Copyright © 2013 by CINNAM Srl. All rights reserved.
Cover Image © CINNAM Srl.
No part if this publication may be reproduc...
I decided to write this book after my lengthy experience as a marketing consultant,
a university teacher, and an executive...
MOLECULAR MARKETING DECALOGUE
Available on amazon.com/dp/B00D5YL6WO
Available on the iBOOK Store
preview
preview
preview
p...
Marketing is a part of human evolution. The purpose of increasing one’s
awareness and building a good business or family n...
Perhaps it seems to be against all marketing rules, but it is not. Strong
subjects, with a defined identity, distinguished...
Clients are persons. The companies we serve are created, managed,
and developed by people. Customers have a mind, a heart,...
The world market is dynamic and turbulent; under the pressure of political,
economic, social, technological, cultural, nor...
MARKETING MOLECULES are systems that define a higher level of competition
than elements do. A single marketing element, la...
The expression “marketing” means “acting on the market”; its etymology has
roots in the Etruscan culture, with a reference...
RELATIONAL
MOLECULAR MARKETING ELEMENTS
Available on amazon.com/dp/B00D5YL6WO
Available on the iBOOK Store
preview
preview...
The objective of relational marketing is to acquire, keep, and develop
relationships with customers and other stakeholders...
In all economically advanced countries, the service economy is the main
source of growth in the gross national product. Fr...
CUSTOMER CARE requires distinguished company competencies: it depends
on the willingness, ability, and capability to suppo...
Even if the entire company’s front line were automatic, there would still be
present in its business exchange processes at...
MOLECULAR MARKETING PROCESSES
Available on amazon.com/dp/B00D5YL6WO
Available on the iBOOK Store
preview
preview
preview
p...
The third section of this book represents an introduction to the operational
MOLECULAR MARKETING modeling handbook. MM DEC...
Obviously, in MM ZOOMING, the photographer is a marketer who defines in
the first step a “big market and environmental pic...
In this step, following the company vision and respecting its defined values and
shared behaviors (having been previously ...
The only really authentic value created for a company comes from markets,
through exchange and customer value creation, cu...
Now, the marketer sees clearly his or her vision and objectives, and the picture
is particularly sharp through selected cu...
Even an excellent MARKETING MOLECULE or MM MODEL is practically useless
and remains inert if it is not activated by and th...
The MM BUBBLE described as MM TWINS has been developed with the
aim of supporting the MM BRAINING process and its “sparkli...
MM LIGHTS is a suitable training format for incremental innovation projects
thataremanagedinamarketwitha“heavytraffic”ofco...
Lockwood, T. Design Thinking: Integrating Innovation, Customer Experience, and Brand Value. (New
York: Allworth Press, 201...
ABOUT THE AUTHOR
CINNAM
www.cinnam.com
CINNAM is a consulting firm and a creative lab focused on innovation
and market lea...
CINNAM BOOKS | Iveta Merlinova: Molecular Marketing (Market Leadership Creative Modeling)
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CINNAM BOOKS | Iveta Merlinova: Molecular Marketing (Market Leadership Creative Modeling)

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The book MOLECULAR MARKETING is dedicated to the three main areas of concern within today’s marketing innovation: the innovation of marketing elements structured in the Molecular Marketing Table of Elements, the innovation in marketing processes, and the innovation in marketing models.
The whole content is proposed through complementary twin pages, with the text and graphic parts side by side.
This book is intended as an innovative methodological support for creative marketing professionals who look for new marketing drivers and reference models

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  1. 1. Copyright © 2013 by CINNAM Srl. All rights reserved. Cover Image © CINNAM Srl. No part if this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of CINNAM Srl. Requests for permission should be directed to permissions@cinnam.com. Merlinova, Iveta. Molecular Marketing. Market Leadership Creative Modeling. Illustrations: Iveta Merlinova, Chiara De Marie Developed within ALDEHYDE Molecular Business Systems® Amazon Kindle e-Book Edition: ISBN-13: 978-8890884207 Paperback Printed Edition: ISBN-13: 978-1484023891 ISBN-10: 1484023897 This book is published in a variety of electronic formats. Some content that appears in print may not be available in electronic books. To my family Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  2. 2. I decided to write this book after my lengthy experience as a marketing consultant, a university teacher, and an executive trainer. My aim is to share my insight on marketing discipline and its significance in today’s business practice. One of the most famous management gurus, Peter Drucker, said years ago, “The business has two—and only two—basic functions: marketing and innovation.” Today, nevertheless, marketing is rarely understood as so crucial in business life, and it is even less frequently supported by an authentic and innovative professional background. Furthermore, customers often perceive marketing even negatively, as something that was invented against, and not for, them in order to cheat them and to sell them products or services that otherwise would remain unsold and just lying in stock. Well, marketing sometimes seems to be a problem and not a value-creation process for companies, customers, and for other stakeholders. Nowadays, markets request business innovation and creativity, efficiency combined with flexibility, technology mixed with empathy, and human touch. The actual global market exchanges have to be supported by creative integrated solutions, hardly provided by traditional marketing processes and their tools. This book is intended as a methodological and creative support for marketing professionals who seek innovative drivers and new reference processes and marketing models; it will facilitate their job in an efficient and valuable way. A practical deployment of the Molecular Marketing ideas and frameworks is proposed for the market within ALDEHYDE Molecular Business Systems® consultancy services and executive training (www.cinnam.com). This book is organized into four main sections that are closely interrelated: 1. “Molecular Marketing Decalogue” presents the intrinsic principles of Molecular Marketing, transversal to all marketing activities and processes; 2. “Molecular Marketing Elements” describes a selection of transactional, relational, and collaborative marketing drivers perceived as basic units capable of satisfying a specific market and customers’ needs and subsequently used as the elementary building blocks of the