How does Marketing Strategy Influence Firm Performance? Implementation of Marketing Strategy for Firm Success

Nashwan Mohammed Abdullah Saif
2015 International Journal of Innovation and Economic Development  
Marketing strategy has been a focus of organizations and a tool for attaining overall firm performance. Our study contributes to the existing study of marketing strategy by supporting a relationship between marketing strategy factors and overall firm performance. Deduction from existing literature enabled a construction of a conceptual model that explains overall firm performance. Promotion, pricing, distribution, and product standardization and adaptation have an impact on sales, customer and
more » ... ales, customer and financial performance of firms. The study suggests that the impact is mediated by marketing strategy implementation success. At the same time the impact of moderating factors of product homogeneity, stage of product life cycle and competitive intensity are present. The total standardization perspective of marketing strategy views market conditions across national borders increasingly similar, preferring the standardization of marketing activities as the significant approach to achieving firm performance. Some studies that support standardization have indicated that the pursuit of standardized marketing activities by itself has a commonly a positive impact on performance (Özsomer and Simonin 2004), dependent of some moderating effects. Levitt (1983) is among the most prominent proponents of standardization, who argues that cultural differences have diminished across countries due to technological advancements and thus make a globally standardized marketing strategy the preferred alternative to capture worldwide economies of scale and consequently attain firm performance. Other proponents of standardization include (e.g, Eger, 1987; Ohmae, 1985; and Yip, 1995), who advance various arguments regarding scale advantage, time to market, and worldwide consistency of company image associated with the standardization perspective. The majority of prior studies show several ongoing trends suggesting that standardization remains an important, positive antecedent to firm performance. The observation by Levitt (1983) on standardization dated more than 25 years ago shows that markets across the world are converging as consumers become more similar, thus provoking marketing activities to be standardized across national boundaries. Through review of literature on standardization process of converging markets and consumer tastes is found to be driven by the increasing multinationalism, world sports, world tourism, and expanded communication and transportation systems (Belk, 1996) . These trends of transformations forms as antecedent for firms to standardize to achieve performance in the marketing processes such as production, pricing, distribution, logistics, advertising, and promotional mix and also in research and development (Porter 1980; Shoham 1999; Yip 1995). Moreover, Neff (1999) posits that standardization is important for firm performance as it decreases the time of product to market by reducing the time needed in case of adaptation to local specifications.
doi:10.18775/ijied.1849-7551-7020.2015.13.2001 fatcat:b7tvl5zzzvfa5axr2upuyhn75e