Transcript MBA Refresher Leeds University Business School 21 April 2012

Take Courage!
Without it there is Nothing
Peter Leeflang (Groningen)
John Saunders (Kent)
Peter Verhoef (Groningen)
Veronica Wong (Kent)
“We are the champions”
“Marketing is everything and everything is marketing.”
McKenna
“Business has only two… basic functions: marketing and
innovation.”
Drucker
“Exhaustively proven importance of marketing orientation.”
Desphandé
“Fings ain’t what they used to be”
“Ten percent of the time in the boardroom is devoted to
marketing and… could be falling.”
Ambler
“Few board members of companies have a marketing
background.”
Simms, McGovern et al.
“Marketing is losing ground in firms.”
Kumar
“The decline and dispersion of marketing within firms.”
Webster et al.
“Slippin’ and a slidin’”
“Chief executives cannot find evidence of the added value
of marketing.”
Kotler and De Bress
“Most marketers lack good measurement systems, tend to
blame other departments for failure, focus on
expenditures instead of expected revenues, and promise
too much but deliver little.”
Schultz
“Marketing directors are unaccountable, untouchable,
slippery and expensive.”
Warren
“The party’s over”
“marketing is everything and
everything is marketing”
or
marketing is everyone’s
and marketing is nothing?
“What’s going on?”
Business
Marketing’s
Market
Context
Influence
Orientation
Business
Performance
Formal model
7
4
4
m1
f 1
e1
MI k   0   m MDm   7 f FC f  11e ECe   MIk
5
MO   0    k * MI k  M
k 1
5
L
k 1
l 1
Pp   0    k * MI k  6 * MO    6l * Z l   p
MI
MO
P
MD
FC
EC
Z
= marketing’s influence
= market orientation
= performance
= marketing department’s characteristics
= firm’s characteristics
= environmental characteristics
= covariates
Yes, it is true!
Marketing’s
Influence
+
Market
Orientation
+
Business
Performance
What is marketing really deciding? Leading
Decision Influence Dispersion Among Departments
80
70
Sales
Marketing
R&D and Operations
Finance
60
Influence
50
40
30
20
10
0
Price
Distribution The direction Advertising
strategy
of a strategic messages
business unit
Expansions
into new
geographic
markets
Choices of
strategic
business
partners
New product Customers
development satisfaction
measurement
and
improvement
Decisions
Customer Investments Loyalty and Segmentation,
service
in Information relationship Targeting and
Technology
programs
Positioning
(e.g.ERP,
CRM,
internet)
What is marketing really deciding? Sharing
Decision Influence Dispersion Among Departments
80
70
Sales
Marketing
R&D and Operations
Finance
60
Influence
50
40
30
20
10
0
Price
Distribution The direction Advertising
strategy
of a strategic messages
business unit
Expansions
into new
geographic
markets
Choices of
strategic
business
partners
New product Customers
development satisfaction
measurement
and
improvement
Decisions
Customer Investments Loyalty and Segmentation,
service
in Information relationship Targeting and
Technology
programs
Positioning
(e.g.ERP,
CRM,
internet)
What is marketing really deciding? Helping
Decision Influence Dispersion Among Departments
80
70
Sales
Marketing
R&D and Operations
Finance
60
Influence
50
40
30
20
10
0
Price
Distribution The direction Advertising
strategy
of a strategic messages
business unit
Expansions
into new
geographic
markets
Choices of
strategic
business
partners
New product Customers
development satisfaction
measurement
and
improvement
Decisions
Customer Investments Loyalty and Segmentation,
service
in Information relationship Targeting and
Technology
programs
Positioning
(e.g.ERP,
CRM,
internet)
Marketing’s (bits of) 4 Ps
Promotion
Leading
Place
Sharing
Product
Sharing
Price
Helping
Respect: What marketing does well
80%:
Branding’s
important
68%:
Marketing’s
strategically
important
62%:
Primarily to
serve
customers
Marketing is [just]… marketing
62%:
Convert needs
to specifications
72%:
Good
marketing
knowledge
65%:
Measure
customer
satisfaction
74%:
Marketing’s
main job is
[just]
marketing
65%:
Promote
customer
needs
Marketing is not…
CFO
CMO
21%
Linking customer
needs to strategy
21%
15%
Attending to the
financial outcomes of
marketing
24%
✔
28%
Linking well with other
business activities
37%
✔
Marketing is [just… routine]
CFO
✔
CMO
61%
Campaigns lack
novelty
61%
53%
Routine promotional
campaigns
53%
43%
Activities based on
tried and tested
methods
43%
44%
Business models that
are nothing special
44%
MBA Brain
Transplant
Sale
Marketing
in
strategy
Branding
Close to
customers
Business performance
Marketing
in
strategy
Close to
customers
Branding
Business performance
Innovativeness
Accountability
Cooperation
Accountability
Knowing the
financial outcomes
of marketing
decisions
•Contribution
•Cash flow
•RoI
•Discounted cash flow
•Know your β (risk vs.
