The Role of Marketing and Its effect on Organization performance, an Egyptian

Experience

BY
Ayman Emam Mohamed

Supervisor: Dr. Rafaat Youssef Shehata

A Thesis Presented in Partial Fulfillment of the Requirements for

The Degree Master’s of business administration
(MBA)

International Business School Scandinavia

IBSS

Month / Year

1
 ABSTRACT

Purpose –The aim of the study is to describe the role of marketing strategy and its effects
on organization performance in Egypt.

Design/methodology – This study is a (causal) include hypothesis testing operated in

(contrived) setting to describe the role of Marketing as (independent variable) on
organization performance (dependent variable) in Egypt with minimal interference from the
researcher.

Questionnaires are the main sources to collect primary data reference books, recent
journals, trusted internet web sites and IMS data…..etc. are the main dependent in collecting
secondary data.

The researcher depends on the individual as a unit of analysis. This study is cross sectional
study as data is collected once a time.

The researcher takes samples (Massive Dynamic X and Tabarak Holding as a respondents)
to answer questionnaires and a sample (respondents) to in-depth interview. The researcher
depends on stratified sampling process to answer questionnaires and divides the whole
population into strata according to the regional classification and takes random sample from
each stratum and depends on quota sampling to make the in-depth interviews.

Conclusion
In general, strategic marketing is major important element in success of organization,
marketing effect on organization performance in profitability, positioning, branding and
employee’s performance, this success will happen in case that the top management co-
operate with marketing management to create, formulate, implement a strategic marketing
plan coherence, integrate and complete with strategic business plan, that generate
marketing strategy with marketing orientation, marketing innovation. This approach should
be under the scope of mixing the theoretical and applicable concepts to fit the organization’s
requirements and to achieve organization’s objective. By get “Concept” phase to “tangible”
phase. That concept phase is all the definitions, theories, models, researches on paper,
2
while tangible practical, applicability, programs, activity and real changeable and corrective
actions. In this way the existence of marketing and process of developing marketing
activities will achieve.

Research limitations

The relationship between marketing and R&D didn’t tested in the research, because the
samples did not include organization in industries that has a proper R&D that can present
the require clear image about how marketing effect on R&D, and how R&D effect on
marketing. Also the research didn’t present the relationships between variables in
international business organizations, it recommended to present research about how
marketing strategy effects on international business performance.

Keywords:
Strategic Marketing - Marketing Strategy- Marketing Elements-4Ps - Marketing
Approach- Market Orientation- Marketing Innovation- - -Marketing implementation-
Organization Performance.

3
 Table of contents

CHAPTER ONE –1– Introduction .............................................................................................................. 8

1. CHAPTER ONE –1– Introduction ...................................................................................................... 9
1.1. Purpose of the study ............................................................................................................... 9
1.2. Research problem .................................................................................................................... 9
1.3. Research objectives: ............................................................................................................... 9
1.4. Importance of the study ........................................................................................................ 10
1.5. Structure of the study ............................................................................................................ 10
1.5.1. Chapter -1- Introduction .................................................................................................... 10
1.5.2. Chapter -2-Literature review ............................................................................................ 10
1.5.3. Chapter -3- Methodology .................................................................................................. 11
1.5.4. Chapter-4- Research findings and data analysis: ...................................................... 12
1.5.5. Chapter-5-Conclusion and recommendations: .......................................................... 12
Chapter two-2- Literature review ............................................................................................................ 13
1. Chapter two-2- Literature review: ................................................................................................... 14
Chapter three –3- Research methodology ........................................................................................... 41
3. Chapter three –3-Research methodology .................................................................................... 42
3.1. Research Hypothesis............................................................................................................. 42
3.2. Research design ..................................................................................................................... 44
3.2.1. Purpose of the study ......................................................................................................... 44
3.2.2. Type of investigation ......................................................................................................... 45
3.2.3. Extent of researcher interference................................................................................... 45
3.2.4. Study setting ........................................................................................................................ 45
3.2.5. Unit of analysis .................................................................................................................... 46

4
 3.2.6. Time horizon ........................................................................................................................ 46
3.3. Data collection methods ....................................................................................................... 46
3.3.1. Secondary data ................................................................................................................... 46
3.3.2. Primary data ......................................................................................................................... 46
3.4. Sampling process ................................................................................................................... 49
3.4.1. Questionnaire sampling process ................................................................................... 49
3.4.2. In –depth interview (IDI) sampling process ................................................................. 49
Chapter four-4-Research findings and data analysis ....................................................................... 51
4. Chapter four-4-Research findings and data analysis ................................................................ 52
4.1. Qualitative analysis ................................................................................................................ 52
Chapter five-5-Conclusion and recommendation .............................................................................. 56
5. Chapter five – Conclusion and recommendation ....................................................................... 57
5.1. General conclusion ................................................................................................................ 57
5.2. General recommendation ..................................................................................................... 57
Bibliography ................................................................................................................................................... 58

5
 List of tables

Table 1: ……………………………………………………………………………………Page ..

Table 2: ……………………………………………………………………………………………

Table 3: ............................................................................................................................

Table 4: ............................................................................................................................

Table 5: ….........................................................................................................................

Table 6: .............................................................................................................................

Table 7: .............................................................................................................................

6
 List of figures

Figure 1: ................................................................................................................ Page..

7
CHAPTER ONE –1– Introduction

8
1. CHAPTER ONE –1– Introduction

1.1. Purpose of the study

Showing the deference between strategic marketing and marketing strategy, market
orientation and market innovation, and the relationship between marketing and other
departments from completion and integration vie, putting some barriers that face the
Egyptian organization under the spot, and examine the hypotheses throw show case
study.
Testing the hypothesis of the research, for a long time the company in Egypt confused
between selling and marketing approach (of course the small and medium business). even
the objectives of both Marketing and selling was merged and declare in one goal, selling
the product. For this reason, both departments were one department with one manager
and we find one job description and responsibility for both departments in one department.
Job haunting in newspaper seeks for “manager of marketing and sells department”. This
will not be a problem if one department do the both function, but acutely we find absence
of marketing approach.

Then after rise of new generation of CEOs and Top executive officers that have well
education and professional certificates like MBA degree, the structure of business takes a
new shape in Egypt.

1.2. Research problem

Massive Dynaimc X is software company suffering from low employee performance and low
sales turnover which decrease the margin profit, that lead to investigate the reasons behind
these issues and the researcher declare hypothesis that absence of marketing is related to
the mention issues.

1.3. Research objectives:

In order to achieve the purpose of this study, the following questions should be answered.
Is the marketing approach can save the organization’s situation or change it from weak to
strong? How can strategic marketing and marketing strategy can be part of strategic plan
for the organization? What kind the relationship between marketing department and other
department inside the organization? Witch of other department more effects on marketing
department inside the organization? What the barriers that face market department and the
barriers that related to marketing and face the top management inside the organization?

9
1.4. Importance of the study

This study will focus on major elements of marketing approach from real experience
of some case studies, that will help other who care about this field to find a coherence
answer to their questions, and vision about role of marketing and how it effects on
organization performance, also this study will open ways to other studies to answer
some questions or present argument as a critical respond to this study. Also to add
to the academic library an Egyptian experience.

1.5. Structure of the study

The study consists of five chapters closely related and each chapter is dependent on
the previous one, so that finally we will be able to answer the main research question.

1.5.1. Chapter -1- Introduction

It includes a discussion about the purpose of the study to find out the research
problem after that the introduction discusses the research objectives and importance
of the study, finally the end of this chapter includes the structure of the study.

1.5.2. Chapter -2-Literature review

Literature review: passing through the history of researches related to my topic from
accredited source like Reference books, recent journals and trusted internet web
sites. The literature review is divided into two main parts represent the keywords of
the research 1- marketing (as in-depended variable) 2- organization performance (as
depended variable)

1- Marketing: literature includes the definition of term “Marketing” from the academic
point of view, and then it goes to explain the Marketing: “Marketing is the science and
art of exploring, creating, and delivering value to satisfy the needs of a target market
at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures
and quantifies the size of the identified market and the profit potential. It pinpoints
which segments the company is capable of serving best and it designs and promotes
the appropriate products and services.” Kotler
2- Organization performance: the second keyword in this research. The same way as
the first keyword started with the academic meaning of organization performance,
10
 Organizational performance comprises the actual output or results of
an organization as measured against its intended outputs (or goals and objectives).
organizational performance encompasses three specific areas of firm outcomes: (a)
financial performance (profits, return on assets, return on investment, etc.); (b)
product market performance (sales, market share, etc.); and (c) shareholder return
(total shareholder return, economic value added, etc.). Richard et al. (2009).
1.5.3. Chapter -3- Methodology
It describes the methodology used in the research, highlighting the data collection
methods.

1.5.3.1. Purpose of the study

Describe the role of marketing and its effect on organization performance in Egyptian
market.

1.5.3.2. Type of investigation:

This study is a causal study (hypothesis testing) to be able to find the impact of
Marketing on organization performance in Egypt

1.5.3.3. Extent of researcher interference

This study is done with minimum interference from the researcher.

1.5.3.4. Study setting

This study is done in a contrived setting.

1.5.3.5. Unit of analysis

This study depends on the individual as the unit of analysis.

1.5.3.6. Time horizon

The study is cross-sectional study.

1.5.3.7. Sampling process

To collect primary data, the researcher depends on the stratified sampling process to
answer questionnaires in which the population represents Egyptian people in
11
 different scales and have different tastes to answer the listed questions in
questionnaire.
IDI sampling process depends on quota sampling process based on regional
classification then selects judgmentally who will be the candidates to the IDI.

1.5.4. Chapter-4- Research findings and data analysis:

This chapter includes the primary data analysis which is collected by customers’
questionnaires and IDI. The researcher depends on Excel software program to
analyze the collected data.

1.5.5. Chapter-5-Conclusion and recommendations:

This chapter contains all findings after analyzing primary and secondary data and
includes the overall answers about the research questions.

12
Chapter two-2- Literature review

13
1. Chapter two-2- Literature review:

The purpose of this chapter is present the concept of marketing in relation with other
diminution in organization performance, under frame work of strategic marketing and its
effect on organization performance.

In 1973 Drucker define Strategic Marketing as ““Strategic marketing as seen as a process

consisting of: analyzing environmental, market competitive and business factors affecting
the corporation and its business units, identifying market opportunities and threats and
forecasting future trends in business areas of interest for the enterprise, and participating in
setting objectives and formulating corporate and business unit strategies. Selecting market
target strategies for the product-markets in each business unit, establishing marketing
objectives as well as developing, implementing and managing the marketing program
positioning strategies in order to meet market target needs”. (Drucker 1973). During the
years and efforts from many researchers, many definitions added to academic library. Kotler
define Strategic Marketing as ““the selection of target markets, the marketing mix and the
marketing expenditure levels, the marketing strategy is the way in which the marketing
function organizes its activities to achieve a profitable growth in sales at a marketing mix
level, a marketing strategy may be defined as a plan (usually long term) to achieve the
organization’s objectives as follows: a) By specifying what resources should be allocated to
marketing. b) By specifying how these resources should be used to take advantage of
opportunities which are expected to arise in the future. While marketing strategy itself would
consist of the following: a. Identifying markets and customers’ needs in those markets. b.
Planning products which will satisfy the needs of these markets. c. Organizing marketing
resources, so as to match products with customers in the most efficient and effective way
possible to maximize customer satisfaction and the organizations profits or sales revenue”.
(Kotler 1997).

From many other definitions the researcher chose these two definitions because, the first
one give an overview concept to how and why to build a strategic marketing, it seems like
steps or guideline which make the definition more strong and competitive specially if put in
consideration that this specific definition was the base that help other researcher to develop
their definitions, while the other definition of Kotler, take the general overview and analyze
14
the complex and take off the definition to many parts that will help management to
understand and produce a strategic marketing linked and coherence with other business
objectives. In another hand the researcher thinks that strategic marketing also considering
as a way to take decisions, guideline for management to do the right decisions. Strategic
marketing assesses the organization position in the market, strengths, weaknesses,
opportunities and threats, assess the competition in the market, and identify critical
challenge and crucial issues that may be will face the organization in the future, take a
corrective action.
There are different marketing activity and marketing strategies used by organization to
enhance their performance in market and to market their products or services, the
researcher will examine the concept of marketing and the relationship between marketing
strategy, market orientation, market innovation and the organization performance.

