2. spring 2004
www.wbs.ac.uk/alumni/nexus.cfm
4
6
Academic Fund for Excellence
Brands, Identity and the
Postmodern Consumer
news:
8
12
Super marketing
Sales and Account
Management Strategy
VP appointment
14 Olympic challenge International biopharmaceutical company, Cephalon Inc.
15 Rankings appointed WBS alumna Dr Susan Sullman (DLMBA 1986–89),
16 Project MBA as Vice President of Regulatory Affairs – Europe, in July. Susan has
17 Careers and networking more than 25 years experience in the pharmaceutical industry,
18 Event reviews working with several multinational companies. In her latest role,
she has responsibility for regulatory affairs throughout Cephalon’s
Dr Susan Sullman
European operations and is located at the company’s UK office in
Guildford. Susan earned her PhD from London University and her
BSc in Microbiology and Biochemistry at Leeds.
diary
www.wbs.ac.uk/alumni/forthcoming.cfm
good odds CBI profiles In the Winter issue of In
Business, CBI West Midlands
Councillor Profiles featured
full page interviews with two
The Times reported the return to the winner’s circle of WBS alumni Nick Horler
SINGAPORE EVENT
WBS alumnus David Harding (MSc Marketing (DLMBA 1987–91), Powergen’s
9 March 2004
Management 1980–81) on 9 September. Now Chief Managing Director, Retail and
Host: Professor Bob Johnston
Executive of William Hill Bookmakers, David gambled Geoff Percy (EMBA 1985–89),
BANGKOK EVENT Chief Executive, Accantia
successfully on a return to profit for the company,
16 March 2004
which joined the stock market in June last year. Health and Beauty Limited.
Host: Professor Bob Johnston
LONDON EVENING SEMINAR
24 March 2004
Speakers: Professors Stewart Hodges
and Mark Salmon
army family new year’s honours
Second Lieutenant Katherine
Topic: New research related to
Allt (MA Organisation Studies Our congratulations to Monder Ram (MAIR 1988, PhD
measuring market risk
2001–02) made news in The
1992), who was awarded the OBE for services to black
MIDLANDS REGIONAL EVENT Sussex Express as the fourth
25 March 2004 and ethnic minority business in the New Year’s
generation of her family to
Speaker: Stuart Chambers Honours. Now Professor of Small Business at De Montfort University,
serve in the Army. Her mother
Topic: SME’s and co-ordinator of small business research at DMU Business School,
was the first woman to
Venue: tbc Leicester, Monder has extensive experience of working in, researching,
command a signals corps, her
BEIJING EVENT Brigadier grandfather was also and acting as a consultant to ethnic minority businesses. He is
17 April 2004 a Royal Signaller and her co-author of ‘Managing to Survive – Working Lives in Small Firms’, and
Speaker: Dr Simon Collinson great-grandfather served with ‘Ethnic Minorities in Business’ and is the only academic to be appointed
SHANGHAI EVENT the Royal Engineers. Katherine to the Department of Trade and Industry’s advisory forum on ethnic
20 April 2004 joined the 21st Signal minority businesses.
Speaker: Dr Simon Collinson Regiment (Air Support).
HONG KONG EVENT
24 April 2004
Speaker: Dr Simon Collinson
An interview with WBS alumna Louise Liu (FMBA 2000–01)
appeared in the Hong Kong Economic Times in September. keep in touch
In the article, Louise explains how, when choosing WBS, she To get the full benefits of your
WBS ANNUAL DINNER
13 May 2004 considered course content, ranking reputation and location. membership, please check that
IoD, London Talking about her experience of studying in the UK, she says, your details are up to date by
“The good learning atmosphere helped to develop my using our online facility at
MBA SUMMER BALL
16 July 2004 thinking ability and meeting students from all over the world w www.wbs.ac.uk/alumni
Stratford Moat House broadened my horizons, enhancing a better understanding of and follow the links for ‘Your
different cultures.” A view of WBS lecture theatre M1 appeared membership’ or by emailing
alongside the article. E alumni@wbs.ac.uk
Designed by Parenthesis +44 (0)24 7622 9658
3. WBS in the news
WBS appeared regularly in international, national
and regional press, magazines and broadcast media
during the last year, increasing slightly over the
previous year’s coverage. An encouraging trend was
that international coverage almost doubled, now
accounting for almost 20% of the total media
coverage. National coverage came in at 54%, and
regional at just over 26%.
Who is it who can take the credit for getting
WBS in the news? Just over half (53%) is achieved
by ongoing teaching and research activity.
This means that just under half is down to alumni
rise in world rankings for WBS and current students. WBS is very grateful to the
many alumni and students who are willing to take
In the Financial Times full-time MBA world rankings published 26 January 2004, time to talk to journalists and whose achievements
Warwick Business School has gained a further two places from last year and is now and honours lead to this coverage.
placed at 32 in the world. Only two other UK schools were placed higher than WBS,
In addition to the PR activity we also have a
London and Oxford. Additionally, the WBS Doctoral programme has been confirmed
carefully targeted advertising schedule for the MBA
as number one in the world.
programme that is both international, eg The
“We are delighted at our rise in these rankings. It is a deserved recognition of the Economist and the Financial Times (to fit with our
quality and efforts of our staff, our current and former students, and our corporate recruitment fairs) and UK national, eg The Times.
partners, who have all contributed to this good result,” said Professor Howard Plus we have a new flexible WBS ad style that is
Thomas, Dean of WBS. being used consistently across programme and
recruitment ads. So you will have seen WBS
promoted in The Times, The Guardian, BizEd and
obituaries The Economist during December for various activities.
