Improving marketing success The law of tacit knowledge exchange between sales and marketing in the construction industry

Number of pages: 97 File Format: word File Code: 30843
Year: 2014 University Degree: Master's degree Category: Management
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    Master's Thesis in Executive Management (M.A)

    Abstract

    Based on empirical research and proposed theories, marketing includes three basic and important principles: creating value for customers, creating competitive advantage and focusing on customers' wants and needs. The task of marketing is to create more value for customers than competitors. Tacit knowledge is knowledge that cannot be written down and can only be transferred using a process of give and take, by which participants over time develop an understanding of the complexities involved in a situation. The main goal of this research was to investigate the relationship between tacit knowledge and marketing success in the construction industry in Tehran. From Philip Kotler's point of view, marketing is defined as a managerial-social process by which individuals, groups and organizations meet their needs and desires through the production and exchange of goods and services with each other.

    To test this issue, the survey method was selected from among various research methods and 41 companies in the construction industry in Tehran were interviewed. The tool for collecting information was a questionnaire. The results obtained from the Pearson correlation test about the research hypotheses show that; There is a significant relationship between tacit knowledge and marketing program innovation variables, relative efficiency, relative effectiveness, and marketing success in the construction industry. Meanwhile, the results of these hypotheses are confirmed in line with the research of Arendt and Whitman (2014).   

    Key words: tacit knowledge, marketing plan innovation, relative effectiveness, relative efficiency, marketing success.

    Introduction

    Today, many people mistakenly consider marketing to be synonymous with sales, advertising, and visitorship, and of course this is not surprising, because most people see a huge wave of advertisements from the media such as radio, television, newspapers, magazines, and other advertising tools. Or every now and then they come across insurance visitors who try to convince them to buy the desired insurance service by counting and mentioning the benefits of insurance. It seems that someone is always trying to sell us goods or services, and it seems that just as there is no escape from death, there is no escape from sales and advertising either. But it must be said that advertising and sales are only part of the big and complex marketing process. Diagnosing the needs and desires of the consumer, the optimal design of goods or services, appropriate pricing and many other small and sensitive activities are all steps that, if done properly, lead to promotion and sales. If all the steps mentioned in the marketing process are carried out in an integrated and effective manner, we can expect goods and services to be sold in a competent manner. Philip Cutler and Gary Armstrong define marketing as follows: "Marketing is a social and managerial process by which individuals and groups act to satisfy their needs and wants through the creation and exchange of goods and value" (Cutler, 2005).

    Success in recovery is an important factor in the performance of companies and institutions.  Various factors affect the success or failure of companies' marketing. Knowing these factors scientifically can be effective in improving the marketing of companies. Thus, according to the position of marketing in companies, it seems important to know the success rate and the factors affecting it. Among the most important of these factors are customer satisfaction, employee satisfaction, etc. is This chapter includes statement of the problem, importance and necessity, questions, objectives and definition of words and terms of research. 1-2-Statement of the problem In management texts, marketing is defined as those commercial and commercial functions and activities, which facilitate exchange processes between producers and organizational customers. The nature of marketing can be seen as creating value for customers by providing goods and services that fulfill organizational needs and their goals (Hall, 2002: 4).

    In order to identify success factors and its measurement criteria, you must first have a correct understanding of your company's goals. A start-up company that seeks to introduce its product to the market certainly has different goals than a large company that wants to establish closer relationships with its customers. Marketing success includes the dimensions of marketing program innovation, relative efficiency and relative effectiveness. (Arnett, Wittmann, 2014).

    One way to sell more products and send more products to customers is to innovate in sales services.  Innovation in marketing means staying away from conventional marketing methods that will have a significant impact on customers. (Bohinc & Erichson, 2002, p. 175)

    The exchange of tacit knowledge between the sales and marketing department will cause innovation in marketing. Of course, this innovation includes methods such as bringing together unique perspectives, creating mental models, and finding problem-solving techniques (Leonard & Sensiper, 1998). By sharing tacit knowledge, the seller will gain a deeper understanding of the environment of the company's consumers and customers. In fact, this knowledge facilitates the orientation of the organization or store towards the market, which accelerates the creation of innovation in the company. Development of innovative marketing programs It will be based on an accurate understanding of customers. A company will be able to consciously plan and fulfill the needs of its customers (Scarbrough, 2011, p. 395). A company's position in the market depends on its efficiency and effectiveness Better use of resources compared to competitors, and relative effectiveness means the ability of the organization to provide more products than competitors, and both factors have a significant impact on success. According to Sheth and Sisodia (2002), reaching the maximum productivity rate in marketing depends on both of the above elements. Tacit knowledge is often considered specialized knowledge, so this type of knowledge is very explicit, and this feature enables decision makers to use it correctly (Bob & Hayes, 1998).