In modern business world, marketing focus reflect the move away from transactional
marketing to relationship marketing. Establishing, maintaining and enhancing customer
relationships have always been an important aspect of business (Velnampy and Sivesan,
2012).
“Marketing is the science and art of exploring, creating, and delivering value to satisfy the
needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It
defines, measures and quantifies the size of the identified market and the profit potential. It
pinpoints which segments the company is capable of serving best and it designs and
promotes the appropriate products and services” (Kotler).

The term of marketing suggests that “Marketing is the management process responsible for
identifying, anticipating and satisfying consumer requirements profitably” (Kotler). While
term of strategic marketing means to deep down with framework of marketing and strategy.
strategic marketing is then positioned somewhere in the middle ground between more
established concepts, such as generic competitive strategies (Porter, 1980) and marketing
framework (Kotler, 2003).

2.1 Marketing strategies

The main goals marketing strategies for any organization are create brand awareness, fill
market needs, increased market share and increase shareholder’s value, enhance the
opportunity of growth. “Marketing new products keeps customers aware of new offerings;
for long-term growth organizations must involve innovation and insights from customers”
(Barwise & Meehan, 2011). “Executives use promotion, advertising, fundraising, and public

15
relations as principles of marketing operations and strategy” (Tabaku & Mersini, 2014).
“Small and medium sized businesses with high levels of performance are descriptive when
documenting strategic marketing planning activities such as business mission, marketing
objectives in the area of market share, products and services, and distribution” (Ogunmokun
& Tang, 2012).
“Leaders of small and medium sized firms should use more cross-functional involvement
with focus on inter-organizational partnerships, intra-organizational partnerships, and
training as a marketing strategy” (Gillian, Weerawardena, & Liesch, 2012). “Training all staff
on marketing principles and the importance of market research is fundamental” (Tabaku &
Mersini, 2014). “Training executives from stakeholder organizations in areas such as sales,
services, and leadership are critical when implementing a marketing plan” (Janicic &
Jankovic, 2014). The researcher understand from reading to Marten Zeman that market
orientation, organization commitment, business performance and data source, or in another
phrase top management, employees, and annual reports are the main factors to implement
internal marketing programs and activity in organization, Zeman argue that “Employees who
are loyalty and committed to an organization provide excellent service to their customers
and are concerned with organization growth when business executives provide strategic
rewards, effective training, and internal marketing programs” (Zaman et al., 2012). Although
this argument “thirty-four percent of small business executives do not examine the effects
of marketing activity” (Katona, 2014). But there is a small action can use to make the
managers start the marketing activity which is following up the current costumer to keep
sure that they are satisfy from the product/service this will lead the managers to understand
deeply the 4Ps of marketing elements (perhaps the 7Ps also) and help to establish the
marketing approach throw all the business environment, because the marketing department
inside the organization may be exists sometimes but not has the authority on operational
activity which effect on the 4Ps or marketing elements, that the marketing team need to
observe and enhance the product life cycle (PLC), the service and the complete experiment
of customer from the first moment of interact with company, the top management will not let
this happen unless they understand the importance of marketing approach in the deep level,
also this understanding will add the marketing strategy to the strategic plan of organization
as major element.
So the marketing here not only a part but it’s like the “backbones” of the organization spread
throw all the organization and the level from the strategic level (board and top management)
to the deep bottom of the organization ( the operational level) throw the tactical level, behind
the innovation of the product, creativity, get the customer, create the customer loyalty,
16
monitor and control the price, and disruption, asking help from HRM to find the proper
leadership style that serve and help to achieve the organization/marketing goals, guide the
IT department to set-up the proper technology tools that make the business / marketing
operation run smoothly, and examine by financial statement and mentioned marketing goals.
The previous idea is the main reason behind this research and that what will be shown in
the case study later.
Another tool can help the top managers is understanding that S.W.O.T analysis is not
separate from marketing, that the strengths, weaknesses, opportunities and threats are
merged between strategic marketing and strategic planning for business, not only the
S.W.O.T analysis but also any situational analysis related to market. This means that (from
the researcher point of view) that marketing is core of modern business approach.
By this understanding the top management by co-operate with marketing management will
produce a unique business model fit to their organization which will generate their own
standards and melt the theoretical principals and applicable practical practice in one unit,
this unit will help the organization to enhance the performance and also keep the
organization in a long term.

All the previous section is the first stage before the stage of branding. Branding not come
accidently but come by strategic technics and tactical steps, the most part about the
branding for shareholders that the “branding increase the value of shares and profitability.
Proactively innovating a business model, product differentiation, and trend creation
increases brand image “(Yang & Chiu, 2014)1.
“Brand strategists are tasked with using various communication levels to determine which
consumer populations are most likely to talk about a company brand to help influence
quantifiable ways to sales and profitability” (Keller & Fay, 2012). “Companies that have a
strong brand name achieve better performance and marketing capabilities” (Jannesari,
Ghorbani, & Haery, 2014). Branding should be creating abreast create of a unique product
characteristic this logically of course for trademark expansion. “Sixty percent of product
decisions and 32% of distribution decisions influence long-term brand sales” (Ataman, Berk,
Van Heerde, & Mela, 2010). And of course not to mention that digital marketing in now days

1
[ by the way there is a noticeable that the brands in Egypt that has many franchise and branches, the customer service are not at the
level of brands itself, this maybe because that this brands management in Egypt has a lot of customers, and the Egyptian management
don’t care if there lose some customers because unprofessional customer services, this clearly appear in field of mobile services and
internet services and fast food restaurants, and the researcher argue that one of main reason behind this the low budget of employment
for the customer service salaries, absence of professional training, and unformed career path, all of this leads to high turnover and
continues of customer service issues. There is a needs for a research about this point.]
17
is major element for creating branding image and CRM’s ERP are also a sharp tool in
customer relationship with branding.
The researcher mention that profitability is the main objective in shareholder’s mind, to
accelerate profitability levels and be successful, executives have to “engage customers in
product deployment, which will help drive the market” (Swenson, Rhoads, &Whitlark, 2012).
This research aims that marketing strategy effects on financial outcomes for the
organization, because effecting marketing strategy of course will effect on increasing the
sales turnover for the organization, and for some managers the shortcut assessment for
accountability of marketing strategy plan is sales volume in a specific period of time, and the
results should be appear clearly in financial statement in the range that financial
management allow, not in a far period of time, yes some managers not be patient for waiting
the marketing strategies positive result, but that doesn’t mean that the marketing
management have always all the time that they need to gain their fruitful results, the
professional marketing management which understand this and play their major role
between the two rip end between financial desired situation and marketing achievement
goals.
The intersection between marketing management and financial management that
“marketing activities should involve the analysis of data for efficiency, marketing program
pricing, and cost savings recommendations. Implementing an analytical system that
includes a reporting mechanism for ROI, revenue projections, and industry and market
developments is important and using marketing metrics to forecast profitability and evaluate
organizational performance are important for marketing managers, because forecasting
allows managers to analyze marketing effectiveness and return on investment outcomes”
(Mitchell & Olsen, 2013). This will give the organization the sustainability and harmony and
will help to take the business from small to medium and from medium to big and international
business (globalization). So, the cross of business functional is appear many times when
the marketing approach intersection with the other elements of business like financial or
production and off course sells, and if we have something that cross and spread deeply with
everything around it, enhance of this object of course will enhance the other objects that
connected to it.
A high general view for all of these points will lead (from the researcher point of view) that
the process of marketing is dynamic and in continues mode, it’ like infinity approach will not
stop at a specific point, its process of planning will not stop at the final plan, but, every plan
is a plan for an instant time, and because the controllable factors (internal) and
uncontrollable factors (external) that allows change the marketing approach will always still
18
in the dynamic mode, That is, the only thing that will keep it is to be (keep moving) to fit to
the new situations. For this reasons the marketing as a career one of the hardest career
because it’s always need research, developing, getting new skills, and understanding the
nature of consumer these will not happen in isolated for the surrounding world, economic,
environment, culture, and even politics and other aspect of the human social atmosphere.
In 2011 shown a new two definitions “opined significant gaps between marketing
expectations and performance satisfaction are barriers called tactical soup and failure to
launch tactical soup is when business leaders do not adequately prioritize strategies on how
to generate revenue and profitability through marketing activities, whereas failure to launch
is when business executives do not effectively implement marketing resources for growth
and profitability” (Andrew, 2011). for that Andrew argue that every top management “should
put every marketing tactic under the microscope, calculate the value received from the
marketing activity, and schedule ongoing maintenance of the activity” (Andrew, 2011).
“eighty percent of the senior managers ranked branding, marketing, and sales as important
success factors for business” (Andrew, 2011). While Jemaiyo says that “the effectiveness
of marketing strategies is measured by analysis of profits and Sales” (Jemaiyo, 2013). And
other says that profitability measured by past periods revenue and past advertising cost,
with currently revenue and currently advertising cost. While some brilliant opinion in
business finds that the real profitability is linked to customer loyalty, although the simple
logic behind that, this concept is absence in many CEO’s mind, especially who haven’t
marketing background or wide financial perspective and it’s clear that sales volume shows
as one of the major indicator for the customer loyalty. The traditional marketing elements
4Ps should create around customer loyalty. A junior business developer and an ordinary
marketer should know that putting pricing and promotion strategies should achieve the
profitability for the organization, the term of “time” will change from organization to another
depends on financial statement as shown before.

2.2. Marketing Elements 4Ps.

2.2.1 Product.
Product is the most important element in the 4Ps, it’s the answer of existing or vanish from
the market, it’s the key to success or to fail, any business raise on the product, the visibility
study defines the product how the organization will produce the product, it’s feasible from
technical view? It’s feasible from financial view? Is this product having competitive
advantage? Kotler (1980) defined a product as “anything that can be offered to a market for
attention, acquisition or consumption; it includes physical objects, services, personality,

19
places, organizations and ideas”. Busch and Houston (1985) defined a product as “anything
capable of satisfying a consumer want or need. It can take a variety of forms, including a
physical object, a service, an idea or a personality”. Stonton (1981) defined a product as “a
complex of tangible and intangible attributes, including packaging, color, price,
manufacturer's prestige, retailer’s attitudes which the buyers may accept as offering
satisfaction of wants and needs”. Researcher see that the product is any bundle of utility
that delivered to the market by marketer.

2.2.2 Promotion.
According to Philip Kotler, “Promotion range all the tools in the marketing mix whose major
role in persuasive communications.” while Stanton defining “Promotion includes advertising,
sales promotion". Promotion effects on the knowledge, attitudes and behavior of the
customer. Promotion usually provides target audiences with all the accurate information they
need to help them take the decision to buy a particular product The information should be
precise and auspicious and shouldn’t be distorted so as to fulfill the clients and make a
positive picture for a goal. The promotion published throw the public media like TV and
newspaper and in modern decade throw the social media like Facebook and popular website
like YouTube. consumers should well inform of the availability of the products in the market,
where and when to buy them, their benefits and uses and also quality. Without this
information, buyers considered as unable to buy the specific product.

