Lean Marketing at ASQ Columbus

Post on 29-Nov-2014

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A presentation at the ASQ Columbus Spring Conference on Lean Sales and Marketing Principles.

Transcript of Lean Marketing at ASQ Columbus

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?

Visit the Business901 Website • Over 80 Free eBooks• Regular Blog Posts• Podcast with Celebrated Authors, Industry

Practitioners and Leading Thought Leaders

Our Mission is to bring

Continuous Improvement

to Sales and Marketing.