It is with great sadness that we report the recent deaths of five WBS alumni.
Dame Sheila McKechnie (MAIR 1970–72) died after a long battle with cancer on
2 January 2004. Sheila was appointed Director of the Consumers’ Association in 1995.
WBS host high level DTI forum
For the second year, WBS Industrial Relations
She was also awarded an OBE in 1995 and created a Dame in 2001.
A detailed obituary for Sheila appears on w www.wbs.ac.uk/news/features Research Unit (IRRU) organised and hosted
high level round table discussions on
Jonathan Smout, (FMBA 1998–99), tragically died in a skiing accident whilst on holiday controversial draft employment legislation at
in France over the Christmas break. Jonathan lived in Leamington Spa and worked at the request of the Department for Trade and
Barclays on the Westwood Heath site.
Industry (DTI). Professor Paul Marginson,
Asim Humayun (FMBA 1998–99) died in London as a result of a tragic accident on director of IRRU, chaired the meeting and
23 December 2003. After attending the Warwick MBA as a Chevening Scholar, Asim Gerry Sutcliffe MP, the DTI minister
returned to Pakistan and became Vice President of AMZ Technologies, Karachi. responsible for employment relations,
competition and consumers, outlined the
We have also been notified that Colin Dixon (MA Industrial Relations 1985–86)
government’s approach to the draft
and Lynn Fordham (PG Diploma Business Administration (DL) Class of 1991)
Regulations and heard participants’ views.
died in November 2003.
The staff and alumni of WBS extend deepest sympathy to their families and friends. Major Award for Warwick Professor
Alyson Warhurst, Professor of Strategy and
outstanding feedback International Development at WBS has been
awarded the first European Faculty Pioneer
A huge thank you to everyone who Requests for more academic articles have Award by the European Academy of Business
responded to our invitation to feedback been addressed, as this issue features in Society (EABIS) as part of a global initiative
on the ‘new look’ Nexus last issue. articles from two of our new professors
‘Beyond Grey Pinstripes’ and in conjunction
As well as much appreciated approbation – in Marketing, and details of some of the
a particular favourite was ‘it stands out current research being carried out at WBS.
with the US-based Aspen Institute and the
nexus: spring 2004
from the rest, just like WBS’; we also World Resources Institute. The award took
So keep that feedback coming, we want to
received ideas and suggestions for content place at the 2nd colloquium of EABIS in
hear your views on your magazine.
and design. Copenhagen, Denmark.
E Pam.Barnes@wbs.ac.uk
03
4. a message from the Dean
: Marketing. Nigel was a recent
recipient of the highest academic
degree of DLitt, from Edinburgh
Business School and the
School of Management at
Heriot-Watt University.
In this issue Nigel discusses his
Closer to home, we have been
addressing the complexity of
marketing Warwick Business
School for some time. I am
pleased to announce that by the
time you receive this copy of
Nexus we should have appointed
reputation of the School as
Professor John McGee describes
in his article on
Surveys & Rankings.
I think that you’ll agree that, as
ever, we continue to make exciting
progress as one of the world’s
to the new position of Director of
research into an area of marketing foremost business schools. To help
Marketing. This role will afford us
that often accounts for the largest advance WBS’ development, I
the ability to not only co-ordinate
proportion of budgets and would encourage you to contribute
our diverse marketing activities
The year 2004 sees a further step headcount – sales – and discusses to the Fund for Academic
into a coherent strategy for the
change in the breadth and depth the future evolution of the sales Excellence, details of which are
School but will crucially enable
of our faculty and support staff. organisation. Richard expands on provided below. With the support
us to raise the awareness of
This is particularly evident in the the socio-cultural approach of his from our strong alumni network,
Warwick Business School in our
area of Marketing, the theme for research and in particular, how the vision for 2004 and beyond
target markets.
this edition of Nexus. people use brands in a will be accomplished.
postmodern consumer culture. As part of the overall marketing
Warwick Business School has a I wish you all belated best wishes
effort, the strengthening of the
strong reputation for quality both As well as academic research, for the year ahead and look
Alumni network and your
in its research and teaching of we hear from senior marketing forward to meeting you at one
participation in events is
Marketing. Therefore in Autumn practitioners who exemplify the of our many events throughout
extremely important and I would
2003 we strengthened the greater kudos that marketing now the year. Thank you for your
urge you to attend at least one of
Marketing expertise of the faculty enjoys in the corporate world at continued support.
the regional or national events
with two new appointments: senior board level. Tim Mason –
this year. If you are a recent MBA
Richard Elliott – Professor of WBS Advisory Board Member –
graduate (less than three years
Marketing & Consumer Research; shares with us his philosophy as
since graduation) you can make
Nigel Piercy – Professor of Marketing Director at Tesco.
an even more direct impact to the Howard Thomas
the WBS Fund for Academic Excellence
advancing the future of business knowledge
Warwick Business School has developed into a leading European WBS is already in a unique position within Europe as a leading
business school, with acknowledged excellence in teaching and business school providing academic excellence spanning the
research. As such, it offers a comprehensive provision of degree full-line provision of teaching and research. Your gift will help
programmes at undergraduate, postgraduate and doctoral level. further WBS’ success and ensure our future.
WBS has also formed significant partnerships with global, national
If you are interested in the WBS Fund for Academic Excellence
and local organisations for executive development and research.
or would like to make a gift, please contact Ben Plummer,
Those who have studied at Warwick chose WBS for its quality and Development Executive by emailing E Ben.Plummer@wbs.ac.uk
its teaching and research excellence. We are committed to or telephone t +44 (0)24 7652 2813
improving our performance over the next five years to become the
best European Business School. Your continued commitment can
help us achieve this goal.