2.2.3 Price.
One of the major factor to build a long term relationship with the customer is the price. Haigh
pricing method technique cause a high profitability for the organization and keep customer
loyalty at the same time. On another hand low pricing method technique can put the
organization financial profile in danger mode. Research by the consulting organization
McKinsey and organization shows that proper pricing strategies have far greater important
on an organization's profits than corresponding reductions in fixed or variable costs. For
instance, when an organization that earns a 10 percent net profit margin raises it prices by
one percent, its profits increase by 10 percent (assuming its unit sales remain the same).
Improper pricing has destroyed countless businesses whose owners mistakenly thought
their prices were high enough to generate a profit when in fact, they were not. (McKinsey
published essay, Marketing Today, Egypt)

20
Stanton (1981) says “price can be defined as the amount of money and sometimes some
goods, which is needed to acquire in exchange some combined assortment of a product
and its accompanying services”. Price normally reflects the costs of goods / services sold,
including administrative and selling expenses and probably some profit. According to
Education and Science Journal of Policy Review and Curriculum Development “Pricing
decisions cut across every aspect of a small company, influencing everything from its
marketing and sales efforts to its operations and strategy. Pricing is the monetary value of
a product or service in the marketplace; it is a measure of what the customer must give up
to obtain various goods and services. Price also is a signal of a product's or service's value
to an individual and different customers assign different values to the same goods and
services. From an entrepreneur's viewpoint”.
But, if its price is too low, the sales revenue might not cover costs. In addition, the company
runs the risk of establishing the product's value at a low level. Management consulting
organization McKinsey claims that 80 to 90 percent of the pricing problems on new products
are the result of companies setting prices that are too low. When pricing any new product,
the downer should try to satisfy three objectives which are: getting the product accepted;
maintaining market share as competition grows and earning a profit. (McKinsey published
essay, Marketing Today, Egypt)

2.24.4. place.
Ambiguous is the common word that use in Egyptian market when try to describe the
element of place in the 4Ps, sometimes be unclear for managers but we can use example
from Marketing professor at IBSS Dr. Rafat Shehata when he talk about IKEA and modifying
the marketing mix he says “ A well-established network of logistics only takes care of the
products from the suppliers to the local shops. It is the features of the retail units pulling the
customers in. To modify this part to meet new market IKEA should understand the culture
of each single market, because culture shape this part. For example, some countries prefer
to shopping in a big mall, so IKEA here should open in these malls, others prefer to go
directly to branch and buy, others need to find a block of different franchise of furniture in
one place and so on. Also the place from inside should organize to fit to psychological
perspective and needs, some customers just take 5 minutes to see and decide if they will
seriously buy and find their needs or not.” Distribution signifies where in the marketplace
information about a particular product or services can be located so that consumers can be
made aware of it, and then decide, if they are persuaded that what they see will satisfy their
21
needs or wants, to make a purchase. Morgan (1996) has suggested, “distribution is almost
certainly the most important. Put simply, all other marketing efforts are likely to fall if in the
end consumers are unable to locate information about the products or services available”.
And as Reid and Bojanic (2006) says, 'the main objective of the distribution function is to get
products and services to consumers where, when, and how they prefer them'. The decision
made by consumers to purchase a particular product or service, and the opportunities for
producers and suppliers to convert the motivation to purchase into a sale, depend primarily
on If the products and services offered by competitors are more easily accessed and if
consumers' knowing what is available to them, and how, if they so decide, a purchase might
be made.

2.3 Market Orientation

Market orientation is “a company philosophy focused on discovering and meeting the
needs and desires of its customers through its product mix” (Investopedia).The researcher
can say that this definition means that organization should know deeply the customer and
itself. This concept will lead any company to choose from two choices, produce what the
customer need and put a plan to sell, (marketing orientation) or, focus on product and the
producing of features itself and sell what it can produce (product orientation). There is a gap
between two orientations that first one will use the technology as (a tool) to customer
satisfaction while the second one will use the technology as (the tool) for customer
satisfaction2.

The continues challenge that keep any organization always seeks behind customer’s need
and update and upgrade the product is term of “Customer is always right”, also there is
always a competitor with different competitive advantage, segmentation, targeting and
positioning – which all can be effectively performed in companies of high market orientation
– is the essence of strategic marketing.
Kohli and Jaworski (1990) define market orientation as “organization-wide generation of
market intelligence pertaining to current and future customer needs, dissemination of the
intelligence across departments, and organization-wide responsiveness to it”.

2 Researcher reviews market orientation depends to Walker, Mullins, Boyd, Larréché, 2006.
22
But other group get another definition, according to Narver and Slater (1990), rather
similarly, “market orientation is about customer orientation, competitor orientation and inter-
functional coordination with long-term and profitability focuses.”

While Morgan and Hunt focus on Marketing niche, they define “market orientation as
systematic gathering of information on customers and competitors, both present and
potential, systematic analysis of the information for the purpose of developing market
knowledge, and systematic use of such a knowledge to guide strategy recognition,
understanding, creation, selection, implementation and modification.” “Hunt and Morgan
(2001)”. So, there are many definitions for market orientation, and other definition the
researcher didn’t mention here, that means that the market orientation intangible and cannot
be purchased in the marketplace. It may well be also true that, as Hunt and Morgan (2001)
argue, “market orientation is socially complex in its structure, has components that are highly
interconnected, and has mass efficiencies and effectives that grow in strength in time”.

Treacy and Wiersema (1993) comes with different idea, that the value of the customer can
driver by 3 ways:
1. operational excellence, they mean providing customers with reliable products or
services at competitive prices and delivered with minimal difficulty or inconvenience.

23
 2. Product leadership, refers to offering customers leading-edge products and services
that consistently enhance the customer’s use or application of the product.
3. Customer intimacy, the second value discipline, means segmenting and targeting
markets precisely and then tailoring offerings to match exactly the demands of those
niches.

The researcher sees that these three ways can present the modern definition of market
orientation that can fit to any field. Performance impact of market orientation can in this case
be explained with commonly established argument according to which “satisfied customers
are more loyal customers than unsatisfied ones” (Srivastava, Shervani and Fahey, 1998).
Slatter and Nerver find in their research (1990) that “the organization that apply the three
principals of Treacy and Wiersema gets more profit than the organization that not focus on
market orientation as shaped in these three principals”.

2.4 Market innovation

In 1934 Joseph Schumpeter put distinction between the innovation and invention “invention
is the creation of something new whereas innovation is the act through which these new
ideas are successfully introduced to the market (Schumpeter, 1934).”

In now days’ New market entry (Pioneer) should account on market innovation. Although
(Tellis and Golder, 1996) says “is neither necessary nor sufficient for long-term success and
leadership. Additionally, while it has several potential advantages to get to the market early,
also some drawbacks are related to it”. (Lieberman and Montgomery, 1988) says that “being
first in market may turn to costly failure if demand is significantly smaller than expected. On
the other hand, the situation for a late-comer may be difficult if first-mover has been able to
establish strong foothold from the market”.

It is critical to recognize that in strategic marketing, customers and organizations are

engaged with all periods of significant “value cycle: value defining, value developing, value
delivering and value maintaining” (Day, 1999). Understanding client needs and giving client
fulfillment with an assistance of best fitting business sector offering can be viewed a major
success factor so that having high levels in both market and innovation orientation may well
turn out to be an ultimately competitive combination for companies.

24
2.5 Digital Marketing.

Digital marketing be important and crucial element in marketing approach that can’t be
skipped from the research, especially that in this days the term of “Digital” be in everywhere
and connected to business activity in a form that must see and examine. In marketing the
concept of digital marketing changes a lot of criteria that stand too long in a traditional
marketing and the new concept be a tool and also measuring unit for marketing success
and sometimes for all business success.

There is no agreed upon definition for digital marketing that uses in academic research,
unless the definition that mention in business dictionary “The promotion of products or
brands via one or more forms of electronic media. For example, advertising mediums that
might be used as part of the digital marketing strategy of a business could include
promotional efforts made via the Internet, social media, mobile phones and electronic
billboards, as well as via digital and television and radio channels.”
http://www.businessdictionary.com/definition/digital-marketing.html

But there is an agreed upon that traditional newspaper and TV are not digital marketing
forms. But internet website, e-mails, RSS are the most common used in digital marketing.
Throw digital marketing innovation take a new shape now products and services are
promoted with use of plenty database-driven online distribution channels to reach to
customer in an appropriate, individual, and proper manner. These new tool reach to more a
huge number of customer that the traditional marketing can’t reach in the same given time.
Also the digital marketing gives the meaning of actual response and interactions with
customers more easily throw the comments and reviews of customers on the social media
and online stores, it’s more help for marketer to use accurate data (most of cases) in them
researches (primary data and second data).

Digital marketing effects on organization performance throw many aspect, Changing the
concept of sales and enhance the selling approach by accounting on the customer
him/herself in define the demand, and take the persuasive selling to another form by
skipping on internet the soft skills that required in professional sells and transfer it to content
skills on internet, it’s major change reflect on job analysis and requirements. Digital
marketing concept extract KPI success that became effected points to the organization itself
at the same time, that mean that the measuring tool and objective are intersection in this
keys, like dealing faster more before in manage customer relationship and solve the
complicated issue throw new channels (online channels) beside the traditional channels,
25
and fast response to customer interactions, measure the brand value and brand image in
better techniques. But what is most important that digital marketing will produce huge
(nowadays it called BIG DATA spicily in China) to top management, and the top
management should use these data as a support tools in decision making. Digital marketing
measured by “engaging and building communities with target customers, improving the
effectiveness of marketing to be heard and remembered, and adding creative channels to
communicate value propositions” (Shabgoo, Gilaninia, and Mousavian, 2011). “Information
and communication technology is at the Centre of this global change curve of digital
marketing” (Mirhoseini, 2010). Create a structure digital marketing plan and adapting with
market to fit new market demands is not option for organization but, it’s a priority now. And
for some companies that stick in the “comfort zone” of traditional market proof that stick to
the comfort zone doesn’t mean that the organization will keep itself in its position, but it will
move backward as everything not moving forward this day will be moving backward because
there is no constant in business. Lee noted, "that executives in every industry face a
bewildering array of new digital opportunities”. (Lee 2009). In marketing consumer-oriented
the digital marketing will help the organization in producing stage to understand exactly the
customers’ needs and the customer expectations this will effect on organization brand
creating and clever management that will use digital marketing to rise the brand fast in the
market.

To see how digital marketing and organization growth related, should understand that the
one of any business objective is to create “customer base”, customers who repeatedly
purchase the products or using services of organization A study by Novak & Hoffman in
2011 indicated that the “rapid growth of digital channels in the recent past has been one of
the strongest and most significant trends in many industries in reaching a bigger customer
base” (Novak & Hoffman 2011). In how digital marketing effect on the organization
performance the (Ghobakhloo et al., 2011) publish that “Organizations need to understand
the drivers that influence the adoption of digital marketing to allow them create solutions and
plans to attract consumers to their products and services, hence enable them gain a greater
representation in the global industry market”. Off course digital marketing open channels for
international market beside local market and its effects on traditional marketing in terms like
(“segmentation-distribution-price” -look to appendices 2).

Digital marketing will reduce the expanse of advertising (which help the organization in other
area of budgets) “in comparison to newspapers, digital marketing represents cheaper
method advertising rates for online marketing are lower than for newspaper advertising”
26
(Perez-Latre 2009). Wind & Rangaswamy noted that "one of the most valuable benefits of
using digital marketing is its capacity to offer consumers a personalized relationship
personalization has also been shown to increase the level of loyalty a consumer holds
toward a retailer" (Wind & Rangaswamy 2011). Also online recommendations system be
major element in digital marketing that the "recommender systems are information sources
that provide personalized information to consumers" (Ansari, Essegaier, & Kohli 2010).
These systems use an information filtering technique in order to formulate product
recommendations that are most likely to be of interest to the user in this concept marketers
will benefit from providing recommendations to online consumers, especially if the source is
provided in form of personal recommendations. "Consumers focus more on the
recommendation source itself than on the type of website on which the recommendation
appears" (Senecal and Nantel 2004). According to Senecal and Nantel "people who consult
online product reviews purchased the recommended products twice as often as people who
do not consult reviews. (Senecal and Nantel 2004) and of course all of this will effects
positively on sales volume and organization revenue.

2.6 Performance between management and assessment.

There is a famous principal in business says “what gets measured gets managed” and to
more deep down in management in any level (strategical, tactical or operational) the
assessment is one from first steps to do it. To ask where I will go you should know exactly
where you are. Business performance can be measured from many perspective, famous
one is financial of course, other is the operational perspective and how the operational level
effective and efficient.
The performance assessment system in general applied by 4 steps, performance situation
analyses, define the desire situation, write a plan and communication network to achieve
the desire target, apply the plan and take the corrective actions to achieve the target. It’s
logic in any organization the desired performance should be clearly appear to all the
employee, this performance not a goal on itself but a tool to achieve the goal, it’s define
depends on the real skills and competency inside the organization and one of the role of HR
management is to make sure that the skills and the competency inside the organization is
fit to the level of desired performance, and the researcher think that for the previous reason
the leadership theories was exist, to framing the proper performance which helps on the
organization's strategies and it's goals.

