Fill the gap marketing academy

Can Marketing Be Entrepreneurial?

Dr. Barry Ardley

Lincoln Business School

The end of the four Ps?

• Prescriptive…..?

• Polemical….?

• Permanent….?

• Problematic….?

WHY THE NEED TO THINK DIFFERENTLY?

• Marketing is context dependent, but the context is always changing

• Markets are shifting, overlapping and fragmenting • Technology is omnipresent and pervasive• distribution is being reconfigured and reshaped • Customers are ever more demanding • It’s a global knowledge economy• Law like generalisations no longer apply in an era

of change, complexity, and contradiction

•I think this means no sitting back..

The Red Queen's race

Welcome toThe four Cs…

• From products to • co created solutions• From promotion to

• community communication• From price to • customisable• From place to

• choice

THE FOUR Cs

• Co-creation

• Community

• Customisation

• Choice

• Fight the Price!

• We’re going to launch into Spring with some serious action. Everyone has sales, but how often do we let our community dictate some of the terms? This time, we’re letting the fans decide the price of a beloved Gameloft title for iPhone, iPod touch and iPad!

A DEFINITION OF ENTREPRENEURSHIP

• Entrepreneurship has been defined as the process of creating value by putting together a unique set of resources to exploit an opportunity

‘Entrepreneurship’ then, is a process of innovation and change: so these ideas then get applied in a marketing context…..

and what does this mean?

It means MARKETING BECOMES……

“A world of re-everything”

A FRAMEWORK FOR ENTREPRENEURIAL MARKETERS

• Opportunity driven

• Proactiveness

• Innovation focussed• Customer intensity

• Risk management

• Resource leveraging

• New Value creation

Creating new value…

Experiential innovation

Playground accident

Kiss it better

distraction

Mobile platform

Licenced entertainment

‘Many of our clients are finding their traditional product innovation pipelines are drying up, and they are looking more and more at experiential innovation within marketing as a

means to drive brands forward’ account planning group

Wound care or entertainment?

Experiential innovationPoint the phone at the bandage and…..

Opportunity driven Continuous recognition and pursuit of opportunity

Proactiveness An action orientation

Innovation focussed Promoting new and different solutions

Customer intensity Promote passion for the customer the role of emotional, experiential and rational links

Value creation Seeking out novel sources of value throughout the firm

Risk management Comfortable with ambiguity and random variance

Resource leveraging Resourceful in doing more with less

DRIVEN BY OPPORTUNITY& the other EM dimensions..

From this…….. to this…..

Resource leveraging

• Is exploiting an opportunity limited to your current resources?

• Resource leveraging: an answer

• ‘We make use of alternative outside resources such as getting a loan or renting out rooms by bartering in return for an advertisement’

• Merely being customer oriented is not enough…constant innovation (is) necessary to deliver better value to customers….. F. Webster

• The benefits of solely having a customer orientation are short term

• Alone, it cannot provide insight into the long term importance of radical innovation

• So radical and\or incremental innovation?

Strategic INNOVATION & Entrepreneurial marketing

• You can’t ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new. – Steve Jobs

TO SERVE OR CREATE?(or a combination of both…)

Disney creates the fantasy that creates the customer

• Product innovation has the potential to engage peoples minds and imaginations

THE ICON GRID 4 strategic innovation modes

Follower

Bfocus on the items

customers want

Interact

D

Customers co produce

Isolate

A

Firm becomes the focus of its own attention

Shaper

C

Product becomes essential in defining the market

HIGH

Customer focus

low

low Innovation focus high

Shaping…

• As printing solutions develop, how will 3D printing impact on the printing industry?

• And elsewhere?

FOLLOW

• “In designing the actual product the research

allowed management to focus on the items

customers wanted and we avoided focusing

on things important to management but not

important to the customer”

INTERACT"We believe that marketing will

be much more participatory in

the next few years and we want

to be at the leading edge of that," Babs Rangaiah, Unilever's vice president , global

communications planning. (April warc news)

Customers are now active

participants and co-creators of

value. The role of marketing is to

facilitate customer participation and

provide them with value co-creation

opportunities

Creative consumers

innovation is not always about technology and the better mouse trap

• Tap into latent demands for a set of beliefs

• Ben and Jerry's: sustainability

• Innocent: health issues as a cultural assertion

• Starbucks and a new type of service encounter

Cool businesses are built on unique models

• Three common questions asked in companies

• What is our business model?

• Is our business model working?

• And…the Innovation question..

• Is it time to revise or replace our business model?

The IBM Business Model

• After problems in the nineties, shifted its focus from hardware to serviceprovider

• It launched a range of new activities in consulting and IT maintenance

• Now more than half of its revenues comes from these areas

SIX KEY QUESTIONS the model addresses

• How will the firm create value?