marketing/business offering; 3. “Molecular Marketing Processes” focuses on the description of the four main frameworks necessary for a creative marketing offering development and launch: Molecular Marketing Zooming (vision-driven marketing planning processes), Molecular Marketing Cooking (marketing complexity-management processes), Molecular Marketing Braining (marketing collaborative creative processes), and Molecular Marketing Sparkling (marketing change-management processes); and 4. “Molecular Marketing Models” represents a synthesis of the previous sections PREFACE and defines the contents, structure, and relationship between Marketing Molecule Model, perceived as the heart of the Molecular Marketing Model, Molecular Marketing Management Model, and Molecular Marketing Innovation Model. The closing chapter is dedicated to Molecular Marketing Leadership. The architecture of this book reflects three main areas of concern within today’s marketing innovation: on the first level, the innovation of marketing elements/ drivers structured in the Molecular Marketing Table of Elements; on the second level, innovation in marketing processes; and, on the highest level, innovation in marketing models. The described elements, processes, and models are understood as evolving systems, potentially open for completion and/or modifications within the basic framework. The book is written using, in parallel, verbal and visual language, and the whole content is structured through pages with the text and graphic parts side by side. The two languages are complementary and the aim is to help readers comprehend some frameworks that are crucial for the deployment of Molecular Marketing. I want to express my appreciation and gratitude to Chiara De Marie, who, with helpful assistance and inspiration, created with me the illustrations for this edition. Additionally, thanks to Marta Frigerio and Paola Russo, who supported me during the technical preparation of this book. Finally, my profound thanks go to all the creative people, colleagues, customers, students, and friends that I’ve met over the years and from whom I’ve learnt so much and taken so much inspiration. Iveta Merlinova merlinova@cinnam.com www.cinnam.com Milano, 21 January 2013 Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  3. 3. MOLECULAR MARKETING DECALOGUE Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  4. 4. Marketing is a part of human evolution. The purpose of increasing one’s awareness and building a good business or family name and defending its reputation was as much important hundreds of years ago as it is today. Throughout one’s life, the necessity to create a new value by the exchange of goods and services, relationships, knowledge, experiences, and talents has forced people to acquire and to share a set of commercial, communication, negotiation, and other practices, which nowadays are commonly called “marketing.” In spite of this transversality and importance, the vast majority of worldwide exchanges happen without any real, or even basic, competence in marketing. At present, the problem of the deployment of marketing is twofold: the first one is quantitative—there is an effective lack of professionals able to support individuals, institutions, and companies in strategic and operational marketing management and innovation; the second one is qualitative—even though marketing is a relatively young scientific discipline, it is often old for today’s turbulent (liquid), complex (global), and intangible (real and virtual) markets. There are numberless ways of creating value for customers, unlimited possibilities varying within space and time. There is no common business prescription; there is no shared marketing mix. Each marketing plan is perishable and each customer experience is individual. This doesn’t mean that marketing activities cannot be learned or marketing actions cannot be managed. But a modern marketing approach has to be different: faster, lighter, and actually flexible in its implementation, authentically creative through its models, strategies, techniques, and people, as well as truly customized and closer to its targets. To sustain that kind of marketing innovation, some specific methods will be presented, respecting a distinctive philosophy and ethic. This philosophy will be described by ten intrinsic principles (MOLECULAR MARKETING PRINCIPLES), entitled MOLECULAR MARKETING DECALOGUE (MM DECALOGUE)1 , as follows. 1  In the text, all TERMS written in capital letters (with the exception of the individual Molecular Marketing Elements presented in Chapters 2,3 and 4) are defined in the Molecular Marketing Dictionary (Appendix 3). CHAPTER 01 MOLECULAR MARKETING DECALOGUE MM DECALOGUE INNOVATE THROUGH CREATIVITY SEARCH FOR SUSTAINABLE SOLUTIONS LEAD, ALIGN AND EMPOWER USE COLLABORATIVE NETWORKING CREATE YOUR MARKETING MODEL MEASURE, SHARE AND IMPROVE BEGIN FROM YOURSELF SERVE PEOPLE NOT MARKETS CHALLANGE A FLOATING WORLD MANAGE SYSTEMS NOT ELEMENTS Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  5. 5. Perhaps it seems to be against all marketing rules, but it is not. Strong subjects, with a defined identity, distinguished competencies, clear brand values, and comprehensible behaviors, are usually more able than others to give something more to clients, employees, or other stakeholders. No company succeeds in customercentric activities without having previously understood its own culture and personality. A solid and internally well-shared personal or company individuality is able to propose valuable solutions for customers and markets; not the contrary. A constructive egocentric starting point is without any doubt better than any market or customer-oriented confusion and void. The first MM DECALOGUE principle concerns internal motivational processes, too. Marketing is a business system that helps individuals and organizations to create value for them through market exchanges and the delivery of value. It could sound false to declare that “one’s mission is just to satisfy customer needs” or that “all activities are developed in order to create value for customers.” Honestly, no business is about pure generosity and altruism. First of all, any company has to create value and ensure profitability for itself, and it normally tries to reach this goal through processes aimed at ensuring that customers are satisfied and that value is created for them. It obviously doesn’t mean that the only motivation for developing a company is economic. The business “engine” can be more complex or deeper, internally or externally. Actually, the understanding and formulation of the company purpose, perceived as a basic motivation and stimulus for all activities, is an integrated part of this principle. “Begin From Yourself” signifies a clear vision statement as well. Definitely, a motivating vision, a shared purpose, and a clearly defined cultural and ethical company environment are the most important conditions for further decision- making processes, strategic alignment, and coherency in a company’s interaction with customers. 