CREATIVE MARKETING STRATEGY AND EFFECTIVE EXECUTION ON PERFORMANCE IN PAKISTAN

The purpose of the current research is to determine the influence of creative marketing strategies and effective execution on business unit performance. Moreover, strategic orientation and environmental uncertainty are used as moderating variables. Data are collected from 368 key informants working in Fast-Moving Consumer Goods (FMCG), banking, pharmaceutical, chemical, insurance, and engineering industries using a multi-stage random sampling technique. Factor analysis and multiple hierarchal regressions are used to test the study hypotheses. The results indicate that creative marketing strategy and effective execution are positively associated with business performance. Moreover, environmental uncertainty and strategic orientation play a moderating role in the above relationships.

KEYWORDS
Marketing strategy; creativity; strategic orientation; firm performance; Pakistan

Industries	Number of companies / Business units
Insurance industry	35
Banking industry	43
Chemical industry	44
FMCG industry	60
Pharmaceutical industry	19
Engineering industry	31
Textile industry	126
Telecommunication	10

SV	QI	FL	KMO	Mean	Standard deviation	α
Creative marketing strategy	CMS1	0.799	0.829 Bartlett's test of sphericity: p = 0.001	3.89	0.47	0.89
	CMS 2	0.809
	CMS 3	0.788
	CMS 4	0.797
	CMS 5	0.645
	CMS 6	0.758
	CMS7	0.841
	CMS8	0.803
	CMS9	0.745
	CMS10	0.789
Strategy implementation effectiveness	SEI1	0.722	0.816 Bartlett's test of sphericity: p = 0.001	3.80	0.42	0.65
	SEI2	0.812
	SEI3	0.740
	SEI4	0.785
	SEI5	0.801
Relative cost	RC1	0.773	0.743 Bartlett's test of sphericity: p = 0.001	4.10	0.51	0.85
	RC2	0.811
	RC3	0.858
Relative quality	RQ1	0.790	0.796 Bartlett's test of sphericity: p = 0.001	3.58	0.46	0.68
	RQ2	0.743
	RQ3	0.729
Market turbulence	MT1	0.759	0.905 Bartlett's test of sphericity: p = 0.001	3.73	0.46	0.75
	MT2	0.844
	MT3	0.840
	MT4	0.670
	MT5	0.784
Technology turbulence	TT1	0.725	0.845 Bartlett's test of Sphericity: p = 0.001	3.69	0.58	0.74
	TT2	0.822
	TT3	0.845
	TT4	0.840
	TT5	0.801
Competitive intensity	CI1	0.711	0.871 Bartlett's test of sphericity: p = 0.001	3.45	0.42	0.74
	CI2	0.786
	CI3	0.842
	CI4	0.864
	CI5	0.849
	CI6	0.711
Business performance	BP1	0.731	0.799 Bartlett's test of sphericity: p = 0.001	3.70	0.53	0.87
	BP2	0.794
	BP3	0.692
	BP4	0.815
	BP5	0.839

	CMS	SEI	RQ	RC	MT	CI	TT	PER	Tolerance	VIF
CMS	1	0.39^ Significant at the 0.01 level (1-tailed).	0.27^ Significant at the 0.01 level (1-tailed).	0.33^ Significant at the 0.01 level (1-tailed).	0.18^ Significant at the 0.01 level (1-tailed).	0.25^ Significant at the 0.01 level (1-tailed).	0.15^* * Significant at the 0.05 level (1-tailed);	0.17^ Significant at the 0.01 level (1-tailed).	044	2.52
SEI	-	1	0.28^ Significant at the 0.01 level (1-tailed).	0.29^ Significant at the 0.01 level (1-tailed).	0.21^ Significant at the 0.01 level (1-tailed).	0.19^ Significant at the 0.01 level (1-tailed).	0.14^* * Significant at the 0.05 level (1-tailed);	0.20^ Significant at the 0.01 level (1-tailed).	0.39	2.48
RQ	-	-	1	0.21^ Significant at the 0.01 level (1-tailed).	0.29^ Significant at the 0.01 level (1-tailed).	0.25^ Significant at the 0.01 level (1-tailed).	0.11	0.26^ Significant at the 0.01 level (1-tailed).	0.31	3.55
RC	-	-	-	1	0.11	0.26^ Significant at the 0.01 level (1-tailed).	0.09	0.10	0.28	2.89
MT	-	-	-	-	1	0.18^ Significant at the 0.01 level (1-tailed).	0.21^ Significant at the 0.01 level (1-tailed).	0.25^ Significant at the 0.01 level (1-tailed).	0.20	2.62
CI	-	-	-	-	-	1	0.28^ Significant at the 0.01 level (1-tailed).	0.30^ Significant at the 0.01 level (1-tailed).	0.49	2.40
TT	-	-	-	-	-	-	1	0.21^ Significant at the 0.01 level (1-tailed).	0.41	3.01
PER	-	-	-	-	-	-	-	1	0.37	3.28