Ben Plummer has recently joined the University and an institution of academic
Dean’s Office at WBS as our Development excellence that continues to develop from
We are most grateful to those of you who have already supported Executive. He has moved from the strength to strength. Additional investment
us, from attending alumni events, to making generous gifts. University’s International Office where will ensure that WBS, and the University at
Building upon this foundation, we are pleased to establish the he worked as a Liaison Officer. large, are able to secure their futures as
WBS Fund for Academic Excellence. Through this fund, your leading international institutions.
“I’m delighted to be joining WBS. Having
Combining our current resources with the
contributions can help to enrol and teach the very best students; studied at Warwick and worked within the
generous gifts that our alumni are making
recruit and retain the best academic staff; and to help develop and main University administration, more than
will ensure that WBS’ vision is realised.”
maintain the highest quality facilities. ever I believe Warwick to be a fantastic
5. hot off the press
Nigel Piercy, Professor in Marketing at WBS, Fourth edition: Operations Management, Slack, Members of the Corporate Citizenship Unit have
has recently published Total Integrated Marketing: Chambers and Johnston. Published contributed chapters to Business and Human
Breaking the Bounds of the Function, with by Financial Times Prentice Hall. Rights – Dilemmas and Solutions. Published by
colleagues from Columbia Business School, This revised and fully updated edition of Greenleaf. From the inside looking out: a
Mac Hulbert and Noel Capon. Published by Operations Management by WBS Professors management perspective on human rights
The Free Press in New York and in the UK by Nigel Slack, Stuart Chambers and Bob Rory Sullivan, Insight Investment, UK, and
Kogan Page. The focus of the work is on the Johnston continues to provide a clear, Nina Seppala, WBS. Elimination of child labour:
managerial challenges in moving from well-structured and comprehensive Business and local communities Bahar Ali Kazmi
marketing as a department to marketing as a treatment of the subject, balancing a logical and Magnus Macfarlane, WBS.
set of cross-functional and cross-boundary approach with the insights that come from w www.greenleaf-publishing.com
processes to deliver superior customer value. operations practice around the world.
w www.simonsays.com w www.booksites.net/slack Howard Davis of the Local Government
Centre has contributed a chapter on Ethics and
WBS Professor of Finance Lucio Sarno, in Simulation: The Practice of Model Development and standards of conduct to the publication: Public
collaboration with Professor Mark P Taylor has Use, by Stewart Robinson. Publishers John Wiley Management and Governance edited by Tony
a new publication The Economics of Exchange & Sons Ltd. Dr Stewart Robinson, Senior Bovaird and Elke Löffler and published by
Rates, published by Cambridge University Press. Lecturer in Operational Research, offers guidance Routledge. He has also just published a report
This publication provides a selective coverage of through the key stages in a simulation project in of the Local Government Association’s
the literature on exchange rates, focusing on terms of both the technical requirements and ‘Six Commitments’ initiative. Howard led this
developments from within the last fifteen years. the project management issues surrounding it. project and the work was undertaken by a small
Clear explanations of theories are offered, Readers will emerge able to develop appropriate team from Warwick and Birmingham.
alongside an appraisal of the literature and valid conceptual models, perform simulation
suggestions for further research and analysis. experiments, analyse the results and draw
w books.cambridge.org/0521485843.htm insightful conclusions. wwww.wileyeurope.com
research news
This is merely a selection of close working relationships not Dr Martin Corbett (Industrial organisation. Martin’s research
some of the research contracts only provide customers with Relations & Organisational warns of the dangers of getting
and programmes recently better service, but also enhance Behaviour) has received much these motivational songs wrong,
started at WBS: employee performance. His new media coverage for his research on including derision from
report ‘Delivering Service the use of music in the corporate competitors and customers,
Launched in London in November
Excellence: The View From the world, including ‘aural branding’ and loss of morale within
with a keynote address from Lord
Front Line’, explains among other – the use of an anthem or adapted the organisation.
Sainsbury, Under-Secretary of State
things how the mechanic who pop song to promote an
at the Department for Trade and
keeps up a constant stream of
Industry, a new research
repartee while working under the
programme at WBS is
bonnet of your car may hold the Research by Dr Scott Dacko, planning and organisation,
investigating UK firms’ ability
key to world-class customer Marketing & Strategic leadership skills, and for their
to adapt to the demands of a
relations. “It all comes down to Management Group, shows that written and analytical abilities.
knowledge-based economy.
the personal touch and a large Warwick MBA participants up Scott confirms, “This is the only
Professor Harry Scarbrough,
part of that is the use of banter.” their skill levels by over 30% in study of its kind in the UK.
who leads the Evolution of
he says. (It’s good to talk!) vital management competencies. Given the enormous investment
Business Knowledge programme,
Scott’s research, now in its of time, money, and energy that
warns that the loss of call centre A research contract worth almost
third year, examines the goes into studying for the
and similar jobs to countries such £1 million has been won by
perceptions of both the full-time Warwick MBA, it is vital that
as India will hit the UK low-skill Professor Jean Hartley and the
participants, and, crucially, of the we develop our participants’
sector, and that UK firms will Local Government Centre to
companies for whom they skills to make them the best
need to be ready to adapt to these undertake a five year evaluation
undertake their management leaders and managers of the
coming changes. of the Beacon Council Scheme,
consultancy project. future. We are making sure that
to raise standards in local
Latest research on service both employers and participants
government by identifying Employers rated initiative as a
nexus: spring 2004
management and quality from get the best return on their
innovative and excellent particular strength exhibited by
Professor Bob Johnston investment in terms of time,
performing councils and helping our participants, as well as
(Operations Management) has talent, and money.”
them spread best practice. marking them highly for
demonstrated that team-work and
05
6. brands, identity and the postmodern
consumer by Richard Elliott
Professor of Marketing
and Consumer Research
t he research I have undertaken
adopts a socio-cultural approach
which draws on contemporary
cultural studies, anthropology and
social theory rather than relying on
just the cognitive, information-processing
approach traditionally taken in marketing.
