A Small Services Firm Marketing Communications Model for SME- Dominated Environments ALKIS THRASSOU & DEMETRIS VRONTIS Marketing Department, School of Business, Intercollege, Nicosia, Cyprus ABSTRACT This research seeks to explore existing research for marketing management and marketing communications systems for small professional service firms. Further, through primary research methods, it examines the case of construction consultants in Cyprus (CCCs), and it identifies the specific differentiating factors of these firms compared to literature review expectations. Consequently, this research, through the combination and comparison of the literature review and primary research findings, develops a marketing communications (MC) model for small professional services firms in SME dominated environments. This model aims to assist the wider marketing practises of small professional firms having to compete in a rarer type of competitive environment; the SME dominated one. Further, the findings of this research assist such firms to improve their understanding of the marketing communications environment so as to be in a position to develop more effectively and efficiently their marketing communications plan and strategy. Finally, this research will assist governmental departments and professional chambers and associations in improving their comprehension, organization, monitoring, and control of such firms at a collective/industrial level. KEY WORDS: Marketing communications, SME, services, small firms Introduction and Research Aims The subject of marketing communications has been extensively studied through many perspectives and in relation to a wide variety of business areas. Though both small firms and services have been the subject of much research, their combined characteristics have been less popular as a research subject. Even less common is the study of small services’ marketing communications within an environment practically dominated by such firms. The aim of this research is to develop a prescriptive marketing communications model for small construction professional services firms competing in an environment dominated by such businesses. Correspondence Address: Alkis Thrassou, Department of Marketing, School of Business, Intercollege, PO Box 24005, 1700, Nicosia, Cyprus. Fax: 22353722; Tel.: 22 841578. Email: [email protected]. Journal of Marketing Communications Vol. 12, No. 3, 183–202, September 2006 1352-7266 Print/1466-4445 Online/06/030183–20 # 2006 Taylor & Francis DOI: 10.1080/13527260600811720
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A Small Services Firm MarketingCommunications Model for SME-Dominated Environments
ALKIS THRASSOU & DEMETRIS VRONTIS
Marketing Department, School of Business, Intercollege, Nicosia, Cyprus
ABSTRACT This research seeks to explore existing research for marketing management andmarketing communications systems for small professional service firms. Further, through primaryresearch methods, it examines the case of construction consultants in Cyprus (CCCs), and itidentifies the specific differentiating factors of these firms compared to literature reviewexpectations. Consequently, this research, through the combination and comparison of theliterature review and primary research findings, develops a marketing communications (MC)model for small professional services firms in SME dominated environments. This model aims toassist the wider marketing practises of small professional firms having to compete in a rarer typeof competitive environment; the SME dominated one. Further, the findings of this research assistsuch firms to improve their understanding of the marketing communications environment so as tobe in a position to develop more effectively and efficiently their marketing communications planand strategy. Finally, this research will assist governmental departments and professionalchambers and associations in improving their comprehension, organization, monitoring, andcontrol of such firms at a collective/industrial level.
KEY WORDS: Marketing communications, SME, services, small firms
Introduction and Research Aims
The subject of marketing communications has been extensively studied through
many perspectives and in relation to a wide variety of business areas. Though both
small firms and services have been the subject of much research, their combined
characteristics have been less popular as a research subject. Even less common is the
study of small services’ marketing communications within an environment
practically dominated by such firms. The aim of this research is to develop a
prescriptive marketing communications model for small construction professional
services firms competing in an environment dominated by such businesses.
Correspondence Address: Alkis Thrassou, Department of Marketing, School of Business, Intercollege, PO
and Bloom (1984), Connor and Davidson (1985), Palmer (2005), and Guttman
(1987), surfaces a number of important points that need to adapt correspondingly
generic management theory if it should be applied to construction consultants. The
184 A. Thrassou & D. Vrontis
first one is the intense perception of the environment as physical and non-physical,
with the latter naturally presenting complications in both its definition and analysis.
The second point is the internal marketing’s upgraded value, aiming at the
employees of the firm, and is directly related to the emphasis placed on the non-
physical environment. The third and most significant point though, is the
importance placed on quality, clients’ perception of quality, and the firm’smanagement perception of clients’ expectations. One cannot fail to observe that
services, especially professional services, have a strongly intangible nature, whose
quality and essence relate considerably to firm clients’ and employees’ perceptions to
a degree, in fact, that strategic and marketing aspects of a firm should be
concentrated on communication of impressions as much as they should on the
service itself.
