Menon-AntecedentsConsequencesMarketing-1999

Introduction

  • The article discusses the process of marketing strategy making (MSM) and its impact on firm performance. The study by Menon et al. addresses existing gaps in research about the processes involved in marketing strategies, distinguishing between formulation and implementation.

Objectives and Contributions

  • The study aims to provide:

    • A multifaceted conceptualization of MSM.

    • A model linking the antecedents and consequences of MSM.

    • Empirical test of this model based on data from over 200 marketing decisions.

Key Findings

  • Innovative culture is a key antecedent for effective MSM.

  • Components of MSM impact various outcomes: strategy creativity, organizational learning, and market performance.

  • Strategy creativity mediates the relationship between marketing strategies and performance outcomes.

Theoretical Framework

  • The authors highlight a lack of understanding about how strategies are formulated and discuss the dichotomy in marketing strategy research, namely:

    • Rational Planning: Focused on deliberate formulation of strategies by specialized groups.

    • Incremental Planning: Emphasizes emergent strategies within organizations.

Components of MSM

  • The study identifies seven components for effective MSM:

    1. Situational analysis

    2. Comprehensiveness

    3. Emphasis on marketing assets and capabilities

    4. Cross-functional integration

    5. Communication quality

    6. Consensus commitment

    7. Resource commitment

Methodology

  • The research methodology consisted of:

    • Discovery-oriented model development which included qualitative and quantitative testing.

    • Data collection through surveys targeting senior management in Fortune 1000 companies.

Organizational Context

  • Discussion on the organizational context focusing on two main factors:

    1. Centralization: The influence of decision-making authority on MSM.

    2. Formalization: How rules and procedures impact strategy planning.

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Centralization Findings

  • Mixed results; while centralization supports resource allocation, it may hinder situational analysis and comprehensiveness.

Formalization Findings

  • Enhances aspects like cross-functional integration and communication quality.

Innovative Culture's Role

  • Innovative culture is essential for:

    • Enhancing situational analysis and comprehensiveness.

    • Encouraging communication and consensus.

    • Fostering creativity within the strategy-making process.

Outcomes of MSM

  • The study finds significant positive effects of:

    • Situational analysis on organizational learning and creativity.

    • Comprehensiveness on market performance and creativity.

  • It also cautions against excessive emphasis on historical marketing assets, which could hinder creativity.

Conclusion and Implications

  • The findings emphasize the importance of a holistic approach to strategy making, highlighting how organizational culture, resources, and process components significantly affect marketing outcomes.

  • Recommendations for future research include investigating the creation of innovative cultures and the factors that enhance marketing strategy creativity.