In particular, I am interested in how
people use brands in a postmodern
Central to postmodernism is the recognition
that the consumer does not make consumption
choices solely from products’ utilities but
from also from their symbolic meanings.
As consumption plays a central role in
supplying meanings and values for the creation
and maintenance of the consumer’s personal
and social world, so advertising is recognised
as one of the major sources of these symbolic
Brands can be used by the consumer as
resources for the symbolic construction
of the self. The symbolic consumption
of brands can help establish and communicate
some of the fundamental cultural categories
such as social status, gender, age, and such
cultural values as family, tradition and
authenticity. But brands can also be used to
counter some of the threats to the self posed
consumer culture. meanings. These cultural meanings are by postmodernity, such as fragmentation,
transferred to brands and it is brands which loss of meaning and loss of individuality.
are often used as symbolic resources for the
construction and maintenance of identity.
7. Brands, Trust and Fragmentation childhood. It seems that there is a ‘sensitive reading. This openness relates to a lack of
period effect’ for products, where early specific narrative direction and explicit
One of the prime features of the postmodern
childhood and, particularly, adolescence are meaning context. Instead these open ads
experience is fragmentation, where the
periods when we are most likely to develop feature the product and simply evoke a
inherited self-identity of history is no longer
preferences. Brands that we have lived positive general response to the ad from the
a stable, secure fact but requires active
experience with during sensitive periods may consumer, by using music or imagery for
construction: ‘A self-identity has to be created
acquire a depth of meaning unattainable by example. The consumer views the deliberately
and more or less continually reordered against
brands at later stages in our lives. If we have ‘open’ ad and because it lacks any strong
the backdrop of shifting experiences of day-to-
frequent sensual experience, particularly, intended meaning is empowered to perform
day life and the fragmenting tendencies of
olfactory experience with brands during a very strong reading of it. As a result
modern institutions.’ This construction is
childhood, then at later stages of our lives we the consumer derives a very personal
achieved partly through developing coherent
may use them in nostalgic activity, and/or to interpretation of the ad’s meaning related
narratives of the self and partly through
restore a sense of security. to their own individual life situation
finding opportunities for the investment
and history.
of trust in institutions other than the Again, behavioural signification through lived
traditional ones such as the church. experience with a brand seems by far the most At this point, in need of the social
potent source of meaning, but advertising can confirmation all X’ers crave, the consumer
Brands offer consistency in an ever-changing
provide a narrative structure for concretising discusses the meaning of the ad with others
world and this reassurance is a vital element
these emotional meanings. Hovis bread and who share the same basic interpretation of
in their added value. As in human social
Yorkshire tea are both masters at providing advertising. Thus an advertising literacy event
relationships, from consistency over time
consumers with a narrative identity that occurs and the individuals form an
develops predictability, then dependability
encapsulates both nostalgic reverie and ‘interpretative community’, not purely by
and eventually trust in the brand. In large
current life situations. The adolescent demographic or psychographic factors but by
part, trust in a brand evolves from the
sensitive period is perfectly captured by Levi’s their shared interpretation of the meaning of
delivery of consistent benefits over time,
with their provision of symbolic meaning the advertisement. These interpretive
that is from lived experience of using a brand.
through heavy advertising support which communities have the potential to provide
However, the viscous meaning derived from
provides teenagers with ‘scripts for living’. exciting new ways to segment markets and
the mediated experience of advertising can
build profitable ‘icon brands’.
enhance the consumer’s experience and give
Mass-Market Brands —
a narrative coherence to it by giving words to
Individual Meanings
thoughts they ‘may know but can only speak
The ubiquity of brands in developed
of incompletely’. Volkswagen has captured
capitalist societies is such that we live in a
perfectly this ability of the brand to replace
other less reliable relationships: ‘If only
rich ‘brandscape’ from which we must select profile
a personal ‘brandspace’ in which to live.
everything in life was as reliable as
In large part, the creation of personal
a Volkswagen.’ Richard Elliott is a visiting
brandspace will be achieved through the
professor at ESCP-EAP Paris, ESSEC
Brands and Deep Meaning creation of deep meaning and the
Paris, Université Paris II, and
development of trust, but brands can also
Brands can acquire deep meaning for Thammasat University, Bangkok.
facilitate the development of personal
consumers by their involvement in the He is also Associate Editor of the
involvement by the encouragement of the
socialisation process, and from then on British Journal of Management and
meaning transfer processes of personal ritual
brands can evoke profound feelings of European Editor of the Journal of
and social interaction.
nostalgia and provide comfort from insecurity.
Product and Brand Management.
