The Effect of Business Strategy Type on Marketing Organization Design, Product-Market Growth Strategy, Relative Marketing Effort, and Organization Performance

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This article reports an empirical investigation of the underlying relationships between business strategy type, the design of the marketing function, product-market growth strategies, relative marketing effort, and organization performance in 410 firms across a cross-section of six service industries. Business strategy type was operationalized by using the Miles and Snow (1978) typology which characterizes businesses as defenders, prospectors, analyzers, or reactors based on their product-market scope. The fmdings provide empirical support to the Miles and Snow (1978) typology in everyone of the six service industries. The managerial implications are presented and discussed.