The Concept of Change
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THE CONCEPT OF CHANGE: A DETERMINANT FOR EXPLAINING THE SUBSTANCE OF MARKETING Anthony J. McMullan MBA B. Comm March 2015 A thesis submitted for the degree of Doctor of Philosophy of the Australian National University i Acknowledgements On this the presentation of my thesis I pause to reflect on the journey taken to get to this point. I reflect on my father who through his example of selling goods in the 1950s and 60s taught me in the 70s and 80s that there was more to marketing than making a sale. He was never just a salesman but someone who knew the value of providing customer service. He practiced the marketing concept before it was a widely accepted term. Making the customer satisfied was important to my father. I reflect on both my parents who taught me spirituality without which I would have never had the faith to complete this work. I reflect on Don and Janette, my parents in law, who have always believed in me. I reflect on the greatest achievement in my life, my two daughters Anthea and Joanna. Anthea is the strongest person I know, each day she demonstrates this strength; she is far more intelligent than me. Reason saw not, til faith sprung the light. Have faith Anthea. Joanna, you know from where I came, anything in life is possible. Follow your dreams and succeed. I finally reflect on why I am in this position today. Success is a function of the support around you. I am fortunate to have always had the support of my wife Cate. More times than not my success has come from her sacrifice, no words can adequately thank her for this. I was motivated by your encouragement to tell my story. I am because we are. Thank you, this work is a tribute to you all. God bless always. ii I would also like to acknowledge those outside family influences in my life. Early in my academic study I was influenced by: Dr Frankie Edwards (deceased); Dr Bert Cunnington (deceased); and Dr Peter Graham. This thesis is as a result of the marketing education I received from each of them. Most of all I would like to acknowledge the advice, support and friendship of Dr Stephen Dann (Supervisor) and Dr Susan Dann (Co-Supervisor) throughout this process and over the twenty odd years we have known each other. This process has taught me a lot about rigor, analysis and challenging myself. I have succeeded because of the teaching excellence of Dr Stephen Dann. It does not surprise me one bit that Stephen was named the Pearson ANZMAC Emerging Educator of the Year in 2010. You are a great educator. Thank you to both of you. I would like to also thank one friend in particular, Paul Hodda, for his willingness to listen to my ramblings about marketing. I found it time well spent synthesising ideas while receiving an appreciation in the fineries of whiskey. iii Thesis Contents Statement of Certification ............................................................................................... i Acknowledgements .......................................................................................................... ii Table of Contents ........................................................................................................... iv List of Tables ................................................................................................................ viii List of Figures ................................................................................................................. ix Abstract ............................................................................................................................ x Chapter 1 Introduction ............................................................................................. 1 1.1 Research Background ........................................................................................... 1 1.2 Literature Summary .............................................................................................. 3 1.3 Research Problem ................................................................................................. 5 1.4 Research Justification ........................................................................................... 7 1.5 Research Methodology ......................................................................................... 9 1.6 Conclusions and Implications ............................................................................. 10 1.7 Thesis Outline ..................................................................................................... 12 Chapter 2 Marketing Literature Review .............................................................. 16 2.1 Introduction ........................................................................................................ 16 2.2 Marketing – The Broad Domain: Parameters and Meaning .............................. 16 2.3 Paradigms of Marketing ..................................................................................... 17 2.3.1 The Simple Trade Orientation ................................................................ 19 2.3.2 The Production Orientation .................................................................... 19 2.3.3 The Sales Orientation ............................................................................. 20 2.3.4 The Marketing Orientation ..................................................................... 20 2.3.5 The Societal Orientation ....................................................................... 22 2.4 Additional Concepts of Marketing .................................................................... 22 2.4.1 Marketing Mix ....................................................................................... 22 2.4.2 The Concept of Exchange ...................................................................... 23 2.4.3 Expanding the Concept of Marketing – The Broadened Domain of Marketing. .................................................. 28 2.5 Schools of Marketing Thought .......................................................................... 30 2.6 Definition of Marketing .................................................................................... 31 2.7 Marketing Remains a Misunderstood Term ....................................................... 36 2.8 Marketing and Change: The Environmental Influence ...................................... 38 2.9 The Role of Change in Marketing History ......................................................... 41 2.10 Marketing: The Change Paradigm ..................................................................... 42 iv 2.11 The Concept of Change as a Unit of Analysis ................................................... 53 2.12 The Marketing Leadership School of Thought .................................................. 59 2.13 Conclusion: Summary of Chapter ...................................................................... 61 Chapter 3 The History of Marketing Thought .................................................... 63 3.1 Introduction ........................................................................................................ 63 3.2 The History of Marketing Thought .................................................................... 63 3.3 Significant Contributions to the History of Marketing Thought ........................ 65 3.3.1 Robert Bartels ................................................................................................ 65 3.3.2 William L. Wilkie and Elizabeth S. Moore .................................................. 67 3.3.3. Stephen L. Vargo and Robert F. Lusch 2004 ............................................... 71 3.4 A Collective Understanding of the History of Marketing Thought .................. 78 3.4.1 Antiquity – Existence of Basic Marketing Thought: The Story of Ancient Marketing .............................................................................................. 79 3.4.2 Emergence of Marketing Thought (1750 – 1950) ................................ 81 3.4.3 Expansion of Marketing Thought (1950 – 1975) ................................... 89 3.4.3.1 Phillip Kotler ............................................................................. 93 3.4.3.2 Richard Bagozzi ......................................................................... 95 3.4.3.3 Wroe Alderson ........................................................................... 97 3.4.3.4 General Discussion ..................................................................... 99 3.4.4 Fragmentation of Marketing Thought (1975 – 2000) ........................... 102 3.4.5 Questioning of Marketing Thought (2000 – ) ...................................... 104 3.5 Conclusion ....................................................................................................... 105 Chapter Four Research Methodology ........................................................... 106 4.1 Introduction ...................................................................................................... 106 4.2 The Structure of Marketing – Institutional Determinants ................................ 106 4.3 The Nature of Research .................................................................................... 110 4.3.1 Steps in the Research Process .............................................................. 112 4.4 Case Study Methodology – Research Design .................................................. 114 4.4.1 Approaches to Theory Development ................................................... 114 4.4.2 Scientific Paradigms and Justification for using