six sigma for sales and marketing where to start and how to best succeed

Six Sigma for Sales and Marketing;

“Where to Start and How to Best Succeed”

Jeff WattsVice President Corporate Marketing - Instantis

Introduction

Marketing is a numbers game where advanced tools are used to achieve...

Actionable customer insights Media and communications efficiency Purchase behavior understanding Defined customer value Creative impact and response rates

Six Sigma can offer defined processes and proven tools that can dramatically improve marketing quality and results

Key Metrics in Marketing

Promotion Cost per response or trial Cost per incremental sale and customer Cost of customer renewal and loyalty

Media and Awareness Cost per ratings point Calculated reach and frequency Aided and un-aided customer recall

Retail Same store sales and average check Revenue per square foot

Agenda

DefinitionsBridging Marketing and Six SigmaPoints of Pain in MarketingApplication of Six Sigma ProcessesQuestions and Discussion

Definition of Marketing

Identify profitable market opportunities and design products and services that best meet them…

…Communicate the attributes of these products and make these products most easily accessible to the customers most able and willing to purchase them…

…in the most effective means possible.

Current Marketing Evolution

Tightening loop from product to market Compressed development cycles Modular design and production Flat supply chains

Accepting a wide proliferation of media Tighter marketing niches for product Highly targeted marketing communications

Reaching for smaller market segments Avoid commoditization Hold consumers more tightly

Why Marketing Needs Six Sigma

Very high Cost of Poor Quality Media and channel concentration require

marketers to “go big” right from the start Media/manufacturing cost are just as high

for a bad message/product as a good ones Product development cycles can easily

exceed product lifespan

A key objective is to control volatility Messaging is a virtual product Trends and fashions move rapidly

Why Six Sigma Needs Marketing

Huge opportunities for project value Small percentage gains can translate to

$billions in mass-market products Process-centric and reusable Decisions impact the entire organization

Marketing offers an extended reach across the organization to effectively evangelize any Six Sigma initiative

Agenda

DefinitionsBridging Marketing and Six SigmaPoints of Pain in MarketingApplication of Six Sigma ProcessesQuestions and Discussion

Successful Marketing

Leadership…Executive support and talent at all levelsBuy-in…Support at all levels of the organizationProducts and services delivered match the attributes and advantages communicated

Results…Measurable and sustainable ROIEvolution…Continuous planning and research to always stay “one step ahead” of the market

Successful Six Sigma

Leadership…Executive support and talent “in the belts”

Buy-in…Education and support at all levels Use of tools and speaking the same language

Results…Measurable and sustainable ROI

Evolution…Pioneer more advance tools and expand initiative across the entire enterprise

Extending Six Sigma to Marketing

Hypothesis: Marketing and Six Sigma best practices

and key benchmarks are closely aligned

Believed Conclusion: Effective Six Sigma Marketing teams need

to leverage the similarities to connect the dots and build relationships to get results

Action to Validate: Offer starting points that most easily carry

Six Sigma tools into marketing processes

Agenda

DefinitionsBridging Marketing and Six SigmaMarketing Points of PainApplication of Six Sigma ProcessesQuestions and Discussion

Mapping the Marketing Group




Product Marketing

Retail, Targeting and Marketing Communications

Media, Channels and Partner Marketing

Product Marketing


Product Marketing

Product Marketing Points of Pain

Finding actionable information within large and complex sets of data

Understanding the customer drivers Connecting key needs to products Defining unique differentiators

Running the business Margins and market sizes Pricing strategies Competitive responses Cannibalization and portfolio optimization

Product Marketing w/ Six Sigma

DFSS roadmaps (DMADV, DMEDI…) and tools to map VOC and build marketing direction to deliver

Aggregating customer research feedback to define overall trends

Regression analysis of POS data to define high correlations with increase sales

Multivariate pricing strategies to optimize both revenues and volumes

Measurement infrastructure to establish an effective market feedback loop

Marketing Communications


Retail, Targeting and Marketing Communications

MarCom Points of Pain

Discovery and Consensus Finding emotional triggers in the customer Collaboration to build strong messaging Gain agreement and assure compliance

Getting to Market Profiling effective target audiences Gaining distribution (retail, channels, etc..) Accelerating purchase cycles Increasing both sales and margins