Differentiating Factors of the Small/Family/Entrepreneurial Firm Management
All CCCs can be described as being ‘small’ and/or ‘family’ and/or ‘entrepreneurial’
firms. Consequently, this area of management theory has also been reviewed through
the work of many authors, including Longenecker et al. (2003) Dewhurst and Burns
(1998), Wickham (1998), Ram and Holliday (1993), Beckhard and Dyer (1987),
Sahlman and Stevenson (1992), Fuller (1994), and Burns and Dewhurst (1989). This
review gave rise to the need for a multiple perspective on small firms to compensatefor the aspects where orthodox management theory cannot explain specific elements
of a firm or an environment, and compensated for the intense focus of most existing
literature on large firms. Above all, this review has provided further differentiating-
to-generic-theory factors provisionally engulfing CCCs as well.
Regarding the firm’s internal environment, the most important difference is the
hugely upgraded role of the manager in a small firm, both in terms of power
concentration and also in terms of the association of most of the firm’s
characteristics and processes with the manager’s individual personality andgoals.
The competitive environment component is also subject to an (smaller though)
number of differentiations. First is the question of the degree to which a small firm
affects its market, which varies according to the structure of the specific market.
Second is whether the small firm is small because its market is such that small is the
best option, or as a matter of choice or ability. Economies of scale and scope are also
market characteristics important in determining the size and growth potential of a
firm, as are the concentration of small firms in their market and the degree andnature of cooperation between firms.
Differentiating Factors of the Construction Industry Firm Management
The findings of this section are a distillation of the industry analysis presented in
the literature of authors and organizations specializing in the construction
industry and its national and international characteristics, trends, and patterns.
These include Yisa et al. (1996), Hillebrandt (1984, 1985), Hillebrandt andCannon (1990), Whitfield (1994). The construction industry has been found to
A Small Services Firm Marketing Communications 185
bear a number of characteristics which, although not unique, in combination
demand for organizations operating within it or in association with it to
correspondingly adapt their management processes.
While these characteristics are related to the general construction industry
situation, further review provides a better understanding of the specific-to-
construction-consultants situation, as this is an integral but also separate part of
the industry. The findings are based on the work of specialist authors on the subject
including Male (1991; 1996), Lansley (1987; 1991), Latham (1994), Preece and
Tarawnch (1996), Preece and Shafiei (1998), Preece and Barnard (1999), McNamara
(1998), Thompson and Smyth (1997), Chapman (1998), Addis and Ghamdi (1998),
Yisa et al. (1996), and more.
Specifically, they demonstrate that consultants have gone through a number of
changes because of the redefinition of professional roles, changes in contracts and
procurement methods, increasing client demands, and other reasons. With respect to
firm management, there has been a shift in size toward both ends, specialization, a
shift toward the client end as opposed to the construction end, increased client
expectations from architects, and strengthening of the role of chartered surveyors at
the expense of architects. Diversification strategies, acquisitions, and mergers are
considered as optional strategic steps towards competitiveness, and ability to change
is introduced as a major strength factor. Furthermore, the adaptation of Porter’s five
competitive forces to consultants is provided as a useful guide towards general
theory models application to consultants contingency model for strategic manage-
ment.
Marketing with respect to clients has been found to be most effective when the
firm presents itself as a high-quality expert without too much specialisation, flexible,
dynamic, responsive, and adaptable to any situation. Moreover, marketing is
becoming an increasingly important consideration for all sizes of firms towards
competitiveness, with formalization naturally usually absent from small firms.
Inadequate attention is found to have been given to technical aspects of the firms’
products (skill, knowledge, and experience), while ambiguities about the nature of
marketing, general industry attitudes to marketing and the difficulty of marketing
professional services as opposed to tangible products have been stated as inhibiting
marketing processes in consulting firms.
Competition amongst consultants is found to be perverse, owing to the clients’
lack of knowledge and information, firms, competing for territory instead of type of
clients, and firms’ suicide bidding to defend their territory. This results in lower
quality, prices, and profitability and creates the need for improved quality and better
people in the industry. Further changes toward improvement are potentially better
government support, teamwork partnering, long-term relationships based on trust,
quality assurance, and flexible organizational structures.