01.01 1° MM PRINCIPLE: BEGIN FROM YOURSELF me first SUBJECTS WITH A STRONG IDENTITY HAVING A MOTIVATING VISION AND CLEAR VALUES Mourkogiannis, N. Purpose: The Starting Point of Great Companies.(Hampshire and New York: Palgrave Macmillan, 2006). Takamori, K., Akehashi, D., Ito, K. You Were Born for a Reason: The Real Purpose of Life. (Tor- rance: Ichimannendo Publishing, 2006). VanAuken, B. The Brand Management Checklist: Proven Tools and Techniques for Creating Winning Brands. (London: Kogan Page Limited, 2002). Wheeler, A. Designing Brand Identity: A Complete Guide to Creating, Building, and Maintaining Strong Brands. (Hoboken: John Wiley & Sons, 2006). INSPIRATIONAL BIBLIOGRAPHY MM DECALOGUE Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  6. 6. Clients are persons. The companies we serve are created, managed, and developed by people. Customers have a mind, a heart, a body, and a soul; their experiences and memories are holistic, even though we offer just precise and distinctive functional or rational benefits. From one point of view, it’s a duty of each marketing manager to propose something valuable for the “left” and “right” human brain, to involve customers’ senses and emotions, and to satisfy their ethical and social needs. From another point of view, it is an enormous opportunity for marketers to serve, respect, and sometimes perhaps even love their customers. A customercentric (or marketcentric) approach is limited and mechanical; a trustworthy, humancentric approach has to become a standard. Subsequently, no additional customer/social/ reputation programs are requested; no need is felt to invent complementary marketing actions to improve a brand’s reputation. Different human-oriented dimensions are included in the original MM MODEL design, even though they are developed during various phases of the life cycle of a product or service. Human-oriented marketing changes the whole set of marketing processes and drivers, and asks for innovative and creative approaches concerning business development, its performance measurement and people training. Long-term and short-term goals are balanced, new market-research methods are used, and the distinction between a company and its customers becomes weaker, creating progressively an integrated team or community with common objectives, values, and activities. The “People Not Market” principle is powerful and adds competitive advantages in areas such as relational and collaborative management (i.e., product development, pricing, self-service, and experiential distribution), social networking, peer-to-peer communication, sustainable marketing, and branding. The evolution and implementation of the human-oriented approach in marketing requires the support of neuroscience, sociology, psychology, and other disciplines. 01.02 2° MM PRINCIPLE: SERVE PEOPLE NOT MARKETS Buttle, F. Customer Relationship Management: Concepts and Technologies. (Oxford: Butterworth-Heinemann, 2009). Peppers, D., Rogers, M. Managing Customer Relationships: A Strategic Framework. (Hoboken: John Wiley & Sons, 2004). Pradeep, Dr. A.K. The Buying Brain: Secrets for Selling to the Subconscious Mind. (Hoboken: John Wiley & Sons, 2010). Schmitt, B.H. Customer Experience Management: A Revolutionary Approach to Con- necting With Your Customers. (Hoboken: John Wiley & Sons, 2003). Shaw, C., Dibeehi, Q., Walden, S. Customer Experience: Future Trends and Insights. (Hampshire and New York: Palgrave Macmillan, 2010). INSPIRATIONAL BIBLIOGRAPHY MM DECALOGUE Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  7. 7. The world market is dynamic and turbulent; under the pressure of political, economic, social, technological, cultural, normative, and other factors, it changes continuously, recreating itself and creating new macro and micro business environments. Due to global competition and modern innovation processes, the life cycles of products and relationships are shorter and shorter. Customers are extremely well-informed, becoming more demanding and unstable in their needs and less loyal and more ambiguous toward companies as well. Intangible (service-oriented) and digital marketing systems permit (and request) businesses, their processes, and their models to adapt in real time. In these conditions, marketing solutions have to be very flexible and able to react or, better, to anticipate many changes and to fit market and customer needs. A traditional approach to marketing planning (and a rigid “marketing mix”) is no more sufficient. At the same time, marketing asks for new frameworks, capable of modifying their contents and architecture quickly and in a simple way. In our approach, a modular system of marketing drivers that can satisfy customer needs, defined as MOLECULAR MARKETING ELEMENTS, is used. MM ELEMENTS are creatively combined, bound, and unbound, according to existing or previewed environmental conditions and customer needs. A vast range of MM ELEMENTS assures not only “humancentric” solutions, but their numerous combinations give a possibility to create absolutely unique competitive offerings (labeled as MARKETING MOLECULES), distinguished in the market for their substance, their kind of ties, and a final business impact. A detailed MARKETING MOLECULES building process is described in Chapter 06, “MM COOKING.” “To Manage Fluidity” means to innovate MARKETING MOLECULES when the need arises, keeping the continuity and flow of the MM MANAGEMENT processes and organizational structures. Of course, some extreme and/or exceptional disruptive situations (i.e., a deep crisis, new killer applications in the market) can provoke a collapse of the whole MM SYSTEM building process and request new radical marketing solutions. Nevertheless, a fluid modular and platform-based innovation approach is considered as an essential principle of MOLECULAR MARKETING. 01.03 3° MM PRINCIPLE: CHALLENGE A FLOATING WORLD MARKETING MOLECULE It is a systemic and integrated company offering in the market. Marketing Molecule is a system that defines a higher level of competition and/or innovation than its Molecular Marketing Elements do. DICTIONARY MM ELEMENT It is considered in Molecular Marketing as a basic unit capable of satisfy a specific market’s and customers’ needs and subsequently used as an elementary building block of the marketing offering (Marketing Molecule). DICTIONARY Teece, D.J. Dynamic Capabilities and Strategic Management. (New York: Oxford University Press, 2009). INSPIRATIONAL BIBLIOGRAPHY Cameron, E., Green, M. Making Sense of Change Management: A complete Guide to the Models, Tools and Techniques of Organizational Change. (London, Kogan Page Limited, 2004). INSPIRATIONAL BIBLIOGRAPHY Hayes, J. The Theory and Practice of Change Management. (Hampshire and New York: Palgrave Macmillan, 2002). INSPIRATIONAL BIBLIOGRAPHY MM DECALOGUE Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  8. 8. MARKETING MOLECULES are systems that define a higher level of competition than elements do. A single marketing element, lacking its alignment with other business drivers, is rarely able to sustain a company’s competitive positioning. More and more often it is convenient, if not necessary, to fuse, combine, and merge elements and processes, and manage them as a unique business solution and value system. A holistic strategic design approach to the offering definition and its innovation assures a company a long-lasting and sustainable leadership in the market. System thinking is extremely useful for MOLECULAR MARKETING change- management programs too, being able to interpret and guide different social and organizational behaviors. Customer experience and multichannel interaction management, internal communication or team work, alignment of sales and after-sales processes, open strategic collaboration, and partnership management are just some of marketing activities that confirm the need to face these complex challenges through holistic frameworks and unconventional marketing models and tools. The next aspect that influences MM MANAGEMENT complexity is the external environment. Strategic marketing practice has to take into consideration different targets within main stakeholders (i.e., primary customers, business partners, shareholders). Modern holistic marketing is not carried out for a closed company and requires balanced solutions within open (and even well- defined) economic, social, financial, or production systems. As far as the vertical market complexity is concerned, the fact is that in the function of different situations, the same stakeholder may have different behaviors. There are many customers in the same client and even basic experiential and relationship marketing management asks for the deployment of systemic methods deployment too. Avoiding a forced, simplistic, marketing planning approach, “Manage Systems Not Elements” is an essential principle for modern marketing theory and practice, relevant both for offering design, market development, innovation, and change-management processes. 01.04 4° MM PRINCIPLE: MANAGE SYSTEMS NOT ELEMENTS MM DECALOGUE THE GENERAL WHO WINS “The general who wins a battle makes many calculations in his temple, where the battle is fought. The general who loses the battle makes but few calculations beforehand. Thus do many calculations lead to victory and few calculations to defeat: how much more no calculations at all! It is by attention to this point that I can foresee who is likely to win or lose.” So said Sun Tzu, a Chinese military strategist, in The Art of War, written around the sixth century BC. We can substitute ‘calculations’ for ‘complexity’. The inference is clear; those leaders who can manage complexity effectively will prevail over those who cannot. Source: Rugg-Gunn, M., 2012, The Psychology of Managing Complexity, Human Asset Development International Ltd. SNAPSHOT McMillan, E. Complexity, Management and the Dynamics of Change: Challenges for Practice. (Oxon: Routledge, 2008). Miller, J.H., Page, S.E. Complex Adaptive Systems: An introduction to Computational Models of Social Life. (Oxfordshire: Princeton University Press, 2007). Sirkin, H.L., Hemerling, J.W., Bhattacharya, A.K. Globality: Competing with Everyone from Everywhere for Everything. (New York and Boston: Business Plus, 2008). INSPIRATIONAL BIBLIOGRAPHY MM MANAGEMENT The implementation of innovative managerial techniques, methods, and practices in the whole Molecular Marketing System. MM Management interferes also with MM Creativity and MM Innovation, defining the areas of MM System such as Creativity Management and Innovation Management. DICTIONARY EXAMPLE: COMPLEX MARKETING TRAINING SYSTEMS MANAGE MARKETING MOLECULES NOT ELEMENTS simplicity Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  9. 9. The expression “marketing” means “acting on the market”; its etymology has roots in the Etruscan culture, with a reference to trade and economics. Yes, the gerund brings us to the action, something that has to be carried out. MM DECALOGUE is not only a set of principles; it is an operational framework for business. The concretization of the MM DECALOGUE within a specific market and environmental context happens through the development, activation, and management of the customized MM MODEL. Subsequently, the MM MODEL design determines companies’ business models and their value systems and circumscribes the strategic and operational marketing territory. MM MODEL encompasses (Chapters 9, 10, 11, and 12) a conceptual model (MARKETING MOLECULE MODEL), its management model (MM MANAGEMENT MODEL), and its innovation (MM INNOVATION MODEL); MM DECALOGUE has to be transversal and respected in all these parts and activities. The deployment of the MM DECALOGUE in practice is shown step by step along with the bottom- up MOLECULAR MARKETING modeling process, starting from the conceptual model building and completed by the definition of MARKETING MOLECULE and the integration of MM MANAGEMENT, and MM INNOVATION MODELS. In the next Chapters, two essential components of MOLECULAR MARKETING modeling are introduced: 1. MM ELEMENTS (Chapters 2, 3, and 4) are the elementary “bricks” of a business offering, such as products, services, brands, relationships, and others. Three distinct categories of MM ELEMENTS are mentioned: transactional, relational, and collaborative. Obviously, only those MM ELEMENTS that can potentially satisfy the MM DECALOGUE principles are considered in this text; 2. MM PROCESSES (Chapters 5, 6, 7, and 8) are connection systems and activities related to market research, creative trend watching, decision making, marketing innovation, change management, and others. Four creative MM PROCESSES, indispensable both for the conceptual building of the MARKETING MOLECULE and the development and deployment of MM MANAGEMENT and INNOVATION MODELS are presented in this publication: MM ZOOMING, vision-driven marketing planning; MM COOKING, marketing complexity management; MM BRAINING, marketing collaborative creativity; and MM SPARKLING, marketing change management. Eventually, in particular for strongly people-oriented projects and activities and coherently with the MM DECALOGUE principles, MM FORMATS as specific elements of the MARKETING MOLECULE MODEL are introduced (Chapter 8). CHAPTER 01 - CONCLUSION MM DECALOGUE IN PRACTICE MM ELEMENTS MM PROCESSES MM MODELS MMDECALOGUE TRANSACTIONAL MM ELEMENTS RELATIONAL MM ELEMENTS COLLABORATIVE MM ELEMENTS MM ZOOMING MM COOKING MM BRAINING MM SPARKLING MARKETING MOLECULE MODEL MM MANAGEMENT MODEL MM INNOVATION MODEL MM DECALOGUE Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  10. 10. RELATIONAL MOLECULAR MARKETING ELEMENTS Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  11. 