Extending the definition of TOC Mafia Offer Marketing

by Gavriel Shaw

From discussion on linked in here.

The essence of business is value creation. Marketing's job is to support that essence [which happens] through:

* Creating value – by directing operations, distribution, et al. through providing customer/market insight (marketing's contribution to NPD/NSD). There should be no customer value other than what marketing informs (selecting the right grade of corn for the field)

* Communicating value – by spreading the corn.

(The reason pull marketing is becoming more popular is that it is more feasible given that we can be at the right place at the right time more automatically with modern advertising platforms that place our promos contextually where relevant people can see them).

* Delivering value – by negotiating the distribution of value profitability (shooting the sitting duck… ouch)

Something like that is what I meant in my definition of TOC Mafia Offer Marketing.

My definition certainly is more broad than a definition of marketing would have been previously, but I think that's the entire point. We need a view of marketing that approaches synonymity with business itself, as an integral part of directing strategy and tactics company wide, for the purpose of The Goal, increasing throughput, making money.

The DCE is created company wide (through continuous innovation/improvements), not just be ops. There are of course plenty of businesses that have better ops, even a better product, but fail to create or deliver value because their marketing is ineffective. Ops creates the product. The company creates the 'value', as directed by Marketing.

I like the term Mafia Marketing, there is a good book by that title, and a term I have used in my own promotions.

Existing products in existing markets is a small sub-set of Marketing's scope. In theory, just the starting point for a new marketing focus, but certainly something a company should look to grow beyond, especially with the help of a TOC Marketing implementation that helps them grow into new market quadrants as per the Ansoff Matrix ( http://en.wikipedia.org/wiki/Product-Market_Growth_Matrix )

Maybe we'll end up with 2 definitions of TOC Marketing.

One for the first phase of market penetration, perhaps as Lisa suggests: "Creating a marketing strategy that directs operations to create a DCE or CA that meets [existing] market segment's [existing] significant need".

And then a more long-term definition for TOC Marketing:

"The market directed pursuit of company wide innovation through TOC tools to create, communicate and deliver maximum values to the marketplace for maximum profit."

Which actually reduces to:

"The market directed pursuit of company wide innovation through TOC tools to create, communicate and exchange value."

Where 'innovation' simply means 'improvement'.

After thought… I think what Drucker meant by innovation and marketing is

"improvement (value creation) directed by market insight".

'All' we're doing is adding TOC tools to that directive and finally making 'marketing' a core function of company-wide strategy development, rather than leaving it silo'd.

Popularity: 1% [?]

Related posts on GavrielShaw.com: Possibly related from other sites:

Leave a Comment


 Powered by Max Banner Ads 

Previous post:

Next post: