Lean Sales and Marketing Introduction
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The document outlines various strategies and metrics related to lean thinking and marketing practices, emphasizing the importance of identifying value, mapping value streams, and seeking continuous improvement. It reviews the shift in customer priorities from price to service, the expected changes in marketing spending, and highlights significant growth strategies for companies. Additionally, it discusses the importance of adapting organizational structures to enhance customer engagement and improve overall marketing effectiveness.
Lean Sales and Marketing Introduction
- 7. Doodling
- 8. Lean Thinking • Identify Value • Map Value Stream • Create Flow • Establish Pull • Seek Perfection
- 11. Lean 8 Types of Waste • Defects • Overproduction • Transportation • Waiting • Inventory • Motion • Processing • Human Potential
- 12. Lean 10 Wastes of Service • Duplication • Lack of Customer Focus • Motion/Transportation • Unclear Communication • Waiting/Delay • Incorrect Inventory • Overproduction • Underutilized Employees • Variation • Defects
- 13. Lean 10 Wastes of Service Duplication Data entry errors, Lost files, Lost or damages goods Incorrect Inventory Stock out, Wasting time finding Stuff, Unnecessary copies Lack of Customer focus Unfriendliness, Rudeness, Poor attention to customer Overproduction Reports no one will ever read, Processing before time Unclear communication Incorrect info: Lack of standard data format: Unclear work flow Motion/Transportation Poor layout, Ineffective filing, Poor ergonomic Underutilized Employees Inadequate tools, Excessive bureaucracy, Limited authority Variation Lack of procedures, standard formats, Time not defined: Waiting/Delay Waiting for approvals, Downtime, Waiting for supplies
- 14. Is your Value Proposition Superior? • Operational (Walmart) • Product (Apple) • Relational (Nordstrom – M & P) Customer Value Handout
- 15. We make things… • Better • Faster • Cheaper
- 18. STABLE PATTERNS OF GROWTH STRATEGIES OVERALL; SECTOR DIFFERENCES SIGNIFICANT Table 2.3. How Firms Will Grow in the Next 12 Months* 18© Christine Moorman Strategy Aug-10 Feb-11 Aug-11 Feb-12 Organic Growth 69.5% 72.0% 70.2% 70.6% Growth from Acquisitions 10.8% 10.6% 11.4% 11.6% Growth from Partnerships 13.9% 11.8% 13.5% 12.6% Growth from licensing 5.8% 5.6% 5.1% 5.2% * Percentage of spending across growth strategies AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
- 19. GROWTH STRATEGIES EXPECTED TO SHIFT TO PRODUCT/SERVICE DEVELOPMENT & DIVERSIFICATION Table 2.1. How Growth Spending is Expected to Change*Existing Products/ Services New Products/ Services Existing Markets Market Penetration Strategy Product/Service Development Strategy New Markets Market Development Strategy Diversification Strategy * % of spending across growth strategies 19© Christine Moorman Types of Growth Strategies Strategy Actual Spending in Past 12 Months Expected Spending in Next 12 Months Percent Change Expected Market Penetration Strategy 56.7% 50.2% -11% Market Development Strategy 15.5% 15.6% +1% Product/Service Development Strategy 19% 23.8% +25% Diversification Strategy 8.2% 10.5% +28% AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
- 20. INTERNATIONAL SALES TO CONTINUE UPWARD TRAJECTORY IN NEXT 12 MONTHS Figure 2.1. Percentage of Company Sales Expected to be International in Next 12 Months © Christine Moorman 20 18.7% 24.7% 32.4% 0% 5% 10% 15% 20% 25% 30% 35% 40% August 2010 August 2011 February 2012 AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
- 21. CUSTOMER PRIORITIES TO SHIFT FROM LOW PRICE TO SERVICE Aug-11 Feb-12 % Change Low Price 24.1% 16.4% -32.0% Quality 24.1% 26.3% +9.1% Innovation 13.7% 10.0% -27.0% Service 13.7% 21.4% +56.2% Trust 19.3% 18.9% -2.1% Brand 6.8% 7.5% +10.3% © Christine Moorman Table 1.1. Rank order your Customer’s Top Priority in Next 12 Months 21 AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
- 22. MARKETING SPENDING ON TRADITIONAL ADVERTISING EXPECTED TO PLUMMET FURTHER (-161%) Table 3.2. % Change in Marketing Spending in Next 12 Months 22© Christine Moorman Aug-11 Feb-12 % Change Traditional advertising* spending 1.3% -0.8% -161.5% Internet marketing spending 11.2% 12.8% +14.3% New product introductions 10.4% 8.5% -18.3% New service introductions 6.6% 4.2% -36.4% Customer relationship management 6.5% 7.1% +9.2% Brand building 5.7% 7.2% +26.3% AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace *Refers to media advertising not using the web.
