The success of the firm/organization can be attributed to several interdependent factors that is able to create value for its customers (Porter 1980, 1985) while its ability to supply the demand of its customers efficiently and effectively is tantamount to its survival and reaching its objectives (Peteraf and Barney 2003). This part will examine theories and models that seek to explain firm-related factors that lead to the firm’s success.
3.6.1. Product Theories
Product Life Cycle Theory
The Product Life Cycle theory dictates that products follow a 4- stage cycle (S-Curve) during its lifetime. Several forms have emerged with modifications and different focuses such as applications in international trade (Hirsch, 1965, 1967, Wells 1968, Vernon …show more content…
Borden (1964) coins the term “ Marketing Mix” and presented 12 factors that affect management decision-making in this domain. Likewise, he cited external forces that affect marketing strategy. McCarthy and Perreault (1960, 2002) developed the model and factors namely product, place, price and promotion that is presently in widespread adoption. Briefly these are as follows: 1) The product is a tangible or intangible good offered to satisfy a need the client. 2) Place pertains to the product’s distribution channels, its accessibility, availability and placement. 3) Price is simply what is paid in exchange for the service/good. It is important due to its effect on financial aspects of the firm and customer’s value perception while 4) Promotion is comprised of advertising, sales promotion, publicity and selling …show more content…
This approach determines that organizations with a market-orientation perform better than those that do not (Jaworski and Kohli 1993, Day 1994, Maydeu-Olivares and Lado 2003, Kumar et al 2011). Kumar et. al (2011) goes further by differentiating and analyzing performance based on a firm’s market strategy. Day (1994) describes market-driven organizations as having capabilities in market sensing, customer linking and channel bonding. Enabling the organizations to have a superior performance. The organization’s culture and performance importance stems from stimulating positive behavior that influences its efficiency and effectiveness (Slater and Narver 1995). Jaworski and Kohli (1993) focus on the organization’s responsiveness to adapting its products and services to fit the customers’ expectations. Further, Understanding and serving customers’ short and long-term needs while considering circumstances in the industry and competitors’ moves are vital for the firm (Day and Montgomery
3.6.1. Product Theories
Product Life Cycle Theory
The Product Life Cycle theory dictates that products follow a 4- stage cycle (S-Curve) during its lifetime. Several forms have emerged with modifications and different focuses such as applications in international trade (Hirsch, 1965, 1967, Wells 1968, Vernon …show more content…
Borden (1964) coins the term “ Marketing Mix” and presented 12 factors that affect management decision-making in this domain. Likewise, he cited external forces that affect marketing strategy. McCarthy and Perreault (1960, 2002) developed the model and factors namely product, place, price and promotion that is presently in widespread adoption. Briefly these are as follows: 1) The product is a tangible or intangible good offered to satisfy a need the client. 2) Place pertains to the product’s distribution channels, its accessibility, availability and placement. 3) Price is simply what is paid in exchange for the service/good. It is important due to its effect on financial aspects of the firm and customer’s value perception while 4) Promotion is comprised of advertising, sales promotion, publicity and selling …show more content…
This approach determines that organizations with a market-orientation perform better than those that do not (Jaworski and Kohli 1993, Day 1994, Maydeu-Olivares and Lado 2003, Kumar et al 2011). Kumar et. al (2011) goes further by differentiating and analyzing performance based on a firm’s market strategy. Day (1994) describes market-driven organizations as having capabilities in market sensing, customer linking and channel bonding. Enabling the organizations to have a superior performance. The organization’s culture and performance importance stems from stimulating positive behavior that influences its efficiency and effectiveness (Slater and Narver 1995). Jaworski and Kohli (1993) focus on the organization’s responsiveness to adapting its products and services to fit the customers’ expectations. Further, Understanding and serving customers’ short and long-term needs while considering circumstances in the industry and competitors’ moves are vital for the firm (Day and Montgomery