Discipline For Marketing Impact

Confidential Do Not Duplicate or Distribute William N. Nemecek

Word of Mouth

The Marketing Funnel

The Marketing Funnel provides a framework for building deeper relationships with customers by guiding them from brand awareness through advocacy

Market cognizant of company, product, service and/or brand

Transition from cognizance to consideration of company, people, product, service, and/or brand

Adoption of company, people, product, service, and/or brand

Commitment to company, people, product, service, and/or brand

Promotion of company, people, product, service, and/or brand to other customers or users


Marketing Strategy Roadmap

Establish disciplined processes for developing marketing strategies and a roadmap for objective measurement, critical analysis, and continuous improvement.

Campaign CostRevenue

= Return of Investment

Target Population – What is your target market/population? Identify the unique characteristics of your customers and target consumers who match the demographic.

Product/Service Offering – Entice targets to respond in a manner that drives desired behaviors. Offers that solicit desired behaviors increase the chance of meeting campaigngoals

Campaign/Promotion – Develop appropriate levels of test and control for ongoing refinement and improvement of subsequent target populations, offerings, promotions, response, and ROI.

Campaign Cost – Calculate marketing ROI; .

This, along with the lifetime value of customers and increased brand awareness provides benchmarks

for breakeven and profit analysis.

Campaign Goals – Develop clear objective and measureable goals to enable testing and measurement of outcomes for continuous improvement.Campaign Goal

Target Market/Population

Product/Service Offering

Campaign/Promotion

Cost


Business Value Creation Network Collaboration

Business segments contribute to, and help support and enable, value proposition development, delivery, and longevity.

Finance and accounting determine capital resource allocation and manage business controls

Marketing identifies market segments and opportunity, gives the business a common voice, and develops competitive positions

Sales manages delivery of products, services, and value messages while delivering the voice of the customer

Operations supports products, services, and the value message and brand promise commitment

Business value is created when all functional efforts align against common value and brand promises

Product/Service DeliveryGovernanceEff iciencySupport

Cost

FiduciaryEconomicsReportingControls

R&DVoice of Business

Product DevelopmentMessaging

Pricing

Message DeliveryConsultationRelationships

Voice of CustomerRevenue

OperationsVoice of Business

Value CreationVoice of Customer

Sales

Finance

Marketing


Marketing Control Loop

Marketing plans are 'living cycles'. The revolving nature of the marketing control loop enables ongoing data analysis and amendments.

MarketResearch

MarketAnalysis

Target Definition

ElaborateMarketing

Steps

MarketingMix

Decisions

Execution /Implementation

of Results

Control Results

IncorporateFeedback

TimelyDefinitionRevision

Identify market-segments to addressed in order to maximize the firm’s potential

Investigation of all relevant data regarding customers, competitors, market-segments, partnerships, etc.

Quantity, capture, retention, cross-sell, turnover, profit, etc.) to be achieved

Actions required to reach objectives per market and/or market segment

Strategy, product-mix, messaging, communication channels/media, etc. required to compel action/response

Ongoing process of continuous improvement incorporates evaluation of loop data points for future improvements

Data regarding experience, satisfaction, value, and misses from customers, surveys, partners, and sales channels

Management of each market/segment for production, costs, profit, etc.

Delivery of value proposition, service, and support via effective sales, distributors, partners, licenses, etc.

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The Four “P’s” of Marketing

Elements of the Marketing Mix, Product, Price, Place, and Promotion, focus on motives and assure resource alignment and optimization to deliver value

MarketingMix

Product

Place

Price

Promotion

Product Variation

Product Differentiation

Product Innovation

Product Elimination

Cost Recovery Pricing

Penetration Pricing

Pricing Skimming

Price Optimization

Distribution Channel

Direct Sales

Indirect Sales

E-Commerce

Individual Communication

Mass Communication

Brand Management

Corporate Identity


MarketingMix

Product

Place

Price

Promotion

Product Variation

Product Differentiation

Product Innovation

Product Elimination

Cost Recovery Pricing

Penetration Pricing

Pricing Skimming

Price Optimization

Distribution Channel

Direct Sales

Indirect Sales

E-Commerce

Individual Communication

Mass Communication

Brand Management

Corporate Identity

ExtendedMarketing

Mix

People Process

PhysicalEvidence

The Extended Marketing Mix

The Extended Marketing Mix; People, Processes and Physical Evidence, advance considerations addressing additional influences, motives, and behaviors


The Value of the Value Proposition

The Value Proposition positions strengths and differentiates the business, product, and/or service from competition offering similar products/services.

Business Assessment – Define the “as is state.” What does the business do well?

Target Market – Define target market segment: Which customers are best to work with? Which are best to walk away from?

Customer Needs Assessment – What are the specific needs of your target segment? How well does the firm service those needs today?

Competitive Analysis – Who is the firm currently competing with? Who might the firm be competing with in the future?

Performance Analysis – Does the firm’s "as is" value proposition align with its target market? Does it create positive differentiation from the firm’s competitors?

Develop and Deliver a Powerful Brand Promise – Identify realistic ways to improve the firm’s model, products/services, processes and employees to deliver and support the Value Proposition.


Developing The Value Proposition

A well developed Value Proposition acts as an enabler for the organization to compete on their own terms rather than competing on price only.

Self-Assessment – Define the "as is" state of the firm. What does the organization do really well? What are the strengths of the business? What differentiates the business from the competition?

Define and Segment – Identify the firm’s target Market & Customer Segment. Define the markets/customers/clients the firm really wants to work with versus those the firm does not wish to work with.

Customer Assessment – Analyze and assess customers’ specific needs. Determine the firm’s level of effectiveness serving those needs.

Competitive Analysis – Research the competition. Who is competing for the firm’s customers right now? Which competitors are serving customer segments the firm hopes to reach in the future?

Resonance Testing – Examine the firm’s "as is" value proposition. Determine whether this matches the firm’s target market, differentiates the firm’s business, is deliverable, and will capture the market.

Continuous Improvement – Identify realistic ways to enhance the firm’s model, products/services, processes, employees, and resources to deliver the ideal value proposition.


Brand Value Chain

Marketing Programs

Brand Image

Brand Equity

Economic Value

• Advertising• Promotion• Email• Packaging/Bundling• Channel Incentives• Etc.

• Awareness• Attributes• Characteristics• Points of parity• Points of difference

• Attitudes• Associations• Attachments• Personality• Preference• Permission

• Translating Equity into profit• Pricing power• Distribution advantage• Expense reduction• Etc.

EffectivenessClarity

DistinctivenessConsistency

RelevanceRelative Strengths

Comparative advantages

CorrelationDrivers

ObjectivesOutcomes

The Brand Value Chain Model presents a means to execute marketing strategy and measure results and progress from brand related marketing efforts


Marketing Split Test

A hallmark of marketing is the ability to objectively test, measure and judge results. Test and control disciplines enable ROI measurement and improvement.

Direct mail variables example:

Media 1 (Control) Media 2 (Test) Media 3 (Test) Media 4 (Test)

Current Media

Challenger Media

Response Measurement

Response Measurement

Champion

Control Group

Test Group

Brand ValueROI

Brand Value ROI

RevenueCosts

Margin

Revenue Costs

Margin

INTEGRATE LEARNINGSResponse Drivers

List ScrubbingCost Controls

Other
