Introduction to Piercy

1. Introductionto Piercy

2. MARKETING IS WINNING • In peace there's nothing so becomes a manAs 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.

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

4. The strategic pathway Strategic thinking and thinking strategically Market sensing and learning strategy Strategic market choices and targets Customer value strategy and positioning Strategic relationships and networks Strategic transformation and strategy implementation

5. Ten steps of the strategic marketing planning process (McDonald 2007) 1 Mission Phase One Goal Setting 2 Corporate Objectives 3 Marketing Audit 4 Market overview Phase Two Situation Review 5 SWOT analysis 6 Assumptions 7 Marketing objectives and strategies Phase Three Strategy Formulation 8 Estimate expected results and identify alternative plans and mixes 9 Budget Phase Four Resource allocation and Monitoring Measurement and review 10 First year detailed implementation programme

6. The strategic pathway Strategic thinking and thinking strategically Market sensing and learning strategy Strategic market choices and targets Customer value strategy and positioning Strategic relationships and networks Strategic transformation and strategy implementation

7. Customer Value

8. The process of going to market Creativity Innovation Reinvention Processes that define value e.g., market knowledge and learning, CRM, research, intelligence Customer value Processes that create value e.g., new product development, innovation, brand development, strategic relationships Processes that deliver value e.g., channels, supply chain, customer service Resources Capabilities Strategic relationships

9. 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

10. 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

11. 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

12. Customer perceived value Perceived Benefits Customer –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

13. Value Customer 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 Advantage Journal of the Academy of Marketing Science Vol 25 No. 2, pages 139 - 153

14. 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 What managers need to know

15. 21st Century challenges • New business models • Innovation • Business agility • Crisis survival • Siege • Global recession • Aggressive investment • Globalization • Virtuality • Paradox • Corporate Social Responsibility • Strategy

16. 21st Century distractions • New business models • Innovation • Business agility • Crisis survival • Siege • Global recession • Aggressive investment • Globalization • Virtuality • Paradox • Corporate Social Responsibility • Strategy

17. 21st Century tools • New business models • Innovation • Business agility • Crisis survival • Siege • Global recession • Aggressive investment • Globalization • Virtuality • Paradox • Corporate Social Responsibility • Strategy

18. The strategic pathway Strategic thinking and thinking strategically Market sensing and learning strategy Strategic market choices and targets Customer value strategy and positioning Strategic relationships and networks Strategic transformation and strategy implementation

19. MARKETING MANAGEMENT a bettermousetrap

20. MARKETING MANAGEMENT If I were going toDublin, I wouldn’tstartfromhere Butwe ARE here And we are going to….

21. AN ANECDOTE • Great market for boots • They don’t wear boots