Dynamic cycles of strategy, marketing and sales : a framework for capital goods industries

Abstract

This thesis proposes a framework to help managers facing growth challenges or commoditization problems in business to business, particularly with capital goods. The framework is based on the proposition that strategy, marketing and sales are cycles that happen with different durations. Strategy defines perspective, plans, position and patterns. It encompasses several marketing cycles where offerings are defined; pricing policies are declared; channels are chosen and promotions are deployed. Several cycles of sales will happen within a marketing cycle with respect to the timing of deals in the specific industry in which the firm operates. The framework proposes the use of strategy-based analysis to identify whether problems and the need for change or adjustment are in the strategy, marketing or sales dimension. Various aspects of strategy, marketing and sales that are relevant for capital goods are presented, drawing on parallels from practical examples based on companies or evidence from the literature. Specific propositions of strategy related to platforms, services and integrated services are presented. Four companies (ABB, GE, Voith Hydro and Rockwell) have been studied to illustrate the thesis. A collection of practices for the implementation and adaptation of changes in the organization are discussed. The thesis concludes that there is no right or wrong approach, and that it is important that managers ensure consistency within these dimensions and with other areas of the firm. Finally, some ideas for the next steps are discussed.