Predictors	Un-standardized Beta Coefficient	t-value
Step 1 - Control variables
Relative cost	0.11	1.24
Relative quality	0.01	0.101
Environmental uncertainty	0.19	2.54^ Significant at 0.05 levels: One-tailed.
R Square	0.15^* * Significant at 0.01 levels: One-tailed,
Step 2 - Independent variable
CMS	0.34	2.96^* * Significant at 0.01 levels: One-tailed,
SEI	0.42	4.58^* * Significant at 0.01 levels: One-tailed,
R Square	0.33^* * Significant at 0.01 levels: One-tailed,
F-Statistics	98.68^* * Significant at 0.01 levels: One-tailed,
Moderation regression: Environmental uncertainty
*CMS^ * Significant at 0.01 levels: One-tailed, EU**	0.40	4.49^* * Significant at 0.01 levels: One-tailed,
*SEI^ * Significant at 0.01 levels: One-tailed, EU**	0.37	3.12^* * Significant at 0.01 levels: One-tailed,
R Square	0.30^* * Significant at 0.01 levels: One-tailed,
F-Statistics	63.55^* * Significant at 0.01 levels: One-tailed,

	Prospectors	Analyzers	Differentiated defenders	Low cost defenders
	(N=54)	(N=53)	(N=39)	(N=43)
	Beta (t-value)	Beta (t-value)	Beta (t-value)	Beta (t-value)
Step 1:
Relative quality	0.14 (1.42)	0.11 (1.66)	0.33 (1.47)	0.14 (1.23)
Relative cost	0.05 (0.53)	0.14 (0.41)	0.26 (0.63)	0.04 (0.10)
EU	0.15 (2.15^ Significant at 0.05 levels: One-tailed. )	0.23 (2.37^ Significant at 0.05 levels: One-tailed. )	0.29 (2.03^* * Significant at 0.01 levels: One-tailed, )	0.23 (2.84^* * Significant at 0.01 levels: One-tailed, )
Step 2:
CMS	0.36 (3.03^* * Significant at 0.01 levels: One-tailed, )	0.32 (2.44^* * Significant at 0.01 levels: One-tailed, )	0.19 (1.17)	0.48 (3.56^* * Significant at 0.01 levels: One-tailed, )
SEI	0.46 (3.77^* * Significant at 0.01 levels: One-tailed, )	0.54 (4.63^* * Significant at 0.01 levels: One-tailed, )	0.34 (2.20^* * Significant at 0.01 levels: One-tailed, )	0.24 (2.35^ Significant at 0.05 levels: One-tailed. )
R Square	0.22^* * Significant at 0.01 levels: One-tailed,	0.28^* * Significant at 0.01 levels: One-tailed,	0.118^ Significant at 0.05 levels: One-tailed.	0.21^* * Significant at 0.01 levels: One-tailed,
F - Statistics	14.25^* * Significant at 0.01 levels: One-tailed,	21.48^* * Significant at 0.01 levels: One-tailed,	4.92^ Significant at 0.05 levels: One-tailed.	12.36^* * Significant at 0.01 levels: One-tailed,

Fundação Getulio Vargas, Escola de Administração de Empresas de S.Paulo Av 9 de Julho, 2029, 01313-902 S. Paulo - SP Brasil, Tel.: (55 11) 3799-7999, Fax: (55 11) 3799-7871 - São Paulo - SP - Brazil
E-mail: rae@fgv.br

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[TFN1] Note: Creative Marketing Strategy (CMS), Strategy Effective Implementation (SEI), Relative Cost (RC), Relative Quality (RQ), Technology Turbulence (TT), Market Turbulence (MT), Competitive Intensity (CI), Performance (PER).

[TFN2] ^*
Significant at the 0.05 level (1-tailed);

[TFN3] ^**
Significant at the 0.01 level (1-tailed).