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

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\u27 annual reports and website contents with participants\u27 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\u27s 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