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Monday, August 8, 2011

3 Layers of Strategic Marketing

MARKET KNOWLEDGE  : To run the whole organization as if  its life depends on the customer is called “Customer Focus”. 

THE FIRST LAYER consists of  actions of  deciding on the marketing mix in terms of 4Ps. This is the visible,  front-end of the business where the basic principle is creating a good “Product x Market” engagement for mutual benefit. This is the traditional and text book role of marketing. 

THE SECOND LAYER consists of actions that take place at the back-end of the business but strongly impact the front end marketing. The basic principle here is that the COO structures the assets, people,  processes within the company ( in short, creates core competencies) which enable the front end to become better at serving the customers. This is the role of the COO / SBU Head. Here the role of marketing is to help the COO make the right investments and decisions. 

 
THE THIRD LAYER exists only in multi-business companies – is to create a corporate center such that it can add value to the COO or Marketing Head. The principle followed here is developing and applying these common resources from one business to another to produce value. Such common resources may be value networks, factories, centers of excellence etc. Sharing common costs is also an objective many times.

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