MARKETING STRATEGY
Summary of all obligatory papers + knowledge clips
MSC Marketing
Academic year 2021 – 2022, period 2
VU Amsterdam School of Business and Economics
Tutor: Nico Wiegand
Victor van der Leij
,Inhoud
Olson et al. (2005): The performance implications of fit among business strategy, marketing
organization structure and strategic behaviour..................................................................................2
Hamilton: Low prices are just the beginning: price image in retail management...............................9
Non price drivers of price image.......................................................................................................10
Price image: the measurement of price image.................................................................................13
Binken & Stremersch: The effect of superstar software on hardware sales in system markets.......14
Wichman, Wiegand, Reinartz: The plafformization of brands..........................................................20
McGrath: transient competitive advantage......................................................................................27
Sandel: Market reasoning as moral reasoning: why economics should re-engage with political
philosophy........................................................................................................................................30
MS: Summary of the knowledge clips:..................................................................................................35
Week 2: The playing field.................................................................................................................35
Week 2: price leadership..................................................................................................................42
Week 2: Quality leadership...............................................................................................................49
Week 2: Hybrid strategy & stuck in the middle................................................................................53
Week 2: time leadership...................................................................................................................54
6: missed...........................................................................................................................................59
7: The rules of the game:..................................................................................................................59
Week 4: Ethics:.................................................................................................................................60
Deontology and Utilitarianism..........................................................................................................60
,Olson et al. (2005): The performance implications of fit among
business strategy, marketing organization structure and strategic
behaviour.
Abstract: the authors posit and test a model that states that the overall performance of a firm is
influenced by how well the marketing organisations structural characteristics (formalization,
centralization, and specialisation), and strategic behavioural emphasis (customer, competitor,
innovation, and cost-control) complement alternative business strategies (prospector, analyser, low-
cost defender, and differentiated defender). The authors found evidence for the idea that each
strategy type requires a different combination of marketing organization structures and strategic
behaviour.
Intro
Firm performance is determined,
in part, by how effectively the
firm’s business strategy is
implemented. This paper
examines the combined effect of
the influences of strategy and
organization structure on firm
performance. The authors expect
that the relationship between
marketing organization structure
and strategic behaviour
(predictors) and firm performance
is moderated by the business
strategy of the firm. This is
described as the “fit as
moderation” perspective.
Central to the contingency (best
suited for a certain situation) of strategy is that different systems are dependent on each other.
Coordination between these systems create a steady strategy. This system has two important
characteristics:
Adaptation: manager may adapt the organization’s strategy if changes in the external environment
call for it.
Equifinality: superior organizational performance can be achieved trough a variety of different
strategies and overall firm performance is less dependent on a specific strategy.
By considering these two separate IV’s at the same time , the authors attempt to develop better
understanding of both their individual and relative influence of overall firm performance, while
keeping with the basic model of strategy implementation.
, Theory:
Business strategy: how do firms compete in an market? Miles and Snow (1978) identified 4 business
strategies companies can adopt to achieve competitive advantages:
1. Prospectors: continuously attempt to locate and exploit new product and market
opportunities
2. Defenders: attempt to seal off a portion of the total market to create a stable set of products
and customers
3. Analysers: occupy an intermediate position by cautiously following prospectors into new
product-markets.
4. Reactors do not have a consistent response to the entrepreneurial problem
This “old school” approach to market strategy is somewhat adopted by the authors as it is combined
with the view of Porter (1980). Porter focusses much more on external market (developing
competitive advantage) while Miles and Snow focus on the internal strengths of the company.
Therefore, the authors propose a hybrid form of these strategies:
1. Prospectors: continuously attempt to locate and exploit new product and market
opportunities
2. Low cost-defenders: attempt to seal off a portion of the total market to create a stable set of
products and customers
3. Differentiated defenders: uses moderately innovative products that are sold slightly lower
than highly innovative products. They focus on retaining customers through excellent service
and quality. However, these companies still focus on costs.
4. Analysers: occupy an intermediate position by cautiously following prospectors into new
product-markets.
Reactors are not researched.
Organizational structure: established to coordinate work that has been divided into smaller tasks.
Different business strategies have different structural designs. Alternative forms for structure are
defined by three structural constructs:
1. Formalization: the degree to which formal rules and procedures are followed. Rules and
procedures ask for appropriate behaviour and routines. Rules enable people to activities for
the benefit of the organization. This can all lead to increased efficiency. Highly formal
companies are sometimes called “mechanic”, the opposite, non-formal companies are called
“organic”. Benefits for organic (horizontal) companies are that they are quickly aware
changes and can quickly respond to them.
2. Centralization: is decision authority closely held by top manager or is it delegated to
middle/lower level managers. In centralised organisations, communication lines are relatively
clear and the route for final approval is quick. In decentralised organisations, a variety of
ideas and views can immerge. Decision making is longer in these organisations. Over the long
term a decentralised organisation will produce more new ideas and more actual program
changes than a centralized organisation.
