MARKETING IS DEAD?
OCTOBER 13TH 2016
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WHAT IS MARKETING?
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What is Finance? What is Marketing?
Google Scholar – September 2106
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THE NUMBER OF P’S?
P’s
Product
Price
Promotion
Place
Propo-osition
PackagingProcess
People
Partners
Perfor-mance
Programs
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VALUE CREATION AND VALUE CAPTURING (VC2)
Value Capturing
Value Creation
Nightmare Heaven
Hell Dream
5
PRODUCT?
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EXAMPLES
Electrical cars
Google Glass
3D Television
Blackberry
Jupiler Force
Cisco Cius
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THE STAIR TO MARKET ACCEPTANCE
Addressingcustomer need
Ecosystemin place
No barriersto use
Superior solution performance
Brand credibilty
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Product
Place
Promotion
Pricing
Proposition
MARKETING IS DEAD?
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EXAMPLES
Milkshake
Embrex
Lu
Betafence
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HOW TO CREATE VALUE?
A. Who is your target customer?
B. What is your target customers’ need you are adressing?
C. What is the solution you are offering?
D. Why should your customer prefer your solution over the one of thecompetition?
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VALUE PROPOSITION TEMPLATE
To address BBB of AAA, company XXX proposes CCC as a solution that
delights customers by DDD
PLACE?
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EXAMPLES
Tesco Homeplus
Bonobos
Dropbox
Salesforce
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WHY?
“Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something
interesting is happening.”
TOM GOODWIN
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Product
Place
Promotion
Pricing
Proposition
Platformization
MARKETING IS DEAD?
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PLATFORM
A platform is the connected environment where providers and consumers interact directly in a personalised
experience
A successfull platform owner
Attracts consumers and providers by creating value forconsumers and allowing value capturing by providers
Orchestrates the interaction between providers andconsumers to stimulate co-creation
Owns the node, not the dots
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PROMOTION?
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WHAT DO YOU THINK OF THIS COMMERCIAL?
https://youtu.be/gogQLQNrDds
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DIFFERENT VIEWS ON ADVERTISING
Main objective
Loyalty
Price elasticity
Economic Driver
Competition
Profitability
Power School
Increases brand recognition
Increases loyalty
Reduces price elasticity
Economies of scale
Barriers to entry
Increases profits
Information School
Informs the customer
Decreases loyalty
Increases price elasticity
Induces innovation
Enables competition
Decreases profits
VC2 View (Value Creation and
Capture)
Facilitates product introduction
Earnes loyalty
Reduces price elasticity
Compensates weaknesses
Allows new competitors
Decreases profitsfor established c’ies
Tackx, Rothenberger & Verdin - Is advertising for losers? An empirical study from a value creation and value capturing perspective. European Management Journal 2016
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Product
Place
Promotion
Pricing
Proposition
Platformization
Conversation
MARKETING IS DEAD?
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ENGAGE IN CONVERSATIONS
You
Ownedmedia
Commerce
Review Platforms
SocialMedia
Influencers
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EXAMPLES
Afas
Tablebooker
Tide
Pleasepress1
PRICE?
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How do you determine prices in yourcompany?
2
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2
Product
Place
Promotion
Pricing
Proposition
Platformization
Conversation
Valorisation
MARKETING IS DEAD?
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VALORIZATION PRINCIPLE
Valorize and multiply a long term personalized solution by financial or
other renumerations
2
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EXAMPLES
Friesland Campina
Toon
Sterrenrestaurants
DBFM
IT Maintenance
Tripadvisor
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EDGE STRATEGIES
Edge of theCustomer Journey
Edge of theEnterprise
Edge of theProduct
Source: Lewis and McKone, 2016
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EXAMPLES
Ryanair
Salesforce
Salad in a bag
Peloton
Amazon
CO-CREATION
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Product
Place
Promotion
Pricing
Proposition
Platformization
Conversation
Valorisation
MARKETING IS DEAD?
Co
Creation
Co
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Enterprise Stakeholders
CO-CREATION
Co-Creation
EmployeesCustomersSuppliersPartners
…
Source: Ramaswamy
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EXAMPLES
• Volvo
• Starbucks
• Fedex
• Nike
• Yardclub
IONIZATION
3
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3
Product
Place
Promotion
Pricing
Proposition
Platformization
Conversation
Valorisation
Creation
FROM 4 P’S TO IONIZATION
IONIZATION : Process by which electrically neutral atoms or molecules are converted
to electrically charged atoms or molecules (ions)
Encyclopedia Brittanica
Co
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