Introduction to Piercy

INTRODUCTIONTO PIERCY

MARKETING IS WINNING In peace there's nothing so becomes a man

As modest stillness and humility:But when the blast of war blows in our ears,Then imitate the action of the tiger;Stiffen the sinews, summon up the blood,Disguise fair nature with hard-favour'd rage;Then lend the eye a terrible aspect;Let pry through the portage of the headLike the brass cannon; let the brow o'erwhelm itAs fearfully as doth a galled rockO'erhang and jutty his confounded base,Swill'd with the wild and wasteful ocean.Now set the teeth and stretch the nostril wide,Hold hard the breath and bend up every spiritTo his full height. On, on, you noblest English.

Agenda The process of going to market Customer value What managers need to know Challenges for the 21st century manager The strategic pathway

The strategic pathway

Marketsensingandlearningstrategy

Strategicmarketchoicesandtargets

Customervaluestrategyand positioning

Strategicrelationshipsandnetworks

Strategic thinking andthinking strategically

Strategictransformationand strategyimplementation

Ten steps of the strategic marketing planning process (McDonald 2007)

1 Mission

2 Corporate Objectives

7 Marketing objectives and strategies

3 Marketing Audit

4 Market overview

5 SWOT analysis

6 Assumptions

8 Estimate expected results and identify alternative plans and mixes

9 Budget

10 First year detailed implementation programme

Phase OneGoal Setting

Phase TwoSituation Review

Phase ThreeStrategy Formulation

Phase FourResource allocationand Monitoring

Measurementand review

The strategic pathway

Marketsensingandlearningstrategy

Strategicmarketchoicesandtargets

Customervaluestrategyand positioning

Strategicrelationshipsandnetworks

Strategic thinking andthinking strategically

Strategictransformationand strategyimplementation

CUSTOMER VALUE

The process of going to market

Processes that define valuee.g., market knowledge andlearning, CRM, research, intelligence

Processes that create valuee.g., new product development, innovation,brand development, strategic relationships

Processes that deliver valuee.g., channels, supply chain,customer service

Customervalue

ResourcesCapabilities

Strategic relationships

CreativityInnovation

Reinvention

Importance of Customer value

Consumer value plays a crucial role at the heart of all marketing activity (Holbrook, 1999 p. 1)

Source: Holbrook, M. B., 1999 Consumer Value A framework for analysis and research. Abingdon: Routledge

Customer perceived value definition

… perceived value is the consumer's overall assessment of the utility of a product based on perceptions of what is received and what is given. Though what is received varies across consumers (i.e. some may want volume, others high quality, still others convenience) and what is given varies (i.e. some are concerned only with money expended, others with time and effort), value represents a trade-off of the salient give and get components.

Source: Zeithaml, V. A., 1998 Consumer Perceptions of Price, Quality, and Value: A Means-End Model and Synthesis of Evidence Journal of Marketing 52 (July): 2-22

Choose a product or service you use and list your perceived benefits and sacrifices

Benefits Convenience Quality Prestige/status Price

Sacrifice Money Search costs Psychic costs

Customer perceived value

Perceived BenefitsCustomer –perceived value = ______________

Perceived Sacrifice

Benefits = attributes of core product/service and supporting services, perceived quality and price

Sacrifice = customer costs involved in purchasing, such as time, travel, repairing faulty work, etc. – NOT just price

Source:Monroe, K. B., 1991 Pricing – Making Profitable Decisions, McGraw-Hill, New York, NY. Quoted in Ravald, A. and Gronroos, C., The value concept and relationship marketing European Journal of Marketing Vol 30 No 2 1996 p 19 - 30

ValueCustomer value is a customer’s perceived preference for and evaluation of those product attributes, attribute performances, and consequences arising from use that facilitate (or block) achieving the customer’s goals and purposes in use situations.

Source: Woodruff, R. B., 1997 Customer Value: The Next Source for Competitive AdvantageJournal of the Academy of Marketing Science Vol 25 No. 2, pages 139 - 153

What managers need to know

The process of going to market, not “marketing” in the traditional sense: understanding customers and superior value building marketing strategy to deliver a

robust value proposition to customers achieving implementation by driving the

things that matter through the corporate environment

21st Century challenges

New business models

Innovation Business agility Crisis survival Siege Global recession

Aggressive investment

Globalization Virtuality Paradox Corporate Social

Responsibility Strategy

21st Century distractions

New business models

Innovation Business agility Crisis survival Siege Global recession

Aggressive investment

Globalization Virtuality Paradox Corporate Social

Responsibility Strategy

21st Century tools

New business models

Innovation Business agility Crisis survival Siege Global recession

Aggressive investment

Globalization Virtuality Paradox Corporate Social

Responsibility Strategy

The strategic pathway

Marketsensingandlearningstrategy

Strategicmarketchoicesandtargets

Customervaluestrategyand positioning

Strategicrelationshipsandnetworks

Strategic thinking andthinking strategically

Strategictransformationand strategyimplementation

MARKETING MANAGEMENT

A BETTER MOUSETRAP

MARKETING MANAGEMENT

If I were going to Dublin, I wouldn’t start from here

But we ARE hereAnd we are going to….

AN ANECDOTE Great market for boots They don’t wear boots