27
As the purpose of this study is show the impact of marketing on the organization
performance, it’s necessary beside to assess of financial and operational performance,
should be assess the marketing performance, the researcher think that the assessment of
marketing performance should present a situational analysis, size of marketing, the situation
of competitors, inflation, measuring of business unit from operational and financial
perspective, number and size of customers, competitive position (market share, price,
quality). Although the importance of marketing research and market research, but it’s hard
and need effort and time which be a solid rock against marketers to take their free framework
from top management in some companies in Egypt. The managers usually in small and
sometimes in medium business seeks behind the fast results and hesitates to spend budget
on something will get results after period of time especially if this kind of work related to
researches3. Another problem that marketing approach account on uncontrollable factors
(extra factors) which get it hard to assess and measure the external part for long accurate
time.

“As a consequence of assessment-related difficulties, both academics and managers

currently lack a comprehensive understanding of the marketing performance process and
factors that affect the design and use of assessment systems within companies” (Morgan,
Clark and Gooner, 2002). “Literature has, using one division, focused on three dimensions
of marketing performance: 1) effectiveness, the extent to which organizational goals and
objectives are achieved (e.g. marketing productivity analysis); 2) efficiency, the relationship
between performance outcomes and the inputs required to achieve them (e.g. marketing
audits); and 3) adaptiveness, the ability of the organization to respond to environmental
changes” (Walker and Ruekert, 1987; Bonoma and Clark, 1988).
Of course the top management has as “Clark 2000” says a “multidimensional view of
marketing performance and they judge performance drawing on all the above-mentioned
dimensions, to different degrees. Generally, effectiveness matters most and several
measures are often used; sales being the most important. In regard to effectiveness, correct
expectations are very important. If those heavily base on previous performance, assumption
of future relatively similarly following the past is made; this kind of reactive control
approaches can become dangerous especially in markets experiencing fast structural
changes.” (Clark 2000).

3
Depends on many published essays from accredited marketing magazine “Marketing by Arabic”.
28
while (Morgan, Clark and Gooner,) argue that “Using another categorizing, literature in
strategic marketing has highlighted three measurement orientations relevant to performance
assessment: “customer-focused indicators, (e.g. customer satisfaction and customer
retention); competitor-centered indicators (e.g. relative sales growth and relative market
share); and internally oriented indicators (e.g. profitability and ROI).” (Morgan, Clark and
Gooner, 2002). Actually we don’t have a specific empirical model to use of any particular
performance referent is inherently superior to any other which lead Marketing Science
Institute to “appoint marketing metrics research as one of its top research priorities in recent
years” (Marketing Science Institute ,2004).
This problem of marketing performance analysis push Morgan, Clark and Gooner to create
two marketing performance assessment (MPA) systems, namely normative and contextual
MPAs. “The general structural model used MPA system and stages of marketing
performance process. These four stages are: (1) sources of advantage, or the resources
and capabilities of the firm; (2) positional advantages, or the realized strategy of the firm
concerning the value delivered to customers and the costs incurred by the firm relative to its
competitors; (3) market performance outcomes, or customer and competitor responses to
the firms’ realized positional advantages; and (4) financial performance outcomes, that is,
the costs and benefits to the firm of the achieved level of market performance” (Morgan,
Clark and Gooner, 2002). They suggest that this system not only for assess the performance
put also to monitor the performance and to upgrade the exist one to the desired one.
But the researcher think that (MPA) system (like any other tool of measuring performance)
is not enough if the managers didn’t know what the purpose of this tools and why they should
this tools, that most of common barrier among mangers that they drown deeply in assess
the performance and the employees and gathering the information then keep it in a file
archive, without creating analysis for the collecting data and take corrective actions (by the
way what differentiate that marketers between other that in core of their job that they after
collecting data they analyses and take a corrective and sometime creative actions).
Another very important point that researcher find it by experience that any manager apply
any model should be aware of differentiation of environment, culture, nature of work
diversity, the nature of business itself and other factors that effect on applying any model,
this because sometimes there is a gap between the academic model and the real situation
that may by not as the same of situation that model was born to academic exists. The
professional manager who make the theory and the reality are fit to each other.

29
2.7 Case Study.

2.7.1 Massive Dynamic X

Any organization contains from three major levels Strategic level, tactical level and
operational level4:

A. Strategic Management: This long term plan, level for the top
management in the organization like the owners or stock
Strategic
holders, create the mission and vision put the concept for the
organization. In strategic management we use a five Tactical

processes and they are:

1. Pre-planning. Operational
2. Strategic planning
3. Deployment
4. Implementation
5. Measurement and evaluating.
B. Tactical Management: long term strategy to short term actions plans. it’s how the
organization apply the strategic plan in details, how the organization getting from the
long term vision and strategy to specific and more short term action plans like
budgets, staffing, and resource plans, developing and training staff, it’s also the actual
action plans. Tactical Management is controlling and coordinating a large amount of
simple processes and actions in details. Balance here is very important between
focus on details and focus on general overview plan.
C. Operational Management: digging down to day and day details, it’s about going down
to the level of solving day and day problems. Day and day technical and logistical
problems. The manager at this level must be technically have a massive knowledge
and excellent interpersonal skills and communication skills because he deals with
wide level of employees.

4
The three level’s definitions depend on IBSS modules and lectures by Dr.Ramez Kamel, Dr. Atif Ramzy and Dr. Rafaat
Yousef.
30
The strategic planning divides to two parts: Strategic Business plan-Strategic Marketing Plan

Strategic
Planning

Strategic Strategic
Business Plan Marketing Plan

Massive Dynamic X is a software business solutions company, founded in Egypt 2015

specializing in online solutions, IT management, IT development and ERP solutions. The
big fat cat that company account on is Odoo ERP. Odoo is an all-in-one management
software that offers a range of business applications that form a complete suite of enterprise
management applications. The Odoo solution is ideal for SMEs, but fits both small and large
companies alike. Odoo is an all-in-one business software capable of covering all business
needs, including CRM, Website/e-Commerce, billing, accounting, manufacturing,
warehouse- and project management, and inventory, all seamlessly integrated.
Mission: “Our mission is to use our exceptional expertise to lead the way in the field of
Business/IT using the best blend of technology, practicality and aesthetics. We aim to
provide our clients with advanced solutions at the cutting edge of the market.”
Vision: “To be the front-runner in our field and the pre-eminent provider of business and IT
solutions to a global clientele.”
There is no accurate data reachable on internet about ERP market in Egypt, most of data
that exist is just personal effort from some blogger or other company that manipulate with
data to achieve reputation. In next line a conclusion from a research about software industry
in Egypt: “Egypt has an excellent opportunity to develop the ingredients of a small but
effective software industry. The level of effort and support given by government and
supported by industry, finance and education will ultimately determine the level of success
of the industry, making the industry profitable and contributing to business and
socioeconomic development. There is a wealth of opportunities for Egypt to improve all
aspects of development for the software industry. Egypt could dramatically increase the level
of revenue and growth in the software business with a relatively small investment and focus
to be able to attain the levels of achievement realized in nations such as Ireland and India”
https://www.researchgate.net/publication/243443858_The_Software_Industry_in_Egypt
[accessed May 10, 2017]. In general, most of the company tend to use ERP but, in local
company in last 5 years looks for low price for ERP. can say that the market growth goes to
open source software rather than ordinary software. The industry instructed is Oligopoly of
31
course everyone know that ORACLE is the market leader, and some think that Microsoft
SQL is challenger, Odoo ERP consider as a follower, and SAP is niche in Egypt. Massive
Dynamic X choose to be a cost leader as a provider of products and services at the low
end of the pricing point compared to their competitors, the company think that this way will
help to support their mission, vision and values, and achieve goals specific to their market.

The board member chose CEO that has a huge experience in software field (technical
experience), over than the managerial experience, they believe that start-up software
company need visionary software leader more than professional manager that can manage
the organization performance, perhaps that was the first barrier that the technical experience
needed more in operational level not in tactical level (as shown before) but, the chairman try
to support the organization with his experience in business administration, and choses a
specialist for financial management in the company. Because the technical background of
CEO, the focus was on the performance of software developers and the process of
developing so the company has advantage point which is the quality of the product. And as
shown before how the product was cheap comparative by Oracle ERP, and give for small
and medium business the same results that the market leader (Oracle) give it, although all
of this the situation of the Massive Dynamic X was not favorable, yes, they have a challenger
product but without putting this product in a strategic plan to driver it to the customer, it’s like
a non-organize effort which waste the advantage points and strengths, absence of a
strategic marketing plan will change the situational analysis for the organization. Massive
Dynamic X was having an excellence product, but they were understanding the marketing
in a confused way, and merge it with selling approach, so the marketing and selling were
performed by the same team (which not be a barrier if they perform under cover of deep
understanding and strategic plans), so with page on Facebook and personal efforts they
tried to get customer .[By the way one of the major barriers for any organization that any
department rise on personal efforts, without job description and measuring performance and
clear plan, this effect on performance management and putting the organization under
power of employee X or Y that if he/she leave the organization the situation will change,
while putting a plan and KPI will make the employee show his/her talent, skill, competency
in the frame of systematic performance (Researcher)].

Massive Dynaimc X was suffered during the first six months, part of report from CEO to the
chairman was “The main objective that company use is Survival because the company is
created in 2016 as new business, survival would be the main priority, as company is likely
to face a number of problems, such as negative cash flows and intense competition. Massive
32
Dynamic X facing an economic recession so the company try to increase sales revenue
as it is directly related to their survival. Massive Dynamic X choose to be a cost leader as
a provider of products and services at the low end of the pricing point compared to their
competitors, the company think that this way will help to support their mission, vision and
values, and achieve goals specific to their market. The other functional like, finance and HR
run by the CEO himself until now, the plan that the CEO will hire professional team in for
each department after achieve respectful profit.”

On the other hand, company should understand that survival means growth and moving
forward not standing, (this the new meaning of survival by Porter). without achievement the
desired financial goals, every single operation of sale faced barriers from the customer,
negotiations about pricing, length of license and number of users, suspicion about the
product (as shown before the Odoo ERP try to open a new market in Egypt), the organization
not applying the concepts classic marketing elements 4Ps, unless one of the IT-Sales
suggest that the organization need software analysis in a different way that can understand
the background of customers and give advice to software developers to change the software
edition to be more fit for the organization, it’s about should the organization sell the product
as it is ? or modifying the product to each customer to fit his needs? (in the ERP software
field some company sell the product as closed source without any modifying, while other
sell the product as open source and the IT department that work in the customer’s
organization modify the product, while other company design a unique desired product for
the customer -the big operations in almost time-). The answer of the asked questions will
change the system of operation inside Massive Dynamic X.

