nep-mkt New Economics Papers
on Marketing
Issue of 2014‒08‒25
two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Marketing restructuring as a radical method for recovery from a crisis By Dubrovski, Drago
  2. Analysing the prospects for transactional Mail using a sender-recipient framework By De Donder, Philippe; Cremer, Helmuth; Rodriguez, Frank; Soteri, Soterios; Tobias, Stefan

  1. By: Dubrovski, Drago (University of Primorska, Faculty of Management, Koper, Slovenia)
    Abstract: A company crisis can be defined as a short-term, undesired, unfavourable and critical state in the company (organization) which has derived from both internal and external causes and which directly endangers the further existence and growth of the company. In crisis not only short-term measures but also long-term vision and business directions must be prepared and implemented in order to be able to provide further existence and development. One of the most important area is marketing restructuring which represents a transition from the prior structural combination of programmes and markets to a new structure that must enable greater profitability and effectiveness of operations. In regard to such a restructuring, one must take into account the inter-linked relationship of the market (the chosen segment of customers) and of the programme (product, service), since, in principle, it is true that the identical programme of offer cannot be placed on the new market or the new programme in the prior market (segment). If the marketing restructuring is one of the most important restructuring area in the company in times of crisis it should be based upon marketing concept in order to follow the right direction of the renewal. However, empirical evidence from the author’s research has shown that companies in acute crisis pay surprisingly little attention to their marketing restructuring, even though in this case this is the most important area of reorganization. In the article some guidelines for the marketing restructuring for achieving the company renewal based on marketing knowledge and practice are presented.
    Keywords: crisis, marketing restructuring, recovery, renewal
    JEL: M31 L21 M10
    Date: 2013
  2. By: De Donder, Philippe; Cremer, Helmuth; Rodriguez, Frank; Soteri, Soterios; Tobias, Stefan
    Abstract: We build an analytical model à la Hotelling describing the process of e-substitution in the market for transactional mail. A generic firm sells a final good to customers, with each unit sold requiring one unit of communication between firm and customer, which can take the form of either letter mail or of an e-substitute. A fraction of customers has no access to the e-substitute technology, and the other customers differ in their exogenous preference for mail vs substitute. Also, the communications strategy of the business impacts on the demand for its final product, with letter mail may be preferred for some types of communications, on the grounds that it could increase overall demand. We then calibrate the model and show how the extent of e-substitution depends on the distribution of preferences, the objective function of the representative firm, and on how much mail impacts the firm’s final demand. We conclude with suggestions as to how this analysis may inform a postal operator intent on slowing down e-substitution.
    Keywords: Hotelling, e-substitution, letters volume decline, postal economics
    JEL: L11 L87
    Date: 2014–06

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