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Reconnecting Marketing to Markets$
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Luis Araujo, John Finch, and Hans Kjellberg

Print publication date: 2010

Print ISBN-13: 9780199578061

Published to Oxford Scholarship Online: January 2012

DOI: 10.1093/acprof:oso/9780199578061.001.0001

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Governing firms, shaping markets

Governing firms, shaping markets

The role of calculative devices

Chapter:
(p.94) 5 Governing firms, shaping markets
Source:
Reconnecting Marketing to Markets
Author(s):

Frank Azimont

Luis Araujo

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199578061.003.0006

This chapter examines the case of a fuel retailer moving from product to category management. Under product management, the aim of retail operations was to cover fuel distribution costs. Store performance was broken down to the product level using metrics such as volume, sales, and profit margins. These indicators governed product assortment decisions, with high-performing suppliers being rewarded accordingly. Market research data showing that many customers did not buy fuel prompted a move to disentangle retail from fuel sales. Category managers became responsible for purchasing and marketing entire product categories. As a result, performance indicators that had previously been kept apart were combined casting a different light on performance. This change prompted a reorganization of the company, a reconfiguration of relationships with suppliers, and significantly changed the way the company represented and related to its retail markets.

Keywords:   performance metrics, calculative devices, retailing, product management, category management

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