lean sales and marketing introduction

Make it Count

Doodling

Lean Thinking

• Identify Value

• Map Value Stream

• Create Flow

• Establish Pull

• Seek Perfection

Porter’s Value Chain

Map Value Stream

Current State

Metrics Value

Add/Non Future State

Kaizen

Lean 8 Types of Waste

• Defects

• Overproduction

• Transportation

• Waiting

• Inventory

• Motion

• Processing

• Human Potential

Lean 10 Wastes of Service

• Duplication

• Lack of Customer Focus

• Motion/Transportation

• Unclear Communication

• Waiting/Delay

• Incorrect Inventory

• Overproduction

• Underutilized Employees

• Variation

• Defects

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

Is your Value Proposition Superior?

• Operational (Walmart)

• Product (Apple)

• Relational (Nordstrom – M & P)

Customer Value

Handout

We make things…

• Better

• Faster

• Cheaper

Current State

from

Cmo’s

Perspective

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

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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%

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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

August2011

February2012

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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%

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

*Refers to media advertising not using the web.

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 (%)

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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

February2009

August2009

February2010

August2010

February2011

August2011

February2012

Marketer Optimism about Overall Economy

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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

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%

February2011

August2011

February2012

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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%

August2009

August2010

August2011

February2012

SIZE OF MARKETING GROUPS DOUBLE DURING

ECONOMIC RECOVERY

Analytics Leadership Organization Jobs Social Media Performance Spending Growth Marketplace

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?

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.

HIGHLIGHTS AND INSIGHTS FEBRUARY 2012

© Christine Moorman www.cmosurvey.org

This is what Marketers think?

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

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.

We’re all

Marketers NOW!

Lean Thinking

• Identify Value

• Map Value Stream

• Create Flow

• Establish Pull

• Seek Perfection

Map Value Stream

Current State

Metrics Value

Add/Non Future State

Kaizen

Lean 10 Wastes of Service

• Duplication

• Lack of Customer Focus

• Motion/Transportation

• Unclear Communication

• Waiting/Delay

• Incorrect Inventory

• Overproduction

• Underutilized Employees

• Variation

• Defects

We keeP making things…

• Better

• Faster

• Cheaper

Bell Curve

Lead

Conform

Negotiate

Value Chain is based on

Supply Driven Economy

The Value Chain Concept is based on excess Demand and

has made us

In love with our

Product/Services?

• Distribute more activities

• More council and partnerships

• Elevate the role of customer insights

• More data rich and analytically intense

McKinsey said:

4 Ps

• Product

• Promotion

• Price

• Place

3Cs & V

• Collaboration

• Content

• Value

• Community

Push Innovate Pull

Demand

Marketing needs a Process

Continuous improvement

is a necessity

Metrics are required

to judge

the rate and degree of improvement

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:

Kaizen & Learning

Joint Improvement

Information Sharing

Compatible Capabilities

Control Systems

Interlocking Structures

Mutual Understanding

7 Step Hierarchy of Toyota Supplier Partnering

• 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

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

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

Lean Thinking • Identify Value

• Map Value Stream

• Create Flow

• Establish Pull

• Seek Perfection

Handout

Will Lean really work?

Can a Supply

Driven methodology

work in a Demand

Driven World?

Q-Storming®

Is Lean Sales and Marketing a good idea?

Pro Con

Where good ideas come from