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The Performance of the Global Marketing - Essay Example

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Summary
Marketing has been traditionally a customer oriented task, and it should be so. Nevertheless, the growing importance of the financial function in the company requires the attention of marketers to this aspect.
To secure corporate-level influence, marketing must develop tools to quantify its contribution to firm growth and profitability…
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The Performance of the Global Marketing
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The Performance of the Global Marketing

Download file to see previous pages... In this regard, studies that serve the purpose of linking marketing activities to firm performance and stock value are exceedingly necessary. Undoubtedly these have been reasons for the Marketing Science Institute to list Marketing Metrics among top research priorities.
The organization of this proposal is the following. Firstly, a description of the project is presented. Secondly, the methodology is proposed. Thirdly, an approximated time schedule of research is developed. Finally, a provisional table of contents is suggested.
In reference to academic relevance, this research pretends to support empirical evidence to the field of marketing metrics in a global context. The suggestion of Rust et al. (2004) about search for empirical support to the chain of marketing activities has been taken into account.
According to Holmstrom and Tirole's (1989:65) definition, a theory of the firm must address two central questions: (a) why firms exist, and (b) what determines their scale and scope. In the case of this thesis proposal, there are two theoretical perspectives central to explaining the relationship between Marketing Strategy and firm's performance in a global context: the Industrial Organization (IO) Theory and the Resource-Based View (RBV) Theory. Both of them postulate that the purpose of the firm is to maximize profits. Having fulfilled the first question of Holmstrom and Tirole (1989:65), the logic of this theoretical framework is to connect the drivers of the two theories to the relationship between marketing strategy and firm's performance.
2.1.1. Industrial Organization Theory
The IO theory focuses on the external market to identify drivers of a firm's strategy which will consequently affect its performance (Zou and Cavusgil 2002). According to the IO framework, external market and industry environment (structure) determines a firm's strategy (conduct), which in turn determines its performance (Porter 1980).
Under IO theory, the development of the marketing strategy has to allow for the structure of the external market and industry, hence being coaligment to environment for getting positive effects on performance (Venkatraman and Prescott 1990) and survive and prosper (Collis 1991).
2.1.2. Resource-Based View ...Download file to see next pagesRead More
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