A Fundamental Model of Effective Marketing Resource Allocation: Grounded Theory Approach

Marketing resource allocation is one of organization's strategic decisions which influences their profitability both directly and indirectly. Dynamic nature of marketing resource allocation and volatile environment of organizations, in addition to advent of new media contribute to ineffectiveness of old methods of marketing resource allocation. This research adopts social constructivism philosophy and taking advantage of abductive strategy and qualitative methods of research, studies "what" and "why" of dominant model of marketing resource allocation decisions in Iranian organizations and factors affecting the decisions. Research method was grounded theory and sample consisted of 14 top and marketing managers, consultants and experts of organizations in food and beverage industries. Sampling method was a combination of purposive and judgment methods. According to the research findings, product or brand influences marketing resource allocation decisions and characteristics of the firm and conditions of market and industry shape the organization's strategies which finally result in change in market share, brand awareness, coverage and organizational learning of the organization.