11. The objective of relational marketing is to acquire, keep, and develop relationships with customers and other stakeholders. Consequently, all business transactions and products’ life cycles have to be managed within a customer-relationship life cycle, as a particular event and business opportunity. Thereisananotherimportant“technical”differencebetweentransactionaland relational marketing: transactions, relatively short-term-oriented, are based on a strong initial offering and product quality; relationships and their exploitation need long-term horizons and, if correctly managed, are stronger and deeper after some time and not immediately at the beginning of the interaction with a customer. From the methodological perspective, the product life-cycle management evolves through offerings’ differentiation and diversification; the customer life-cycle management is based on the integration and synthesis of social, motivational, ethical, and other relational aspects. RELATIONSHIP as a specific MM ELEMENT will be presented at the end of this chapter, through its soft characteristics and as a result of the complementary integration of the other relational MM ELEMENTS. As regards their choice, the selection focuses on three functional groups: 1. In the first group are relational products that are usually a core part of the business offering. Among them, the most important are: SERVICE, EXPERIENCE, INFORMATION, KNOWLEDGE, and BRAND. 2. To the second group belong those MM ELEMENTS that proactively enable customer interaction and insight (customer learning relationship), creating appropriate conditions for customer satisfaction and loyalty management. They are based on the direct and repeated, personal or impersonal interaction with customers: SALES processes and CUSTOMER CARE. 3. In the third group, two specific and transversal MM ELEMENTS of the customer relationship management (CRM) are introduced: PEOPLE within the element’s three dimensions, frontline people, back-line personnel, and customers; and TECHNOLOGY, especially information and communication technology (ICT), as well as innovative consumer and business products that permit the tracking and understanding of customer behavior and attitudes. CHAPTER 03 RELATIONAL MOLECULAR MARKETING ELEMENTS MM ELEMENT SYMBOLOGY MM ELEMENT TANGIBILITY SOLID LIQUID GAS MM ELEMENT EXPERIENCE FUNCTIONAL ENHANCED HOLISTIC MM ELEMENT POTENTIAL VALUE SMALL MEDIUM BIG RELATIONAL MM ELEMENTS Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  12. 12. In all economically advanced countries, the service economy is the main source of growth in the gross national product. From the marketing point of view, the service offering, compared to the tangible-product offering, requires a substantially different management and strategic design: SERVICE is not a thing, but a process, and its commercial promotion, negotiation, pricing, and delivery changes remarkably; its intangibility causes customer disorientation and suspicion and, without a direct possibility to verify its quality (to “touch” the product), it increases the customer’s risk in perception and decisional paralysis; SERVICES are often directly delivered by a company and for this reason all frontline people—technicians, commercials, managers—have to “produce” and “sell” the service at the same time through their transversal part-time marketing competencies; last, SERVICES are interactions and involve customers who have to be “educated” for this interactive, open, and interdependent kind of business. All the above-mentioned service characteristics are naturally typical also for supporting or facilitating services related to the tangible offering and for services offered as communication, distribution, or other sorts of MM ELEMENTS. The “openness” of SERVICES and their basically direct and interactive distribution and delivery offered new possibilities for customer research and customer intimacy management: a company may use acquired customer information in real time and, through better understanding of customer needs and preferences, enhance and customize the offering; in the next step, new technical and relational service quality and additional services could be offered and new standards for service-level agreements defined. Improved services create even more interactions and bring even more customer information that, as a result, permits the company to serve customers better, longer, and with higher satisfaction and value. This mechanism offers a solid platform for customer fidelity and CRM strategic programs. A logical evolution of these marketing processes is a gradual substitution (total or partial) of the purely transactional competitive advantage of the company, based on the tangible PRODUCT quality and/or PRICE, with a new one, based on the customer’s intimacy and loyalty. 03.01 SERVICE | Se INSPIRATIONAL BIBLIOGRAPHY Frei, F., Morriss, A. Uncommon Service: How to Win by Putting Customers at the Core of Your Business. (Boston: Harvard Business Review Press, 2012). Fitzsimmons, J.A., Fitzsimmons, M.J. Service Management: Operations, Strategy, Information Technology. (New York: McGraw-Hill, 2006). core services facilitating services enhancing services CONSULTANCY HOSPITALITY SAFE KEEPING EXCEPTIONS OTHERS INFORMATION ORDER TAKING BILLING PAYMENTS OTHERS FINANCE TRANSPORT HEALTH CARE RETAIL OTHERS Se service credibility reliability access other courtesy tangibility responsiveness RELATIONAL MM ELEMENTS Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  13. 13. CUSTOMER CARE requires distinguished company competencies: it depends on the willingness, ability, and capability to support/help the customer; furthermore, caring means empathy, social intelligence, continuous dialog, interaction, and presence. CUSTOMER CARE initiates immediately, even before the first direct contact with the customer: it includes correct product/ service promotion and customer expectation management, information availability and communication channel management, business and pricing transparency, as well as the deployment of other brand values. Even though customer care is normally bound together with after-sale activities, it is an integral part of all interactions between the brand and the customer. Typically, CUSTOMER CARE is based on the direct customer experience and satisfaction management through all touch points and moments of truth. The repeated escalation “expectations–experience–satisfaction/dissatisfaction– memory” generates (or not) trust and brings (or not) customer loyalty. Customer-care activities could be both people and technology-based. They may have a very important commercial value, sometimes exceeding the product or core-service value: cars in the automotive industry or industrial production lines are often just an “excuse,” an initial transaction used as a platform for the next caring and selling. By prolonging customer life cycle through customer caring, new occasions for repeated sales, cross- and up-selling are created as well. From