    According to Haldin-Hergard (2000), tacit knowledge causes work to be done with more quality as if it was done by a professional professor.

    In general, tacit knowledge enables managers and decision makers to :

    Have a better understanding of the situation

    Identify the processes that cause productivity improvement

    Identify the conditions that cause greater efficiency and impact (Grant, 2000).

    In addition to the mentioned points, tacit knowledge exchange stores valuable information from customers in the organization's memory. which can increase the productivity of the processes and develop their efficiency and effectiveness.

    Thus, in a scientific research, the status of a company's industrial marketing success and the factors that affect it should be investigated. Industries are not exempt from this. Among these factors is the effect of implicit knowledge on marketing success (Arnett, Wittmann, 2014).

    To be successful, factories must adapt their marketing strategies to environmental changes. However, market knowledge is important. For this knowledge to be useful, it must be disseminated throughout the organization. Some knowledge, for example, explicit knowledge can be encoded and therefore, can be transferred using information transfer systems. However, other knowledge, for example, tacit knowledge because it cannot be written down, can only be transferred using a give-and-take process, by which participants over time develop an understanding of the complexities involved in a situation (Davenport & Beers, 1998). However, many researchers emphasize The relationship between sales and marketing provides unique opportunities to reap significant benefits. The exchange of tacit knowledge is an inseparable aspect of the dynamic process of knowledge production. The ability to maintain a useful stock of tacit knowledge is a dynamic competency (Howells, 1996). A better exchange of such knowledge between sales and marketing increases the likelihood of marketing success (increasing marketing program innovation, relative efficiency, and relative effectiveness). The researcher seeks to answer the question whether there is a relationship between tacit knowledge and marketing success in the construction industry in Tehran? 1-3- The importance and necessity of research The present age is the age of tremendous developments and changes in technologies. An era whose intellectual structure is full of deepening information and paying attention to the participation of creative and knowledge-oriented manpower instead of functional manpower.

  • Contents & References of Improving marketing success The law of tacit knowledge exchange between sales and marketing in the construction industry

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    Table of Contents

    Title

    Abstract 1

    Chapter 1: Research Overview

    1-1- Introduction. 3

    1-2- statement of the problem. 4

    1-3- Importance and necessity of research. 6

    1-4- Research questions. 8

    1-5- Research objectives. 8

    1-6- The theoretical framework of the research. 8

    1-7- research hypotheses. 9

    1-8- Conceptual and operational definition of research variables. 10

    1-9- The scope of research. 12

    Chapter Two: Theoretical Foundations and Research Background

    2-1- Part One: Marketing Success. 14

    2-1-1- Marketing. 14

    2-1-2- Different dimensions of marketing. 15

    2-1-3- Marketing management. 17

    2-1-4- The importance of marketing. 18

    2-1-4-1- Passwords for finding customers. 18

    2-1-4-2- customer needs. 19

    2-1-5- Marketing mix. 20

    2-1-6- The strategic concept of marketing. 23

    2-1-7- Principles of marketing. 24

    2-1-8- Porter's five forces model of marketing success. 24

    2-1-8-1- The threat of newcomers 25

    2-1-8-2- The power of suppliers of raw materials. 25

    2-1-8-3- Bargaining power of buyers. 25

    2-1-8-4- The threat of substitute goods. 26

    2-1-8-5- Intensity of competition. 26

    2-2- The second part: tacit knowledge. 27

    2-2-1- Background of tacit knowledge. 27

    2-2-2- Definitions of tacit knowledge. 27

    2-2-3- The importance and characteristics of tacit knowledge. 29

    2-2-4- dimensions of tacit knowledge. 29

    2-2-5-function of tacit knowledge. 30

    2-2-6- Examples of tacit knowledge. 31

    2-2-7- transfer of tacit knowledge. 31

    2-2-8- interactive mechanism in tacit knowledge. 31

    2-2-9- comprehensive measures. 33

    2-2-10- Initial commitment. 34

    2-2-11- Implied purposes. 34

    2-2-12- Conversion mechanism. 35

    2-2-13- Ambiguities and excesses. 35

    2-2-14- Knowledge management in the organization. 37

    2-2-15- Management of tacit knowledge. 39

    2-2-16- Creativity and innovation management. 43

    2-2-17- The role of tacit knowledge in innovation management. 44

    2-2-18- The cycle of value - satisfaction - profitability from the point of view of marketing. 45

