Description
This is presentation about the book review of profiting from proliferation by authors David Court,Thomas French,Trond Riiber Knudsen.
About the Authors:
David Court -The Evolving Role of the CMO , Bringing Customers into the Boardroom ? Thomas D. French - The E-tailer’s Secret Weapon , The Future of Fiber ? Trond Riiber Knudsen - The Vanishing Middle Market , Escaping the MiddleMarket Trap
?
?
Challenges faced by today’s marketers arising due to increased customer expectations. Understanding the course of proliferation.
?
?
CMO’s today: Focus on devising the strategies to tackle proliferation and make profits .
?
Explosion of new customer segments, sales & service channels, media, marketing approaches, products and brands. Better CIM with low cost: But marketing is complex. Telecom Industry: The best example.
?
?
? ? ? ?
Polarizing and fragmenting customer segments. More Sales & Distribution touch points. Diverse communication vehicles. Cost is going up, Customer satisfaction declines, due to inconsistencies across various channels.
?
?
To become more sophisticated at identifying, prioritizing and allocating resources toward the most attractive segment and channel. To increase consistency and coordination of execution dramatically in areas such as pricing, segment management and promotional spending.
Opportunity lies at intersection of no of customer segments and product categories. ? Brand Strategy ? Growth Strategy ? Sales and Service Strategy
?
WHY?
Distribution Cost ? Communication Cost ? Production Flexibility
?
Complexity ? Diminished Brand Power ? Diseconomies of Scale
?
HOW?
Start with Consumer ‘Need States’ ? Balance economic opportunities with brand reality ? Make the tough choices
?
?
Restructure
› Divest in non performing brands › Reposition brand to target same customers › Can have ripple effect on other brands
OR
?
Launch New Brand
› Different customers › High Risk › High Investments
?
Building alignment Tracking Progress
?
?
Managing Insights Data
› Who, What, Where, When, Why of Customers › Include a diverse array of
people › Collaborating with Channel Partner, Vendor Partner
Marketing Planning ? Product Development Planning ? Account Planning
?
Challenges in sales & service channels
More sophisticated purchasing organizations ? Superior products & relationships not enough ? Quick imitation of innovations ? Increasing prevalence of low cost competitors
?
What to Do?
A clean sheet Redesign based on ? What customers want from their sales & service interactions ? What kind of organizational structure is necessary to provide that kind of support efficiently and effectively
3 Steps to Redesign
Step 1. Profiling
Identify companies' full range of sales and services from simple transactions to complex consulting arrangements
Step 2. Lean Backbone
Build a high quality, low cost platform of sales support and service processes for interactions that cut across all customers
Step 3. Developing Standardized Overlays
Develop affordable standard modules (or high touch overlays) for situations where customer value additional sales or service support enough to cover its cost
Marketer’s response to Proliferation
New brands,channels &segments focusing on disparate markets ? Lack of integration with sales & marketing function ? Channel conflict ? High marketing costs ? Convoluted IT systems& other infrastructure ? Inconsistent resource allocation
?
Commercial Operating System
A blueprint for consistent sales and marketing in the 2 or 3 functional areas (such as pricing, brand, segment, channel, or key account management) that are most closely linked to a company’s strategic priorities.
4 Components of COS
?
?
?
?
Consistent processes or series of activities along the business calendar Leading edge tools and frameworks to guide decision making Clear responsibilities, skill requirements and talent development for pivotal roles Consistent metrics and performance management systems
Thousands of brands means millions of pricing points ? Introduction of discounts , rebate and promotional offers further complicate the situation ? Different modes of distribution and sales complicates the pricing decisions. ? Visibility of pricing performance becomes tougher ? Opportunities of cost arbitrages
?
? ? ? ?
?
Creating Visibility into performance of pricing. Institutionalizing the core pricing process. Pricing should be used to fill gaps in market. Research should be done on price sensitivity of the consumers. Striking organizational balance by creating central Pricing excellence team closely interacting with all the verticals.
?
?
? ?
? ?