the relational perspective, direct caring contacts allow a company to update information about customer needs, expectations, and overall satisfaction, as well as to improve customer relationships. Customer experience, satisfaction, and retention are very different expressions (and measurable indicators) of the company’s customer-care activity. For example, averygood,butnotmemorized,customerexperiencedoesn’tleadtocustomer loyalty, and sometimes even a very dissatisfied customer remains loyal for many years. An accurate analysis of different customer-care dimensions and their value is important. A very specific area of CUSTOMER CARE is the management of complaints, for many companies a truly weak point and a competitive disadvantage. It is well known that a dissatisfied client shares his/her negative experiences something like five times more frequently than a satisfied client shares his/ her positive experiences. The impact of the nonprofessional management of this marketing element on the brand’s reputation is usually imminent and could be devastating. 03.07 CUSTOMER CARE | Cc SNAPSHOT THE RITZ-CARLTON EXPERIENCE Every luxury hotel, and especially a chain that revels in its reputation for excellence, strives to make customer service an art. This Bloomberg Business Week piece titled “How Ritz- Carlton maintains its mystique,” contains one truly exceptional story. It concerns a family staying at the Ritz-Carlton, Bali, who had carried specialized eggs and milk for their son who suffered from food allergies. On arriving at the hotel, they discovered the eggs had broken and the milk had soured. “The Ritz-Carlton manager and dining staff,” tells the reporter, “searched the town but could not find the appropriate items.” The executive chef, not a man to be so easily defeated, remembered a store in Singapore that carried the items. He proceeded to call his mother-in-law, never an easy task, and asked that she buy the items and fly to Bali to deliver them. She did, and they were. Source: http://www.wix.com/blog/2012/02/3-exceptional-customer-service-stories/ customer care Cc CUSTOM ER SATISFACTION MANAGEMENT COM PLAIN T M AN AGEM EN TCUSTOMER EXPERIEN CE M AN AGEM E NT CUSTOM ER LOYALTY PROGRAMS CON TACT CEN TER WEBSITE SOCIAL M EDIA SHOP DEALERHIP M ARKETIN G SERVICE SALES RELATIONAL MM ELEMENTS Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  14. 14. Even if the entire company’s front line were automatic, there would still be present in its business exchange processes at least two “human groups”: back-office employees/external collaborators and customers. Moreover, each robot, automatic vending machine, or website reflects the human genius and personality of its designer and provokes real reaction from people. Of course, if the interaction becomes completely human, its marketing potential grows exponentially. Among all stakeholders, there are three main PEOPLE categories that must be managed as essential MM ELEMENTS: frontline people, back-office people, and customers. Frontline people of all organizational areas (marketing, production, research and development, services, administration, and others) at all hierarchical levels, through their behavior, reputation, and image (individual and collective), their presence and sometimes simple numerical quantity in different interactions, and through their competencies and skills, strongly influence the customer’s brand experience and esteem. Frontline personnel are an important component of the brand’s PHYSICAL EVIDENCE; the dressing code and the aesthetic and personal style are particularly important in business-to-consumer interactions. There is no rigid line between front-end and back-end activities; and more and more often traditionally “hidden” processes and PEOPLE (administration, maintenance, research, logistics, and others) are also brought above the line of visibility and interactivity, becoming a new “moment of truth” and competitive benefits for customers. However, back-office personnel who don’t participate directly in the interactions with customers also determine the final offering’s quality and customer experience. Since the importance and involvement of back-end people is crucial but sometimes not so clear and immediate (first of all, missing a direct impact and customer feedback), their training and motivation is indispensable. Common front-end and back-end team empowerment and building and well-structured and diffused internal communication and marketing are some of the change-management tools being successfully used by process-oriented organizations. People-customers can be the best testimonials of the BRAND; their acquaintance conditions are a company’s final service quality; they can (or have to) produce some products or services. Customers are company partners and valid MM ELEMENTS. 03.08 PEOPLE | Pe INSPIRATIONAL BIBLIOGRAPHY Gummesson, E. Total Relationship Marketing: Marketing Management, Relationship Strategy, CRM, and a New Dominant Logic for the Value-Creating Network Economy. (Oxford: Butterworth-Heinemann, 2008). PEOPLE-INTERACTION BLUE PRINT CLIENTSUPPLIER Pe people EXTERNAL INTERACTION LINE LINE VISIBILITY LINE INTERNAL INTERACTION - CLIENT’S FRONTLINE PERSONNEL - SUPPLIER’S FRONTLINE PERSONNEL - SUPPLIER’S BACKSTAGE PERSONNEL RELATIONAL MM ELEMENTS Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  15. 15. MOLECULAR MARKETING PROCESSES Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  16. 16. The third section of this book represents an introduction to the operational MOLECULAR MARKETING modeling handbook. MM DECALOGUE principles have been defined, a basic list of the MM ELEMENTS has been presented; the next step is their creative and valuable selection, combination, and activation within a specific business environment. Four essential groups of MM PROCESSES will be discussed in the following text: •  MM ZOOMING - vision-driven marketing planning processes aimed at the strategic building, positioning, and delivery of the MOLECULAR MARKETING offer; •  MM COOKING - marketing complexity management processes - that goes through the MARKETING MOLECULE building; it is based on the MM ELEMENTSmixingand balanced integrationrespecting the MM DECALOGUE principles, for external and internal company customers; CHAPTER 05 MOLECULAR MARKETING ZOOMING VISION-DRIVEN MARKETING PLANNING PROCESSES •  MM BRAINING - marketing collaborative creativity processes - aimed at innovating the generation and deployment of marketing drivers, and •  MM SPARKLING - marketing change-management processes, aimed at facilitating idea-sharing, change, and training activities. As far as the first MM PROCESSES area is concerned, the choice of the “zooming” metaphor has been inspired by filmmaking and photography, in particular by their technical aspects, their vocabulary, their creativity, and their emotional beauty. Just for a while, take your camera and look far away, trying to focus and capture some amazing, attractive particular point. Moving slightly ahead, still orienting your camera in the same direction, you can lower the depth of field, choosing precisely some new, detailed reference points. Changing some filters and/or their colors in front of the lens, all objects become clear and/or can seem different. Changing you perspective, you perceive different things. MOLECULAR MARKETING vision-driven modeling and planning processes are very similar: there is not a simple distinction between long- and short-distance perception and time, between strategic andoperationalactivities;withinthewholeprocess,theyhavetobecombined, managed in parallel, and reviewed, similar to some typical photographer operations carried out without any rigid linear sequence. MM ZOOMING Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  17. 