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Integrating strategic thinking and simulation in marketing strategy: Seeing the whole system

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  • Pagani, Margherita
  • Otto, Peter

Abstract

In contexts where competition is intense, growth is rapid, innovation is abundant, local conditions are idiosyncratic, and technological options are increasingly complex, the marketing manager needs to understand the dynamic forces that influence the structure of the industry in order to assess the market strategic value. The problems are made even more difficult when much of the information available is qualitative, not quantitative. In order to reduce endless complexities and produce manageable simplicities, the study proposes a workable systems methodology and a holistic frame of reference that allows managers to focus on relevant issues and avoid the endless search for more details, while drowning in proliferating useless information. This paper presents two cases illustrating systems approaches to marketing strategy and decision-making. The purposes are to contrast a qualitative mapping theory building approach and a quantitative group model building approach to help client groups think systemically about marketing dynamics, and to draw out implications for research and practice in marketing strategy.

Suggested Citation

  • Pagani, Margherita & Otto, Peter, 2013. "Integrating strategic thinking and simulation in marketing strategy: Seeing the whole system," Journal of Business Research, Elsevier, vol. 66(9), pages 1568-1575.
  • Handle: RePEc:eee:jbrese:v:66:y:2013:i:9:p:1568-1575
    DOI: 10.1016/j.jbusres.2012.09.020
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    References listed on IDEAS

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    1. Margherita Pagani, 2004. "Determinants of adoption of third generation mobile multimedia services," Post-Print hal-02313098, HAL.
    2. Otto, Peter, 2008. "A system dynamics model as a decision aid in evaluating and communicating complex market entry strategies," Journal of Business Research, Elsevier, vol. 61(11), pages 1173-1181, November.
    3. Pagani, Margherita & Fine, Charles H., 2008. "Value network dynamics in 3G-4G wireless communications: A systems thinking approach to strategic value assessment," Journal of Business Research, Elsevier, vol. 61(11), pages 1102-1112, November.
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    7. Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
    8. Peter Otto & Jeroen Struben, 2004. "Gloucester Fishery : Insights from a Group Modeling Intervention," Post-Print hal-02312278, HAL.
    9. Kishore Sengupta & Tarek K. Abdel-Hamid, 1993. "Alternative Conceptions of Feedback in Dynamic Decision Environments: An Experimental Investigation," Management Science, INFORMS, vol. 39(4), pages 411-428, April.
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