Marketing Strategies to Enhance Profitability Among International Oil and Gas Service Companies

230 Pages·2017·1.12 MB·English

Walden University
ScholarWorks
Walden Dissertations and Doctoral Studies
Walden Dissertations and Doctoral Studies
Collection
2017
Marketing Strategies to Enhance Profitability
Among International Oil and Gas Service
Companies
Hesameddin Zafari
Walden University
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Walden University

College of Management and Technology

This is to certify that the doctoral study by

HESAMEDDIN ZAFARI

has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.

Review Committee
Dr. Cheryl McMahan, Committee Chairperson, Doctor of Business Administration Faculty

Dr. Mohamad Hammoud, Committee Member, Doctor of Business Administration Faculty

Dr. Neil Mathur, University Reviewer, Doctor of Business Administration Faculty

Chief Academic Officer
Eric Riedel, Ph.D.

Walden University
2017
Abstract
Marketing Strategies to Enhance Profitability Among International Oil and Gas Service
Companies
by
Hesameddin Zafari

MS, Curtin University, 2006
BS, University of Tehran, 2002

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
August 2017
Abstract
A significant drop in oil price in 2014 resulted in enormous pressure on marketing
managers of international oilfield service companies to address new market expectations.
In such competitive conditions, some marketing managers lack strategies to leverage
profitability during downturns. The purpose of this multiple case study was to explore
strategies that senior marketing managers of international oilfield service companies in
the Middle East successfully used to enhance sales performance, revenues, and profits
during periods of declining oil prices. Theory of market segmentation, targeting, and
positioning formed the conceptual framework for this study. Data were collected through
semistructured interviews of 5 senior marketing managers of international oilfield service
companies throughout the Middle East. Data analysis was composed of organizing data,
becoming familiar with the data, putting data in nodes, giving proper codes, interpreting
the data, and presenting the results, which led to 5 primary themes including customers,
relationship, differentiation, services, and prices. To increase reliability and reduce bias,
triangulation was achieved by combining, comparing, and contrasting companies’ annual
reports and website contents with participants’ information. Identifying the right
strategies that lead to higher profitability is crucial for international oilfield companies.
Developing dynamic segmentation strategies, targeting new market players,
differentiating via innovation, and promoting reliable relationships increase the likelihood
of grasping new opportunities. This study’s implications for positive social change
include having more sustainable and profitable firms contributing to prosperity of local
communities, which leads to healthier economies and more stable societies.
Marketing Strategies to Enhance Profitability Among International Oil and Gas Service
Companies
by
Hesameddin Zafari

MS, Curtin University, 2006
BS, University of Tehran, 2002

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration

Walden University
August 2017
Dedication
I dedicate this doctoral study to my delightful and devoted parents for all the
supports, encouragements, and inspirations they have made throughout my life to ignite
my passion for succeeding. To my lovely wife, for all her patience, love, and unwavering
endorsements and praises she has made during my doctoral study. To my beautiful sister,
for her compassion and emotions she has dedicated to me. And, to my wonderful
grandmother, for who she was and what she taught me. Although she passed away
without seeing my doctoral graduation day, I am sure she is smiling down from heaven
and is very proud of me.
Acknowledgments
Accomplishment of a challenging, rigorous, and stimulating doctoral study
requires a great amount of support from families, friends, peers, and, of course, faculty. I
would like to express my deepest gratitude to my committee chair, Dr. Cheryl McMahan,
the most inspiring and the ultimate source of support and encouragement. She has made a
beautiful footprint on my heart and been a scholarly example of professionalism and
excellence. My gratitude expands to my second committee member, Dr. Mohamad
Hammoud, for his careful attention to detail and erudite insights on my doctoral study.
Also, I would like to thank my URR, Dr. Neil Mathur, for his thorough reviews and
constructive comments. Special thanks to Dr. Freda Turner, the DBA program director,
for her continuous support to DBA students. The final appreciation goes to my family,
friends, and peers for their enthusiasm, support, comprehension, and love throughout this
magnificent journey. God bless you all.
Table of Contents
List of Tables ..................................................................................................................... iv
Section 1: Foundation of the Study ......................................................................................1
Background of the Problem ...........................................................................................1
Problem Statement .........................................................................................................2
Purpose Statement ..........................................................................................................2
Nature of the Study ........................................................................................................3
Research Question .........................................................................................................6
Interview Questions .......................................................................................................6
Conceptual Framework ..................................................................................................7
Operational Definitions ..................................................................................................8
Assumptions, Limitations, and Delimitations ................................................................9
Assumptions ............................................................................................................ 9
Limitations ............................................................................................................ 10
Delimitations ......................................................................................................... 10
Significance of the Study .............................................................................................11
Contribution to Business Practice ......................................................................... 11
Implications for Social Change ............................................................................. 12
A Review of the Professional and Academic Literature ..............................................12
Segmentation, Targeting, and Positioning ............................................................ 14
Rival Theories of the Conceptual Framework ...................................................... 33
Marketing and Marketing Strategy ....................................................................... 36
i
Sales Performance ................................................................................................. 47
Marketing Strategies of Oilfield Service Companies Amid Downturn ................ 56
Transition and Summary ..............................................................................................61
Section 2: The Project ........................................................................................................63
Purpose Statement ........................................................................................................63
Role of the Researcher .................................................................................................64
Participants ...................................................................................................................70
Research Method and Design ......................................................................................72
Research Method .................................................................................................. 72
Research Design.................................................................................................... 74
Population and Sampling .............................................................................................77
Ethical Research...........................................................................................................82
Data Collection Instrument ..........................................................................................86
Data Collection Technique ..........................................................................................89
Data Organization Techniques .....................................................................................94
Data Analysis Technique .............................................................................................96
Reliability and Validity ................................................................................................99
Reliability .............................................................................................................. 99
Validity ............................................................................................................... 101
Transition and Summary ............................................................................................105
Section 3: Application to Professional Practice and Implications for Change ................106
Introduction ................................................................................................................106
ii
Presentation of Findings ............................................................................................107
Theme 1: Customers/Clients (Market Segmentation) ......................................... 110
Theme 2: Relationship (Market Targeting) ........................................................ 116
Theme 3: Differentiation (Market Positioning) .................................................. 122
Theme 4: Service(s) ............................................................................................ 127
Theme 5: Price/Revenue ..................................................................................... 131
Application to Professional Practice ..........................................................................136
Implications for Social Change ..................................................................................138
Recommendations for Action ....................................................................................139
Recommendations for Further Research ....................................................................142
Reflections .................................................................................................................143
Conclusions ................................................................................................................144
References ........................................................................................................................146
Appendix A: Interview Protocol ......................................................................................214
Appendix B: National Institute of Health Certificate ......................................................217
Appendix C: Invitation to Participate in the Study ..........................................................218

iii