17. Obviously, in MM ZOOMING, the photographer is a marketer who defines in the first step a “big market and environmental picture” using two different focal lengths of the management attention: in the first step, a large depth of field (in photography, it means a very small diaphragm aperture) permits a relatively sharp rendering of the future and of the company vision; and in the second step, a shallow depth with a widely open camera focuses on the present. The first aspect means that the whole MOLECULAR MARKETING planning process will start with a very clear vision or business idea, in terms of the internal company life and the external market perception (or even potential influence). A visioning process depends on a company’s innovation and management skills and ambitions, but it should be realistic and capability- driven as well. A company can derive its vision from the external trends and the leading companies’ orientation, or it can build itself new market scenarios and business ideas and authentically “create” the future. 05.01 A clear vision statement is necessary for all innovative and challenging enterprises; it defines the company’s central orientation, addresses a mission statement, and conditions the company’s business purpose. The second aspect of the “big picture” concerns the present and the partially past situation of a company in terms of its values, core competencies, and fundamental behaviors, as well as attitudes to which all company activities will be subordinated, from today to the distant future. Theseactivitiesdelimitthecompany’sethicalarea,itsculturalandprofessional heritage, and the essential and long-lasting brand-identity dimensions. In MM ZOOMING, a wide angle doesn’t ask for details, operational strengths, and weaknesses, but it provides the company with a distinct reference for strategic alignment along with a turbulent and complicated journey toward the achievement of its vision. A “big picture” defines a first actionable management link between the future and the present, through the activation of a company’s shared behaviors that embody its values and motivational purposes and lead to the declared vision. Furthermore, the stated behaviors will condition many other processes, such as brand personality and reputation management, customer relationship management, change management, and others. Like a photographer, a marketer selects in this phase different lenses for different uses. A BIG PICTURE; WIDE ANGLE ON THE PRESENT, DEEP DEPTH OF THE FUTURE FIELD TIME = FOCUS DISTANCE BEHAVIORS, PURPOSE I WORKING FIELD PRESENT/PAST FUTURE VALUES CORE COMPETENCES (HERITAGE) MM ZOOMING Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  18. 18. In this step, following the company vision and respecting its defined values and shared behaviors (having been previously specified), concrete and measurable business objectives are defined (process concretization and focusing). This is the moment when a transparent formulation of the “value for company” is given and expected results are expressed. The MM ZOOMING approach is “future-driven” and its clear focus influences the whole analytical and intelligence process at present: the actual internal and external “as is” situation analysis is strictly functional to the next value- creation process, in particular, to the description and possible quantification of the gaps between the expected future results/customer benefits delivery and—within the same dimensions—the actual company performance. These gaps define a “strategic field depth,” or, in other words, a business distance between the present and the future. This methodological choice allows the company to keep the whole research process very light, fast, efficient, relatively simple, and less expensive. For an innovative, vision-oriented business plan, there is no need to waste company resources for descriptive research of the actual micro and macro environment or to do infinite SWOT analysis and competitive benchmarking. The “present world” is rapidly becoming obsolete, and surely it doesn’t reflect the conditions in which the company will carry out its future business activities and it doesn’t help the company to discover its opportunities, competitive advantages, and offering benefits. At this point, the company’s strategic preferences are formulated as well. The common and shared behaviors, defined in the first step, are not sufficiently precise for the company’s strategic planning, and additional business guidelines are necessary to design a distinct way that will bring the company from today’s performance to tomorrow’s results and vision, overwhelming previously recognized gaps. These preferences may concern ethical, financial, or technological aspects or market preferences and partnerships, and they are usually strongly influenced by the company’s main shareholders. In this way, the future objectives and the company’s actual performance, both related to the new company’s vision, define the first dimension—visual depth—of the strategic action field. Its second dimension is defined by the depth and alignment of strategic priorities. 05.02 STRATEGIC FIELD DEPTH STRATEGIC PREFERENCES I WORKING FIELD “AS IS” GENERAL ASSESSMENT OBJECTIVES/VALUE FOR COMPANY II WORKING FIELD MM ZOOMING Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  19. 