An organization need talented and skilled individuals to build a successful business. Because these talented people are highly sought after, an attractive pay structure is often the key to bringing the best candidates on board. A fair compensation system is among one of the most effective ways in retaining and motivating employees. One of the key factors when designing salary structures is the balance between internal and external pay equity. It is important for pay to be externally fair because it provides fairness in compensation for employees compared to the rest of the market. If pay is not externally fair it runs the risk of a higher turn-over rate and increases employee dissatisfaction.
Marketing capabilities are specific type of organizational capability is which could be defined as the integrative process of applying and linking shared organizational knowledge, skills, and resources to market-related needs (Vohries and Harker, 2000, Tsai &Shih 2004). Marketing capability is a key to the market-related deployment mechanism that helps an organization to acquire, combine, and transform its market-based resources to assist it to achieve its desired performance (Day, 1994; Morgan, Vorhies, & Mason, 2009). The present study focuses on the value of a set of specific marketing capabilities like product development capabilities, customer relationship management capabilities and channel building. These capabilities enables the firm to become more effective through applying marketing concepts and leveraging market-based resources which are necessary elements. These capabilities may be rare, valuable, Non-substitutable, and inimitable sources of competitive advantage and provide superior firm performance ( Dutta et al., 2003; Vorhies and Morgan, 2005). Marketing capability enables a firm to provide value to its products and meet the competition challenges (Day, 1994; Vorhies et al., 1999; Vorhies & Morgan, 2005), and plays a critical role in the deployment of market-based resources to sense respond to the dynamic market environment (Morgan et al., 2009; Murray et al., 2011). Thus summing up the above it is suggested that marketing capabilities forms the core layer in the firm for generating competitive advantage. The literature also notifies that firms possessing marketing capabilities, report superior competitive advantage across various industries Thus, the following hypotheses have been presented:
H1: The relationship between market capabilities of firms and its competitive advantage is significant
h 1a: Product development as marketing capability positively affects firm competitive advantage
h 1b: Channel Management as marketing capability positively affects firm competitive advantage
h 1c : Customer relationship management as marketing capability positively affects firm competitive advantage
The core purpose of marketing which is to preserve and protect customer value implies the ability to continuously augment the value (attributes, benefits, attitudes, and network effects) and to foster and renew the market based assets and capabilities. (Srivastava et.al 2001). The ability of marketing capabilities to generate advantage is uncontested in case of stable environments its capacity to however to sustain the advantage is challenged by increasing complexity and uncertainty of market environment. In dynamic markets, here is a widening gap between accelera