The top management chose to hire business consultant who hire CMO “Chief Marketing
Officer” as a vice-president, the CMO and his new time start to understand the organization’s
mission and vision to putting the new strategic marketing plan:

Definition the
Setting Marketing
organization Establish SBUs
Objective
mission

Developming
Performing Implementation
Marketing
Sitation Anaysis Tactical Plans
Strategy

Monitoring
Results

33
Porter (1980) defines competitive strategy as “a combination of the ends (goals) for which
the firm is striving and the means (policies) by which it is seeking to get there”. by introducing
three generic competitive strategies: "overall cost leadership, differentiation and focus".
According to Porter, "it is deadly to get stuck in the middle of these strategies; a firm with an
average-priced, not significantly unique product which has not been focused to a particular
target group is almost guaranteed low profitability” (Porter, 1980). While Kotler finds that
marketing doesn’t mean find the “customer” for the product, but find the “product” for
customer. from this point of view, the new marketing team in Massive Dynamic X find that
there need to find the product for the customer by applying the desired modifying for the
customer. The process of dealing with customer (the process from business to business)
change, “Marketing management can be seen as consisting of five steps: (1) research, (2)
segmentation, targeting and positioning, (3) marketing mix, (4) implementation, and (5)
control “ (Kotler, 1999). Depends on this the segmentation which was the first step
previously has change two second step and re-shaped systemically, and modifying the
product for each business and define pricing and other elements of marketing mix take a
strong position in Massive Dynamic X , then the implementation of deliver the product and
controlling and assessment the operation. For the first notable that the organization behavior
change, while the new process that included scheduled plan with time frame, and the
coherence between marketing team, sales team and developers the employees feels with
change and the new atmosphere give them impression that they work in professional
organization, this desired results comes faster than the efforts of HR department. The
second notable change from the new marketing approach that the new situation required
KPI to measure every employee on the chart of process, which not be cleared at the first,
Massive Dynamic X needed at this point to measure the strengthens and weakness by
individual and that generate a new task which is “coaching” not like the previous standard
of training (like workshops, lectures, or printed paper about how to do the task) but real life
coaching by applying the practices and get down to the live work on the real actions.
By taking the decision of (find the product for the customer) not (selling) existing product for
customer, a new occupation required, starting by software analysis and project manager.
The customer relationship be important now, after sales services and technical customer
services. Marketing research and market research finds new opportunities for Massive
Dynamic X, that they can use the old approach of selling a constant package of ERP for
small business like pharmacies and schools that will use the ready-made product without
modifying, and for each long period of time Massive Dynamic X can use upgrade for those
customers, they can upload the product to sell it on internet as a package (close source).
34
The volume of Massive Dynamic X changed and the sales volume was at least planed for
the next period which change the situation for the board and change their decision about
terminate the organization. Marketing approach involved throw all the organization effects
on organization performance, employee’s performance, sales performance and of course
financial position.

2.7.2 Tabarak Holding

Tabarak Group was established in 1979 through Al Nahda for Contracting. Due to the
group’s expansion in various sectors such as investment, real estate, and touristic
development, a group of companies had been established and gathered under the name of
Tabarak Holding. Although that Tabarak group was founded in 1979 the organization was
not recognizing as major player in market of real estate in Egypt, the organization before
2010 was focus on building houses and sell it in an ordinary way with financial situation can
phrased under “slowly but sure” the board chose the technique of build a specific houses in
area and after selling build a new houses in another area. Simple, without segmentation or
plan for growth business, this approach make the organization exist in a stable situation
from 1979 to 2010, by expanding the organization need more engineers, accountants,
project managers, more facilitators and of course a huge sells team, in 2007 marketing team
hire for organize joining the organization in real estate sales fairs. Profits of the organization
was enough for board member but there was no brand image for the organization in Egypt
like “Al-Morshedi” or “Hesham Talat Mostafa Group” or even the products was not popular
in Egypt like “ Madenti” or “Al-Rehab”. In 2008 the chairman hires a new CEO who hire a
new complete department team, both of them put a new marketing strategy for the
organization, by study the marketing research and market research they divide the targeting
audience, and account on a huge bank loans to build a new “Projects” it’s systematic
because the new projects be “city” and by manipulating the marketing mix they determine
the needs and the approach of gain revenue from each segment of consumer.
The researcher mentions this case because the marketing approach in this case applying
the 7Ps not only the classic marketing 4Ps. Change and produce vary kinds of products
from practical houses to luxury hoses, change the price strategy depends on product and
segmentation, create a new sales offices in many strategical places in Cairo and downtown
to reach to more customers, putting a new training and process for sales team, and prepare
a planned visits from one of marketing department as a customer for any salesperson to
experiment the whole customers experience from first moment enter the site or sales office
to ending the contract, this make a major challenge in the organization even they change
35
the decoration of some offices and change the internal administration policies, uniform of
the employees, salary policies, the physical evidence and some employees were change in
the new revolutionary change. Also because the new segmentation of customers (luxury
customers) the organization need to apply a new high standard of customer service, the
launch required establishing a new information technology tools and a new ERP, and
database for the huge amount of customers. during 4 years the department was gain a major
position in the organization, involved in the major decision and strategic planning for the
organization even they (marketing department) decide to establish a new big project in KSA.
In 2017 the financial situation of the organization was incredible, they have 4 complete cities
and 2 major projects with government in Egypt, and the most important thing that the brand
of “Tabarak Holding” be more recognize in the real-estate market.
In first example the marketing approach change start-up company situation and put the
organization on the track of growth by enhancing every aspect of business while in the
second example the marketing approach change organization founded in 1979 to by a
market leader inside the real-estate market in Egypt. The researcher see that what make
marketing unique from other business functions that other business functions help business
to work smoothly in multiple operation while marketing make a major challenge and change
the position of all business from level to another level. Marketing effects more on other
business functions. Other business functions can get barriers against achieving goals and
tasks while fail of marketing like fail of strategic plan can terminate entire business.
Mentioned before in this research that marketing is a sequence of flowing approach, it's like
a productive loop processing, and the competitive advantage will not be isolated from
competition in the market, the competitors also have focus to enhance their strengths, and
whole image about competition of the market is one of major indicator behind innovate new
products/ needs every day. According to that Slater and Narver (1994), mention that
“competitive advantage has shifted from structural characteristics, such as market power or
economies of scale, to capabilities that enable a business to consistently deliver superior
value to its customers" (Slater and Narver 1994) that viewed in case of “Tabarak Holding”
when the organization take risk and build and finish the project first before selling to deliver
houses immediately after first installment and that is the opposite of other real estate
companies that receive installment first and start to build the house to grantee their financial
rights from the customer like the common un-written low in Egypt, what “Tabark holding” did
is a dare decision that make a superior value to their customers and competitive advantage
in the market , and by review the related opinion of Cadogan (2002) that present the
“concept of market based resources to characterize those resources that enable the firm to
36
develop a sustainable competitive advantage and create customer value in the
marketplace”. This definition is based and in line with marketing point of view of developing
competitive advantages and position that described by Hooley in (2001). However, Hooley
finds that “sustainability of the competitive advantage and hence position, is seen to be
achieved through the deployment of isolating mechanisms to protect the advantage. Given
the many different ways in which competitive positions are created, and the complex
interplay of the various dimensions of positioning, this is likely to cause a serious
identification problem for competitors” although this marketing point of view about how it
complex the relationship between competitors and competitive advantage, the researches
finds that isolation mechanisms include causal ambiguity (Lippman and Rumelt, 1982)
“difficulty competitors might experience in identifying how an advantage was created in the
first place, caused by resource complexity and specificity (DeFilippini, 1990)”, “resource
interconnectedness, path dependency (need to pass through critical time dependent stages
to create the advantage), economics (the cost of imitation) and legal barriers (such as
property rights and patents)” (Fahy and Smithee, 1999; Hunt and Morgan, 2001). By
examine this points on Massive Dynamic X and Tabarak Holding “ as possible the
examination can” found that Massive Dynamic X was need to keep the competitive
advantage of that their big fat cat product “Odoo ERP” is cheap comparing the market leader
“Oracle” and at the same time is a high quality ERP like “Oracle” for small and medium
business, as a new entry market and considering that rate of innovativeness and timing of
market entry are potential facilitators of achieving competitive advantage for firms,
(sometimes called first-mover advantages) may, not be “sustainable and early entrants are
often overtaken by competitors with more potent resources or capabilities as the market
evolves” (Lieberman and Montgomery, 1988) and (Porter, 1985). In fact, sustaining
competitive advantage an organization has managed to achieve probably only achieved
when the “organization’s comparative advantage in resources continues to yield a position
of competitive advantage despite the actions of competitors” (Hunt and Morgan, 2001).
however a “head start alone is not sufficient to achieve cost and differentiation advantages
over rivals that result in dominant and enduring market shares and abnormal financial
returns” (Kerin, Varadarajan and Peterson, 1992), “the only way for first mover can maintain
its profits is to introduce new products and stay one step ahead of competition” (Rahman
and Bhattachrayya, 2003) and that what exactly appear in case of “Massive Dynamic X” that
the first move of the new product can’t save the organization but create a new modifying
product under scoop of strategic marketing plan help the organization to be in 2017 one
from the major seven players in ERP’s fields in Egypt. And if the nature of software
37
companies is innovation the second case of “Tabarak holding” that focus on real-estate it
was found that innovation of new vision of housing and apply this vision make a huge
competitive advantage and hacking the timeline growth (when they build a smart house and
designs similar to Europe houses in middle of last century, giving the mix between classic
image of high class segmentation that saved in Egyptian mind from the past and modern
lifestyle) also the competitive advantage not always related by product and in this case this
point proofed by enhancing the after sale customer services and giving the high priority for
this part what makes a good reputation in the market, this last point was not exist at the
same level with other competitors that focused on interior designs for houses and focus
more on services that will present outside the house (inside the city that belong to the
company like club, shopping mall …etc).
And perhaps that field of marketing studies need more researches about competitive
advantages present more coherence definitions, and how some time the competitive
advantage develop and take different shape than the definition of first step that mention
before, for Example Coca-Cola Egypt that change the package of the product when it decide
to write different Egyptian names on each bottle and can, this simple and creative action
make huge sales volume for the company, consider this simple action as a competitive
advantage that use in big advertising campaign for the international organization. However,
the researcher strongly agrees that “competitive advantage has shifted from structural
characteristics, such as market power or economies of scale, to capabilities that enable a
business to consistently deliver superior value to its customers" (Slater and Narver 1994).
It should be mention that although that the researcher in this research aims to consider the
marketing as (or at least should be) leading role in the organization, there was a historical
argument about the nature of relationship between marketing department and other
departments inside the organization, as a self-criticism from the researcher to this research
it’s self that the samples and examples define how the marketing department play a major
role, and this tend from researcher for purpose of the study and hypotheses development
later. Although there are other studies that argument about how the marketing department
is cooperation is some studies while is defined as integration with other studies. Off course
most of this studies linked between marketing department and sales department for logic
reason. While marketing is usually seen as a responsible of other functions inside the
organization, the sales seen as its own management function (Webster 1992). In past both
marketing and sales was considering as tactical operations while later the perspective of
marketing change to be strategical operation and strategical importance, even in the field of

38
academic papers the sales research often consider as a marketing discipline and seeks to
get its own position in academic field (Geiger & Guenzi 2009, 874; Jones et al. 2005, 105).
“Interdepartmental integration and relationships are discussed academically with varying
perspective. There seems to be a lack of consensus on how the marketing department could
be successfully integrated with other departments. A clear indication of this is the fact that
the concept “integration” can mean different from research to another “ (Kahn & Mentzer
1998, 53) One stream in the published papers sees integration as “an integrative process in
which activities enhancing interdepartmental communication are essential” (e.g. Ruekert &
Walker 1987, 3; Griffin & Hauser 1996, 193-195). “It is suggested that a marketing manager
adopting this view would favour activities entitled to increasing communications, for example
arranging more meetings and increasing written documentation. In essence, the marketing
manager would focus on structuring the marketing department’s relationship with other
departments’ through enhancing the diffusion of market information. “(Kahn & Mentzer 1998,
53) A second view sees “integration between departments as a collaborative process, where
the relationship is focused on “teams” and “resource sharing”” (e.g., Lawrence & Lorsch
1973, 44-46). It is suggested that the marketing management having this collaborative view
of integration would focus on establishing collective goal, mutual respect and teamwork
between departments. “This view is thus in essence about relationships and building esprit
de corps “(Kahn & Mentzer 1998,) “Management attitudes towards improving the
coordination between marketing and sales are critical for improving collaboration between
the two “(Le Meunier- Piercy 2007).
Set-up the organization behavior relationship between departments and each other is
responsibility of HR department and top management, in Egypt the FMCG company put the
priority for marketing department and supply chain management as a core of business while
other kind of companies that depends on create a new models or designs company put the
priority for engineers, so the concept of the nature of marketing department and the
relationship between it and other department depend on tend of nature of business and the
top management vision to the business (at least in Egypt). The common barrier against the
marketing as a career in Egypt that, usually looks to the marketer as a salesperson, sales
is not shame but it’s disappointed behavior for any marketer, most of jobs that published as
a marketer the candidate find himself against sales job with required sales skill. Honesty this
image because two factors, first that HR in some small business in Egypt misunderstanding
the differences between marketing and sales, second that some graduate youth not prefer
to get a business card with salesperson or sales executive but they preferring the title of

39
“Business developer” or something related to marketer. This can’t be proofed without
surveys and statically analyses but it’s present from the Egyptian experience of researcher.