Bringing together the generic management, strategy, and marketing models as met
in mainstream literature (see above reviewed authors), a Preliminary Management
System is constructed (Figure 1). This model provides a literature-based prescriptive
marketing management system for construction industry consultants, requiring of
course case-specific primary and secondary data collection toward testing for
individual cases.
186 A. Thrassou & D. Vrontis
Figure 1. A marketing management system for construction consultants.
A Small Services Firm Marketing Communications 187
Generic Theoretical Background to SME and Services Marketing Communication
Having developed a theoretical model of the marketing management system for
construction consultants that provides the contextual framework of the research
subject, the next step is to focus specifically on marketing communications (MC).
The literature review toward this aim necessarily covers three areas of MCs theory:
primarily services and small firms, and secondarily consumer behavior.
Services’ Marketing Communication Theories
Lovelock and Wright (2002) deal specifically with services marketing and extensively
with their MC. Their work on services MC though is best viewed and comprehended
in light of their overall services marketing management theory. Dividing the
communications mix (Figure 2) into ‘personal’ and ‘impersonal’ tools, they naturally
place a greater relative weight the former, especially in relation to complex services
such as the ones under study here. An element whose importance they stress is the
need for a communications interface channel such as the role of an account manager
or consultant. Through this channel, they also emphasize direct contact methods,
such as customer service and customer training.
Regarding advertising, they present evidence indicating a clear tendency for
service firms to communicate information. Sales promotion, as well as public
relations, is also presented as important tools. Nevertheless, one fails to notice in
these any greater relative weight compared to orthodox MC theory.
This is not the case for two other methods/tools, which appear to hold a special
role in compensating for two main services marketing disadvantages. First,
instructional material is an effective way of explaining to clients complex services
which are normally difficult to understand or to make decisions on. Bearing in mind
the service characteristic of frequent and substantial customer involvement in the
production process this becomes a comparatively more significant tool. Second,
design and physical evidence are comparatively more significant as the only tangible
part of a service. These may be ‘real’, such as offices and equipment, or ‘mental’,
such as symbols. Third, Lovelock and Wright (2002) find further benefits in the
parallel implementation of ‘internal’ communications toward building corporate
culture and identity, all much in line with ‘mainstream’ theory on the subject.
Palmer (2005) also deals specifically with services’ marketing and extensively with
their MC but gives more attention also to the questions of target audience choice.
Furthermore, his services communications model (Figure 3) is more comprehensive
in order to include all potential channels. Owing to the later time of researching the
subject, he also naturally devotes more to the concept of the Internet and its
consequent word-of-mouth effects. In general though, his work is very much in
agreement with that of Lovelock and Wright (2002), regarding the individual
methods/tools and quite orthodox regarding the additional subjects.
Zeithaml and Bitner (2003), though largely similar in their approach to the above-
reviewed authors, do extend their work to become both more prescriptive and more
specific. They identify the key reasons for service communications problems as being
(1) inadequate management of service promises; (2) inadequate management of
customer expectations; (3) inadequate customer education; and (4) inadequate
188 A. Thrassou & D. Vrontis
internal MC. They subsequently present a strategy for each toward matching service
promises with delivery (Figure 4).
Herrington et al. (1996) researched the subject of intensity and effectiveness of
MCs in services vs non-services. Their research provides some important findings
Figure 2. Marketing communications mix for services. Source: Lovelock and Wright (2002).
Longenecker et al. (2003) present MC especially for small businesses. Although, by
and large, the theory developed is identical to larger-firm theory found in
mainstream literature, there are a few potentially important differentiators. First,
special emphasis is given to personal communications methods where the market is
small and/or when the businesses have a limited number of customers. Second, small
firms are limited in their design of the marketing mix by the limits of their budget.
Third, the higher the value offered by the product to the customer, the greater the
importance of personal communications. Fourth, personal communications by small
firms frequently means communication by the owner/manager/entrepreneur himself/
herself. Fifth, one of the most efficient techniques is obtaining personal referrals.
Sixth, consequent to budget and/or target market limitations, MC by small
businesses often needs to be especially focused. Similar findings are noted by
Palmer (2005) who supports that small service firms, despite having an informal
approach to marketing, spend more time with their customers than larger firms. He
also notes that owners/managers/entrepreneurs are usually the ones to perform this
task and appears supportive of the concept of ‘generalists’ as opposed to ‘marketing
specialists’ for small firms. Further support is given to the above regarding small
firms and their characteristics, especially at the sector level, by Dewhurst and Burns
(1993) and Storey (1997).
