Product-Marketing Innovation, Skills, and Firm Productivity Growth
Marketing Productivity
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Marketing Productivity Increasing Efficiency and Effectiveness
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Many CMOs at leading firms are overhauling marketing operations to improve agility, decrease cycle times, and increase throughput and efficiency. They are significantly increasing marketing productivity. One of the tools that helps them drive these improvements is Lean thinking.
Transcript of Marketing Productivity
Marketing ProductivityIncreasing Efficiency and Effectiveness
Contents
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• Brief overview of Lean thinking • How Lean thinking can help you improve marketing operations • Examples of potential cost savings
Marketing Plan
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He knew it was dead when he was going through the desk of his predecessor, who had been unceremoniously let go, and found a 60-page document of “the marketing plan” written a year ago — nearly none of which was applicable 12 months later.
-Scott Brinker
“The Marketing Plan is dead”
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WHAT IS ?LEAN
History of Lean
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Lean thinking has a long history and began in manufacturing
1910
1940s -1970s
1980s
1990s
2000s
Mass production / Ford’s Model T
Just-in-Time and Total Quality Management
Lean Manufacturing
Toyota Production System
Six Sigma
What is Lean?
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Lean has many definitionsA process for creating
more value for customers
A process for minimizing waste
A culture
A process for continuous
improvement
The Toyota Production System
The means to reduce costs and lead times
A quality improving process
A process for minimizing the use of
resources
A philosophy of manufacturing
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Lean A strategy for continuously improving the delivery of value to customers.
Lean Concepts
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There are several core concepts in lean thinking
Remove Waste
Flow
Start Now
Continuously Improve
Respect for People
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Put on Customer Glasses
Remove Waste
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Revamping processes for least waste
Value-Add
Activities that must be performed for legal or regulatory requirements.
Business-Non-Value-Add Non-Value-Add
Activities that the customer would be unwilling to pay for.
Activities that the customer is willing to pay for and that change form, fit or function.
Optimize Minimize Eliminate
Value Stream Map
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Marketing example
= 14% Process Cycle Efficiency (PCE)
Present request Assign team Develop Test
Write up marketing
requestDeploy
Waste
Value
3 days
2 hr 1 hr
1 day
2 hr
7 days 3 days 5 days
2 days 1 day 3 hr
3 days value-add time !
21 days total cycle time
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Marketing ProductivityProductivity in marketing is a product of two factors: efficiency and effectiveness
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Cost SavingsLean helps identify opportunities to save time and money
Increase Reuse Improve Utilization Reduce Revisions
Streamline Approvals Shift Work Internally Eliminate Waste
‣ Ability to reuse templates and existing designs
‣ Reuse content across digital touchpoints (website, mobile, tablet, social, kiosk, etc.)
‣ Better ability to understand and forecast resource needs
‣ Staff appropriately for peaks and valleys of demand
‣ Improve clarity of marketing requests and objectives
‣ Reduce number of revisions by improving request intake and process flow
‣ Automate approval process
‣ Decrease time wasted waiting for approvals
‣ Improve clarify of feedback and collaboration
‣ Triage projects so that certain types can be performed internally
‣ Decrease overuse of high-cost external firms for low complexity work
‣ Reduce non-value add steps in processes
‣ Eliminate redundancies
‣ Consolidate and standardize marketing operations
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Effectiveness ExamplesLean thinking also helps improve effectiveness
• Improve measurement • Ability to understand true return on marketing investment (ROMI) • Insight into which marketing tactics are most effective • Increased ability to optimize marketing mix and predict revenue
• Ensure consistency • Ability to reuse consistent digital marketing assets • Opportunity to apply brand templates
• Drive faster cycle time • Increased speed to market • Ability to produce context-sensitive marketing
• Ensure alignment between marketing and sales • Transition leads from the marketing funnel to sales at the right point in time • Ensure alignment of messaging and tactics
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ResultsCompanies that have begun to optimize marketing operations have reported :
• Decreased campaign cycle time by 32 percent
• Reduced print production costs by 30 percent
• Reduced time spent on project management by 71 percent
• Reduced rework by 35 percent • Approved projects 27 percent
faster • Reduced time to market for new
products by 25 percent
Source: Jain, N. and Seiler, M. (2002) The Case for Marketing Resource Management. Excerpt from Freeland, J. The Ultimate CRM Handbook: Strategies and Concepts for Building Enduring Customer Loyalty and Profitability.
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@DaveBirckheadwww.davebirckhead.com