The history of brand use, brand loyalty and Four ritual activities are important in
intergenerational transfer in families with a transferring meaning from consumer goods Richard is very active in his research
recent history of emigration has shown that to the individual: exchange, possession, which focuses on the symbolic
certain moments in our lives become powerful grooming and divestment rituals. Each ritual meaning of brands, consumer
memories that connect brands, people and presents an opportunity for the individual to culture and identity, and the
places and that ‘family brands become part of affirm, assign or revise the meanings derived dynamics of brand ecology.
the tool chest in strategies for survival during from advertising and construct an individual He has published books on Strategic
critical life passages.’ meaning for themselves. Advertising Management, and
Interpretive Consumer Research. He has
Consumers have been found to buy brands The elusive audience of Generation X
that evoke memories of their grandparents, also published over 100 research
nexus: spring 2004
may be encouraged to actively interpret
often through the smell which instantly papers in many and various journals.
advertising by using deliberately ‘weak’
returned them to the time and place of their advertising texts which encourage ‘strong’
07
9. t esco reigns supreme in the battle
of the supermarket giants.
Warwick alumnus Tim Mason,
Marketing Director, provides a
unique insight into the strategy
that keeps Tesco ahead of the rest.
“The most important thing is that the
business is genuinely customer focused
the manager. It is all about feeling
empowered and learning life skills. Helping
people to understand they can choose the
attitude that they bring to work, which
they are finding incredibly helpful in
managing both work and personal life.”
To obtain direct feedback from customers,
Tesco also host Customer Question Times,
behind Tesco’s continued commitment to
this method of creating more value for
customers. “We trialled Clubcard for a long
time and basically what we found was that
people enjoy using it. Previous to this, we
were talking about an industry that didn’t
know the names and addresses of people
who spend thousands of pounds in their
stores. This means, in fact that you don’t
and then that it actually does something where customers are invited into their
know very much about the business that
about what it learns about its customers. local store to talk to store managers and
you run. We would find it unthinkable to
What we say at Tesco is that our job is to head office managers about what their
operate without this information today
create value for our customers, to earn shopping experience in that store. Tim
because it enables us to do a much better
their lifetime loyalty,” affirms Tim. says, “What you find out is that customers
job for our customers.”
To achieve this Tesco abide by the ethos: say exactly what the staff say to you
‘nobody tries harder for their customers’ because the customers tell them (the staff), Tim quotes an example: “About 18 months
and ‘treat people in the way that we like for example, when there is no bread or ago, we launched a range of ‘Free From’
to be treated.” products have been moved. This goes back products, for people with lactose or wheat
to treating people how we would like to be intolerance. It did reasonably but not
In a service industry, it is vital to know
treated ourselves. When members of staff fantastically well. So we said, let’s just have
what both customers and staff are thinking
tell us something is wrong, we need to a look at who is buying these products,
and make sure something is done
act on it.” whether new or existing customers and
about it. So it is most important to
whether they are spending more or less
maximise staff feedback and one of the
“To be good at marketing is to with us. What we found was that quite a
things Tesco take very seriously is face to
face communication.
understand customers and what lot of people purchasing this range were
new customers and that existing customers
Tim explains one of the current initiatives,
they want.”
were spending significantly more. So if you
which is proving extremely successful, “We Higher quality market research and the did not have a store card and therefore
have a programme going on in stores at the development of their loyalty Clubcard, access to customer buying information,
moment called ‘Living Service’, which aims ensure Tesco has the information about the you could make the decision to stop
at getting all levels of people working in shopping habits of its customers necessary selling some slow-moving lines.”
stores to work together to improve the to achieve its marketing goal. “To be good
Just how much information Tesco knows
customer service in the business. One of at marketing is to understand customers
about the contents of its customers
nexus: spring 2004
the things it has definitely achieved is to and what they want,” Tim emphasises.
shopping trolley becomes clear when
make the store more free flowing in terms
As some rivals opted out of customer Clubcard holders receive the money off
of communication and to encourage
loyalty schemes, Tim explains the thinking vouchers with their quarterly statement,
people from the frontline to grab hold of
09
10. super marketing continued: profile
Tim is a keen supporter of WBS. He is
many of which relate to items they Eight years ago, Tesco was the first a member of the Advisory Board and
purchase on a regular basis. The statement company in the UK to provide internet came to campus in January to speak at
is addressed personally, with a message shopping, which has proved a fantastic a WBS Forum.
from Tim in his role as Clubcard Director. success. They took a purely pragmatic A keen rugby player, Tim played for the
approach by using their stores rather than University in his first and second year.
Sustainable competitive advantage lies in
warehouses and their staff rather than the From Warwick he went to Unilever as a
customer retention by constantly meeting
robots used by others. This enabled the trainee, joining Tesco three years later,
their needs. Tesco is now about much more
building of a business for virtually no where he held a number of positions
than groceries, as can be seen by the vast
capital outlay and the business is still before being appointed Marketing and
array of products in the Clubcard deals
growing at an incredible rate. Taking more E-Commerce Director, Tesco plc, with
scheme, from Air Miles to leisure breaks,
than 110,000 orders per week, Tesco.com responsibility for Property and Ireland
for which vouchers can be exchanged,
is the world’s largest on-line grocery in 1995. He also has responsibility for
increasing their value to the customer.
retailer. The service covers 96% of the UK Tesco’s Personal Finance and Telecoms
Moving on to advertising, Tim maintains, population and also operates in South business. Tim featured in the September
“Retailers relatively speaking do not spend Korea, the Republic of Ireland and as issue of Marketing under the headline
as much money as other industries on Groceryworks on the West Coast of ‘Marketers who have made it to the Top.’
advertising.” He then points out that the America. For the six months up to August
key criteria are accessibility to a modern, 2003 sales grew by 32% with profits of
Tesco — Facts and Figures
clean local store, staffed by well-trained £11 million. Tesco made almost the same
Tesco plc operates in 13 countries,
and committed, local people. profit in the first six months of 2003 as it
including the UK, employing 300,000
did in the whole of 2002.