• For whom will the firm create value?

• What is the firms internal source of advantage?

• How will the firm differentiate itself?

• How will the firm make money?

• What are the organisations time, size and scope ambitions?

THE THREE LEVELS OF THE MODEL

• Foundation level: what is being sold -to whom, where etc.

• Proprietary level: create unique combinations being innovative

• Rules level: clear guidelines for implementation

Foundation

proprietary Rules

1 value - Selling a wide range of

cheese - stock mainly in breath

Source and sell in shop and on

website, some of the most expensive

quality cheeses in the world

Determine price of lowest cost

cheese in line with product image

2 for who? - B2c market

And B2B

Small businesses events marketing,

and cheese lovers

Cheese connoisseurs mainly -

(discerning buyers) Add Trade section

to website

3 Internal

Selling sourcing

Networking

Network to find rare exclusive

cheeses focus on customers facing

employees

Identify new \different suppliers

Improve relations with journalists and

media – send out free taster packs

Highly knowledgeable customer

focussed staff

Rigorous quality control

4 comp strategy

Product service quality

Customer relationships

Add an “expert” to website with

frequently asked questions about

cheese (like assistant in Microsoft)

Add a downloadable video clip to

web showing how cheese is made

from cow to cheeseboard

Add more seasonal packs to the

website i.e.

oWorld Cup

oWimbledon

oFathers Day

oPicnic in the Park Packs

oOutdoor Concert Cheese

boards

oExtraordinary service

levels

Achieve a new sales level for new

high end products

5 economic factors Low fixed costs,

medium variable costs, - medium

volumes, medium to high magins

Cheeses priced from mid market to

upper price levels in line with quality

image

Maintain margins at X % of high and

medium price cheeses

6. size\scope

growth model

Emphasis on growth opportunities Focus on opportunity identification

with a view to expansion

Other innovations - (inspired by the model)

• Add freebies in boxes distributed by non competitors in exchange for literature drops in their mailings

• Match cheeses for after dinner to types of drinks

• Establish a hotel chocolat link; chocolate and cheese matching

• Vegetarian options

• Adjacent cafe

ENTREPRENEURIAL MARKETING

Its developing new creative ideas and putting them into practice across the firm – its ongoing, not a `one off’ processNew marketsNew customer valueNew goodsNew services and processes

The Internet of Things: what will it mean to marketers?

Imagine if your fridge could order your favourite food online, the temperature of your outfit can adjust to weather conditions and your smart contact lenses presented instant LinkedIn data before your next networking event.

It may sound like science fiction but analysts predict that a future world of connected smart devices could offer huge opportunities along with challenges for marketers.

So what is The Internet of Things? And how will it transform the lives of consumers and how you market to them?

Key References

• Schindenhutte M et al Rethinking marketing the entrepreneurial imperative

• Godin S Purple Cow

• Brownlie D , Saren, M The Four Ps of the Marketing Concept: Prescriptive, Polemical, Permanent and Problematical", European Journal of Marketing, 26 (4)

• http://www.themarketer.co.uk/analysis/features/the-internet-of-things/?utm_source=%20PJUAO6F&utm_medium=email&utm_term=The%20Internet%20of%20Things:%20what%20will%20it%20mean%20to%20marketers?&utm_campaign=

• http://allaboutstevejobs.com/sayings/stevejobsinterviews/inc89.php

• Band Aid - http://www.warc.com/Content/ContentViewer.aspx?ID=84075c28-c5ad-48ac-a713-9d99084d0f65&utm_source=TopicUpdate&utm_medium=email&utm_campaign=TopicUpdate20140306&MasterContentRef=84075c28-c5ad-48ac-a713-9d99084d0f65

• Webster F :The changing role of marketing in the corporation. Journal of Marketing. Vol. 56 (4), AKIO MORITA http://www.marsdd.com/articles/customer-needs-kotler-on-marketing/

• http://davidmerzel.wordpress.com/2011/06/18/the-4-ps-marketing-are-dead-via-davidmerzels-blog/

References (contd)

• Ardley, B and Taylor, N Marketing in SMEs: assessing the contribution of a business school to the development of competent managers. In: Academy of Marketing Annual Conference Southampton University.

• A study of Turkish boutique hotels Kurgun, Bagirian, D. Ozeren, E. Maral, B.

• European journal of social sciences 2 (3)

• Sloan management review 53(3)

• http://www.mark1hire.co.uk/

• Morris, M. et al Journal of business research 58 (6) .

• Holt D and Cameron D Cultural Strategy

•

• THANK YOU for being here and Listening!

• ANY Questions?