¶ … Marketing Canon: Approaches Based on Principles for Influencing Decision Making in Firms
Operating in several geographical locations, quite a number of firms have many product lines, which many marketing scholars believe are ever confronted by myriad dilemmas. To facilitate consistent decision-making processes, it is vital for the firms to come up with overall but common marketing strategies while at the same time, it is very essential for firms to permit their employees the ease to make their specific circumstances suit marketing decisions. However, allowing such flexible measures always leads to challenges in making marketing decisions because everyone, including managers often project dissimilar mental pictures and models of marketing.
Existing literature suggest two approaches for formulating a common means to making decisions that provides different levels of flexibility. The first approach is that firms could depend on mechanical approaches that influence decisions made by stipulating standard modes of operations (Homburg and Furst, 2005). The second perspective provides that firms ought to nurture shared norms and values in employees such as information sharing and teamwork in order to arrive at correct decisions (Homburg and Furst, 2005).
Statement of the Problem
Although the suggested approaches are more flexible, they fall short of the influence they are supposed to give firm managers in the process of making marketing decisions (Homburg and Pflesser, 2000). This research suggests a third approach for formulating a common ground for tackling the apparent conflicting importance of flexibility and consistency. In this research this third approach is referred to as Marketing Canon which can be defined as: an organization's peculiar principles synthesized from its practices in order to provide guidance throughout the organization in making choices in market decisions.
Purpose of the Study
The study intends to evaluate the concept of Marketing Canon in detail by adding four contributions to the existing literature.
1.
Establish a formal definition of the construct deduced from an examination of the general idea of Canon from different literature sources where it is majorly used.
2.
Help firms with guidance on developing their own marketing canon
3.
Establish a conceptual framework that encompasses consequences and the antecedents of using the marketing canon
4.
Find out how using marketing canon and its performance relationship can influence the impact of three unsteady environments namely: structural flux, market turbulence and competitive intensity.
Research Question
How to apply peculiar principles of an organization accumulated from experiences and the related impacts?
H0: Why using marketing canon has uniform effects on broad contexts while in other contexts they are more valuable and have different gradations?
Ha: Can the use of market canon be applied across similar contexts and why they are more important in some contexts but vary in others?
Literature Review
Existing literature on making marketing decisions suggests that other influences include routines, values, and culture and market orientations in an organization (Homburg and Furst 2005). Market orientation means an organizations responsiveness, generation and dissemination of market intelligence (Jaworski and Kohli 1993).
The role of market orientation is to make a firm more focused on the competitors and the customers.(Narver and Slater 1990), while on the other hand the function of marketing canon is to provide guidance for marketing decision making, for instance, branding and segmentation in a uniformly consistent way in an organization. This concept is much more directional and specific, for example, positioning of a brand should consistently remain the same over time and across many regions. This differs from the accepted general trends in a market oriented organization.
Organizational culture refers to the values employees share amongst themselves depending on the rules of conduct provided by the organization (Deshpande and Webster 1989).Organizational values can be defined as widespread sets of beliefs about how people should act within the organization, for instance, matters relating to integrity and teamwork (Kabanoff, Waldersee, and Cohen 1995).
There are three ways in which marketing canon is different from organizational values and culture. To begin with, organizational values and culture impact on all employees by focusing on their conduct while marketing canon only touches on those who directly or indirectly make marketing decisions. Secondly, values and culture have distant and unrelated impacts on how marketing tasks perform (Sinkula, Baker, and Noordewier 1997), while marketing canon has a more direct influence. Thirdly, marketing canon basically indicates guidance from the experiences of the firm while culture and values reflect an unspecified manner of behavior (Challagalla, Murtha & Jaworski, 2014)
Routine refers to clear series of conduct for highly structured but simple problems (Bingham and Eisenhardt2011). For instance, where...
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