“Actually we do a bit of advertising,” Tim staff across 1,245 stores. The group looks
adds. “or us it is very important that our According to Tim, “Tesco is certainly the after almost 32 million customers per
advertising is likeable. In the case of our most profitable e-grocer in the world by a week, who generate annual sales of £15
TV advertising, that it makes you laugh or long way. Internet shopping is a business billion. In their interim statement of
smile. There is no doubt that the ‘Dotty’ we manage a lot better for having had the results for the 24 weeks ended 9 August
TV ad campaign is very popular. You see loyalty card. dot.com is about managing 2003, pre-tax profit increased by 21.3%
Dotty you know it is Tesco.” Prunella customers as individuals. Supermarkets are on 2002 with sales enjoying a 17% uplift
Scales plays Dotty with Jane Horrocks as essentially self-service but we have been in the same period.
her long-suffering daughter in the long- learning to look at customers as w www.tesco.com/corporateinfo/
running campaign by top ad agency Lowe. individuals and have been able to build Tesco has stores in Ireland, Czech
‘Every little helps’ is the slogan that that learning and thinking into our Republic, Hungary, Poland, Turkey,
denotes Tesco, it features on all the dot.com business.” Slovakia, South Korea, Thailand, Taiwan,
advertising and the Clubcard, signifying Japan and Malaysia.
value for money and a caring organisation.
glowing report
Congratulations to Annie Frères (BSc International Paris, she found herself designing a database and
Business 1999–2003), who won the Association producing the company export newsletter.
of Business School’s undergraduate award and Her fluent French proved invaluable in the PR
a £3,000 prize in their 2003 Awards for Business work she carried out for the launch of the
and Management Students, sponsored by The Jennifer Lopez range, Glow by JLo.
Guardian. In the finals of the National Business “The prize money has come in very useful for
Awards she came a close second in the UK fundraising and buying the kit I need for my trip
Business Student of the Year Competition. to Chile with Raleigh International”, reports
A Belgian brought up in Germany, Annie did her Annie. “I’ll be working on conservation and
Annie Frères
international baccalaureate in Oxford before environmental projects in the national parks,
choosing WBS. During her work placement in the as well as improving the infrastructure in remote
export department of cosmetics giant Coty in villages by building community halls.”
11. As a director and an MBA,
you are just a short step
from qualifying as a
Chartered Director
The IoD and WBS Alumni Association
are offering a special opportunity for you
to qualify as a Chartered Director,
the professional qualification for directors.
CIS strongly supports the Chartered Director programme, which provides
a ’gold’ standard in director training and development. When voting on
the election of directors and assessing candidates’ suitability, we shall take
a very positive view of those who have achieved Chartered Director status.
CIS, founded in 1867, have 4.5 million customers and over £20 billion of investments
Call us now to find out more
nexus: summer 2003
ARE YOU QUALIFIED TO BE A DIRECTOR?
T 020 7766 8842 E chartered.director@iod.com W www.iod.com/chartered
Quote ref: wbs03 19
12. sales and account management
strategy
great potential for
research and
management impact
by Nigel Piercy
Professor of Marketing
m any approaches to how
we teach and research
marketing tend to
ignore the fact that the
largest area of
employment in marketing is the sales
function, and for many companies sales
and account management costs vastly
outweigh resources devoted to other more
In fact, the potential for innovative and
insightful research activities in this large
but neglected area of economic activity is
huge. It is also an area where there is
substantial management interest in
research findings that enhance
understanding of the factors driving
effectiveness in the sales organization.
In an era where business strategy
However, cynical observers might suggest
that the time has passed for the sales
organization – perhaps the only real
interest is how rapidly sales operations can
be downsized. Certainly, there is a scenario
where the role of the traditional sales
organization appears doomed. The figure
below identifies this scenario. As direct
sales channels and Internet initiatives
visible areas of marketing. emphasizes new forms of buyer-seller provide more effective ways to handle
relationship and partnering, it follows that customers with low service and
Correspondingly, the amount of research
there is intense interest in managing sales relationship requirements, and key
attention given to the sales area by major
operations to deliver superior customer account management structures handle
business schools has been very limited,
value, not simply to take and process the most important customers, there
and sales rarely features prominently in
orders from customers. seems indeed to be a shrinking domain
how marketing is taught.
for the traditional sales organization.
13. effectiveness – but often not the Together these research programmes are
LARGE
➡ stereotypical behaviour and characteristics building into a major challenge to
associated with the traditional salesforce. conventional management approaches
Key/Global in the sales organization. That challenge
account Sales management – in conventional sales
The shrinking suggests the need for managers to address
➡
management
➡
Customer Sales domain for organizations, sales management focuses
Level/Potential the traditional a quite different agenda to that of the past
Direct
salesforce? on commanding and scorekeeping, while
channels/ in seeking effective buyer-seller
internet-based the research indicates that in the most
sales relationships in the new environment
➡
effective sales organizations managers
they face. The transformation of the sales
devote substantial efforts to managing
SMALL organization from order taking to the
LOW Customer Service/Relationship Requirements HIGH
salesperson behaviours, i.e. monitoring,
management of customer relationships in
directing, evaluating and rewarding
a global setting demands quite different
activities, not simply crude control against
Certainly there have been a number of approaches to managing sales operations.
