Literature review

Company marketing strategy is an important and crucial constituent for the global market.
Marketing strategies can vary from country to country, brand to brand and organization to
organization. In order to achieve a satisfactory and adequate marketing strategy which has a
positive outcome on global and overall firm success, the marketing department within a company
should bear in mind all the different marketing mix strategies that can influence the
comprehensive result and the cumulative firm success. When launching a product into foreign
markets companies can use a conventional marketing mix or adapt the existing marketing mix, to
satisfy the country they are carrying out their business activities in. the link between
standardization/adaptation and company performance is complicated and possibly influenced by
other factors (Shilke, Reiman, Thomas, 2009, Solberg, Durrieu, 2008). It should be emphasized
that the influence of standardization/adaptation decisions of international marketing strategy on
company performance is named also as one of the most topical research objects of international
business (Griffith, Cavusgil, Xu, 2008). Therefore inconsistent results of empirical research
works and limited research contexts confirm that the link between standardization/adaption
decisions of international marketing strategy and company performance are a topical object of
scientific research (Ryans, Griffith, White, 2003, Theodosiou, Leonidou, 2003). International
marketing solutions become particularly relevant for enterprises that operate in a global business
environment and that look for survival or business development opportunities. Latterly more
attention is given to the link between international marketing strategy and company performance
in scientific literature on the subject of international marketing (Samiee, Roth, 1992; Cavusgil,
Zou, 1994; ODonnell, Jeong, 2000; Katsikeas, Samiee & Theodosiou, 2006, Solberg, Durrieu,
2008; Shilke, Reiman, Thomas, 2009). Company performance is one of the most important
aspects when assessing the suitability of certain strategies (Jain, 1989). However, despite the
importance of international marketing strategy for company performance, the number of
scientific research works that analyse the mentioned link is limited, and results of the research
works are contradictory (Katsikeas, Samiee & Theodosiou, 2006.). By conducting etailed
literature review we will explore the concept of marketing strategy discussing its value,
consequently creating foundation for a conceptual model and empirical study.
Marketing strategy is a significant driving force that distinguishes the success of many
organizations not only by well-developed marketing strategies outlining where, when, and how
the firm will compete but also by their ability to execute the marketing strategy decision options
chosen (e.g. Day and Wensley 1988; Varadarajan 2010). The appropriate and effectively
implemented marketing strategies are required to productively guide the deployment of the
limited available resources via the firms marketing capabilities in pursuit of desired goals and
objectives (Black and Boal 1994; Varadarajan and Clark 1994). The literature reveals two
distinct but related features to marketing strategy content: marketing strategy decisions and
marketing strategy decision implementation. Hence, decision makers responsible for the
marketing strategy must select which available resources the firm should deploy, where to
deploy them appropriately, and set and signal priorities in terms of achieving the various goals
and objectives of the firm (Slater 1995). These marketing strategies toward firm performance
may be either formal, top-down strategies (Varadarajan and Clark 1994) or emergent or
improvisational strategies (Moorman and Miner 1998). A firms marketing strategy content
therefore involves explicit or implicit decisions regarding goal setting, target market selection,
positional advantage to be pursued, and timing to attain firm performance (e.g., Day 1994;
Varadarajan 2010). Well-defined strategic marketing objectives are critical feature of marketing
strategy in which managers must make decisions about what the objectives and priorities of the
firm are, translate these objectives and vision of the firm into marketing-related goal criteria, and
set and articulate the desired achievement levels on each goal. This can be complicated to realize
by the fact that many goal criteria and levels may be incompatible or at least non-complementary
in the pursuit of achieving firm performance. For instance, the firms growth revenue and margin
growth are difficult to achieve simultaneously (Morgan et al. 2009). Managers, therefore, have to
prioritize objectives that may be in conflict. Since most definitions of strategy concern plans for
how desired objectives are to be achieved, such goal setting is clearly important in determining
subsequent marketing strategy content decisions. Indeed such goal selection decisions may be
one of the most important manifestations of strategic choice within the marketing strategy
content (Child 1972). Another important feature of marketing strategy content is the selection of
the market. This deals with the segmentation and targeting decisions of the classic STP
framework of marketing strategy, which revolves on market segmentation, target and
positioning. Specifically, this marketing strategy content decision determines where the firm will
seek to compete in order to meet the strategic marketing objectives stipulated. Value
proposition is also a significant feature of the marketing strategy as it is responsible for the
choosing of the specific product and/or service offerings to be delivered into the target market
with the objective of exceeding the customers expectations (Slater 1995). The decision
surrounding the value proposition is therefore a measurement of the value offering that managers
consider will create adequate demand at required price points among target customers to allow
the firm to achieve its strategic marketing objectives arranged to total firm performance. The
assumption here is that the value proposition can be delivered by the firm as envisaged and that
the delivered value proposition is perceived by customers in the way that decision makers
anticipate in getting positive returns. This decision of the marketing strategy content therefore
determines which specific resources and capabilities are required to be combined and
transformed to develop and deliver the value offering that consequently leads to firm
performance. In order for a marketing strategy to offer subsequent amount of value and achieve
performance it should be well-timed with market requirements. Therefore, Timing is an
important marketing strategy decision when examining new market targets or value propositions
is the timing of entry or launch (e.g., Green et al. 1995; Lieberman and Montgomery 1998).
Nonetheless, even if a marketing strategy does not involve such changes to target markets or
value propositions, timing is still an important component of most marketing strategies
especially in nowadays-rapid changing consumer tastes and preferences, which are accelerated
by ever changing technologies. Literature reveals that most firms also have specific timeframes
associated with their strategic marketing goals or regular planning horizons that provide time
objectives and constraints within which marketing plans may be formulated and executed. Such
important time considerations can often impact other marketing strategy content decisions. For
example, when a marketing strategy must be developed to deliver a return on investment in 1
year versus 2 years, then different market segmentation, targeting, and value proposition
decisions may be appropriate (e.g., Green et al. 1995).