What should come first before ending the argument between if the marketing is compilation
or integration between other departments, that concept of “coherence between marketing
approach and other business functions as a one business unity” with created by researcher
himself depends on the literature reviews in this chapter, “coherence between marketing
approach and other business functions as a one business unity” even a start-up organization
or not the business leader business leaders give priority to strategies that will generate
revenue and profitability through marketing activities, and also effectively implement
marketing resources for growth and profitability, because marketing approach is complex
and made of many layers and extended horizontally and vertically, integrated and completed
with and for other business function, from this perspective marketing approach will generate
marketing strategy as an operation marketing for a long term throw manipulate of marketing
mix (classic and modern mix), and even the company is start-up or not the first move of
competitive advantage will always need market innovation as acting through new successful
ideas introduced to the market under umbrella of strategic marketing presented in doing the
right action parallel with main business strategy to achieve the main goals like customer
satisfaction and customer retention, relative sales growth and relative market share,
profitability and ROI, in effective and efficient system can be measured and assess, flexible
to modify by corrective actions, addictiveness with the organization ability of them to
respond to environmental changes and uncontrivable factors.

At the end of this chapter should focus on of the most objectives that didn’t has much
focus in previous published academic researches that marketing management should take
the marketing from “Concept” phase to “tangible” phase. That concept phase is all the
definitions, theories, models, researches on paper, while tangible practical, applicability,
programs, activity and real changeable and corrective actions. In this way the philosophic
existence and scientific requirements for evolve will achieve, evaluation requires fixed,
constant (not resident) existence moved in two terms of concept and tangible.

40
Chapter three –3- Research methodology

41
 3. Chapter three –3-Research methodology

3.1. Research Hypothesis

 H1: Market orientation and its effects on the organization performance

 H2: Market innovation and its effects on organization performance
 H3: Marketing strategy and its effects on organization performance
 H4: Strategic Marketing and its effects on organization performance
By looking to hypothesis 1: Market orientation and its effects on the organization
performance.
By definition that shown before about market orientation that means focus and meeting
customers’ needs by implementation the marketing mix, the research show in case study
one of “Massive Dynamic X” that the organization save the risky situation when they
change their philosophy depends on the understanding of market orientation and how this
effect positively on their financial situation, and also open a new occupation inside the
organization, put the organization on the track of growth.

By looking to hypothesis 2: Market innovation and its effects on organization performance.

By looking to this hypothesis as understanding client needs and giving client fulfillment with
an assistance of best fitting business sector with intersecting with “value cycle: value
defining, value developing, value delivering value maintaining” (Day, 1999), will help the
pioneer with (strategic method) to avoid "Tactical Soup" and failure to launch that framed by
42
Andrew in 2011. Not only for pioneers but also for existing successful organization as shown
in second case study of “Tabarak Holding”.
By looking to hypothesis 3: Marketing strategy and its effects on organization performance.
This hypothesis will divide to sub hypothesis:
H3a: Product and its effect on organization performance.
H3b: Price and its effect on organization performance.
H3c: promotion and its effect on organization performance.
H3d: place and its effect on organization performance.
As the considering that marketing mix is a part of marketing strategy “the best definition that
preferred from researcher that marketing strategy is doing the things right, while strategic
marketing is doing the right things”, with the conception of marketing mix as doing thing right,
that sub hypothesis appear that the 4Ps will effect on organization performance, it should
be positive effected in most of cases, while the point here is how the organization
performance and marketing elements are connected, it’s reflection from the marketing on
the operations and organization. The idea here that marketing strategy that see the all
picture in producing the marketing mix in attractive method to get the customer and to keep
his/ loyalty, it looks for the other competitors and the scale of competition, this is what’s
different between marketing mix and marketing strategy, marketing strategy include the
marketing mix. During examine this hypothesis as operational marketing in long term and
continuing developing of marketing mix to fit to the market required. This effect on
organization performance throw the change that will happen on the employee’s performance
as reaction to the upgrade of high skills and competence that will comes naturally to fit the
upgrade of production from marketing strategy, market innovation and market orientation.
That also will reflect on leading style inside the organization. (in appendix there is a report
from HR in first case study shows how the strategic marketing and in general marketing
approach change the leadership style of the organization).

By looking to hypothesis 4: Strategic Marketing and its effects on organization performance.

Strategic marketing assesses the organization position in the market, strengths,
weaknesses, opportunities and threats, assess the competition in the market, and identify
critical challenge and crucial issues that may be will face the organization in the future. All
of that effects on organization performance in enhancing its position, as the next step after
assessment is take a corrective action. As shown before that how marketing strategy
develop and include marketing mix, the strategic marketing will develop and include
marketing strategy in order to shape organization mission and vision (in some cases this be
43
previous step), determine marketing and business objective, and co-operate in setting
values objective. From here marketing program and activity be exist with meaning in a
tangible effort, process and results. next step determines the resources and limitation,
determine budgets, requirements technologies for marketing staff and digital marketing and
off course the KPIs
So how all the previous will not effects on organization performance! It will be found that
strategic marketing as definition of doing the right things not things right will join to the
strategic business plan as major content, define important factors can’t be isolated from
strategic marketing like profitability, growth, market share by business segment and
geographic area also help in define the intensive strategy (Market Penetration, Market
Development and product Development) and of course this related to organization
performance throw define the goals that will be used later in assessment and measure
performance and how it will be achieved and what the corrective actions that should take.
That shown in case study two “Tabarak Holding”.

3.2. Research design

3.2.1. Purpose of the study

Showing the deference between marketing strategy and strategic marketing, market
orientation and market innovation, and the relationship between marketing and
other departments from completion and integration vie, putting some barriers that
face the Egyptian organization under the spot, and examine the hypotheses throw
show case study.
Testing the hypothesis of the research, for a long time the company in Egypt
confused between selling and marketing approach (of course the small and medium
business). even the objectives of both Marketing and selling was merged and
declare in one goal, selling the product. For this reason, both departments were one
department with one manager and we find one job description and responsibility for
both departments in one department. Job haunting in newspaper seeks for
44
“manager of marketing and sells department”. This will not be a problem if one
department do the both function, but acutely we find absence of marketing
approach.
Then after rise of new generation of CEO and Top executive officers that have well
education and professional certificates and MBA the structure of business takes a
new shape in Egypt.
3.2.2. Type of investigation

This study is a study(causal) to describe the impact of Marketing on

Organization Performance in Egyptian market.

In this study, the researcher tries to know the role of Marketing Approach as
an (independent variable) on Organization Performance as an (dependent
variable) in Egypt.

3.2.3. Extent of researcher interference

This study will be performed with moderate interference from the researcher
because it’s a field experiment as questionnaire will be distributed to
candidates to answer questions and collected after answering them but if
there is any difficulty to understand any question, the researcher will clarify it
in a simple and a neutral manner without giving any directions to candidates
for selection.
For IDI the researcher has to ask the candidate certain questions and trying
to find out the answers that will provide data needed to complete the research
analysis.

3.2.4. Study setting

This study is a (causal) study operated in contrived settings; questionnaire

will be send by e-mail to customers to answer it and send it back to the
researcher. This will be a quantitative method for data collection.

45
 For IDI (focus), the researcher has to arrange an interview with the customer
in certain place to ask some question to complete the research required data.
This will be a qualitative method for data collection.

3.2.5. Unit of analysis

Researcher will depend on individual as a unit of analysis for this research;

customers will be the unit of analysis either for questionnaire or for IDI.

3.2.6. Time horizon

The researcher will collect data once a time so this study is cross sectional
study.

3.3. Data collection methods

Primary data and secondary data are required for this research; the researcher
has to depend on both sources of data to complete the total image of data
collection.

3.3.1. Secondary data

The researcher depends on different sources to obtain data that support this
study. Reference books, recent journals and trusted internet web sites are the
main dependent in collecting secondary data to support this study with actual
data about the Marketing and its effects on organization performance.

3.3.2. Primary data

The researcher depends on two ways to collect the primary data the
questionnaire and the in-depth interviews (IDI)

46
 3.3.2.1. Questionnaire

The researcher uses a questionnaire as a tool to test “Marketing and its effects on
organization performance.in Egypt”, this questionnaire helps to draw the relation between
the Marketing and organization performance.

The questionnaire is divided into three parts which are 1- Personal information 2- General
questions 3- Hypothesis testing questions.

1. Personal information: the researcher collects demographic information to

segment the sample into groups which can indicate the effect of demographical
background.
2. General questions: the researcher collects general questions about type of
organization (industry field),and the job title of responded that answer the
questions.
3. Hypothesis testing questions: the researcher tries to test the hypotheses
suggested. This will be when the participants answer certain questions which
determine the direction of each hypothesis.

3.3.2.2. In- depth interview :

Face to face interview is the best way to test actions and reactions.
The researcher depends on this technique to explore how customers
think about how marketing effects on organization performance in
Egypt, this will be in sort of deepness to figure out the real relation
between the two variables.

3.3.2.2.1. The Guidelines of Discussion guide

Introduction – 10 minutes

- Greeting

- Go through the agenda and explain the purpose of the discussion

47
 - Ask respondents to introduce themselves

Discussion Phase 60 – 70 minutes

Ask questions such as:

1. Does the marketing strategic plan start with the company start-up or start later?
2. What’s your opinion about marketing mix and product life cycle (PLC)?
3. What comes first Marketing or sales?
4. Should marketing and sales be one team with one plan or should be separated?
5. When the stage of market innovation should start?
6. Do you think that market innovation can effect on maturity in product life cycle?
7. Do you think that marketing orientation is something logic to the company or its
option to take or not?
8. Do you think that there is intersection between market orientation and product
orientation?
9. How you describe the relationship between marketing department and other
department, is it completion or integration?
10. What do you think about marketing research and market research it’s important?
Present your opinion from terms of “Time-Budget-Effort”.
11. Can the company achieve its mission and vision without marketing approach?
12. How can miss-management for marketing plan will effect on the company?
13. What the most objective for strategic marketing (in descending order)?
14. Do you think that marketing effect on HR goals and leadership styles inside the
company?
15. Do you think that marketing effect on all employee’s performance?
16. How marketing effects on financial performance?
17. How marketing effects on ROI?
18. Do you think that there an intersection between marketing KPI and organization
performance KPI?
19. What do you think about the concept of “Internal market”?
20. From your point of view and your professional experience what the marketing
science need to improve itself?
21. Is there a kind of marketers that fit to business nature and not fit to other business
nature?
48
.
Summary / Finish

- Go through key points they achieved for the day

- Thank respondents for coming
- Give incentives
- Dismiss

3.4. Sampling process

The researcher takes a sample (20 companies) to answer questionnaires and a
sample (Massive Dynamic X) to in-depth interview this is because this study
describes the role of Marketing approach and its effect on organization performance
in Egypt.

3.4.1. Questionnaire sampling process

The researcher will depend on stratified sampling process and divides

whole the population into strata according to the regional classification
provided that fixing other variables.
According to the regional classification, the researcher will take random
sample from each stratum to decrease sampling errors and take equal
number of customers from each stratum.
The researcher will take customers randomly from each stratum.
Questionnaire will be distributed to the candidate by e-mail and collected after
answering it.

3.4.2. In –depth interview (IDI) sampling process

The researcher depends on quota sampling process. The whole population

will be divided into strata according to the regional classification provided that
fixing other variables.

49
According to the regional classification, the researcher will take non-random
sample from each stratum and take equal number of customers judgmentally
depending on priority of accepting the interview.