Said (2000) presents some specialized findings with regards to small business in
Malta, a small-business-dominated environment. Though his concentration is on
collective international promotion of these firms through electronic means, his
research also identifies some more generic characteristics. These include, among
others, (1) a lack of proper marketing practices; (2) a traditionally sheltered market
competitive situation that is becoming more vulnerable to liberal global trends; and
(3) a contradiction between the realization of the need for more, faster, and better
market (and marketing) knowledge and information on the one hand, and an
apparent unwillingness to pursue this on the other hand. These findings are very
much consistent with the findings of an analogous research in Cyprus (Thrassou,
2002). The latter’s findings are also consistent with Kotler et al. (2005), who support
that for small firms, formalized marketing techniques (not necessarily MC) are not
necessary and that they can be adopted and adapted to resources available with
relative success.
Moini (1998), regarding government support programs, also finds a general lack
of awareness among small firms. These results, although not directly related to MC,
do indicate an obvious weakness in adopting marketing practices that ultimately do
affect MC as well. Campbell (1996) does not contribute to the question of MC
directly but investigates the effect of a free-trade agreement on small firms as a
sector. Her results are valuable since they show that even in the case of small firms
competing in a non-small-firm-dominated environment such agreements have an
impact on small firm competitiveness at a local level as well. This is expectedly even
truer in the more extreme case of currently small-firm-dominated environments.
Korhonen et al. (1996) researched the subject of ‘inward internationalization’ of
SMEs to find that developing their promotion strengthens the operational basis of
SMEs. In view of Campbell’s findings, it is a potentiality that where MC or other
A Small Services Firm Marketing Communications 191
activities fail to compensate for negative changes in the competitive environment,
then inward internationalisation through foreign larger-firms, in combination with
MC might provide the solution. In other words, one parameter that should be born
in mind is that where MC cannot support the marketing strategy, the reverse might
be considered.
Reedy and Schullo (2004) through their work on electronic marketing,demonstrate the continuously growing spectrum of communication means available
to businesses. These allow small firms to undertake tasks and target segments that
the past left out of reach. The MC implications are multiple with the most important
one being a potential need for small firms to fit strategy to MC means rather than the
opposite. This requires a redefinition at a strategic level of their marketing goals and
processes with MC as a primary instrument and cause.
The Consumer Behavior Context of Marketing Communications in Small Consulting
Firms
The literature reviewed so far has presented both the marketing management context
and the MC focus for small professional firms. As a matter of precision and further
insight, it is nevertheless necessary also to present MC through the consumer
behavior perspective.
Blackwell et al. (2001) present the consumer decision process model as consisting
of seven steps: (1) need recognition; (2) search for information; (3) pre-purchaseevaluation of alternatives; (4) purchase; (5) consumption; (6) post-consumption
evaluation; and (7) divestment. In light of the findings of services and small firms’
characteristics it is apparent that especially steps one, three, and six are very weak in
the case of construction consultants and small professional firms. The complex and
specialized nature of the service in combination with the lack of clear benefits
necessitates an MC mix that primarily will inform, educate, and consult the potential
client. Additionally, step five (consumption) in the case of such services is parallel
and synchronous to production, with in fact the client being a co-producer.The degree of success of the service delivery, therefore, depends on the efficient
and effective involvement of the client, itself depending on its ability rather than its
will to participate. MC, therefore, are expectedly again the key to ensuring a
successful service. Furthermore, the intangible nature of the product and the limited
client knowledge on it upgrade the importance of understandings and ultimately
affecting, critical elements such as client attitudes, beliefs, and feelings toward the
service.
MC in the means of both receiving the necessary information and transmitting itsuccessfully towards controlling these elements. The MC mix, therefore, needs to be
designed parallel to the implementation of the methods and analyses that will allow
the measurement and understanding of these elements. Of interest to this research
are also the various means of stimulating word-of-mouth communications and
targeting of opinion leaders. Word-of-mouth has been shown by previous reviews to
be relatively more important to small construction consultants, while the reliance on
opinion leaders also appears more frequent in the specific industry. Similar
conclusions are drawn through the review of work by Schiffman and Kanuk(2004), Hawkins et al. (2004), and Solomon (2004).
