Emerging Positioning Strategies in Global Marketing - Research Proposal Example

Running Head: MARKETING STRATEGY RESEARCH PROPOSAL Market Strategy Project Research Proposal Abstract This proposal analyzes the goals of marketing strategy. Revenues, market share and profits are the core goals of marketing strategy. Methodologies play an important role in structuring, formulating and implementing a marketing strategy. It explores some methodologies that are proposed by various writers such as improvisation. The proposal further analyzes the contribution of internal (leadership and organizational structure) and external forces (competition and globalization) in shaping the marketing experience. Finally, the proposal analyses the importance of segmentation in achieving the success of the marketing strategy. It bring outs the importance and complexities that are associated with sociopolitical, cultural and economic. Developing a marketing strategy allows the organization to focus its inadequate resources on opportunities that yields the greatest benefits for the organizations. A marketing strategy is a pivotal pole, shifts threats and weaknesses into opportunities. Ensures that requirements of the mission statement are achieved. On marketing strategies, Juin states, “marketing strategies focus on ways in which the corporation can differentiate itself effectively from its competitors, capitalizing on its distinctive strengths to deliver better value to its customers” (p. 23). Juin’s view on a good marketing strategy should have three characteristics: clear definition of the market, superior performance in relation to competitors and an understanding between the corporate strengths and requirements of the market. In fact, marketing strategic 3Cs – customer, competition and corporation are the core aspect in developing a marketing strategy. However, understanding the market orientation and the requirements of the customers is the foundation in the development of the marketing strategy. Misunderstanding the requirements of the market may lead to catastrophic outcome for the corporation because of poor marketing strategy that will be developed. Formulation of the marketing strategy is the foundation and guideline in changing the view of customer on the product. Baker (1987) views that the objective of a marketing strategy is “to influence target audience behavior” (p. 267). He further argues that customer behavior is the backbone of strategic market planning. Satisfaction of the customer is the goal of the marketing strategy. This success can be viewed in terms of customer satisfaction and customer retention. Fulfillment of the mission statement of the organization, increase of the market share, maximization of merge resources with outcome of increase in revenues and profits is the goal of most marketing strategies. Challenges are common phenomena in formulating the marketing strategy and implementing it. In fact, creating a marketing strategy, marketing mix plays a crucial role. Award winning marketing strategy brings together a balanced market mix. According to Greens and Williams (1996), the way to balance the market mix depends on factors such as company’s objective, image of the company in the marketplace and resources devoted. Failure to balance the market mix is a recipe of failure of the marketing strategy. Moreover, a good marketing strategy is faced by many challenges, if poorly implemented. Howard (2004) states that competition, marketplace instability, government policies and coordination in the organization are the major challenges that are exposed to a good marketing strategy. In fact, Howard (2004) states, “A good marketing strategy is exposed to various challenges due to transitory changes for the firms and business” (p. 45). An environment that is competitive and unstable stretches implementation of the marketing strategy. Marketplace instability or poorly analyzed marketplace negatively impacts a poorly structured marketing strategy and pulls to its limit a good marketing strategy. Political policies changes after creation of the marketing strategy and deter its success. Nevertheless, internal operation of the corporation plays an important role in ensuring that the marketing strategy succeeds. According to Howard (2004), poor communication and understanding between the different parties in implementation of the marketing strategy is the cause of various failed marketing strategies. The failure of the marketing strategy is a doom for an organization. Thus, a successful marketing strategy should bring together the various forces that determine the direction of the strategy. Proper formulation and implementation of a strategy depends on the method that it was structured and derived. Hence, methodologies plays important role in structuring and defining the appropriate and successful strategy. Bourgeois and Brodwin (1984) bring clearly five models that help in the formulation and implementation of the marketing strategy bringing into consideration characteristics of the organization. Commander model brings in the centralized directives from the leaders. Change model emphasizes control systems, organizational structure, and incentive compensation in implementing the new strategy. Collaborative model emphasizes on team decision making and negotiation of the outcomes. Cultural model ensures that the lower level workers are infused in formulation and implementation of the strategy. Finally, crescive model focus on middle managers as viewed by Smit (2000) in creating a marketing strategy through “championing, development and implementation of new strategies” (p. 39). This typology – Bourgeois and Brodwin (1984), illustrates the noteworthy difference in implementing a strategy. Nevertheless, Redding