Assessing Marketing Strategies of Enterprises by

Using Color Based Marketing Strategies (CBMS) Model

Omer LIVVARCIN, Muge CEVIK, Lebriz Tosuner FIKES,

Yeditepe University, Istanbul, TURKEY

Nilgun GÜRKAYNAK

Izmir University of Economics, Izmir, TURKEY

Objective of the Study

To provide a simple visual framework for evaluation of marketing strategies

For identifying the perceived typology of companies

To assess the congruence between the perceived versus intended positioning of companies.

The need Free flow of information as a multidirectional

process

Adopting an open, transparent and accountable perception is a requisite

Easily bored customers circulate around products&services

The new market orientation calls for a wiser description of organizations

Background

Organizations are similiar to living organisms (e.g. Keeley, 1980; Young, 1990; Bloom, 1995; Pech, 2001;Fekete, 2003)

Psychological concepts are in use, recently organizations are defined by human attributes

This study matches with earliest trait theories introduced by Jung (1976) and redefined by Myers and Briggs (1980).

Background First two umbrella concepts used in the study

are extrovert versus introvert. These terms show how a person orients and

receives energy.

Extroverted- is sociable person with preferred focus on other people and things.

Introverted- draw its energy from the inner world of information, thoughts and ideas.

Background For some, organizational focus is derived

through external factors; markets, competitors, customers In highly competitive industries (Fekete, 2003)

Others have an introverted sensibility focused on; its employees, inventions and values In high tech industries and specialized consumer

markets

Background The other two umbrella concepts used in the study

are innovative versus conservative. Innovation- one of the major business functions in

today’s world; a strategic obligation rather than an option

Innovation- can be a product or a process; is a new business concept that creates wealth (Drucker,1985; Hamel, 2000)

This study focuses on how companies’ innovativeness is perceived

Proposed Model

CBMS Model

A simple and visual model for assesment of customer perceptions on marketing strategies.

Uses model dimensions as umbrella concepts

Allows flexible interpretation of those concepts

CBMS Model

Vertical axis ‘Extrovert’- a sociable and assertive company, interacts with its environment. ‘Introvert’ - a more reserved company, focused on inner resources

Horizontal axis ‘Innovative’- productive of new systems, products, services and ideas ‘Conservative’- favor traditional views or values & tend to oppose change or innovations

CBMS Model

•Graphical illustration; shows the difference between intended and perceived marketing strategy

Methodology

Sample- 10 multinational companies selected randomly from

Forbes 2008 list Repondents- 263 randomly selected people

Questionnaire; self-developed 6 questions that repeat for 10 companies 6 demographic questions 9-point scale

ApplicationIntrovert-Extrovert Innovative-Conservative

Coca Cola 0,787 0,878

Pepsi 0,829 0,917

Microsoft 0,847 0,948

Google 0,795 0,899

Nokia 0,868 0,959

Samsung 0,887 0,836

Nike 0,847 0,944

Adidas 0,902 0,964

Toyota 0,897 0,959

Mercedes 0,847 0,918

• All Cronbach’s Alpha values are greater than 0.7

Application

• All single factor eigenvalues are greater than 1

Findings

Findings Companies are cumulated at the

upper right corner Coca Cola & Pepsi- at the Low

extrovert and Low innovative section Google- at the High extrovert and

High innovative section Toyota- at the border deviating from

upper cluster Samsung- at the lower end of

innovativeness ( when compared to Nokia)

Nike & Addidas shows similar pattern

Findings

• Perception of Innovativeness fall for all companies in higher income levels.

4

4,5

5

5,5

6

6,5

7

7,5

8

8,5

9

1 2 3 4 5

Income level

Inn

ova

tive

nes

s

Coca Cola

Pepsi Cola

Microsoft

Google

Nokia

Samsung

Nike

Adidas

Toyota

Mercedes

Findings

• Extrovertiveness perception for all companies except Samsung demonstrates decreasing tendency at highest income level

3

4

5

6

7

8

9

1 2 3 4 5

Income Level

Ext

rove

rtin

ess

Coca Cola

Pepsi Cola

Microsoft

Google

Nokia

Samsung

Nike

Adidas

Toyota

Mercedes

Findings • Innovativeness perception for Coca Cola & Pepsi diversify significantly from other companies as education level changes

4

4,5

5

5,5

6

6,5

7

7,5

8

8,5

9

1 2 3 4 5

Education level

Inn

ova

tive

nes

s

Coca Cola

Pepsi Cola

Microsoft

Google

Nokia

Samsung

Nike

Adidas

Toyota

Mercedes

Findings

•The perceived extrovertiness varies significantly at lower education levels• It gathers at higher education levels

3

4

5

6

7

8

9

1 2 3 4 5

Education Level

Extr

overt

iness

Coca Cola

Pepsi Cola

Microsoft

Google

Nokia

Samsung

Nike

Adidas

Toyota

Mercedes

Findings High correlation between the perceived

extrovertiveness and innovativeness (0.918) ‘Companies that are perceived innovative are also

perceived as extrovert’. On the other hand, there is strong corelation between

introvertiveness and innovativeness (Fekete, 2003).

No correlation were found between the perceived extrovertiness/innovativeness and company brand value

Androgeny- No gender variance differences were found.

Conclusions This research is a pilot study that tested the applicability

of the Color Based Marketing Strategy (CBMS) Model. 

The CBMS model can be used by both academicians as well as members of the private and public sector. 

It is simple to apply, to evaluate, to understand.

May be used by companies for quick benchmarking.

Enables companies also to monitor their perceived marketing status and to evaluate the gap between where they are and where they want to be.

Conclusions Innovation literature- Innovativeness has often been

operationalized as the development team’s satisfaction with the outcomes of innovation (e.g., More, 1982; Rothwell and Gardiner, 1988; Cooper and Brentani, 1991; Van Der Vegt and Janssen, 2003; Blazevic and Lievens, 2004) or as internal evaluations of consumers’ likely responses ( Seith et al., 2001)

With this study we view marketing strategies (innovativeness and extrovertiness) of a firm through the eye of the consumer ( existing or potential).

Through CBMS Model we suggest that evaluation of marketing strategies take both inside-out ( application of PIG) and outside-in ( CBMS model used in the study) approaches.

Conclusions Local marketing strategies of global enterprises will

determine how innovative and extrovert they are perceived by local people in that specific country or region.  

Because our application was performed only in Turkey our results may be tentative in other countries.

It is not only due to the variant culture based perceptions of people in different countries but also due to the diverse marketing strategies of companies in those countries.

Further Research

Our results need to be further tested across markets- i.e. countries and products.

Perception differences between local companies and multinationals from same sector can be investigated.

Managers of the companies involved in this study could be surveyed using a parallel approach proposed by Community Innovation Surveys ( CIS-3, CIS-4) to fulfill the gaps discussed by Arundel (2007).

Androgeny may also be an important area to investigate.

Thank you...