192 A. Thrassou & D. Vrontis
Methodology
An exploratory research period involving a number of interviews and general and
specific literature research and review clearly showed that the complexity and
sensitivity of the various subjects under study did not encourage strict numeric
formalization. This research, therefore, was inclined to follow a considerably more
qualitative approach as a much more suitable means for investigating a highly social
and behavior-dependent subject. Multidimensional triangulation and extrapolation
are often used to understand not only situations but also their cause and effect. As
no one method was considered to be singularly vital, and paying the deserved
attention to each method, cross-validation has been applied, with all results being
validated by the corresponding ones from all the other methods. The weight of each
method was not considered constant, but varied according to the subject at hand.
In the absence of complete CCC-explicit material, directly related literature review
concentrated on scattered literature of a smaller scale, while indirectly related and
background theory literature mainly included the general theories and models on
related subjects found in internationally recognized academic work. Fairly recent
and comprehensive statistical data with a great number of parameters relative to the
subject has furthermore been discovered and used by this research. Empirical
evidence/observation was adopted as an additional methodological technique,
though only as the provider of research direction and not as part of the research
results. Interviews were chosen by this research to be the most important source of
primary data since circumstances allowed access to all the people holding the key-
positions in the sector. The preliminary research period and piloting showed that the
free response form was the most effective and indicated the best general content and
context of the CCC manager interviews. The interviewees sample totalled 33 people
and it was chosen according to their position in the CCC task and macro-
environment. All interviewees held key positions though not necessarily within the
same field. These included presidents of professional associations, government
officials of related ministries, top managers of major organizations, and others.
Focus groups added a valuable source of data, both in terms of quantity but also as a
medium that allows more comparison, extrapolation, and cross-referencing.
Grouping was made according to position/experience/age and nine sessions,
averaging eight people, took place. Their aims was to cross-validate data gathered
through the other methods, but also to prompt more in-depth discussion on complex
and sensitive issues that individual interviewees were apprehensive to expand on.
A survey approach was rejected consequent to the findings of the preliminary
research, which indicated various practical difficulties, such as interviewees’ lack of
comprehension of key business terms, interviewees’ reluctance to participate, and
others issues. Instead, questionnaire-based semi-structured interviews were found to
be the best alternative. This method aimed at providing this research with a set of
more quantitative data, much along the lines of a questionnaire survey, but
overcoming the various difficulties of the latter. From 180 requests, 58 such
interviews ultimately took place and involved a questionnaire, which was read out to
the interviewees and the questions explained/expanded on individually when
necessary. Two types of scaling were used. The first is similar to Likert’s summated
ratings, while the second type required the respondents to prioritize a number of
A Small Services Firm Marketing Communications 193
options against multiple subjects. The type of sampling used was Stratified Random
Uniform Sampling Fraction. The sample population was all civil engineers and
architects that had worked for the previous two years for a CCC. The sample was of
a single-stage.
Primary Research Findings – CCC Differentiating Factors
Cyprus presents a business environment that does not fit the theory developed in
relation to other markets. This consequently renders it largely inadequate in terms of
direct or indirect adoption or even substantial adaptation to Cyprus, demanding a
new perspective with focus on the specific market of Cyprus. The primary research
has shown this to be the case, because of Cyprus exhibiting the following
differentiating characteristics, which are subsequently presented.
Firstly, the CCC professions have been developed only during the last two to threedecades, consequently lacking in maturity, control and organization at a collective
level. Decades-long severe political turbulence, which ended in the late seventies, but
was continued by uncontrolled economic growth, resulted in general macro-
environmental lack of organization. The present stability and fair organisation is
relatively newly achieved and CCCs have not yet mastered the survival skills
necessary for this new environment. Additionally, the CCC task environment, i.e. the
construction industry, is extremely susceptible to economic conditions and especially
the tourist sector, with abrupt changes in demand.The market itself is extremely small with the geography of the area tremendously
limiting the ability of CCCs to expand their operations and grow. Furthermore, the
CCC market is predominantly made up of very small firms. Approximately 90% of
firms have one to nine employees, with almost all the rest having fewer than twenty-
five employees. Another differentiating factor, one that has much practical effect as
well is that social norms and attitudes often dictate organizational approaches that
defy business logic. Internally, the major CCC environmental characteristic is the
disproportionately strong element of power being concentrated a single person, thisusually being the owner-manager. This results in a number of internal environment
peculiarities: it creates the potential for better control, better intra-firm relationships,
and increased efficiency and flexibility, but rents the overall structure more
vulnerable and fragile by depending on the knowledge, experience, instinct,
situation, personality, periodic psychological states, values, beliefs, and abilities of
a single person.