and Catalanello (1994) takes a slightly different approach – improvisational, which boosts implementation of strategic change in a firm. Improvisational approach championed by Redding and Catalanello (1994) is based on “most organizational change results not from plans and fixed programs for change but from … the collective learning of entire organizations” (p. xi). Improvisational approach utilizes three components: testing the strategy, encouraging involvement and rewarding. It results in a conducive environment for implementation of the strategy. Sandy (1991) presents eight causes of breakdown between strategy planning and implementation. Sandy’s view is that a marketing strategy fails due misunderstanding customers’ voice, poor organization of information for action, inappropriate decision making, insufficient solutions, few or no champions, irresponsible team members, nobody keeps score and no rewarding. Thus, understanding and appreciating the development and success of a project is the roots of future implementation success. Redding and Catalanello (1994) and Sandy (1999) bring into consideration a perspective that is also shared by Hambrick and Cannella (1989). Hambrick and Cannella present five behavior patterns that are crucial for successful implementation of a strategy. Obtaining appropriate inputs and teamwork during formulation, analyzing obstacles to success, maximizing on array of implementation levers – structure, people, rewards and resource commitments, ensuring that all people who matters have knowledge on the development of the strategy and fine tuning and polishing the final strategy as trends and events arise. Proper formulation of the strategy is the core point to its success. All factors both in the marketplace and the customers’ behavior is crucial in determining the marketing strategy that is appropriate. The entire organization should understand that commitment and coming together through giving support and perspectives is a determinant to success. Marketing strategy is orchestrated, set and determined by external and internal drivers. The internal parameters that set a marketing strategy are goals, mission statement, objectives of the organization while the environmental factors, and the competitiveness determines the external parameters. Internal and external organization factors redefine business strategy, Nykiel (2007) states, “New technologies, new products and services, new delivery systems, and new competition change the playing field on a regular and frequent basis” (p. 201). Internal organization changes such as field based management vs. headquarters based and utilization of multidisciplinary management groups. Formulation of a strategy and its implementation should be completed as a single entity rather than been separated so that it can succeed. According to Grant (2002), he views the relationship between formulation and implementation of a strategy, as “One of the most pernicious misconceptions in the history of strategic management is the idea that the formulation of strategy can be separated from its implementation” (p. 188). In fact, he further argues that top managers with the help of specialist corporate planners were responsible for formulating the strategy, while the middle managers are responsible for its implementation. This to him is the root cause of failure of the strategy because the management did not involve the implementers. This division between formulation and implementation is the root cause of failure of the marketing strategy. Grant (2002) understands that formulation of the strategy without incorporating the implementation environment results in an inadequate strategy. He employs the comment “Great strategy, lousy implementation”. Organization of the firm and resources is fundamental to its success. Thus, strategy and structure should be interdependent. Moreover, the leadership style of the top managers has a big impact on implementation of the strategy. In fact, Nutt (1983) brings into consideration the link that exists between the organizational climate and approaches to implementation of the strategy. The success of the strategy requires a driving force or a ‘champion’ who is top of the managerial level. The manager enables the shaping and guiding the formulation process, and tries to ‘sell’ the marketing strategy. Smit (2000) champions five techniques that aides the success of the strategy. In unilateral technique, the implementation announces the plan and sets the conditions to be followed. Manipulative technique manipulates a problem into new approach. Delegative technique brings together all people involved in streamlining the success of implementation. This perspective is supported by Nutt (1983), who adds the power technique, which guides the implementation. Thus, the leadership style and tactics plays a crucial role in mitigating lower-level obstructionism. Chances are that the lower managers may attempt to delay the process if they realize that the idea is disagreeable. Fidler and Johnson (1984) support this perspective in showing that the mid-level employees play a crucial role in the success of the strategy. They argue that the abilities of decision making that is bestowed to the mid-level managers innovates new strategies that easily boost the strategy. Resistance in the organization can be caused by risks and complexities that can be easily averted by the presence of the mid-level managers. Moreover, Fidler and Johnson (1984) solutions to the problems that are experienced include types of power, communication cost, and communication channel. They further argue that the understanding and interaction between these factors determines the success of innovations that are championed by the mid-level managers. Internal