign firms as a group had higher net profits and growth in net profits, and return on investment than domestic firms as a group for the same period.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.451414  DOI: Not available
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