Regarding their wider categorization, the family firm is a frequent case among
CCCs, though the elements of such firms are similar to the ones met in mostdeveloped (Western) countries. In addition, CCCs carry a disproportionately large
number of characteristics generally accepted in related literature as also belonging to
entrepreneurial firms.
Engineers’ and architects’ university-level education is almost totally obtained
abroad, resulting in a very high understanding and knowledge of foreign cultures,
languages, environments, methods, techniques, and attitudes. Professional education
is minimal and the little that exists is totally organized by authorities outside the
firm. Regarding professional development, a critical constraint is that the marketsize does not provide niches and allows little specialization, while it rewards the
194 A. Thrassou & D. Vrontis
development of multiple skills and a wide-spectrum of activities. Regarding CCC-
specific research and development, it always was, and still is, non-existent with
respect to both technology and business.
The competitive environment is fierce, with an extremely high buyer (client)
bargaining power. A most important effect of the above is the CCC competition
becoming price-dependent, with fees rarely surpassing a bare minimum ‘survival’level. Additionally, low fees result in cost cutting, often through diminished quality
and consequently creating a situation where CCCs offer lower quality than what
they are capable of and than what they would have liked to offer, against their clients
interests, largely because of the client’s wrongful perception of what is in their
interest. Moreover, there is a distinct lack of CCC experience in competition, which
leads to a form of competitive environment with no widely accepted notions of
ethical competition. Sense of product value by the clients is confused with very few
large/experienced returning clients. Confused is the sense of additional services valueas well, with most clients not understanding the range and nature of CCC
responsibilities, but often placing on these a much greater value than they do on the
product (design) itself.
‘Social networking’ or ‘connections’ appear to play a disproportionately
important role in the CCC competitive environment. Due to mostly practical/
business reasons acquisitions are non-existent, while due to mostly personal/social
reasons mergers are also extremely rare. There is very little public pressure on CCCs
and the construction industry in general to abide by widely accepted notions ofethicality, while social responsibility is defined by the legal obligations, though even
this is not absolute. The most active pressure group towards social consciousness and
responsibility is the CCC professionals themselves.
Owing to political and geographic reasons, international expansion involves a
sudden ‘leap’ from local competition, without the natural intermediary step of
‘national’ competition. The home country international competitive position and the
individual CCC international competitive position are naturally unique to Cyprus,
naturally encompassing a mixture of economic, political, cultural, technological andother characteristics.
Conclusions and Development of a Marketing Communications Model for CCCs
The construction of the model is achieved through a three-step process:
(1) The literature reviews of both the generic marketing management theory and
MCs theory are cross-referenced with the findings of the CCC primary
research.
(2) Individual elements and characteristics are identified as the ones encom-
passing the model and are isolated and extracted.
(3) These are assembled, interrelated and assigned their relative weightaccording to the findings of the primary and secondary research.
Personal MC tools should bear a greater relative weight. This is supported by
services MC theory (Lovelock and Wright, 2002; Palmer, 2005), small firm theory
(Longendecker et al. 2003; Palmer, 2005; Storey 1997), generic marketing managementtheory, and primary research findings which indicate a frequent personal management
A Small Services Firm Marketing Communications 195
dimension and a strong social component of CCC marketing management (section
above). Additionally, elements that can substitute for the intangibility deficiencies,
such as ‘design’ and ‘physical evidence’, should also be given greater relative
attention.
Client education and training should be a primary aim of MC owing to the
complexity of the offered service, the client involvement in the production process,the difficulty of assessing quality, perceived risk, and the subjectivity of client
attitudes and beliefs. In parallel though, it was found that beyond practical/factual
aims, MC needed to transmit images and impressions that shape attitudes and
beliefs, in the case of CCCs relating to quality, perceived risk, and similar elements.
Internal communications should be an integral part of the MC mix though not
necessarily as a separate MC tool. Communications may be simultaneously directed
towards internal audiences while targeting external audiences.
MC should be as focused as possible owing to the fact that (a) the nature of thebusiness means that the client numbers are low and, therefore, need to be better
targeted; (b) complexity of the service demands for stronger and more effective
communication which can only be achieved through focus; (c) small firm budget
limitations largely forbid mass or random communications; and (d) advancements in
electronic MC allow for continuously greater focus.
