Extending the competitive marketing strategy paradigm: The role of strategic reference points theory

The purpose of this article is to extend and integrate the new strategic reference points theory (SRP), developed in the strategic management area, into the discipline of strategic marketing management. The major new tenets of the theory are the inclusion of cognitive, organizational processes and benchmarking simultaneously. First, the authors describe the impact of the marketing SRP on marketing strategic choice behavior captured in the tradeoff between risk and return (risk avert vs. risk lover) as was proposed by prospect theory. Then, they explore the performance consequences of integrating the newly formed stages while considering organizational process and implementation issues of reference points such as content, configuration, consensus, and change. Aviv Shoham is a senior lecturer of marketing at the William Davidson Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Technion City, Haifa. Avi Fiegenbaum is an associate professor of management at the William Davidson Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Technion City, Haifa.