ABSTRACT
Most new management theories usually emerge because research on real world management practices identifies an operational philosophy which has proved beneficial to a number of organizations. In the case of marketing management strategies, early theoretical foundations were based upon studies of major consumer goods companies such as Proctor & Gamble and Unilever in the decades following the Second World War. The success of these firms was attributed to their adoption of a mass marketing philosophy involving the supply of a standard product to satisfy consumer needs linked to exploit economies of scale to generate the profits required to support high levels of promotional spending. The low technology manufacturing processes for consumer goods such as detergents, soaps, coffee and frozen food does mean it is virtually impossible to create products which are technically different from those offered by competitors. Under these circumstances, the issue of the level of promotional activity is usually critical. This is because achieving and retaining market leadership in many cases is often determined by the ability to fund a higher level of promotion than the competition (Strasser 1989).