Word-of-mouth (associated with personal referral as well) should be relied on as a
direct MC mix instrument since the small size of the market in combination with the
strong social elements of the business environment allow it to be. At the same time,other MC mix elements may allow indirect use of word-of-mouth. Word-of-mouth
therefore should be at the same time a tool but also a target of MC.
Toward assuring a match between client expectations and perceived service
quality, MCs should manage service promises, manage customer expectations,
improve customer education, and manage internal marketing communications
(Zeithaml and Bitner, 2003). From the actions proposed toward these, and after
cross-referencing with primary research findings, a number are noted as especially
important. They are: realistic promises and if possible guarantees; communication ofcriteria for service effectiveness; elimination of unrealistic client expectations; setting
of performance standards; communication of best client-company collaboration
methods; clarification of performance standards; organization of most effective
vertical, horizontal, and client-company communications systems and if necessary
human channels.
The MC model should be flexible and adaptable to the competitive and
management context and people of the individual firms (McArthur and Griffin,
1997; Yisa et al., 1996; Thrassou, 2005). This is further supported by the primaryresearch findings that show the dependence on the abilities of individual managers
but also the differences in style and methods according to the educational
background of professionals (see ‘double adaptation’ element of model as well).
The findings of the primary research regarding the marketing management context
of CCCs have revealed an overall lack of effective marketing practises. The same was
observed specifically to marketing communications, which is consistent with both
general small firm theory (see above) and specific-to-construction-consultants
theory. The major problem regarding MC is lack of integration, but perhaps evenmore importantly, and differently to most similar situations, a lack of willingness to
196 A. Thrassou & D. Vrontis
conform to modern MC practises; an inherent construction industry problem of
conservatism. Thus, extraordinarily and reverse to the above, the firms’ management
organization and culture within a firm often may need to be adapted to MC (see also
‘double adaptation’ element of model).
Consequent to the absence of large firms and to the market size, it is possible for
small firms under these circumstances to undertake competitive roles and strategicmarketing tactics within the industry that are normally unattainable in more usual
environments. One possibility is for a small firm to be for all practical purposes (and
therefore correspondingly act strategically as) a market leader, or public relations
and lobbying may be a disproportionately important MC instrument.
Apart from MC targeting potential/existing clients and employees, two other MC
targets should be considered. One that should be the result of a collective effort
relates to the attitude and beliefs that the public hold in relation to CCCs and their
professionals, the other stems from the fact that CCC projects involve manyorganizations. This may require an additional clear target for CCCs, i.e. the various
potential collaborators who are and will be neither clients nor immediate associates.
The limitations set by the size of individual CCCs, including budgets, knowledge,
human resources, etc. raises the question of collective MC. This, while being
practically impossible in terms of simple promotional tactics, appears most feasible
regarding other MC aims, such as information, client education, public’s attitudes,
etc. In fact, the wider the target audience and the commoner the aims, the more
feasible and beneficial collective action is considered to be. To this there appear to beinherent obstacles such as the ability and/or will of small consulting firms to work
together.
Although MC is a process normally within the wider marketing strategy, it is
possible that for CCCs it will actually be a critical factor in forming strategy.
Specifically, two elements contribute towards this: first, as mentioned above, the fast
evolutionary pace of electronic MC may in fact allow the targeting of audiences in a
manner, scale and/or segments that the past practically prohibited (Reedy and
Schullo, 2004). Not surprisingly, the new means of MC, therefore, may demand areorientation of CCCs’ means and targets at a strategic level. Second, it is likely that
where MC can nolonger support the small consulting firm in a changing, globalized
environment then again strategic reorientation may occur to allow the support of
MCs. Such a case may be the home-country’s entrance into a free trade or similar
agreement altering the nature of competition.
Bringing the findings together, and resting within the contextual boundaries of
contemporary MC theory, a CCC Marketing Communications Model is developed.
The model (see Figure 5) portrays the main elements and processes involved in thedevelopment of the CCC MC mix. The secondary components and other
information concerning the individual MC tools are not presented. This as a matter
of practicality first, but also as a matter of avoiding repetition of ‘classic’ MC theory.
The model, however, does pinpoint the discrepancies between ‘classic’ MC theory
and CCC MC findings.
The environmental factors influencing promotional activity were adapted from
Kitchen’s (2001) ‘environmental factors influencing promotional activity’. The
elements that make the component of MC audiences were adapted from the work ofFill (2002) (‘direction of communication profile strategy’) and Pickton and
A Small Services Firm Marketing Communications 197
Broderick (2001) (‘illustration of the range of players in the MC industry’).