50
Chapter four-4-Research findings and data analysis

51
 4. Chapter four-4-Research findings and data analysis
4.1. Qualitative analysis
Questions Very high High Normal Low Very Low
There is a causal relationship between high marketing
40% 30% 30% 0 0
performance and high financial profit
Quality of operation’s process inside your company
10% 20% 25% 45% 0
(timing)
Effectiveness of marketing performance in your
70% 25% 5% 0 0
company (depends on KPI)
The organization goals clear for employees 50% 40% 10% 0 0
The strategic plan clear for all heads of department 15% 5% 25% 40% 15%
The shareholders ROI expectations are 85% 10% 5% 0 0
The importance of marketing approach to your
40% 45% 15% 0 0
company is
Your perception about the freedom of tacking a
15% 50% 30% 5% 0
decision from marketing department is
Market performance as a market share growth is 15% 40% 25% 20% 0
The impact of marketing approach on your
35% 50% 15% 0 0
organization is positive ?
Do you thing that is a relationship between marketing
20% 30% 25% 35% 15%
approach and all employees performance?
How you describe your employees’ performance? 25% 50% 25% 0 0
Growth of skill level of employees is 10% 70% 20% 0 0
The sales turnover are 0 40% 40% 20% 0
The volume of closing deals comparing to sales
0 25% 45% 25% 5%
opportunities is
The relationship between marketing department and
40% 50% 10% 0 0
other department is positive.
The time that the results of marketing approach’s gain
10% 20% 55% 15% 0%
is
The marketing mix enhance the organization position
55% 45% 0 0 0
in the market?
Digital marketing present high growth for your
60% 40% 0 0 0
company?
Marketing strategy take a major position in company’s
90% 10% 0 0 0
strategic plan?
How you describe the level of marketing innovation in
35% 15% 15% 15% 20%
your company?
How you describe the rank of your company in the
15% 40% 45% 0 0
local industry field?

52
Discussion:
(Brief Summary)
It should be mention that beside the IDI and questioner, the result and hypotheses are
examined on first case study which be “Massive Dynamic X”, and second case study
which be “Tabarak Holding”. The other samples for more support and more testing for
research hypotheses and to test if the research success in general or just related to
specific case. As a brief summary the data analysis find that understanding of marketing
strategy and strategic marketing reflect on organization success, especially in enhancing
financial profit and enhancing the performance of operations process and departments
function inside the organizations, this results are supported the research while the
relationship between marketing and employee performance didn’t conduct in a manner
can be taken, perhaps the concept need to be discus and examine throw HR perspective
during create, prepare and collect the data. In appendices there is a report from HR
manager of main sample in first case study, shows how marketing strategy effect on
leadership styles which effect on employee’s performance. While in second case study the
marketing strategy generate a new KPIs for other department which reflect how marketing
change and will change the employee performance.
Survey Analysis:

The researcher tries to collect data from many companies in many fields the survey path
throws 20 different company, size of each companies are difference from one to another,
there are some limitation in number of companies and nature of business.

The time that the results of marketing approach’s gain

10% 20% 55% 15% 0
is

Quality of operation’s process inside your company

10% 20% 25% 45% 0
(timing) Don’t mention marketing department

This shows that because the results of marketing success related to other operations and
function inside the company, for example the marketing mix as product (as producing and
developing), disruption and the relationship of these two elements with supply chain
process, sales, customer services and other function related to the marketing that when

53
they are both high they are being barreled in the level but the slow of other operation
effected in a huge way on marketing results’ timing. Should remember that we talk about
timing not success, the last value will be more logic if put in consideration that type of
organization that apply survey different from each other. While some software company’s
and FMCG run the operation fast and see the results fast, other companies like
constructers and investment take long time to achieve the
targets and gain the results.

The impact of marketing approach on your

35% 50% 15% 0 0
organization is positive ?
The importance of marketing approach to
40% 45% 15% 0 0
your company is

This direct question number one shows how managers think that effective marketing and
financial profit are connected to each other, scale like 70% high and 30% normal represent
that is a logical causal relationship in mindset of Egyptian managers, this simple question
support the research. While the effectiveness of marketing performance in 95% of
samples are high which reflect that marketing approach not isolated performance or
operations, but it’s intersect with other company performance, which support the research
when mention that sometimes (the typical times from researcher point of view) the
marketers should observe and monitor other operations like, sales, customer service,
supply chain, quality control, RD and web developer, these effort from marketer not
directly as a job description or officially shaped (as cleared from IDI) but hidden in
marketers effort and their reports about how things should be done, it’s the core behind
marketing strategy from concept of doing the things right under the scope of operational
marketing in a long term.
Effectiveness of marketing performance in your
70% 25% 5% 0 0
company (depends on KPI)
There is a causal relationship between high marketing
40% 30% 30% 0 0
performance and high financial profit

The previous tables show that the managers that sees how volume of impact of marketing
approach in their organizations are relevant to their opinion about the importance of the
marketing approach, from the interview and some narrative discussion during collect the
data, appears that the perspective of marketing and how it is very important now, it has

54
been change from past, the CEO for first case study “Massive Dynamic X” say that in the
past the CEOs in most of decision share with HR manager and financial manager as are
they the most two strategic role and major pillars in the success of organization, but this
perspective modified especially after what mention before in this case study, again this
perspective modified to add the marketing manager to the top management.

55
Chapter five-5-Conclusion and recommendation

56
5. Chapter five – Conclusion and recommendation

5.1. General conclusion

5.2. General recommendation

57
 Bibliography

1. Marketing Management, Philip Kotler and Kevin Lane Keller (2002)

2. Principles of Marketing by Philip Kotler, Gary Armstrong online edition.
3. How to Create, Win, and Dominate Markets Kotler on Marketing: (2003)
4. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Porter, M. (1980) The
Free online edition.
5. Competitive Advantage: Creating and Sustaining Superior Performance. Porter, M. (1985) The Free
online edition.
6. Marketing and business performance Neil A Morgan (2002)
7. Strategic marketing: introduction. Proctor, T. (2000)
8. Marketing’s contribution to business strategy: market orientation, relationship marketing and
resource-advantage theory. International Journal of Management Reviews. Hunt and Lambe, C.J.
(2000)
9. Journal of Marketing Management. 20-3, 20-4,20-5.
10. Journal of Management. 17 editions 1 pages from 95 to 120.
11. Business Resources and Sustained Competitive Advantage. Barney. (1991)
12. Assessing Marketing Performance Puntoni, (2004)
13. Marketing performance assessment. Harvard Business School Press. Essays (1998)
14. Managerial perceptions of marketing performance: efficiency, adaptability, effectiveness and
satisfaction. Journal of Strategic Marketing Clark, (2000)
15. Planning on Structure and Performance. Industrial Marketing Management.
16. Marketing Theory. Journal of Marketing. Howard. (1983)
17. A conceptual and operational delineation of performance. (2002)
18. Theory and practice: Business performance measurement: Cambridge University Press.
19. Strategic Management Journal. Lieberman (1988).
20. Strategic Management Journal. Montgomery (1988)
21. Strategic Management Journal. First-Mover advantages and disadvantages Lieberman, Montgomery
(1998)
22. Journal of Marketing. The Effects of Entrepreneurial Proclivity and Market Orientation on Business
Performance. Matsuno, K., Mentzer, J.T. (2002)
23. Bringing Customers into the Boardroom. Harvard Business Review. McGovern, and Crawford, B.
(2004).
24. Organizational Strategy: Structure and Process. McGraw-Hill (1978).
25. Marketing productivity Morgan and Clark. (2002)
26. Market Orientation and Alternative. Kumar, A. (2002).
27. Strategic Orientations: Assessment of Performance Implications. Journal of Marketing-66.
28. Business performance measurement: Theory and practice. Cambridge University Press.
29. business performance. European Journal of Management.
58
30. Does Competitive Environment Moderate the Market Orientation-Performance Relationship? Journal
of Marketing. 58(1): Slater, topics (1994).
31. Market-Based Assets and Shareholder Value: A Framework for Analysis. Journal of Marketing.
62(1): Fahey. (1998)
32. The Effects of Formal Strategic Marketing Claycomb, , Germain. (2000)
33. The Role of Strategic Reference Points Theory. Academy of Marketing Science.
34. Extending the Competitive Marketing Strategy (1999)
35. The Concept of Strategic Marketing in Marketing Discourse – Thesis, Helsinki University of
Technology. (2006)
36. Consumer Preference Formation and Pioneering Advantage. Journal of Marketing Research. 1989
37. The effective executive. Peter Drucker (1966).
38. Theories of the Market Share Effect Distinguishing Among Competing. Journal of Marketing.
39. Market Orientation: Antecedents and Consequences. Journal of Marketing. Kohli, (1993)
40. The Market Driven Organization: Understanding, Attracting, and Keeping Valuable Customers. The
Free Press. Day, (1999).
41. The capabilities of market-driven organizations. Journal of Marketing. Day.(1994)
42. Kennie, T. (2006) Strategic Practice Management: How Strategic is Your Plan? Kennie (2006).
43. Sun Tzu’s Strategic Thinking and Contemporary Business. Chen, M. (1994).
44. Market orientation and business performance, International Marketing Review. 15-2.
45. Sources of first mover advantages in emerging markets – an Indian perspective. European Business
Review. 15-6 Rahman (2003).
46. Examining the role of industry structure and organizational learning in innovation Julian, (2006).
47. First-Mover Advantage: Conceptual Framework, and Research Propositions. Journal of Marketing.
56-4 Kerin,(1992).
48. Barriers to Imitation and Sustainable Competitive Advantage. Academy of Management Review. 15-
1.
49. Marketing planning, market orientation. Speed (2003)
50. Business innovation and channel collaboration: driving forces in firm value delivery. Selected essays.
(2003)
51. Principles and Practice of Structural, marketing modeling Kline (2005).
52. Innovation Management: Strategies, Implementation and Profits, New York: Oxford University Press.
(1998).
53. Gaining and sustaining competitive advantage. Barney (1996).
54. Dr. Rafat Yousef PowerPoints lectures. IBSS.
55. Sales and marketing, PowerPoints lectures. Dr. Raafat Youssef Shehata. IBSS.
56. International Business, PowerPoints lectures. Dr. Raafat Youssef Shehata. IBSS.
57. Strategic Managements, PowerPoints lectures. Dr. Raafat Youssef Shehata. IBSS.

59
 Appendices

Appendix 1 Report from HR Department of Massive Dynamic X.

Appendix 2 How Digital Marketing affect on traditionnel marketing.
Appendix 3 Marketing Key Performance Indicators
Appendix 4 Example of research questioner and survey result:
Appendix 5 Comments on marketer as a career

Appendix 1
New change inside Massive Dynamic X after entry of Marketing approach (strategic
marketing and marketing strategy) effect on leadership theories that chosen by HR
Management for the organization, and after understanding the new situation and strategic
plan which affected by strategic market plan, there was need to choose leadership style fit
to the new strategic business plan, and the following is a report from HR manager of
Massive Dynamic X.

Management by Objectives (MBO)

The term ‘management by objectives’ (MBO) was first coined by Peter Drucker in 1954.
Basically, Drucker tried to attach MBO level to result-oriented evaluations. He proposed
MBO as means of using goals to motivate people rather than to control them.
Management by objectives can simply be defined as a program that encompasses specific
goals, participative set, for an explicit time period, with feedback on goal progress.

MBO is a process whereby the superior and subordinate managers of an organization

jointly identify common goals, define each individual’s major areas of responsibilities in
terms of the results expected of him, and use these measures as guides for operating the
unit and assessing the contribution of each of its members.

Once an objective is agreed, the employee is usually expected to self-audit; that is, to
identify the skills needed to achieve the objective. Typically, they do not rely on others to
locate and specify their strengths and weaknesses. They are expected to monitor their
own development and progress.

Quality & Total Quality Management

60
(TQM) describes a management approach to long–term success through customer
satisfaction. In a TQM effort, all members of an organization participate in improving
processes, products, services, and the culture in which they work.

Total quality management can be summarized as a management system for a customer-

focused organization that involves all employees in continual improvement. It uses
strategy, data, and effective communications to integrate the quality discipline into the
culture and activities of the organization.

The balanced scorecard (BSC)

is a leadership system that organizations use to:

Communicate what they are trying to accomplish

Align the day-to-day work that everyone is doing with strategy

Prioritize projects, products, and services

Measure and monitor progress towards strategic targets

The balanced scorecard (BSC)

This way of leadership connects the dots between big picture strategy elements such as
mission (our purpose), vision (what we aspire for), core values (what we believe in),
strategic focus areas (themes, results and/or goals) and the more operational elements
such as objectives (continuous improvement activities), measures (or key performance
indicators, or KPIs, which track strategic performance), targets (our desired level of
performance), and initiatives (projects that help you reach your targets).