    2-2-19- Understanding the concept of the relationship between customer satisfaction and profitability. 47

    2-3- The third part: Research background. 49

    Chapter Three: Research Methodology

    3-1- Introduction. 52

    3-2- Research method. 52

    3-3- Methods and tools of data collection 53

    3-4- Statistical population, sampling method and sample size. 53

    3-5- Research tools. 54

    3-6- Information analysis method. 54

    Chapter Four: Research Findings ?

    4-1. Descriptive findings. 56

    4-1-1. tacit knowledge 56

    4-1-2. Innovation of marketing plans. 60

    4-1-3. relative efficiency. 63

    4-1-4. Relative effectiveness. 67

    4-2. Analytical findings. 71

    4-2-1. The relationship between tacit knowledge and marketing program innovation in the construction industry. 71

    4-2-2. The relationship between tacit knowledge and relative efficiency in the construction industry. 72

    4-2-3. The relationship between tacit knowledge and relative effectiveness in the construction industry. 72

    4-2-4. The relationship between tacit knowledge and marketing success in the construction industry. 73

    4-2-5. Regression. 73

    Chapter Five: Conclusion

    5-1- Introduction. 76

    5-2- Descriptive statistics. 76

    5-3- Inferential statistics. 77

    5-4- Practical suggestions. 78

    5-5- Future proposals. 79

    5-6- Research limitations. 79

    Sources and sources. 80

    Appendix. 83

    Table List

    Page Title

    Table 4-1 Response Distribution Based on Learning and Training of Sales and Marketing Staff. 57

    Table 4-2 distribution of respondents based on the desire to transfer knowledge to others by sales and marketing department employees 58

    Table 4-3 distribution of respondents based on the sharing of unsuccessful experiences of the organization, by sales and marketing department employees 59

    Table 4-4 central indicators and tacit knowledge dispersion. 60

    Table 4-5 distribution of respondents based on the excitement of marketing plans compared to other companies. 60

    Table 4-6 distribution of respondents based on the transformational nature of the plans60

    Table 4-6 distribution of respondents based on the transformation of marketing plans compared to other companies. 61

    Table 4-7 distribution of respondents based on the level of marketing plans compared to other companies in the construction industry 62

    Table 4-8 central indicators and dispersion of innovation of marketing plans. 63

    Table 4-9 Distribution of respondents based on better use of resources compared to other companies. 64

    Table 4-10 distribution of respondents based on being more efficient than other companies. 65

    Table 4-11 Distribution of respondents based on obtaining more output from input sources, compared to other companies 66

    Table 4-12 Central indicators and dispersion of marketing plan innovation. 67

    Table 4-13 Distribution of respondents based on creating more value for the customer, compared to other companies. 67

    Table 4-14 distribution of respondents based on better understanding of customer needs, compared to other companies. 68

    Table 4-15 Distribution of respondents based on being more responsible towards customers' needs. 69

    Table 4-16 central indicators and dispersion of relative effectiveness. 70

    Table 4-17 Central and dispersion indicators of marketing success. 71

    Table 4-18 Simernov Kolmogorov test. 71

    Table 19-4 The relationship between tacit knowledge and marketing program innovation in the construction industry. 71

    Table 4-20 Relationship between tacit knowledge and relative efficiency in the construction industry. 72

    Table 4-21 The relationship between tacit knowledge and relative effectiveness in the construction industry. 72

    Table 4-22 The relationship between tacit knowledge and marketing success in the construction industry. 73

    Table 4-23 Statistics related to the multivariate regression model of marketing success. 74

    Table 4-24 variables inside the regression model. 74

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Improving marketing success The law of tacit knowledge exchange between sales and marketing in the construction industry