outcomes. The move from outcome-based
prominent traditional salesforce closures
to behaviour-based sales management We plan to focus research efforts on these
and downsizing in many sectors like
control strategy is controversial, but the issues through the formation of a new
financial services. But the paradox is that
research suggests numerous gains, and research unit at WBS – Sales and Account
at leading Internet companies like Dell
sometimes surprising benefits, for those Management Strategy (SAMS) – to
Computers, the view is that the Web does
who pursue this direction. continue the stream of research studies
not remove the need for salespeople – it
listed above and to extend them.
frees them to sell and manage customer Sales compensation systems – there is
International collaborators exist in
relationships, which is what they were widespread belief in the need for financial
business schools in the US, Europe,
there to do in the first place. incentives to achieve superior salesperson
Australia, as well as the UK. The potential
performance, usually in the form of
However, as the function of the traditional for SAMS extends to a manager and
volume-based commission. Our research
sales organization moves from order company network as a framework for the
suggests very weak links between financial
taking to the more complex role of dissemination of research results and a
incentivization and performance. When
managing customer relationships, there means to identify productive and relevant
customer relationship-building matters,
is an urgent need for new knowledge and new research directions.
effective sales control strategy requires
understanding about the factors
more than volume-based commission. It really does seem time that sales and
impacting effectiveness in this new
account management came in from the
business scenario. For this reason, our International comparisons – companies
cold. As the largest employer of people in
current research projects address issues in the US and Europe have tended to
marketing and one of the most expensive
like the following: export their sales management
parts of marketing, the sales area is
approaches into international operations.
Salesperson performance – traditionally overdue for systematic research attention
Our multi-country research suggests
salespeople have been evaluated in terms and an established place in the business
that culture and tradition in many
of outcomes (sales, share of customer, school curriculum.
overseas markets mandates different
costs, and so on), but research indicates
management approaches to achieve sales
that it is salesperson behaviours of several
organization effectiveness.
kinds that drive outcomes and
profile
Prior to joining WBS, Nigel was Professor of Strategic He is currently working with international collaborators
Marketing and Head of the Marketing Group at Cranfield on various research projects related to sales organisation
School of Management, and previously held the Sir Julian effectiveness and the sales/marketing interface. Piercy has
Hodge Chair in Marketing and Strategy at Cardiff University. published sixteen books and over 200 articles and papers in
He has been a Vice Chair of the American Marketing management literature globally. He is author of Market-Led
Association’s Marketing Strategy Special Interest Group, and Strategic Change: A Guide To Transforming the Process of Going
a Vice Chair of the Academy of Marketing Science in the US. to Market (Butterworth-Heinemann, 2002), and is
nexus: spring 2004
co-author with David W Cravens of Strategic Marketing
His research interests span several areas related to the
(McGraw-Hill/Irwin, 2002).
development and implementation of marketing strategy.
13
14. strategy olympic challenge
from
scratch
Vassilis Lazaris
WBS alumna Michelle internal and external August 2004 will see Athens hosting the Games
Sartorio (FMBA communications within an of the XXVIII Olympiad. Planning for this momentous
1999–2000) discusses organisation like this. Most other event began back in 1999 and Vassilis Lazaris (FMBA
the challenges she countries only have one British 1995–96) plays a vital role in the organisation.
faces in her new role as Marketing Council office! We always analyse
Vassilis joined the Planning Division of the Organising
Communications Manager for the experience of other offices
British Council, Brazil.
Committee Games of Athens in 1999. From September
before taking a strategic decision:
1999 to March 2001 he covered the key position of
I’ve found myself asking for
“Having had three hectic but General Manager for Security for the Games. Planning
research documents from British
fantastic years working in Marketing began in earnest in March 2000, and the final pieces
Council, India and for online
within the Telecommunications are now in place to ensure safety and security for all at
newsletters from Singapore.’
sector, at Portugal Telecom, then the event.
Intelig Telecomunicações, Another challenge Michelle
I was attracted to this particular post recognises is the diversity of themes Vassilis explains, “The role involves co-operation
because of the challenge of creating and areas British Council wants to with the security community here and abroad.
a marketing communications promote. “From music and arts This includes the CIA, FBI, British, French, and Israeli
strategy from scratch working with events to missions of State Secretaries security services, among others. They have been able
the Head of Comunications to to the UK, it is always hard to to offer advice on potential risks and help my
define our targets. British Council, determine priorities and find the fact finding.”
Brazil is only just now starting to right way to promote each of them,
Elements that Vassilis had to consider include planning
appreciate marketing considering we want always to use
and policy issues such as disaster and crowd control,
communications as a tool to leverage an integrated marketing and
communications, intelligence, and co-operation, as well
its works,” explains Michelle. communications strategy for
as security measures and administration and support.
each event.”
The aim of British Council, Brazil is He said, “We took a structured approach, linking each
to build lasting relationships between However, Michelle is confident in stage from policy to procedure and working
Brazil and the UK. It works to her team and her secret weapons: collaboratively with all relevant authorities.”
connect people and learning “Hopefully the communications
He continued, “The committee have created a
opportunities from both countries. team in Brazil and I will build a
According to Michelle, “My main masterplan, not for world domination, but to cover
well-structured and operational
responsibility is to define and audit for human resources and technology, budget,
communications plan. My Kotler
manage national communications book, WBS online Business Source timelines, detailed actions etc as well as tactical elements
strategy in order to increase British Premier journals, and MBA such as risk assessments and procedure design. We’ve
Council’s exposure to its wide range Marketing folders, are all standing had to cover both internal and external security
of stakeholders and customer, or me in good stead!” she confirms. issues too.”