factors of the organization play an important role in ensuring that the strategy is structural formulated. However, implementation calls on the external environment that brings its factors. Competition is the complex factor that shapes the external environment. External competitiveness change brings threats and benefits that should be managed by the organization. Inter-organizational relationship boosts organizational strategies through restructuring competencies and environments in achieving objectives set out. However, the competition is usually not stable, Achrol and Stern (1988) states, “Turbulent market conditions created by fragmented markets with less brand loyal customers, coupled with intense international competition and rapid product innovations, highlight the need for incorporating open-system explanations in channel theory and research” (p. 36). Thus, the stability of the market may hinder the success of the marketing strategy. International competition and brings into consideration globalization. Globalization plays an important role in shaping internal operations of the organization so that it is able to succeed. However, globalization increases competition and increase the rate of market turbulence. More products are introduced to the market from other countries that produce products at low economic value influencing negatively the current market of the organization. Nevertheless, versatile organizations reap a lot from incorporating globalization in strategies that they develop. Corporations that embrace globalization increase the marketplace that they can market their products. The formulation and implementation of the strategy should focus on the economic and political aspect of the marketing environment. Dwyer and Welsh (1985) states that, “the formulation of strategy is a socio-political as well as economic process” (p. 397). Collaboration and distribution channels pose a risk in the success of the strategy. Dwyer and Welsh (1985) concludes that it is difficult to change the channel network when compared to media communication. The formulated strategy may require changes in the way that the product or service will be taken into the market. This will negatively affect the success of the strategy. However, utilizing and developing proper countermeasures will reduce or eliminate this effect. Moreover, proper formulation through the incorporation of different persons within and outside the organization may develop ways that maneuvers through these complexities. Generally, various internal and external factors play a crucial role in formulating functions of the management. They usually have enormous effect on the firms’ productivity. Assessing internal and external factors are vital to the success of the strategy. Environmental assessment outlines the external and internal factors and processes that impact on the success rate. Thus, its main aim is to identify and analyze key forces, phenomena and trends that may inhibit formulation and implementation of strategies. Environmental assessment acclimatizes the organization to the threats and benefits in the environment. Understanding the organization requirements of the environmental assessment and developing the right precautions increase the chances of success of the strategy. Even though, internal and external factors play important roles in success of the marketing strategy there are also other factors and approaches that increases its success. Formulated marketing strategies to succeed require addressing specific customers or market. Market segmentation ensures that the market is grouped into parts that are easy to understand contributing to the success of the strategy. In fact, Webster and Webster Jr. (1995) view on segmentation is “Market segmentation is a strategy for selecting customers, for differentiating customers according to differences in the way they respond to market effort, for choosing among alternative market opportunities, and for tailoring marketing strategies to those distinctive opportunities” (p. 98 - 99). Moschis (1994) share the same perspective, “Market segmentation involves breaking down the entire market into smaller submarkets or subgroups that can be reached more effectively with different marketing programs” (p. 8). Thus, market segmentation is the recipe of formulating and implementing a marketing strategy. However, different studies illustrate different ways in selection of market segmentation. Heterogeneous, homogeneous, substantial and operational is one perspective development of segments while new methods brings into consideration age, sex and level of income, what is commonly known as psychological approach. Moschis (1994) bases the strategies that will be developed on the marketing mix that is introduced to the specific segment. In fact, in employing marketing mix, he proposes three perspectives that can be utilized in pricing: competitive pricing, skimming strategy and penetration strategy. Segmentation strategy maximizes the benefits that are given by Pareto effect in that large share of wealth is controlled by a small group of the population. This is evident when a product is introduced into a globalize market. Globalization impacts on the way that markets are segmented. In fact, Hassan and Kaynak (1994) view that segmentation does not revolve only around economic and demographic data but also on psychographic variables. He views segmentation in the same perspective with Domzal and Unger (1987) in that it is within materialism, play, heroism and procreation because of the “high tech” continuum. Hassan and Kaynak consider the diverse segmentations a counter-competition strategy. They further states that the success of the market is not only segmentation, but also the positioning and