Benefits:

using the balanced scorecard method is that by looking at many aspects of a company's
performance, you really do get a balanced view of company performance. Unlike
traditional methods of business, the balanced scorecard gives you a full picture as to
whether your company is meeting its objectives. While it may seem that a company is
doing well financially, it may be that customer satisfaction is down, employee training is
inadequate, or that the processes are outdated.

by using a balanced scorecard approach, the immediate future isn't the only thing being
evaluated. Often, when an accountant sees the financial bottom line (perhaps the
61
company isn't doing well), suggestions are given that are immediate, but do not look at the
long-term. Using balanced scorecards allows for stakeholders to determine the health of
short, medium, and long term objectives at a glance.

strategy for company growth that includes meticulous accounting methods.

When the higher management of Massive Dynamic X put the objective clearly by using
(MBO) leadership style and tactical management (CEO) commit with quality of Producing
ERP Solutions leadership style (TQM) and the operation management (heads of
departments) applied (BSC) as a leadership styles in their day and day action plan, the
organization will get harmony in achieve high financial profit and stability on long term with
customers satisfaction on short term.

What makes these theories more applicable?

Each management level will apply it’s style on the next subordinators.

This will lead each management level members to commit with there goals.

There is no conflict between this styles (and this is very important point because there are
many excellent styles but not fit to this type of organization, on the other hand we cannot
create a mixture easily between many theories styles of leadership)

What makes these theories more applicable?

MBO is more applicable for the top level of management (strategic level and owners)
because they seek for achieve high financial profit but at the same time they seek to
motivate the employees not to control them.

When the top management set the objective they actually use it as a system to measure
performance of the employees and teachers.

TQM is more applicable for the med-management (CEo) because he need to apply the
goals for strategic management by achieve customer’s satisfaction and loyalty and on the
other hand produce high quality of software product and this is more fit to definition of
Total Quality Management TQM.

What makes these theories more applicable?

BSC Is more applicable for operation management (head of departments) because head
of departments should put the big picture of organization / school when they lead, control
62
and manage the teacher in day and day actions inside the Organization and with
customers.

After all, for employees there is no problems to commit with quality in performance and to
know that their performance will measure by customers satisfaction and to balance
between these.

MBO

The top management should avoid consider the financial profit as a higher value than
quality of education.

The top management should avoid to raise the objective more than the ability of the
employees because this will make them disappointed.

The top management should avoid the personal judgment when they measure the
performance of the employees to find if they meet the objective or not.

What made the top management not to choose the other theories?

After make a research on leadership theories they found that the previous mentioned
theories are more fit and applicable to organization as resercher show more than the other
theories.

Values Based Management needs a different Market bigger than massive dynamic
market market in Egypt. (Massive Dynamic x create Odoo ERP)

Business Excellence Model: needs a different business Size bigger than organization
may be if Massive Dynamic X has many branches.

Lean, Kaizen, Learning Organization and Knowledge Managemnt: need different

nature of organizations.

Lean and Kaizen theories fit more to factories, Learning Organization theory fit more to
software companies and fashion design and this nature of organization that account on
creativity but because nature of Software that the Massive Dynaimc X use this skip this
theory. Knowledge Management fit more to company create many products and change
their products always depends on customers’ requirements.

63
Appendix 2 : How Digital Marketing affect on traditionnel marketing.
Anyone can see how nowadays many new startup company start with digital marketing
and account on it in as a major element to success. From this new change the concept of
digital marketing changes a lot of traditional marketing, such as:

1. Segmentation / target audience: With new different characteristics, new technics

appears to cover the needs and to interact with the Customer profile characteristics
(demographics) - Customer value - Customer lifecycle groups - Customer behavior in
response and purchase - Customer multi-channel behavior - Customer personas
including psychographics.
2. Differentiation/ Positioning: create and develop an appropriate online value proposition
throw monitor and observe the competitors and retaining online customers.
3. Place / Distribution: distribution will not be costly for the organization and leashed by
specific place like traditional disruption, the product will reach to anyone in anywhere
(in most common cases)., better supply chain management has been achieved and a
reduced cost of transaction, creating time savings and lower labor costs.
4. Price: price in digital marketing is a shark competitive because every organization
compete on pricing, for this reason the website shows the product and price in
ascending sorting.

Appendix 3 Marketing Key Performance Indicators

Like the other business units, the marketing has its own KPI, that should be used of course
from top management and from marketing manager to measure success of marketing
achievement inside organization. The following KPI’s are the most common use, not all of
them fit to all kinds of organizations but at least they give a guide to each organization to
adapt their own KPI.
1. Sales turnover: off course this is the first measuring tool that will come in any
manager mind, that the major objective from marketing activity is increase sales
volume. But, top management should understand that this indicator in most cases
applicable for long run, that marketing activity has another objective to achieve
beside sales turn over.
2. Cost per Lead: calculate outbound marketing beside calculate customer acquisition
costs for inbound marketing. How much is it costing you to acquire a customer
through inbound marketing versus outbound marketing? this Calculating requires
the integration of marketing automation and CRM platforms as well as accounting
for all relevant costs associated with ERP integration. A marketing qualified lead is
64
 those people who have raised their hands and identified themselves as more
deeply engaged, sales-ready contacts than usual leads, but who have not yet
become fully fledged opportunities, on the other
50
hand, a sales qualified lead is one that the sales Customers

team has accepted as worthy of a direct sales 100

Quotes
follow-up. but the top management should
150 sales
understand organization's leads to close ratio qualified lead
which is the number of leads sales team
250 marketing
received over a specific period of time divided qualified lead
by the actual amount of leads sales team 500 Leads
closed.
3. Customer Value (lifetime): (Revenue x gross 1000 Visitors
margin x AVG of repeat purchases) this can be
measuring the organization ROI; it’s measuring customer value than reach out to
organization's current customers. in other phrase the management can calculate it
by (AVG number of times a customer buys per year) x (AVG sale per customer) x
(AVG retention time in months or years for a typical customer).
4. Inbound Marketing ROI: top managemnt should use this KPI to measure the return
on investment in marketing. Calculating inbound marketing return on investment is
major assessment key to measure monthly and annual performance. also to
calculate the ability to start or planning strategies and budgets for the following
periods (months, quarter, year). this keys should be used carefully by marketing
manager to the top management because this determines the budget and
investment plan that will inject in the marketing department. to calculate the inbound
marketing ROI:
ROI= (Sales Growth – Marketing Investment) / Marketing Investment.
5. Sales team response time: although this point related to sales team not to
marketing team, but the researcher sees that this responsibility of marketing team
under supervision of top management to give power to marketing team to enhance
this point. Both of marketing team and sales team should measure the response
time to customer (especially if the process from business to business) and measure
the competitor’s sales team response time, and defeat the weakness points and
enhance the strengths points in this key.
6. Website traffic to website lead ratio: management should understand the website
traffic and how many of the visitors become leads and how many from them
65
 become customer, the major concept her is knowing the ration to understand the
relationship and how to increase the ratio of customers from visitors. Many
intersections between marketing team, web designers and web developer, user
experience, customer service and business developers, will need to produce best
results.

7. Other Digital marketing channels: (Social Media ‫ ــ‬E-Mail Marketing ‫ ــ‬SEO….) e-

mail campaign from open rate, share and forward, response, social media growth
like Facebook likes and twitter followers, linked website to the company website, the
rank of website depends to SEO clerks. All the tools that can used to measure
success of digital marketing performance.
As mention before there are another KPI for marketing but what mention here are the most
common use and the researcher sees that each organization should create and adapt their
own KPI’s that fit to the nature of their own business.

Appendix 4 Example of research questioner:

Quality of operation’s process inside your Very
High Normal Low Very Low
company (timing) high
Quality of operation’s process inside your Very
High Normal Low Very Low
company (effective) high
The organization goals clear for employees Very
High Normal Low Very Low
high
The strategic plan clear for all heads of Very
High Normal Low Very Low
department high
The shareholders ROI expectations are Very
High Normal Low Very Low
high
The importance of marketing approach to your Very
High Normal Low Very Low
company is high
Your perception about the freedom of tacking a Very
High Normal Low Very Low
decision from marketing department is high
Market performance as a market share growth is Very
High Normal Low Very Low
high
The impact of marketing approach on your Very
High Normal Low Very Low
organization is positive ? high
Do you thing that is a relationship between
Very
marketing approach and all employees High Normal Low Very Low
high
performance?

66
How you describe your employees’ Very
High Normal Low Very Low
performance? high
Growth of skill level of employees is Very
High Normal Low Very Low
high
The sales turn over are Very
High Normal Low Very Low
high
The volume of closing deals comparing to sales Very
High Normal Low Very Low
opportunities is high
The relationship between marketing department Very
High Normal Low Very Low
and other department is positive. high
The time the results of marketing approach’s Very
High Normal Low Very Low
gain is high
The marketing mix enhance the organization Very
High Normal Low Very Low
position in the market? high
Digital marketing present high growth for your Very
High Normal Low Very Low
company? high
Marketing strategy take a major position in Very
High Normal Low Very Low
company’s strategic plan? high
How you describe the level of marketing Very
High Normal Low Very Low
innovation in your company? high
How you describe the rank of your company in Very
High Normal Low Very Low
the local industry field? high

67
Questions Very
High Normal Low Very Low
high
Quality of operation’s process inside your
2 4 5 9 0
company (timing)
Effectiveness of marketing performance in your
14 5 1 0 0
company (depends on KPI)
The organization goals clear for employees 10 8 2 0 0
The strategic plan clear for all heads of
3 1 5 8 3
department
The shareholders ROI expectations are 17 2 1 0 0
The importance of marketing approach to your
8 9 3 0 0
company is
Your perception about the freedom of tacking a
3 10 6 1 0
decision from marketing department is
Market performance as a market share growth is 3 8 5 4 0
The impact of marketing approach on your
5 10 5 0 0
organization is positive ?
Do you thing that is a relationship between
marketing approach and all employees 4 6 5 7 3
performance?
How you describe your employees’
5 10 5 0 0
performance?
Growth of skill level of employees is 2 14 4 0 0
The sales turnover are 0 8 8 4 0
The volume of closing deals comparing to sales
0 5 9 5 1
opportunities is
The relationship between marketing department
8 10 2 0 0
and other department is positive.
The time that the results of marketing
2 4 11 3 0
approach’s gain is
The marketing mix enhance the organization
11 9 0 0 0
position in the market?
Digital marketing present high growth for your
12 8 0 0 0
company?
Marketing strategy take a major position in
18 2 0 0 0
company’s strategic plan?
How you describe the level of marketing
7 3 3 3 4
innovation in your company?

68
 How you describe the rank of your company in
3 8 9 0 0
the local industry field?

Appendix 5
The interview prepared as structure interview to figure out many points such as: the main
theme of how marketing effects on organization performance, how marketing connecting
with leader ship style, how the company could have a dynamic process between functions
and operations, and is the marketing play a major role or not? Is the marketing can save
company from fallout? What the nature of professional marketers? Is there a kind of
marketers that fit to business nature and not fit to other business nature? The last question
was very important to research, this point should take a place in the research and the
reason that make the researcher didn’t mention this in the literature preview or in the case
studies, that the researcher think that this point should written in the complete researcher’s
opinion in the research without any intersection from other research. Is there a kind of
marketers that fit to business nature and not fit to other business nature? The answer is
no. marketing is science with method and tools that fit to any nature of business, it’s like
financial science, and most core management filed, while the reason of asking this
question that people misused between marketing and persons, the differences between
personal skills, and experience that make some success in some nature of business and
fail in another nature, its common in sales, who sale an automotive for (long time) will have
different skill and experience than who sale FMCG products, different doesn’t mean better
or worse, but different methods and tools, if happen replace between those two
salespersons it will not be positive results for both business. On the other from personal
skills point of view the marketer core nature is study, research and creative. No matter
what is the kind of business he/she study make his/her researches and be creative to
adapt to the market. Off course not anyone have the skills that required to marketer as a
job, not anyone will prefer a job that required study, research and to be creative all the
time, most off people prefer the comfort zone and to do the same tasks with high distance
from challenging job requirements. So the answer should be marketer can fit to any kind
of business, but not any one can fit to the job of marketer.

69