Regarding the choice of tools and media available, it was based on the research
findings and the adapted work of Pickton and Broderick (2001) ‘choice of media
possibilities’ and ‘media characteristics’ and Smith and Taylor (2002) ‘summary ofmedia characteristics’.
Figure 5. An integrated marketing communications model for small construction consultants.
198 A. Thrassou & D. Vrontis
Limitations and Recommendations
This research is largely exploratory and therefore naturally limited regarding a
number of aspects. First, the choice of Cyprus construction consultants as the basis
for model development does not guarantee the applicability of the findings to other
types of small firms or other markets or industries. These have to be separately
researched for reliable and valid findings. Second, the scope and spectrum of this
research was inevitably too large to cover its parts to any great depth (an acceptable
deficiency for exploratory research). The model therefore, although prescriptive, is
general and cannot as it stands be used as a detailed ‘road-map’ to MC mix design or
implementation. Consequently, it is recommended for researchers wanting to
investigate further individual elements to use this research as the foundation but
concentrate more on depth than breadth. Third and assuming that there is greater
focus to allow for it, a more quantitative approach to compliment the qualitative
methods of this research is recommended.
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Notes on Contributors
Alkis Thrassou obtained a B.Eng. (Hons) degree in Engineering and a Ph.D. in
Strategic Marketing Management from the University of Leeds (UK). From 1996
until 2002, he has worked as business and project manager for an engineering and
management firm in Cyprus, leading teams of professionals through many projectsof varying size and nature. In 2002, he joined the Marketing Department
of Intercollege, Nicosia, Cyprus, involving himself in various scholarly activities,
lecturing on marketing-related subjects to both undergraduate and postgraduate
students, and undertaking research in the fields of general marketing, construction
firms, small firms, services and consumer behaviour. He retains strong ties with the
industry, acting also as a consultant and he is furthermore the president of the board
of directors of MGK Estates Ltd, a public land-development company.
Dr Demetris Vrontis studied in the United Kingdom and obtained a BSc (Hons)
degree in Business from the Manchester Metropolitan University (MMU), a PGCE
(HE) from MMU, a VTC from Henley School of Management, an MBA
(Distinction) from the University of Hull and a PhD in International Marketing
from MMU.
Dr Demetris Vrontis is the Dean of the School of Business at Intercollege in
Nicosia, Cyprus. Dr Vrontis is a Visiting Teaching Faculty for Henley School of
Management in the UK, a Visiting Professor for Vorarlberg University in Austria, aVisiting Fellow at Leeds Metropolitan University in the UK and an External
Examiner for Nottingham Trent University in the UK. During the period January
A Small Services Firm Marketing Communications 201
2004 to July 2006, Dr Vrontis was initially the Head of the Department Marketing
and then the Associate Dean of the School of Business. Before joining Intercollege
(1997–2003) Dr Vrontis was a senior lecturer at the Manchester Metropolitan
University Business School (MMUBS), where he was leading and directing two of
the University’s postgraduate programmes.
Dr Vrontis’ prime research interests are on international/global marketing,marketing planning, branding and marketing communications, areas that he has
published in over 45 refereed journal articles and presented papers to conferences on
a global basis. Dr Vrontis is also the author of 8 books and widely contributed
chapters and cases in books/edited books in the areas of international, global
marketing and strategic marketing planning. He is the editor of the EuroMed
Journal of Business, a Country Editor for Cyprus for the ‘‘Journal for Global
Business Advancement’’ and the ‘‘Journal for International Business and
Entrepreneurship Development’’. He is also a member of the editorial board inthe ‘‘Journal of Promotion Management’’, the International Research Journal of
‘‘Innovative Marketing’’, ‘‘International Journal of Management Cases’’ and ‘‘The
Cyprus Journal of Sciences’’. Currently, he is acting as a guest editor for the Journal
of Marketing Communications, International Journal of Entrepreneurship and
Small Business, Journal for Global Business Advancement, Journal for International
Business and Entrepreneurship Development, International Journal of Internet
Marketing and Advertising and Journal of Business Research.
Dr Vrontis is the President of AGBA (Association for Global BusinessAdvancement) - Europe Chapter (USA) and a regional director of CIRCLE -
Centre for International Research for Consumers and Location and their