A Comparative Analysis of Strategic Marketing Practices of High Growth U.S. Family and Non-Family Firms
Vol. Volume 8, Number 2 June/2003
Elisabeth J. Teal, Nancy Upton, Samuel L. Seaman
This study provides an analysis of strategic marketing practices of high-growth family and non-family firms in the United States. Strategic practices were examined in the areas of business strategies, including business strategies, market timing, and pricing strategies; financial allocations, including research & development expenditures and marketing budget allocations; and growth outcomes including expansion in new products or services and customers. Data were compiled from a survey of 161 high-growth family and 625 high-growth non-family firm finalists in the Ernst & Young Entrepreneur of the Year award program. Six hypotheses were tested through comparative analyses including Likelihood Ratio Chi-square, ANOVA, and ANCOVA. For high-growth firms, the results suggest that younger non-family firms follow a first to market timing strategy, family firms follow an above market pricing strategy as they age, and family firms are more likely to allocate a greater percentage of their marketing budget to mass advertising.