3. Specialization: the degree to which tasks and activities are divided in the organisation and
the degree to which workers have control in conducting those tasks. Specialist are experts in
their fields and are typically given a lot of authority to determine the best approach for a
Summary of all obligatory papers + knowledge clips
MSC Marketing
Academic year 2021 – 2022, period 2
VU Amsterdam School of Business and Economics
Tutor: Nico Wiegand
Victor van der Leij
,Inhoud
Olson et al. (2005): The performance implications of fit among business strategy, marketing
organization structure and strategic behaviour..................................................................................2
Hamilton: Low prices are just the beginning: price image in retail management...............................9
Non price drivers of price image.......................................................................................................10
Price image: the measurement of price image.................................................................................13
Binken & Stremersch: The effect of superstar software on hardware sales in system markets.......14
Wichman, Wiegand, Reinartz: The plafformization of brands..........................................................20
McGrath: transient competitive advantage......................................................................................27
Sandel: Market reasoning as moral reasoning: why economics should re-engage with political
philosophy........................................................................................................................................30
MS: Summary of the knowledge clips:..................................................................................................35
Week 2: The playing field.................................................................................................................35
Week 2: price leadership..................................................................................................................42
Week 2: Quality leadership...............................................................................................................49
Week 2: Hybrid strategy & stuck in the middle................................................................................53
Week 2: time leadership...................................................................................................................54
6: missed...........................................................................................................................................59
7: The rules of the game:..................................................................................................................59
Week 4: Ethics:.................................................................................................................................60
Deontology and Utilitarianism..........................................................................................................60
,Olson et al. (2005): The performance implications of fit among
business strategy, marketing organization structure and strategic
behaviour.
Abstract: the authors posit and test a model that states that the overall performance of a firm is
influenced by how well the marketing organisations structural characteristics (formalization,
centralization, and specialisation), and strategic behavioural emphasis (customer, competitor,
innovation, and cost-control) complement alternative business strategies (prospector, analyser, low-
cost defender, and differentiated defender). The authors found evidence for the idea that each
strategy type requires a different combination of marketing organization structures and strategic
behaviour.
Intro
Firm performance is determined,
in part, by how effectively the
firm’s business strategy is
implemented. This paper
examines the combined effect of
the influences of strategy and
organization structure on firm
performance. The authors expect
that the relationship between
marketing organization structure
and strategic behaviour
(predictors) and firm performance
is moderated by the business
strategy of the firm. This is
described as the “fit as
moderation” perspective.
Central to the contingency (best
suited for a certain situation) of strategy is that different systems are dependent on each other.
Coordination between these systems create a steady strategy. This system has two important
characteristics:
Adaptation: manager may adapt the organization’s strategy if changes in the external environment
call for it.
Equifinality: superior organizational performance can be achieved trough a variety of different
strategies and overall firm performance is less dependent on a specific strategy.
By considering these two separate IV’s at the same time , the authors attempt to develop better
understanding of both their individual and relative influence of overall firm performance, while
keeping with the basic model of strategy implementation.
, Theory:
Business strategy: how do firms compete in an market? Miles and Snow (1978) identified 4 business
strategies companies can adopt to achieve competitive advantages:
1. Prospectors: continuously attempt to locate and exploit new product and market
opportunities
2. Defenders: attempt to seal off a portion of the total market to create a stable set of products
and customers
3. Analysers: occupy an intermediate position by cautiously following prospectors into new
product-markets.
4. Reactors do not have a consistent response to the entrepreneurial problem
This “old school” approach to market strategy is somewhat adopted by the authors as it is combined
with the view of Porter (1980). Porter focusses much more on external market (developing
competitive advantage) while Miles and Snow focus on the internal strengths of the company.
Therefore, the authors propose a hybrid form of these strategies:
1. Prospectors: continuously attempt to locate and exploit new product and market
opportunities
2. Low cost-defenders: attempt to seal off a portion of the total market to create a stable set of
products and customers
3. Differentiated defenders: uses moderately innovative products that are sold slightly lower
than highly innovative products. They focus on retaining customers through excellent service
and quality. However, these companies still focus on costs.
4. Analysers: occupy an intermediate position by cautiously following prospectors into new
product-markets.
Reactors are not researched.
Organizational structure: established to coordinate work that has been divided into smaller tasks.
Different business strategies have different structural designs. Alternative forms for structure are
defined by three structural constructs:
1. Formalization: the degree to which formal rules and procedures are followed. Rules and
procedures ask for appropriate behaviour and routines. Rules enable people to activities for
the benefit of the organization. This can all lead to increased efficiency. Highly formal
companies are sometimes called “mechanic”, the opposite, non-formal companies are called
“organic”. Benefits for organic (horizontal) companies are that they are quickly aware
changes and can quickly respond to them.
2. Centralization: is decision authority closely held by top manager or is it delegated to
middle/lower level managers. In centralised organisations, communication lines are relatively
clear and the route for final approval is quick. In decentralised organisations, a variety of
ideas and views can immerge. Decision making is longer in these organisations. Over the long
term a decentralised organisation will produce more new ideas and more actual program
changes than a centralized organisation.
3. Specialization: the degree to which tasks and activities are divided in the organisation and
the degree to which workers have control in conducting those tasks. Specialist are experts in
their fields and are typically given a lot of authority to determine the best approach for a
