"Relationship of Marketing Capabilities and Marketing Innovation : Evid" by Lord Cedrix R. Aguilar

Relationship of Marketing Capabilities and Marketing Innovation : Evidence from Woodcarvers of Paete, Laguna

Date

6-2023

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Gemma U. Reyes

Committee Member

Remund Jordan D. Labios, Jennica Amielle M. Mora

Abstract

Marketing innovation refers to the use of fresh marketing strategies that significantly alter how products are packaged, placed, promoted, and priced. Moreover, considerable changes in aesthetic designs, enhanced product packaging, new mass media, new pricing, and new sales methods are all part of marketing innovation (Onwumere & Ozioma-Eleodinmuo, 2015; Stošic, 2007; Talegeta, 2014). In fact, a firm's marketing activities change in a variety of ways as a result of marketing innovation. Marketing capabilities on the other hand, was defined by Weerawardena (2003) as the "integrative procedures intended to apply the firm's collective knowledge, skills, and resources to the business's market-related needs, enabling the business to enhance the value of its products and services and satisfy competitive needs."

Marketing capabilities, especially in customer service, promotional activities, salesperson, and market research, has a significant correlation with marketing innovation of a company (Potocan, 2013). Marketing capability influences all types of innovations pursued by the firm. It also proposes specific firm competencies that can lead to innovation opportunities in a firm's path to sustainability. Past research suggests that marketing capabilities may play a critical role in the development of marketing innovation-based strategies.

This research concentrates on the relationship of marketing capabilities and marketing innovations of woodcarvers of Paete, Laguna.

The woodcarvers of Paete, Laguna were chosen to be the respondents of this study. Various difficulties were faced by Paete, Laguna's woodcarvers. Some of these are the limited competitive local market, the COVID-19 pandemic, and the limited market opportunities for some of the SMEs. To counteract the effects of these challenges, local wood carvers developed certain marketing strategies such as turning to the internet to market their works. With this, it is essential to identify the other marketing innovations utilized by the woodcarvers in Paete, Laguna. It's also critical to ascertain their marketing capabilities and how those capabilities impacted the development of their marketing innovations. According to Habito et al. (2014), there is also room for improvement and a shift in perspective in the way woodcarvers market their wood products.

From the 137 total population of woodcarvers of Paete, Laguna as of 2019, only 102 were chosen as the respondents of the study. Convenience sampling technique was utilized to select the respondents. They were surveyed using survey questionnaires to determine their marketing capabilities and the marketing innovations they developed in their businesses. Furthermore, a quantitative research approach was adapted and the data gathered from the respondents were analyzed using descriptive statistics and partial least squares structural equation modeling (SEM) technique. As a requirement in PLS-SEM, assessment of the measurement and structural model was conducted. Assessment of measurement and structural model in PLS-SEM is important for evaluating the validity and reliability of the model. Cronbach’s alpha, Dillon-Goldsteim’s rho, first eigenvalue, and second eigenvalue were used to check the reliability and validity of the constructs and model. The assessment of the structural model can help the researcher to evaluate systematically whether the hypotheses expressed by the structural model are supported by the data. The structural model can only be analyzed after the measurement model has been validated successfully. In assessing the goodness of fit of a structural model, R squared, Mean Redundancy, Average Variance Extracted (AVE), and Goodness-of-Fit measures were used. Since PLS-SEM was employed for the analysis of data of this research, bootstrapping was utilized to test the hypotheses. Bootstrapping is a nonparametric procedure that allows testing the statistical significance of various PLS- SEM results. For this study, the p-value approach of testing the hypothesis was also conducted.

Considering the analysis and findings of this study, it was found out that most of the marketing capabilities of the woodcarvers of Paete, Laguna have significant relationships with their marketing innovations. Using the bootstrapping in testing the hypotheses, the results show that Customer Service has a positive significant relationship with New Pricing Strategy and New Retail Concepts. In contrast, it was found out that Customer Service has a negative significant relationship with New Promotional Concepts. Moving forward, Sales have positive significant relationships with New Pricing Strategy, New Retail Concepts, and New Promotional Concepts. Similarly, Market Research has a positive significant relationship with all of the marketing innovations. However, only New Promotional Concepts have a positive significant relationship with promotional activities. The two remaining marketing innovations, which are New Pricing Strategy and

New Retail Concepts, showed no significant relationships with promotional activities. The findings of this study are consistent with the previous study of Potocan (2013). It was investigated in the study of Potocan the correlation between marketing capabilities and innovation and it was found out that there’s a moderate correlation between marketing capabilities and innovation. Results suggest that marketing capability influences marketing innovation. The study of Mensah & Quaye (2019) also proved that marketing capabilities can help in developing marketing innovation. This study concludes that SMEs managers and owners who possess key relevant marketing resources and capabilities are able to develop marketing innovation to achieve sustainable competitive advantage. The results of their study bring out a positive relationship between marketing capabilities and marketing innovation, in which this paper has also presented.

This study comes to the conclusion that woodcarvers with skills and knowledge in several marketing capabilities are capable of creating marketing innovations. To increase the development of pricing strategy, retailing, and promotion innovation, woodcarvers need to have essential knowledge and skills in marketing capabilities.

On the basis of the study's findings, recommendations for Paete, Laguna's woodcarvers and researchers were proposed. The woodcarvers of Paete, Laguna, need to maintain and even advance their expertise in various marketing capabilities. Evidence from the marketing literature (Vorhies et al., 2010) has demonstrated that marketing capabilities have a significant role in determining how well an enterprise performs. Woodcarvers can do a number of things to increase their knowledge and proficiency in marketing, such as attending marketing seminars, speaking with marketing experts, and networking with their peers to broaden their knowledge of the latest innovations in the field. Additionally, enhancing their marketing skills was advised in order to generate innovative retail and promotional marketing, particularly on digital platforms. Woodcarvers were also recommended to do the marketing innovations mentioned in the survey questionnaire of this since the results showed some of them do not apply or incorporate those innovations in their businesses. Lastly, woodcarvers might want to think about other marketing innovations that were not covered in this study, like modifying and enhancing their product designs and packaging to satisfy the continuously changing needs and preferences of end users. Moving forward, future researchers can concentrate on reassessing the industry in order to ascertain why there isn't a significant link between promotional activities and new pricing strategies and retail concepts. Additionally, by learning about the demands or preferences of the customers, researchers might help them create novel strategies for marketing innovation. The results of this study can serve as the foundation for new investigations with the same context by future scholars.

Language

English

LC Subject

Marketing, Wood-carvers

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2023 M17 A38

Notes

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Document Type

Thesis

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