Marine propulsion system and method with single rear drive and lateral marine drive

A marine propulsion system for a marine vessel includes one steerable rear marine drive positioned along the center line of the marine vessel and a lateral marine drive positioned at a bow region of the marine vessel. The rear marine drive is steerable about a vertical steering axis to a range of steering angles. The lateral marine drive is positioned at a fixed angle with respect to the marine vessel and configured to generate lateral thrust on the marine vessel. A user input device is operable by a user to provide a propulsion demand input commanding surge movement, sway movement, and yaw movement of the marine vessel, and the control system is configured to control steering and thrust of the rear marine drive and thrust of the lateral marine drive based on the propulsion demand input to generate the surge movement, sway movement, and/or the yaw movement commanded by the user.