- 23. SOCIAL MEDIA SPENDING GROWTH CONTINUES: EXPECTED TO BE 19.5% OF MARKETING BUDGETS IN FIVE YEARS 23© Christine Moorman Figure 5.1. Social Media Spending as a Percentage of Marketing Budgets Over Time 7.4% 10.8% 19.5% 0% 5% 10% 15% 20% 25% Current Levels Next 12 Months Next 5 Years Percentage of Total Marketing Budget (%) AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
- 24. MARKETER OPTIMISM FOR OVERALL U.S. ECONOMY REBOUNDS TO HIGHEST LEVEL IN 3 YEARS Figure 1.1. How optimistic are you about the overall U.S. economy on a 0-100 scale with 0 being the least optimistic and 100 the most optimistic? 24© Christine Moorman Figure 1.2. Optimism for U.S. economy by sector 47.7 56.5 57.8 55.6 63.3 52.2 63.4 40 50 60 70 80 90 100 February 2009 August 2009 February 2010 August 2010 February 2011 August 2011 February 2012 Marketer Optimism about Overall Economy AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace 48.0 62.1 54.5 64.1 53.1 63.5 53.3 58.3 45 50 55 60 65 August 2011 February 2012 B2B-Product B2B-Service B2C-Product B2C-Service
- 25. Marketing spending increases further to account for 10.4% of overall firm budgets 25 Figure 3.2. How Marketing Budgets Are Changing Over Time* © Christine Moorman 8.1% 10.0% 10.4% 2% 4% 6% 8% 10% 12% 14% 16% February 2011 August 2011 February 2012 AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
- 26. 26© Christine Moorman Figure 7.1. Marketing Employees as a Percentage of Total Number of Employees 2.4% 2.3% 4.2% 11.0% 0% 2% 4% 6% 8% 10% 12% August 2009 August 2010 August 2011 February 2012 SIZE OF MARKETING GROUPS DOUBLE DURING ECONOMIC RECOVERY AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
- 27. 27© Christine Moorman General Electric (Manufacturing) Google (Services) Retail (McDonald’s) Procter & Gamble (Consumer Packaged Goods) THE 2012 CMO SURVEY AWARD FOR MARKETING EXCELLENCE – INDUSTRY WINNERS Participants were asked to nominate a company in response to the question: Which company in your industry sets the standard for excellence in marketing?
- 28. THE 2012 CMO SURVEY AWARD FOR MARKETING EXCELLENCE – OVERALL WINNER 28© Christine Moorman Participants were asked to nominate a company in response to the question: Which company across all industries sets the standard for excellence in marketing? Apple, Inc.
- 29. HIGHLIGHTS AND INSIGHTS FEBRUARY 2012 © Christine Moormanwww.cmosurvey.org This is what Marketers think?
- 30. McKinsey Quarterly states: • Adjusting through increased Web expertise and that is not enough. • Need to change and coordinate deeper activities based on these four critical activities: • Distribute more activities • More council and partnerships • Elevate the role of customer insights • More data rich and analytically intense
- 31. McKinsey sums it up by saying: • Major barrier to engagement is organizational vs conceptual • Growing number of touch points • Adapt their organizations way customers now behave • Redefine the traditional marketing organization. If companies don’t make the transition, they run the risk of being overtaken by competitors that have mastered the new era of engagement.
- 33. Lean Thinking • Identify Value • Map Value Stream • Create Flow • Establish Pull • Seek Perfection
- 35. Lean 10 Wastes of Service • Duplication • Lack of Customer Focus • Motion/Transportation • Unclear Communication • Waiting/Delay • Incorrect Inventory • Overproduction • Underutilized Employees • Variation • Defects
- 36. We keeP making things… • Better • Faster • Cheaper Bell Curve
- 38. Lead
- 39. Conform
- 40. Negotiate
- 41. Value Chain is based on Supply Driven Economy
- 42. The Value Chain Concept is based on excess Demand and has made us
- 43. In love with our Product/Services?
- 44. • Distribute more activities • More council and partnerships • Elevate the role of customer insights • More data rich and analytically intense McKinsey said:
- 47. 4 Ps • Product • Promotion • Price • Place 3Cs & V • Collaboration • Content • Value • Community Push Innovate Pull
- 49. Demand
- 50. Marketing needs a Process Continuous improvement is a necessity Metrics are required to judge the rate and degree of improvement
- 51. The Toyota Way Fieldbook by Jeffrey Liker and David Meier Co-authors Jeffrey Liker and David Meir, co- authors of The Toyota Way Fieldbook created the pyramid of the Supplier Partnering Hierarchy of Toyota that consisted of these 7 steps:
- 52. Kaizen & Learning Joint Improvement Information Sharing Compatible Capabilities Control Systems Interlocking Structures Mutual Understanding 7 Step Hierarchy of Toyota Supplier Partnering
- 53. • Shared Lessons, PDCA, Cost Reduction Kaizen & Learning • VA/VE, Supplier Develop, Study Groups Joint Improvement • Data Collect, Common Language, Timely Communications Information Sharing • Eng. Excellence, Operation. Excellence, Problem Solving Compatible Capabilities • Measures, Feedback, Target Pricing, Cost Mgmt Control Systems • Alliance, Interdependence, Parallel Sourcing Interlocking Structures • Trust, Respect, Mutual Prosperity, Genchi Genbutsu Mutual Understanding Understanding of Hierarchy
- 54. Kaizen & Learning Joint Improvement Information Sharing Compatible Capabilities Control Systems Interlocking Structures Mutual Understanding PDCA PDCA PDCA PDCA PDCA PDCA PDCA Continuously Improve your marketing Handout
- 55. 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
- 56. Lean Thinking • Identify Value • Map Value Stream • Create Flow • Establish Pull • Seek Perfection Handout
- 57. Will Lean really work? Can a Supply Driven methodology work in a Demand Driven World?
- 58. Q-Storming®
- 59. Is Lean Sales and Marketing a good idea? Pro Con Where good ideas come from