pricing of products effectively in relation to the given market segment. Hassan and Kaynak explore the idea of cross-national segmentation giving three strategies that determines penetration success: cultural segmentation, strategically equivalent segmentation and pro-trade segments. Moreover, segmentation develops a conceptual framework that determines market position, target markets, organizational and environmental factors, and nature of products. The success and failure of the market segmentation can be measured in terms of market share, cost efficiency, loyalty and overall benefits from the given market. Marketplace is the determinant of the marketing and may be impacted by other plays in the region. Competition plays an important role in the way that the market segment can be identified. Sandhusen (2000) belief that competition makes determination of the market segments tricky. Versatile companies and organizations are the best suited in those segments that are impacted by stiff competition. In fact, “an effective segmentation strategy also helps to measure overall market size, recognize, and respond to, competitive threats; and budget and control marketing performance” (Sandhusen 2000, p. 275). From this perspective, a marketing strategy should be formulated for each segment to compete with threats and increase the market share of the product. Thus, segmentation plays an important role in formulating and implementing the marketing strategy. The size of the market and economical relevance of segmenting determines the way that the market will be segmented and which factors i.e. sociopolitical, economic or physiological approach will play a crucial role. Generally, marketing strategy plays an important role in ensuring that the firm sustains pressures in its niche. Thus, the goal of a marketing strategy is to move a product from the company to the market place with the aim of making profits, increase revenues, increase the market share and improve loyalty of the customers. However, there are various challenges that face formulation and implementation of the marketing strategy. Various methodologies have been developed that reduces the challenges that face the formulation and implementation of the strategy. Internal and external forces play a major role in implementing a marketing strategy. The approach that the organization takes determines the success of the strategy. Marketplace has different variables that have to be addressed differently. Market segmentation plays an important role in ensuring that the right strategies for the specific target market are formulated and implemented. References Achrol, R., & Stern, L. (1988). Environmental Determinants of Decision-Making Uncertainty in Marketing Channels. Journal of Marketing Research, 25(1), 36-50. Bourgeois, L.J., & Brodwin, D.R. (1984). Strategic Implementation: Five Approaches to a Elusive Phenomenon. Strategic Management Journal, 5(3), 241-264. Dwyer, R., & Welsh, M. (1985). Environmental Relationships of the Internal Political Economy of Marketing Channels. Journal of Marketing Research, 22(4), 397-414. Domzal, T. & Unger, L. (1987). Emerging Positioning Strategies in Global Marketing. The Journal of Consumer Marketing, 4(4), 23-40. Fidler, L., & Johnson, J. (1984). Communication and Innovation Implementation. Academy of Management Review, 9, 704-711. Green, G. & Williams, J. (1996). Marketing: Mastering Your Small Business. Retrieved from http://books.google.com/books?id=td-WCcUcgQsC&printsec=frontcover&dq=marketing:+mastering+your+small+busines Grant, R. (2002). Contemporary Strategy Analysis. Retrieved from http://books.google.com/books?id=IsViynPCJpUC&pg=PA188&dq=internal+organization+and+strategy+implementation#PPA188,M1 Hambrick, D., & Cannella, A. (1989). Strategy Implementation as Substance and Selling. Academy of Management Executive 3, 278-285. Hassan, S., & Kaynak, E. (1994). Globalization of Consumer Markets: Structures and Strategies. Retrieved from http://books.google.com/books?id=z2g1Mmq7EkoC&pg=PA47&dq=globalization+vs+market+segmentation#PPA55,M1 Juin, S. Marketing Planning and Strategy. Retrieved from http://faculty.fuqua.duke.edu/~moorman/GeneralMills/Section2/Section2Documents/MarketingPlanningAndStrategy-p23-27.pdf Moschis, P. (1994). Marketing Strategies for the Mature Market. Retrieved from http://books.google.com/books?id=S0Xg-pcRmj4C&printsec=frontcover&dq=Marketing+Strategies+for+the+Mature+Market++By+George+P Nutt, P. (1983). Implementation Approaches for Project Planning. Academy of Management Review, 8, 600-611. Nykiel, R. (2007). Handbook of Marketing Research Methodologies for Hospitality and Tourism. Retrieved from http://books.google.co.ke/books?id=05LjPDRSSGkC&pg=PA201&lpg=PA201&dq=research+methodoloies+used+in+developing+a+marketing+strategy&source=web&ots=lO_06Hbmka&sig=fNnQvCkWV79YwQ71Q3cI_gDmWxQ&hl=en&sa=X&oi=book_result&resnum=8&ct=result#PPA205,M1 Redding, J. & Catalanello, R. 1994. Strategic Readiness, San Francisco: Jossey-Bass. Smit, J. (2000). Strategy Implementation: Readings. Retrieved from http://books.google.co.ke/books?id=VNQN5Q8UWwsC&pg=PT49&lpg=PT49&dq=Strategic+implementation:+Five+approaches+to+an+elusive+phenomenon&source=web&ots=gCXPidA_Ht&sig=9KXsJCrQZS9wiKxBBhcxkkl9ODs&hl=en&sa=X&oi=book_result&resnum=9&ct=result#PPT46,M1 Sandhusen, R. (2000). Marketing. Retrieved from http://books.google.com/books?id=8qlKaIq0AccC&pg=PA274&dq=segmentation+strategy#PPA274,M1 Sandy, W. (1991). Avoid the Breakdown between Planning and Implementation. Journal of Business Strategy, 12, 30-33. Webster, F., & Webster, Jr. F. (1995). Industrial Marketing Strategy. Retrieved from http://books.google.com/books?id=gaUQds55qtMC&pg=PA97&dq=importance+of+market+segmentation+in+marketing+strategy Read More