Nov 29, 2014
The Purpose of Marketing
• Increase Prospects
• Increase # of Clients
• Increase $ per Client
• Create Better Odds
• Decrease $ obtaining Customers
4 P’s of Marketing
Product Price
Promotion Place
Target Market
4 P’s of Marketing
PriceTarge
t Mark
et Material
Labor
Expenses
4 P’s of Marketing
Product/Service
Target Market
Basic
Intermediate
Advanced
4 P’s of Marketing
Promotion
Target
Market
Internet
PR
AdsReferral
4 P’s of Marketing
Place
Target
Market
4 Ps
• Product• Promotion• Price• Place
3Cs & V
• Collaboration
• Content• Value• Community
Innovate
Porter’s Value Chain
Value Chain based on
Supply DrivenEconomy
DemandDriven
5 P’s of Marketing
Precise
Marketing needs a Process
Continuous improvement is a necessity
Metrics are required to judge
the rate and degree of improvement
Fundamental Lean Thinking
Profound Knowledge is made up of 4 interrelated components
• Appreciation of a system
• Theory of knowledge
• The psychology of change
• Knowledge about variation
Kaizen & Learning
Joint Improvement
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Mutual Understanding
Mutual UnderstandingTrust Respect Mutual
Prosperity Gench Genbutsu
Interlocking StructuresAlliance Interdependence Parallel Sourcing
Control SystemsMeasurements Feedback Target Pricing Cost Mgrnt
Compatible CapabilitiesEng. Excellence Oper. Excellence Problem Solving
Information SharingAccurate Data Collect Common Language Timely Communications
Joint ImprovementVA/VE Supplier Develop. Study Groups
Kaizen & LearningShared Lessons PDCA Cost Reduction
Kaizen & Learning
Joint Improvement
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Mutual Understanding
PDCA
PDCA
PDCA
PDCA
PDCA
PDCA
PDCA
Lean Thinking
• Identify Value
• Map Value Stream
• Create Flow
• Establish Pull
• Seek Perfection
Input versus Output
Value is the relationship between the quality of the product or service and the
price the customers pays to obtain it.
Customer Value
Is your
Value Proposition Superior?
• Operational (Walmart)
• Product (Apple)
• Relational (Nordstrom – M &
P)
Customer Value
Map Value Stream
Current State Metrics Value
Add/NonFuture State Kaizen
Identify Value Acquisition Retention Monitor
5 Cs of Driving Market Share
Map Value Stream
5 Cs of Driving Market Share
Identify
Segments
Relations
Opportunity
Value
Define Value
Define Quality
Acquire
Value Gaps
Performance Gaps
Retain
Loyalty
Defection
Monitor
Measures
Outline
Map Value Stream Identify Value Acquisition Retention Monitor
5 Cs of Driving Market Share
Identify Value Acquisition Retention Monitor
Identify Value Acquisition Retention Monitor
Identify Value Acquisition Retention Monitor
Identify Value Acquisition Retention Monitor
Identify Value Acquisition Retention Monitor
CTQ’s of Customer
Quality Improvements
Create Flow
Linear planning increases risk for inappropriate course of action.
• Knowledge is limited at beginning
• Key information not known
• Feedback to justify hypotheses
• Customers changes mind
• Each Cycle Closer to the Goal
PDCA = Knowledge Creation
Implemented in spirals of increasing knowledge of the customer’s situation
• Observe a situation
• Orient themselves
• Decide what to do
• Act
A vivid example of an iterative loop to guide action under uncertainty.
Boyd’s OODA Loop
• Customer’s Decision Making Path
• Reaction to support that
• Identify Resources needed
• Identify People needed to deliver
PDCA = Flow to Pull
Our Steps
Plan Offer Order Loyalty
Cust. Steps Identify Evaluate Purchas
eAdvocat
e
Sales Territory Deliver Close In Touch
Mrktg Budget Mtrl. Updates Case study
Tech Segment Trial Manage Support
Mirror Customer Decision Process
Increase Face Time
Increase Sales
WIP is Wasteful
Google Ad
Website Visits
Auto Respond
30-day Trial
Purchase
6 Million Imprs
30K Visits
1,500 AR 150 Trial 30
clients
$.0025 $0.50 = $15K $10 $100 $500
Looking at Flow
• Increase Prospects or # of
Clients
• Increase $ per Client
• Decrease $ obtaining
Customers
Create Pull
• Access
• Attract
• Achieve
Create Pull
Access • Not about “Stocks of Knowledge” versus
“Flow of Knowledge.”
Attract• Being part of customer conversations.
Achieve • Supported by a broad collection of people
and resources which you can pull from.
Seek Perfection
What is an A3?• A3-sized sheet of paper
• Document on 1 page, results from the PDCA cycle.
• 4 Types of A3s • Problem Solving• Proposal• Status• Informational
Think of an A3 as a mini-PDCATeam: Date:
Title/Theme:
Background/Definition: Current Conditions:
Target:
Determine Cause/Analysis:
Countermeasures: Implementation:
Follow-up:
Plan
Do
CheckAct
• Develop a continuous improvement culture
• Provides a process linkage for Customer Focused activities.
• Forces us to go to Gemba to solve problems
• Provides historic records of decision making throughout the process
• Develops a Knowledge Capturing mechanism supported by data
Why A3 in Marketing?
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