Marketing Management

6012B0239 Seminar Course introduction

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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.

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FORM THE GROUP NOW

Once you have a team please send someone to the

front with the list of names

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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.

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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.

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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?

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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.

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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.

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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

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How to identify?

“post-action” reviews.

Evaluating principles for the “fit”

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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.

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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.

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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.

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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.

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DOES THIS PAPER MAKE SENSE?

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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.

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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)

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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

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Porter’s generic strategies

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

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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,