Need for well defined segmentation of customers in proliferating world. Use of CRM software to give differentiated goods and services Providing distinctive experience to different customer segments Creation of organizational accountability for segment result and empowerment Need to do data mining Internal balance sheets in terms of customer segmentation
Benefits Travel Hotel Room
Low Value Free Shuttle from Airport Discounted standard Guest Room Free Lunch Buffet Play 5$ , Get 5$ None
High Value Flight to LA 3 fight nights in luxury suite Dinner for 2 at steak restaurant $50 - $75 in match play coupons 4 front row seats for evening show , Golf at best cources.
Food and Drinks Cash, Match Play Shows, Activity
?
Traditional modes of reaching customers not effective due to:› Proliferation due to media and distribution
channels.
?
Traditional modes of reaching customers not effective due to:› Proliferation due to media and distribution
channels. › Multitasking by users. › Loosing trust in advertising. › Onslaught of digital media.
?
Clear objectives of investment
› investment horizon
› appetite for risk › future expectation
› Distinction between growth
and maintenance
?
Identifying points of economic leverage
identify consumers and vehicles giving biggest and fastest payoffs. › The decision funnel.
›
?
2 ways to achieve economic leverage:› Identify brand drivers - image driven or transactional. › Determine reach, cost and quality of competing
investment options.
?
Managing Risk
› marketing risk less when media stable › check media and messaging tests at any
given point of time…experiments like increasing expenditure, reduce mailings, new media etc
?
Tracking Return
› Track investment at each level even at store
level promotion.
?
Marketing environment of change and complexity in terms of brand portfolio, spending approach and customer insights.
Companies on path of ‘commercial transformation’.
?
?
?
Difficult because of skill building and employee resistance.
Change mgmt practices difficult to apply to marketing and sales because: ›
› Creativity along with strong execution
Responses of customers difficult to predict.
Skills & Traits for marketers today 2. The Internet revolution and its impact on Marketing 3. Understanding today’s customer 4. Managing brands in today’s complex environment 5. Tackling complexity challenges in today’s marketing environment
1.
doc_332458201.ppt
This is presentation about the book review of profiting from proliferation by authors David Court,Thomas French,Trond Riiber Knudsen.
About the Authors:
David Court -The Evolving Role of the CMO , Bringing Customers into the Boardroom ? Thomas D. French - The E-tailer’s Secret Weapon , The Future of Fiber ? Trond Riiber Knudsen - The Vanishing Middle Market , Escaping the MiddleMarket Trap
?
?
Challenges faced by today’s marketers arising due to increased customer expectations. Understanding the course of proliferation.
?
?
CMO’s today: Focus on devising the strategies to tackle proliferation and make profits .
?
Explosion of new customer segments, sales & service channels, media, marketing approaches, products and brands. Better CIM with low cost: But marketing is complex. Telecom Industry: The best example.
?
?
? ? ? ?
Polarizing and fragmenting customer segments. More Sales & Distribution touch points. Diverse communication vehicles. Cost is going up, Customer satisfaction declines, due to inconsistencies across various channels.
?
?
To become more sophisticated at identifying, prioritizing and allocating resources toward the most attractive segment and channel. To increase consistency and coordination of execution dramatically in areas such as pricing, segment management and promotional spending.
Opportunity lies at intersection of no of customer segments and product categories. ? Brand Strategy ? Growth Strategy ? Sales and Service Strategy
?
WHY?
Distribution Cost ? Communication Cost ? Production Flexibility
?
Complexity ? Diminished Brand Power ? Diseconomies of Scale
?
HOW?
Start with Consumer ‘Need States’ ? Balance economic opportunities with brand reality ? Make the tough choices
?
?
Restructure
› Divest in non performing brands › Reposition brand to target same customers › Can have ripple effect on other brands
OR
?
Launch New Brand
› Different customers › High Risk › High Investments
?
Building alignment Tracking Progress
?
?
Managing Insights Data
› Who, What, Where, When, Why of Customers › Include a diverse array of
people › Collaborating with Channel Partner, Vendor Partner
Marketing Planning ? Product Development Planning ? Account Planning
?