return) and the α
(premium) you will
deliver
Account
Accountability
Modeling
•Analyzing market
relationships
•Testing marketing
actions
•Simulating marketing
strategies
Account
Ability
Accountability
Accountability
•Saying what you will
deliver
Accountability
•Delivering it
•Accepting
responsibility if you do
not
Account
Ability
Accountability
Accountability
Marketing
influence
Account
Ability
Accountability
Innovativeness
Assimilate
•Getting out more
•Talking to
customers
•Getting where “the
tyre meets the
road”
•Listening to others
•Getting a life
•Doing something
different
•Doing it with the
different
•Doing it differently
Assimilate
Innovativeness
Ideate
•Remove the barriers
•Yours
•Others
•Organizations
•Embrace diversity
•Race, colour, dress
code nationality,
religion, gender, age,
training, Background
•Use tools
•Brainstorming
•Second stage
brainstorming
•Need assessment
•Morphological
analysis
•Potential problem
analysis
Assimilate
Ideate
Innovativeness
Innovate
•Build channels
•Customers
•Suppliers
•Users
•Do it, try it, fix it
Innovate
•Concept test
•Product test
•Market test
•Test early; test
frequently
•Me-first, me-better, mesave
•First-mover
advantage
•Differentiate
•Better value
•Not me-too
Assimilate
Ideate
Innovativeness
Innovate
Marketing
influence
Assimilate
Ideate
Innovativeness
Channels
Marketing
influence
People
Functions
Cooperate
Courage
Informal
Multi ethnic
Experimental
Action oriented
High cooperation
High level of trust
Low defensiveness
Diverse backgrounds
Little second guessing
Few trappings of power
High respect for learning
Few rules and high flexibility
Low levels of anxiety and fear
Little discounting or disparaging
Empowerment of team members
Failure seen as problem to solve
Decisions made at the action point
People easily cross organisational lines
Many informal problem-solving meetings
People pick up and correct the errors of others
Trouble puts people into ‘problem-solving’ mode
Willingness to take risks and learn from mistakes
Excellence
Mono ethnic
Rank is right
Little risk taking
Formal relationships
Privileges and perks
Many status symbols
Rules rigidly enforced
Slow action/great care
Consistent backgrounds
Much protective paperwork
Decision-making done at top
High levels of fear and anxiety
Your problem is yours, not ours
Well defined chains of command
Learning limited to formal training
Many information-giving meetings
Cross organisational lines forbidden
Little problem-solving below top level
Trouble puts people on the defensive
Carefully formulated rules and regulations
Need to bury mistakes and whitewash them
Complaints and discomfort go underground
Act or not to act
Reward
Fear
Reasons to be fearful
Economic
Moral
Existential
Social
Physical
Fear
Sexual
Rewards
Economic
Moral
Social
Physical
Existential
Action
Sexual
The balancing act (or not to act)
Success reward *
chance of success
+ endeavor
reward
Chance of
damage * cost of
damage
+ cost of inaction
“If you can keep your head when all about you
Are loosing theirs and blaming it on you,
If you can trust yourself when all men doubt you,
But make allowance for their doubting too;
…”
Trust
yourself
Courage
“If you can dream – and not make dreams your master;
If you can think – and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two imposters just the same;
…”
Trust
yourself
Dream
and
fail
Courage
“If you can make a heap of all
your winnings
And risk it on one
turn of pitch-and-toss,
Risk
And loose, and start again at
your beginnings
And never breath a
word about your loss;
…”
Trust
yourself
Dream
and
fail
Courage
“If you can fill the unforgiving
minute
With sixty second’s
worth of distance run,
Risk
Your is the Earth and
everything that’s in it,
Marketing
influence
And – which is more –
you’ll be a … [marketer]...!”
Trust
yourself
Dream
and fail
“IF” by
Rudyard Kipling (1865 -1936)
Courage
“If you can fill the unforgiving
minute
With sixty second’s
worth of distance run,
Risk
Yours is the Earth and
everything that’s in it,
Marketing
influence
And – which is more –
you’ll be a … [marketer]…!”
Trust
yourself
Dream
and fail
“IF” by
Rudyard Kipling (1865 -1936)
Courage
Implications
For business
• Improve business performance through greater market
orientation and marketing authority
• Add α to your company by adding value in the market
place
Implications
For marketing
Win for your company by winning in your company:
 Be accountable: measure marketing outcomes and own them
 Built on marketing knowledge
 Be cooperative!
 Be innovative: have the courage to be different
A win-win for marketing and business
The marketing alphabet. Be:
Accountable
Brave
Champions
Different
Equal
Paul Thomas Saunders – Dementia, Depression, Psychosis Blues
A win-win for marketing and business
The marketing alphabet. Be:
Accountable
Brave
Champions
Different
Equal
Queen – we are the champions
Questions?
Thank you.
A win win for marketing and business
The marketing α β. Be:
Accountable
Brave
Champions
Different
Equal
A win win for marketing and business
The marketing α β. Be:
Accountable
Brave
Champions
Different
Equal
Rise and rise: a new dawn for
marketing
Peter Leeflang (Groningen)
John Saunders (Kent)
Peter Verhoef (Groningen)
Veronica Wong (Kent)