Post on 16-May-2023
2
Today’s agenda
Warming up
Challagalla, G., Murtha, B.R., & Jaworski (2014).
Marketing Doctrine: A Principles‐ Based Approach
to Guiding Marketing Decision Making in Firms.
Journal of Marketing, 78(July), 4‐20.
Frambach, R.T., Prabhu, J., & Verhallen, T.M.M.
(2003). The influence of business strategy on new
product activity: The role of market orientation.
International Journal of Research in Marketing, 20,
377‐397.
Planning and seminar subgroups
Approx 30 students per seminar group
6 subgroups
Make groups of 5 students.
You’ll be working on case and presentation together.
3
MARKETING DOCTORINE
Challagalla, G., Murtha, B.R., & Jaworski (2014). Marketing Doctrine:
A Principles‐ Based Approach to Guiding Marketing Decision Making
in Firms. Journal of Marketing, 78(July), 4‐20.
5
Marketing doctrine
Firm-wide common marketing approach to enable
consistent decision making
Challenge: Provide guidance and flexiblity
Standard Operating Procedure vs. Shared values
and norms.
8
Marketing Doctrine?
Marketing doctrine is defined as a firm’s unique
principles, distilled from its experiences, which
provide firm-wide guidance on market-facing
choies.
Examples?
9
Apple’s guiding principles
Only enter markets where we can be the best –
we must have a compelling differentiation
Focus on few products and models
Take end-to-end responsibility for the user
experience.
10
Focus differentiation strategy?
Customer orientation?
Google’s guiding principle
Focus on the user and all else will follow.
It’s best to do one thing really, really well.
Great just isn’t good enough.
You can make money without doing evil.
Type the footer here 11
Related constructs
Organization orientation (market, competitors,
technology)
Organizational culture and values
Organizational Strategy (Remember Porter’s
Generic Strategy, Differentiation vs Cost
Leadership vs Focus)
Routines
12
How to identify?
“post-action” reviews.
Evaluating principles for the “fit”
13
How to articulate?
Flexibility, simplicity and explicitness.
How to sustain?
Maintain the relevance
Periodic assessments
Antecedents to Marketing Doctrine
International diversification
The greater a firm’s internationalization
diversification, the more likely it is to use
marketing doctrine.
Related-product diversification
The greater a firm’s related-product
diversification, the more likely it is to use
marketing doctrine.
14
Antecedents to Marketing Doctrine
Decentralization of marketing authority
The greater a firm’s decentralization of
marketing authority, the more likely it is to
use marketing doctrine.
Decentralization of marketing activities
The greater a firm’s decentralization of
marketing activities, the more likely it is to
use marketing doctrine.
15
Consequences of Marketing Doctrine
Use
Greater marketing program creativity.
Lower marketing impulsivity.
Greater perceived value of marketing within the
firm.
Better the firm’s performance.
16
Moderating Effects
As competitive intensity increases;
As structural flux increases,
there is a stronger positive relationship between
marketing doctrine use and firm performance
As market turbulence increases, there is a
weaker positive relationship between marketing
doctrine use and firm performance.
17
THE ROLE OF MARKET
ORIENTATION
Frambach, R.T., Prabhu, J., & Verhallen, T.M.M. (2003). The
influence of business strategy on new product activity: The role of
market orientation. International Journal of Research in Marketing,
20, 377‐397.
19
Why this paper?
Past research were focused on determinants of
new product performance (the end results of
innovation activities)
Little work has examined how business strategy
influences new product development (the
strategic decision in the innovation process)
20
Why is it important?
It helps to understand the determinants of the
extent of NPD activities
It helps to understand how firm’s general
strategy drives commitments to the market
and/or the competitors
Type the footer here 21
Cost Leadership Strategy
Firms that succeed in cost leadership often have the following internal strengths: Access to resources
Efficient production and distribution channels
Constant benchmarking to competitors actions and strategy (therefore H1)
Differentiation Strategy
Firms that succeed in a differentiation strategy often have the following internal strengths: Access to leading scientific research, cutting
edge technology Highly skilled and creative product development
team. Corporate reputation for quality and innovation.
Requires thorough understanding of consumers and competitors (H2a and H2b)
Creating new market opportunities Radical innovations
Therefore H2c
Focus Strategy Concentrates on a narrow segment and within that segment attempts
to achieve either a cost advantage or differentiation. The premise is that the needs of the group can be better
serviced by focusing entirely on it. A firm using a focus strategy often enjoys a high degree of
customer loyalty, and this entrenched loyalty discourages other firms from competing directly.
Therefore, H3a
Firms that succeed in a focus strategy are able to tailor a broad
range of product development strengths BUT only for a relatively narrow market segment that they know very well.
Therefore, H3b
Next week for WG 1 and 2 Group 2:
Holger Müller, Bodo Vogt, and Eike B. Kroll, (2012), “To Be or Not to Be Price Conscious—a Segment-Based Analysis of Compromise Effects in Market-Like Framings”
Group 3:
Larry Lockshin, and Eli Cohen, (2011),"Using product and retail choice attributes for cross-national segmentation", European Journal of Marketing, Vol. 45 Iss 7/8 pp. 1236 – 1252
Group 5:
Peet Venter, Alex Wright, and Sally Dibb (2015) Performing market segmentation: a performative perspective, Journal of Marketing Management, 31:1-2, 62-83,
Next week for WG 3-6 Group 1:
Holger Müller, Bodo Vogt, and Eike B. Kroll, (2012), “To Be or Not to Be Price Conscious—a Segment-Based Analysis of Compromise Effects in Market-Like Framings”
Group 2:
Larry Lockshin, and Eli Cohen, (2011),"Using product and retail choice attributes for cross-national segmentation", European Journal of Marketing, Vol. 45 Iss 7/8 pp. 1236 – 1252
Group 3:
Peet Venter, Alex Wright, and Sally Dibb (2015) Performing market segmentation: a performative perspective, Journal of Marketing Management, 31:1-2, 62-83,