Challenges in sales & service channels
More sophisticated purchasing organizations ? Superior products & relationships not enough ? Quick imitation of innovations ? Increasing prevalence of low cost competitors
?
What to Do?
A clean sheet Redesign based on ? What customers want from their sales & service interactions ? What kind of organizational structure is necessary to provide that kind of support efficiently and effectively
3 Steps to Redesign
Step 1. Profiling
Identify companies' full range of sales and services from simple transactions to complex consulting arrangements
Step 2. Lean Backbone
Build a high quality, low cost platform of sales support and service processes for interactions that cut across all customers
Step 3. Developing Standardized Overlays
Develop affordable standard modules (or high touch overlays) for situations where customer value additional sales or service support enough to cover its cost
Marketer’s response to Proliferation
New brands,channels &segments focusing on disparate markets ? Lack of integration with sales & marketing function ? Channel conflict ? High marketing costs ? Convoluted IT systems& other infrastructure ? Inconsistent resource allocation
?
Commercial Operating System
A blueprint for consistent sales and marketing in the 2 or 3 functional areas (such as pricing, brand, segment, channel, or key account management) that are most closely linked to a company’s strategic priorities.
4 Components of COS
?
?
?
?
Consistent processes or series of activities along the business calendar Leading edge tools and frameworks to guide decision making Clear responsibilities, skill requirements and talent development for pivotal roles Consistent metrics and performance management systems
Thousands of brands means millions of pricing points ? Introduction of discounts , rebate and promotional offers further complicate the situation ? Different modes of distribution and sales complicates the pricing decisions. ? Visibility of pricing performance becomes tougher ? Opportunities of cost arbitrages
?
? ? ? ?
?
Creating Visibility into performance of pricing. Institutionalizing the core pricing process. Pricing should be used to fill gaps in market. Research should be done on price sensitivity of the consumers. Striking organizational balance by creating central Pricing excellence team closely interacting with all the verticals.
?
?
? ?
? ?
Need for well defined segmentation of customers in proliferating world. Use of CRM software to give differentiated goods and services Providing distinctive experience to different customer segments Creation of organizational accountability for segment result and empowerment Need to do data mining Internal balance sheets in terms of customer segmentation
Benefits Travel Hotel Room
Low Value Free Shuttle from Airport Discounted standard Guest Room Free Lunch Buffet Play 5$ , Get 5$ None
High Value Flight to LA 3 fight nights in luxury suite Dinner for 2 at steak restaurant $50 - $75 in match play coupons 4 front row seats for evening show , Golf at best cources.
Food and Drinks Cash, Match Play Shows, Activity
?
Traditional modes of reaching customers not effective due to:› Proliferation due to media and distribution
channels.
?
Traditional modes of reaching customers not effective due to:› Proliferation due to media and distribution
channels. › Multitasking by users. › Loosing trust in advertising. › Onslaught of digital media.
?
Clear objectives of investment
› investment horizon
› appetite for risk › future expectation
› Distinction between growth
and maintenance
?
Identifying points of economic leverage
identify consumers and vehicles giving biggest and fastest payoffs. › The decision funnel.
›
?
2 ways to achieve economic leverage:› Identify brand drivers - image driven or transactional. › Determine reach, cost and quality of competing
investment options.
?
Managing Risk
› marketing risk less when media stable › check media and messaging tests at any
given point of time…experiments like increasing expenditure, reduce mailings, new media etc
?
Tracking Return
› Track investment at each level even at store
level promotion.
?
Marketing environment of change and complexity in terms of brand portfolio, spending approach and customer insights.
Companies on path of ‘commercial transformation’.
?
?
?
Difficult because of skill building and employee resistance.
Change mgmt practices difficult to apply to marketing and sales because: ›
› Creativity along with strong execution
Responses of customers difficult to predict.
Skills & Traits for marketers today 2. The Internet revolution and its impact on Marketing 3. Understanding today’s customer 4. Managing brands in today’s complex environment 5. Tackling complexity challenges in today’s marketing environment
1.
doc_332458201.ppt