‘target groups’, as defined by the Vassilis was able to draw heavily upon the business
organisation. These groups include strategy he learnt at WBS. “I started with Peter Doyle’s
British Council, UK, as well as voice ringing in my ears ‘what do you need to formulate
strategic partners such as governors,
strategy?’ I remembered his advice about the importance
professors, artists, alumni, and
of good intelligence and getting hold of it. Vassilis
students interested in studying
combined this approach with military tactics learnt
in the UK.”
from textbooks – another of his passions. Thanks to
Expanding on the main challenges WBS and military planning, come 13 August 2004 8pm
of her new role, she says, “There’s a we’ll be ready!” he confirms.
huge geographic distance between
Michelle Sartorio
the five British Council offices in For further information regarding the
Brazil, a country with continental Athens Olympic Games visit
proportions and differences, so w www.olympic.org/uk/games/athens/
there are difficulties in aligning
15. the best course
Gary Jackson was one of the first 12 students PGA required someone to manage and but, apart from commercial market
to undertake the MA in Organisation Studies develop their business management training research, it seems to be little studied.
when it was launched in 1996. As a mature programmes, I applied. Fortunately, my So he has two questions:
student, he sacrificed a year’s earnings as a qualifications, background in business
1) Does anyone know of any academic
Business Lecturer in further education to help education and my love of sport were just
studies into any aspect of the golf business?
enhance his career prospects. Not only did he what the PGA wanted and I duly started the
enjoy the course immensely and learn a great job in August 2002 (5 weeks before the Ryder 2) Is anyone interested in doing research
deal, his decision eventually resulted in his Cup – but that’s another story!).” into the golf business?
career taking an unexpected turn. If you wish to respond to either question,
Gary is now responsible for managing the
Gary explains, “Mention the Belfry to most business training of 1000 trainee golf then Gary would be delighted to hear from
sport-minded people and they instantly professionals, 50 students on the Applied Golf you. Please email e alumni @wbs.ac.uk
associate it with some of the greatest Management Studies degree in conjunction in the first instance.
moments in Ryder Cup history. The deeds with Birmingham University and contributing
of Christy O’Connor Jnr, Sam Torrance, to the development of a Continuous
Paul McGinley et al will be etched on the Professional Development programme for For further
memories of European golf fans forever. over 5000 golf professionals working in over information
What most people probably don’t realise is 50 countries. (And no, he doesn’t have much regarding the
that the Belfry is also the Headquarters of the time to play golf!). PGA and the
Professional Golfers’ Association and houses National Training
One of the things Gary has discovered in his
the National Training Academy. I was only Academy visit
year in the job is that the golf business seems
vaguely aware of this fact as a result of some w www.pga.info
to be sadly under-researched. It is estimated
students I had taught but, when I saw the
that worldwide the industry is worth $60bn
rankings:
The Financial Times published
by Professor Howard Thomas, Dean of WBS and
Professor John McGee, Associate Dean, MBA Programmes
schools relate to criteria that of making further progress. the questions in the survey
its rankings of full-time MBA the FT regards as indicative of We are especially concerned to must be answered for your
programmes in January 2004 and quality, namely proportion of improve our position on the response to be valid. This does
of executive MBA programmes in women faculty, the international executive MBA rankings (for us mean being explicit about data
October 2003. Warwick Business character of the school in terms this means the Evening and that is both personal and
School has been steadily of curriculum, students, Modular MBA programmes) confidential. But please be
improving on its rankings over faculty and governing body, where we believe that the reassured that the FT guards the
the last four years. We are now and research. fundamental quality of the data very carefully and does not
ranked 32nd in the world, 9th programmes is not adequately under any circumstances release
At WBS, we take rankings very
in Europe, and 3rd in the UK for reflected in the current ranking. it to third parties.
seriously. We all know that all
full-time programmes and 35th
in the world, 9th in Europe, and
rankings schemes have problems What can you do to help? You may also be contacted by
and difficulties and that the other publications that conduct
5th in the UK for executive We would very much appreciate
diversity of business schools and rankings, for instance, The Wall
MBA programmes. your help in contributing to the
their market positioning cannot Street Journal, The Economist,
FT surveys. You will be surveyed
The Financial Times uses a set of be fully captured by a common Forbes, and Business Week.
three years after graduation and
key indicators that it believes set of criteria. However, rankings Not all of these rely on alumni
your responses will be retained
demonstrate a high quality MBA do reflect some important surveys to the same degree as
over three years of surveys in a
programme. These indicators can characteristics of MBA education the FT but we do urge you to
moving three year average.
be divided into two broad classes. the most obvious one being the respond when asked.
The first is based on surveys of employability of its graduates. It is very important that we
Rankings may be imperfect and
business school alumni. The Rankings should not and do not have a high response rate to the
indeed different rankings
second is based on returns from drive our fundamental strategy FT surveys. To give a truly
measure very different attributes
business schools about the nature but they do have an important representative picture we should
of business schools. But they do
of the school, its programmes effect on external perceptions of achieve a 75% response rate from
impact directly on the School’s
and its faculty. The alumni WBS and to some extent on our alumni. This enables the
reputation and the reputation of
survey is by a questionnaire that morale in the school and in the surveys to pick up both the range
its graduates in employment
covers salary data and other alumni body. We have been of salaries and their rate of
nexus: spring 2004
markets. Therefore we hope that
career related information. pleased by our progress up the increase over time. At present the
you will be able to join with us
This accounts in total for about FTMBA rankings over the last response rate is only 45%. It is
in advancing all our reputations.
50% of a school’s final ‘score’. four years (moving upwards by also important to realise that all
The returns made direct from the 25 places) but feel we are capable
15
