lean sales and marketing introduction
DESCRIPTION
This is the Lean Sales and Marketing Introduction slide deck that is part of the Business901 2-day Workshop. You can view the entire workshop under the Training Content Section on the Business901 website.TRANSCRIPT
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