Nav: Home

How David wins against Goliath in established industry

May 05, 2020

Researchers from University of Nebraska and York University published a new paper in the Journal of Marketing that examines what can happen when "little guys" work together to pursue common interests.

The study forthcoming in the Journal of Marketing is titled "Collaborative Market Driving: How Peer Firms Can Develop Markets Through Collective Action" and is authored by Andre F. Maciel and Eileen Fischer.

In most established industries, large companies are dominant: Think of the technology, foods and beverages, entertainment, and banking sectors, for example. However, in some industries this dominance is effectively challenged by small and medium firms that carve out vibrant niches and build substantial customer bases in categories such as craft beer, specialty coffee, community-supported agriculture, and credit unions.

The researchers identify the backstage work through which small and medium-sized businesses can increase their political and economic clout. Specifically, they reveal the importance of collective action, identifying a strategy referred to as "collaborative market driving." Maciel says that "We identify how firm owners form a strong sense of shared identity and pool their resources to jointly develop a market category in ways that benefit all of them. Their collective work ranges from exchanging critical economic resources to fighting together for more favorable regulation."

The study also analyzes the key role trade associations can play as coordinators of this form of collective firm action. Trade associations can offer inspiring templates for how smaller firms should relate to each other and make sense of their competitive environment. Further, consumers can play key role as allies of these firms by providing some of the resources that they may lack to develop a market category.

For the most part, marketing researchers have focused on evolution powered by individual firms that cooperate with members of their supply chain, but compete fiercely with their peers. By contrast, this research brings into focus the role of collective action among peer firms. Fischer adds, "These firms follow the motto 'a rising tide floats all boats' and find ways to manage their own interests while working toward the interests of their collective."

Perhaps most importantly, the findings suggest a viable course of action for entrepreneurs interested in developing new market categories when they lack adequate resources to do so individually. By acting in concert, they can become a force to be reckoned with, enacting a marketplace version of the parable of David and Goliath.

Full article and author contact information available at: https://doi.org/10.1177/0022242920917982
-end-
About the Journal of Marketing

The Journal of Marketing develops and disseminates knowledge about real-world marketing questions useful to scholars, educators, managers, policy makers, consumers, and other societal stakeholders around the world. Published by the American Marketing Association since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline. Christine Moorman (T. Austin Finch, Sr. Professor of Business Administration at the Fuqua School of Business, Duke University) serves as the current Editor in Chief.

https://www.ama.org/jm

About the American Marketing Association (AMA)

As the largest chapter-based marketing association in the world, the AMA is trusted by marketing and sales professionals to help them discover what's coming next in the industry. The AMA has a community of local chapters in more than 70 cities and 350 college campuses throughout North America. The AMA is home to award-winning content, PCM® professional certification, premiere academic journals, and industry-leading training events and conferences.

https://www.ama.org/

American Marketing Association

Related Marketing Articles:

Covert tobacco industry marketing tactics exposed by former employees
Tobacco companies use covert marketing tactics and exploit loopholes in Australian tobacco control laws to promote their products despite current tobacco advertising bans, finds new research from University of Sydney and Cancer Council NSW.
The three strategic priorities of marketing excellence
Investors value marketing excellence more highly than they value strategies based on market orientation and marketing capabilities.
How nonprofits can boost donations using the marketing mix
Nonprofits may better meet their missions by learning to effectively employ the entirety of the marketing mix to attract individuals to available donation opportunities.
Marketing researchers identify the three most powerful drivers of effective crowdfunding
While the concept of crowdfunding is still in its early phases of development, a group of marketing researchers have conducted a study that reveals the most powerful drivers behind effective crowdfunding campaigns.
Alcohol marketing and underage drinking
A new study by a research team including scientists from the Prevention Research Center of the Pacific Institute for Research and Evaluation provides a systematic review of research that examines relationships between exposure to alcohol marketing and alcohol use behaviors among adolescents and young adults.
Scholars explore role of digital environments in international marketing
Journal of International Marketing launched its 2020 volume with a special issue examining new implications of the digital environment related to the study of international marketing.
Study: Pharmaceutical companies marketing stimulants to physicians
Results of a new study show that a large number of physicians in the US may have received marketing payments from pharmaceutical companies that produce stimulant medications.
Automated text analysis: The next frontier of marketing innovation
The volumes of text data generated in the marketplace can be valuable in generating marketing insights using the newest text analysis methods and technologies.
Global study reveals most popular marketing metrics
Satisfaction is the most popular metric for marketing decisions around the world, according to a new study from the University of Technology Sydney.
The common wisdom about marketing cocreated innovations is wrong
A new study in the Journal of Marketing finds that companies can improve consumer adoption and accelerate product takeoff of cocreated innovations through a novel communication strategy that creates inconsistency or a mismatch between the creator's and the company's messages.
More Marketing News and Marketing Current Events

Trending Science News

Current Coronavirus (COVID-19) News

Top Science Podcasts

We have hand picked the top science podcasts of 2020.
Now Playing: TED Radio Hour

Warped Reality
False information on the internet makes it harder and harder to know what's true, and the consequences have been devastating. This hour, TED speakers explore ideas around technology and deception. Guests include law professor Danielle Citron, journalist Andrew Marantz, and computer scientist Joy Buolamwini.
Now Playing: Science for the People

#576 Science Communication in Creative Places
When you think of science communication, you might think of TED talks or museum talks or video talks, or... people giving lectures. It's a lot of people talking. But there's more to sci comm than that. This week host Bethany Brookshire talks to three people who have looked at science communication in places you might not expect it. We'll speak with Mauna Dasari, a graduate student at Notre Dame, about making mammals into a March Madness match. We'll talk with Sarah Garner, director of the Pathologists Assistant Program at Tulane University School of Medicine, who takes pathology instruction out of...
Now Playing: Radiolab

What If?
There's plenty of speculation about what Donald Trump might do in the wake of the election. Would he dispute the results if he loses? Would he simply refuse to leave office, or even try to use the military to maintain control? Last summer, Rosa Brooks got together a team of experts and political operatives from both sides of the aisle to ask a slightly different question. Rather than arguing about whether he'd do those things, they dug into what exactly would happen if he did. Part war game part choose your own adventure, Rosa's Transition Integrity Project doesn't give us any predictions, and it isn't a referendum on Trump. Instead, it's a deeply illuminating stress test on our laws, our institutions, and on the commitment to democracy written into the constitution. This episode was reported by Bethel Habte, with help from Tracie Hunte, and produced by Bethel Habte. Jeremy Bloom provided original music. Support Radiolab by becoming a member today at Radiolab.org/donate.     You can read The Transition Integrity Project's report here.