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16-12-2022 | Original Empirical Research

A taxonomy of marketing organizations

Authors: Leigh McAlister, Frank Germann, Natalie Chisam, Pete Hayes, Adriana Lynch, Bill Stewart

Published in: Journal of the Academy of Marketing Science | Issue 3/2023

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Abstract

A basic step in scientific inquiry entails ordering, classifying, or grouping the phenomena under investigation—that is, developing a taxonomy. Yet no method-transparent taxonomy of marketing organization types has been established, creating significant confusion among both managers and theoreticians. Many marketers, inspired by educators, assume that marketing organizations control all marketing-related decisions, yet skeptics counter with assertions that instead, marketing organizations simply put a positive spin on the meaningful value created by others in the company. The method-transparent taxonomic study presented in this article addresses this debate and reveals three marketing organization types: Growth Champions, which reflect a textbook view, representing about 17% of the sample firms; Service Providers, consistent with the skeptics’ view, equivalent to about 43% of the sample firms; and Marcom Leaders, a third marketing organization type in which marketers are primarily responsible for brands and communications, representing about 40% of the sample firms. Establishing these different marketing organization types can help address conflicting views about marketing organizations. The conceptual typology underlying the empirical taxonomy also clarifies why the different marketing organization types exist and suggests hypotheses, specific to each marketing organization type, that might address previously unresolved research questions.

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Appendix
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Footnotes
1
In a survey of eight leading marketing textbooks (Web Appendix A), we find that they mostly implicitly allude to differences in marketing organizations across companies, but they do not address why marketing organizations might vary across companies, nor do they specify a set of marketing organization types. We also note that not every company has a marketing organization. For example, startups often do not have a formally organized marketing organization. Our work applies to those companies that have a formal marketing organization.
 
2
Not inconsistently, Stewart's essay (Key et al., 2020, p. 161) reports that high-tech firms “don’t hire marketing students, [they] hire engineers, and if they’re not good at engineering, [the company will] put them in marketing,” noting that these firms do not value “the intellect, skills, creativity, or strategic thinking of people who perform the marketing function.”
 
3
Regarding common method bias (Baumgartner, Weitjers, and Pieters 2021), Moorman and Day (2016) point out that if key informants provide both the dependent and independent variables, they should not come exclusively from a single function (e.g., marketing), because they have incentives to attribute better performance to their own function. To avoid this type of common method bias, researchers must ensure that marketers are not overrepresented in the sample. Moorman and Rust (1999) thus draw a balanced sample of respondents from six different functions. Alternatively, one might collect company performance (and other) data using secondary data sources, which decouples the dependent variable from the independent variables (e.g., Vomberg, Homburg, and Gwinner 2020). For our data collection efforts, we use both methods (Moorman and Day 2016). First, we collected data about the clustering, firm descriptor, and validation variables from the CEOs of small firms that are not publicly traded; only 15% of these CEO respondents had marketing backgrounds. Second, we collected data on the clustering variables and some firm descriptor variables from mid-level managers in large, publicly traded companies, but we obtained other firm descriptor variables and some validation variables from publicly available sources.
 
4
The 14 CMOs who affirmed the reasonableness of our typology (Table 2) were part of the group of 40 CMOs who helped develop the survey.
 
5
We borrow the Growth Champion and Service Provider labels from Landry, Tipping, and Dixon (2005). The term Marcom Leader was suggested by the CMO co-authors of this study.
 
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Metadata
Title
A taxonomy of marketing organizations
Authors
Leigh McAlister
Frank Germann
Natalie Chisam
Pete Hayes
Adriana Lynch
Bill Stewart
Publication date
16-12-2022
Publisher
Springer US
Published in
Journal of the Academy of Marketing Science / Issue 3/2023
Print ISSN: 0092-0703
Electronic ISSN: 1552-7824
DOI
https://doi.org/10.1007/s11747-022-00911-5

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