Literature reveals that most studies concentrate on factors that influence the selection of a certain
strategy, and they seek to recognize forces that stimulate standardization or adaptation.
Nevertheless, the validity of the choice of standardization or adaptation strategy is determined by
its potential to improve company performance (Samie & Roth, 1992). Jain (1989) states that
suitability of an international marketing strategy is confirmed by the strategys influence on the
company performance economic and strategic benefit, received due to implementation of the
chosen strategy.

Adaptation transpires when firms adjust their market strategies when entering foreign markets,
even in an era of globalization where many brands and products are nearly universally prevalent.
Those adaptation decisions cleave into an adaptation strategy that can influence the firms
competitiveness and, in turn, its performance in foreign markets in terms of sales, financial and
customer performance. Adaptation strategies encompass changing the pricing method,
promotional mix and packaging of a product, or even the product itself, in order to fit the needs
and preferences of a particular export market. Adaptation happens when any element of the
marketing strategy is modified to achieve a competitive advantage when entering a foreign
market and thus attain firm performance. Adaptation strategies may not be so complex but a
simple tweaking of the logo and the colours of the packaging can achieve the marketing
objectives, or may involve developing new products better fitted to the local palate or new
financing models more fitting for the local economy or market. Proponents of the international
marketing adaptation approach, emphasize the significance of customization to meet varied
customer requirements. The central basis of the adaptation school of thought is that when
entering a foreign market, marketers must consider all environmental factors and constraints
such as religion, language, climate, race, occupations, education, taste, different laws, cultures,
and societies (Czinkota and Ronkainen, 1998). However, researchers have distinguished
important source of constraints that are hard to measure such as cultural differences rooted in
history, education, religion, values and attitudes, manners and customs, aesthetics as well as
variations in taste, needs and wants, economics and legal systems in the export markets. In
adaptation approach multinational companies should have to find out how they must adjust an
entire marketing strategy and, including how they sell, distribute it, in order to fit new market
demands (Vrontis and Thrassou, 2007). It is crucial for marketers to adjust the marketing mix
and marketing strategy to suit local tastes, meet special market needs and consumers non-
identical requirements (Vrontis and Thrassou, 2007). The mechanisms to implementing a
successful adaptation strategy as a follow; once a firm has taken the strategic decision to adapt its
marketing strategy, it must make an assessment of its objectives and resources in light of the
characteristics of the new foreign market it is entering. At this stage, the input from experts
familiar with the new market is crucial in developing an effective strategy. In the example of a
new product introduction in the domestic market, the adapted marketing strategy must be
articulated in terms of the marketing strategy elements namely product, price, distribution and
promotional aspects, all coordinated to achieve specific objectives within the new market.

The opposite of adaptation is standardization approach of marketing. Firms following a