Market process success

Brian Keith SeitzManaging Director

Intellectual Arbitrage Group

© 2005 Brian K Seitz Intellectual Arbitrage Group

Marketing Process has been and continues to be an evolutionary initiative

Marketing Process was formalized in late 1990s and a new version/release is issued at least every two years


Education and Training Process and Tools

Management Systems and Controls

People


Process Design and Deployment Management

Process Execution Management


Manager’s Control Book (ISO 9000) Deployment Leaders Guidance Document Process Management Database Capability Maturity Model (MPP-CMM) and self-assessment

tool Maturity Level Total Open Issues AchievementLevel 5 FALSELevel 4 FALSELevel 3 FALSELevel 2 FALSELevel 1 TRUELevel 0 TRUE

Level 1 Level 1 Level 2 Level 2 Level 3 Level 3 Level 4 Level 4 Level 5 Level 5

Total Percent Total Percent Total Percent Total Percent Total Percent Process Management 9 100.00% 13 93.33% 16 67.86% 16 67.86% 16 67.86%

Process Definition 3 100.00% 3 100.00% 3 100.00% 3 100.00% 3 100.00%Process Focus 6 100.00% 6 100.00% 8 100.00% 8 100.00% 8 100.00%Training N/A N/A 4 80.00% 5 71.43% 5 71.43% 5 71.43%Process Performance N/A N/A N/A N/A 0 0.00% 0 0.00% 0 0.00%

Support 10 100.00% 20 75.00% 27 55.29% 27 36.86% 29 38.25%Configuration and Knowledge Management 10 100.00% 18 100.00% 25 96.15% 25 96.15% 25 96.15%Decision Analysis and Resolution N/A N/A 1 100.00% 1 100.00% 1 100.00% 1 100.00%Process and Deliverable Quality Management N/A N/A 1 25.00% 1 25.00% 1 25.00% 3 33.33%Measurement and Analysis N/A N/A N/A N/A 0 0.00% 0 0.00% 0 0.00%Change Management N/A N/A N/A N/A N/A N/A 0 0.00% 0 0.00%Causal Analysis and Resolution N/A N/A N/A N/A N/A N/A 0 0.00% 0 0.00%

Project Management N/A N/A 4 100.00% 4 66.67% 4 66.67% 5 41.67%Project Planning N/A N/A 2 100.00% 2 100.00% 2 100.00% 2 100.00%Project Monitoring and Control N/A N/A 2 100.00% 2 100.00% 2 100.00% 2 100.00%Integrated Teaming N/A N/A N/A N/A N/A N/A N/A N/A 0 0.00%Integrated Project Management N/A N/A N/A N/A N/A N/A N/A N/A 1 50.00%Risk Management N/A N/A N/A N/A N/A N/A N/A N/A 0 0.00%Quantitative Project Management N/A N/A N/A N/A 0 0.00% 0 0.00% 0 0.00%

Marketing N/A N/A 15 71.43% 15 61.90% 15 60.71% 15 60.00%Market Research N/A N/A 6 100.00% 6 100.00% 6 100.00% 6 100.00%Segmentation N/A N/A 3 75.00% 3 75.00% 3 75.00% 3 75.00%Portfolio Management N/A N/A 3 75.00% 3 75.00% 3 75.00% 3 75.00%Business Design N/A N/A 0 0.00% 0 0.00% 0 0.00% 0 0.00%Value Proposition N/A N/A 1 100.00% 1 100.00% 1 100.00% 1 100.00%Marketing Mix Design N/A N/A 1 50.00% 1 50.00% 1 50.00% 1 50.00%Resource Allocation & Alignment N/A N/A 1 100.00% 1 33.33% 1 25.00% 1 20.00%


Plan Section Completeness

Appropriate use of Marketing Concepts, Methods & Tools

Marketplace Insights Uncovered and Leveraged

Customer- Relevance and Differentiation (approp. sections only)

Executive Summary Strategic Intent and Alignment w/ Group & Business Unit Targets (inclu. Program Objectives if appropriate)

Performance Opportunity Gap Risk Analysis Strategy Marketplace Insights

• Environmental Trends

• Market/Customer Segmentation, Preferences and Buying Behavior

• Competitive Positioning

• Value Chain and Profit Migration

Business Design (not included in GBP)

• Market/Customer Selection (& Projected Purchase & Use)

• Value Proposition

• Value Capture (As Required in OSBP & PMP)

• Strategic Control (As Required in OSBP & PMP)

• Scope of Activities (As Required in OSBP & PMP)

Execution Marketing Mix Elements

• Message Architecture (Prerequisite)