MarCom w/ Six Sigma

DFSS to create messaging DMAIC and LEAN to improve processes and extend VOC

Process refinement to reduce points of variance in creative design and review

Simulation and design of experiments to more reliably forecast market demand

Comparison of incentive choices required to motivate targeted response rates

Analysis of most efficient retail inventories and shelving plans

Marketing Efficiency


Media, Channels and Partner Marketing

Efficiency Points of Pain

Daunting volume of variables connected by loose and interdependent correlations

Finding correlations and synergy within an infinite array of media choices

Resolve slow, expensive and unreliable process structures (LEAN)

Discovering actionable data from either very small of very large pools of data

Production efficiencies relative to creative compliance and flexibility

Efficiency w/ Six Sigma

DMAIC and LEAN roadmaps and tools to improve processes and reduce waste

Kaizen/Work-Outs on processes used to create, approve and produce materials

LEAN Six Sigma principles into all distribution channels and processes

DMAIC processes to connect and define relationships within the marketing toolset

Continued cost/benefit analysis of all items

Getting Started

Capitalize the critical importance of measurement for your marketing teams

Start with key points of pain to gain adoption and support

Leverage the holistic nature of marketing programs to validate DMAIC and DMADV roadmaps and tools

Expect an intermediate stage of Kaizen and LEAN sessions to map processes before applying more advanced tools

Examples

DMAIC go to Market Plan

Project: Improve sell through in new product launches

Roadmap: DMAIC

Forecasted Impact: $500,000+

Stakeholders: Product Mangers Communications Team Media Group Shipping, Merchandising and Channels Consumer and Market Research Vendors


Define Assemble process map of the current new

product market launches Assemble VOC from available sources of

market research CTS,D,C & Q trees for each marketing and

product item required within the launch


Measure CT matrix to identify key variables specific

to the VOC defined by the market research C&E matrix of the marketing elements Pareto analysis of C&E matrix results to

prioritize where to focus first Review of historical data and/or simulation

to evaluate process capability


Analyze Detailed process map/SIPOC of the

targeted marketing element in the launch Fishbone to understand detailed sources of

variation and C&E FMEA of the targeted launch elements to

further prioritize sources of pain Simulations based on market data or a

DOE to forecast impact and probability


Improve Regression analysis on contributing inputs

(x) to better yield desired output (y) of the target item(s) of the launch

Re-execute process maps, FMEAs, SIPOCs, Fishbones, etc. to reflect improved process

Execute DOEs (or a live launch) and test outputs to confirm process results


Control Instill measure systems in line with

marketing decision-making windows and departmental reviews and budgeting

Culturally embedded the improved processes (training, poka-yoke, etc.)

Ongoing renewal of VOC, FMEA and CTs Continued financial validation

DMEDI for a Corporate Message

Project: Develop and release a new logo and corporate messaging platform

Roadmap: DMEDI

Forecasted Impact: $250,000+

Stakeholders: Executives Communications Team Media Group Product Packaging Consumer and Market Research Vendors


Define VOC from market research of the current

message and “brand equity”- Focus groups- Secondary and primary- Internal call centers

Limits of product mix and “brand” Competitive customer appeal and offering


Measure Kano model that “you are in the ballpark” Incorporate C&E and Pareto tools to

prioritize audience and ranking of variables in the QFD

QFD “houses” to map message requirements, characteristics, communication and tracking priorities

Build Creative Brief from this phase to forward to the creative team


Explore Provide first run concepts and creative

based on the Measure feedback Compare and contrast vs. the VOC, QFDs

and Kanos to determine the most effective of the differing executions

Implement qualitative consumer research to gain deeper directional insight


Develop Select to 2-3 finalists for further

development Execute qualitative consumer testing Execute test market rollouts Confirm positive feedback, extensibility,

production requirements and feasibility of selected final design


Implement Execute chosen design Extend across external and internal targets Establish measurement infrastructure and

format for continuous improvement

More Places to Start

Other project ideas and tools to consider DOE for Direct Mail responses… Fishbone for retail merchandising,

promotion and shelf execution… Regression analysis for optimal lead

generation investment… Kano for promotional spending

optimization… LEAN for product rollout into channels… Pareto to prioritize of channel options…

Questions?

[email protected]

six sigma for sales and marketing where to start and how to best succeed

Documents

marketing application

marketing quality

marketing needs

marketing hypothesis

definition of marketing

introduction marketing

marketing promotion

entire organization