The Impact Of Organizational Objectives On The Selection Of Defensive Marketing Strategies: Empirical Evidence From A Small Open Economy

Abstract

Defensive Marketing Strategies (DMSs) do not receive enough attention as offensive or attacking marketing strategies in literature. This gap in the research constitutes a serious weakness in the marketing field. This paper aims to fill this gap in literature by conducting the first study to explore the determinants of the implemented DMSs in Kuwait. Empirically, this study examines the relationship between eight DMSs, demographics, and organizational objectives to define the most prevalent and appropriate DMSs to be deployed in the small open economy of Kuwait. Factor analysis and canonical correlation are used in this study to analyse the obtained data from surveyed board members, CEOs and executive managers of listed companies in the financial sector of Kuwait Stock Exchange (KSE). Results reveal a significant relationship between the eight DMSs and the two sets of identified variables in Kuwait context. Cost leadership strategy ranked the most effective defensive marketing strategy by respondents. Also, results show that organizational objectives are mostly affecting the choice of DMSs.