• Offering/Solution

• Routes-to-market

• Fulfillment

• Technical Support

• Pricing/Terms

• Offers and Incentives

• Partners and Affiliates

• Communications

• IMC Campaigns

Channel Enablement Organizational Capability Objectives and Measurements Risk Assessment Dependencies Milestones Operational Subplans Exhibits Average rating

Decision Checkpoints Deliverables Quality Program Planning Deliverables Information System and Repository User’s Guide Business Plan Templates

DCP Evaluation ContentO/SBP

Sections O/SBP Section Author(s)

Key Question

GSMB BCS IGS PCD PSD STG SWG1 1st Review 3 - Yes, Actionable 0 0 0 0 0 0 0

Supplemental Review

2 1st Review 0 0 0 0 0 0 0

Supplemental Review

3 1st Review 0 0 0 0 0 0 0

Supplemental Review

4 1st Review 0 0 0 0 0 0 0

Supplemental Review

5 1st Review 0 0 0 0 0 0 0

Supplemental Review

6 1st Review 0 0 0 0 0 0 0

Supplemental Review

7 1st Review 0 0 0 0 0 0 0

Supplemental Review

8 1st Review 0 0 0 0 0 0 0

Supplemental Review

9 1st Review 0 0 0 0 0 0 0

Supplemental Review

DCP Evaluation ContentO/SBP Section

Key Question

1 1st Review 0 0 0 0 0 0 0

Supplemental Review

2 1st Review 0 0 0 0 0 0 0

Supplemental Review

3 1st Review 0 0 0 0 0 0 0

Supplemental Review

4 1st Review 0 0 0 0 0 0 0

Supplemental Review

5 1st Review 0 0 0 0 0 0 0Supplemental Review

6 1st Review 0 0 0 0 0 0 0

Supplemental Review

No Go

Redirect

Go

1 - Missing/Incomplete

2 - No, Not Actionable

3 - Yes, Actionable

Does the Offering/Solution Value Proposition clearly identify the target customers, their need(s) being addressed, benefits of the IBM offering/solution and its competitive differentiation?

Is it clear how and where IBM has Strategic Control across the value chain to ensure IBM's ability to enter the market and defend its position against competitive actions?

Are the Scope of Activities documented and any gaps in capability that should be addressed during the offering/solution development and/or go-to-market identified?

Does the Value Capture for the offering/solution describe in sufficient detail how IBM will profit, and what time frame?

User Requirements 02.01.04 Have User Requirements been defined sufficiently for development to create specification(s) for the offering/solution?

01.03.00

Do Customer Requirements demonstrate a compelling business need, with sufficient insights to develop a differentiatable offering/solution?

02.01.03

Does the segmentation model adequately define target customers and provide sufficient insight into segment attributes?

Business Design DCP Key Questions

Customer Requirements

Market Selection including Segmentation 02.01.02

Does the business design for this offering/solution fit with the group/business unit business design, specifically:Market Selection, Value Proposition, Value Capture, Strategic Control, Scope of Activities

01.02.00

Strategic Fit

Have Marketing Mix Requirements been defined sufficent to substantiate the Business Design, and have the resources been secure to implement the Offering/Solution accordingly?

02.01.05

Business Design Actionability DCP Key Questions

Marketing Mix Requirements and Resources

03.02.00

Business Design Update

Does Competitive Analysis and Positioning provide sufficient insight to understand key competitive and substitute products in order to create a differentiable IBM offering/solution?

Competitive Analysis and Positioning

Value Proposition

01.02.01Scope of Activities

02.01.06Value Capture

Strategic Control 02.04.00

Response Scale*

Have the parameters of the business design as documented for the Business Design DCP changed and how have these changes affected the offering/solution business design?

02.03.00

Offerings/Solutions Priority List 03.01.00 Is there an Offering/Solution Priority List which ranks capabilities/functionality for relevance and differentiation, and identifies tradeoffs to yield the optimal offering solution design?

Pro Forma and Financial Business Case Summary

03.07.00

Has a Routes-to-Market Summary been developed which identifies OI OO and Fulfillment channels and an initial assessment of the % revenue and expense expected for the selected channels been developed?

03.02.01

Has the pro forma business case been created which demonstrates sufficient financial returns to support the offering/solution development ?

Optimize and Synchronize O/SBP (Optional for 2004/5)

00.00.00 Has O/SBP marketing mix elements been optimized and synchronize across the Company and Group portfolio?

Response Scale* (MLT or CMT Rating)

Decision

Decision

Routes-to-Market Summary


Workshops Formal Classes for each Discipline and

Specialty Community Calls Training Sessions


Business Advantage Tool Spreadsheets for SPAN/FAN,

Customer$APPEALS, Channel Management, etc.

Now Marketing On Demand Tool under construction (Workflow Mgt)


Skill ratings and job performance are major factors used to determine job positions and levels

Competency Model development for each Discipline continues


Market process success

Marketing

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