19. The only really authentic value created for a company comes from markets, through exchange and customer value creation, customer satisfaction, and positive experience. Not all market segments or individual clients have the same business potential, and consequently the company needs to choose those segments where the probability to create value is the greatest. Both segmentation and targeting are filtering processes that define the best road map to follow through markets toward the company’s objectives and its vision. The process of segmentation could be managed top-down and/or bottom-up. On the first hand, a top-down segmentation starts from the future potential markets that could be accepted or directly developed from now till a chosen planning-time horizon. This market refers to a company’s “big idea” or a particular milestone of its vision in terms of offering; the main distinctive future customer needs that could be satisfied by this “idea” will represent the market-segmentation criteria and will define the first hypothetical profile of the potential segments. In some projects, the customer profiles’ definition is a part of the vision and innovation(byidentifyingrealnewneedsandcustomers).Onthesecondhand, a bottom-up segmentation is based on customer intelligence and individual customer insight that permits the company to cluster some potential needs (strong or weak) and define future segments’ profiles. Both top-down and bottom-up segmentations are focused on customer needs and behaviors; demographic, social, geographic, and other descriptive segmentation criteria are considered complementary and mainly used in targeting for the evaluation of the segments’ appeal. At this phase, the offer hasn’t been defined yet and so even the process of targeting can be managed only partially: the segments’ appeal is evaluated through some quantitative parameters, such as the dimension and rate of growth, but not as a competitive environment. All segments, even those that are interesting thanks to their qualitative profile but definitely not attractive for their quantitative or functional characteristics, are eliminated from the potential customer portfolio. An analysis of a potential customer need is carried out for different customer purchasing and usage situations, taking into consideration transactional and relational aspects along with a customer’s life cycle. The experiential approach to the potential customer-satisfaction management enlarges considerably the company’s opportunities and the following marketing offer, as well as the definition of the business model. 05.03 SEGMENTATION FILTERS POTENTIAL-MARKET SEGMENTATION II WORKING FIELD M1 M2 M3 Mn MM ZOOMING Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  20. 20. Now, the marketer sees clearly his or her vision and objectives, and the picture is particularly sharp through selected customer-need filters (segments). The area of concern has to be changed and the offering that will meet these needs must be revealed. This “filmmaker exposure,” putting potentially the best MM ELEMENTS of the offering in the center of the scene, is one of the most significant MM ZOOMING moments. The previously considered needs are listed and single-standing MM ELEMENTS are selected to satisfy those needs. The mix of transactional, relational, and collaborative MM ELEMENTS embodies the company’s big idea for each potential segment. They are raw particles of the next definitive MARKETING MOLECULE. This MM ZOOMING approach evidently underlines not just a vision-oriented MOLECULAR MARKETING methodological practice but also a customerbenefit-orientedpreferenceaboveacompetition-drivenone.Thiskind of selection of MM ELEMENTS allows marketers to design the best possible solutions for the high-potential customers without an immediate conditioning that concerns each single offering element’s competitive environment. This kind of selection of MM ELEMENTS allows marketers to design the best possible solutions for the high-potential customers without an immediate conditioning that concerns each single offering element’s competitive environment. In any case, the competition will not be faced simply on the “elements” level, but also on the “molecule” and/or “model/system” level. Of course, even if a single element is not managed separately and doesn’t create a competitive advantage for the company, it mustn’t be neglected individually as a potential business weakness; for target customers, its at least “standard” market level will always be necessary. MM ELEMENTS can be provided by a company or by its partners, through outsourcing or other forms of external collaboration and partnership. No limit is given to the selection process in this relation—that will be considered later. Moreover, MM ELEMENTS can figure as strategic offering platforms for the action plans. So, for example, PRODUCT or SOCIAL MEDIA refers to the marketing elements deployed within the offering design, but in the detailing of an action plan, they will be embodied as precisely defined “products A, B, C,” and SOCIAL MEDIA as concrete solutions, such as “Facebook,” “Twitter,” and so on. This treatment is useful for very complex organizations and offering systems, both for external and internal communication, development, and modeling. Definitely, innovation and the highest value creation for customers are the main selection criteria of MM ELEMENTS in this phase. 05.04 MARKETING ELEMENTS EXPOSURE II WORKING FIELD M2 M1 Mn POTENTIAL OFFERING PRIMARY-POTENTIAL- MARKET TARGETING MM ZOOMING MM ELEMENTS Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  21. 21. Even an excellent MARKETING MOLECULE or MM MODEL is practically useless and remains inert if it is not activated by and through the company’s people. MOLECULAR MARKETING change-management processes concerning organizationalstructures,processes,procedures,andinternalcommunication are always needed. In particular, marketing-innovation training is absolutely necessary to spur on new knowledge and energy focused on ambitious future objectives. Along with other marketing innovation processes, the training and empowerment of marketing people have to be creative and efficient, and they have to enrich the entire business system. Marketing people are expected to be smart, sparkling, and stimulating, and such “effervescent” managerial profiles are just rarely created spontaneously; they are usually obtained through complex and original change processes, through a kind of mind “fermentation.” We find these MOLECULAR MARKETING training, coaching, and mentoring processes allegorically very similar to the production of quality sparkling wine in which the second wine-fermentation produces highly valuable perlage and sparkling bubbles, changing substantially the whole product’s perceived quality. Thanks to this inspiration, we have introduced into our MOLECULAR MARKETINGlanguagetheexpressionMOLECULARMARKETINGSPARKLING (MM SPARKLING) perceived as a system of people change-management processes that transform MM MODELS into real marketing actions and generate added value through people’s growth and empowerment. In wine production, there are two main processes generally applied for the sparkling wine’s second fermentation: the Charmat process, more standardized and simpler, also known as “Metodo Italiano,” where the wine undergoes secondary fermentation in stainless steel tanks or vessels and afterward is bottled under pressure, and the Champagne process, “Méthode Champenoise,” where the base wine (cuvée) is bottled with a mixture of yeast and fresh sugar and bubbles are generated directly in a single bottle, making it unique. Within MOLECULAR MARKETING, training/change management formats (MM FORMATS) are authentic MM BUBBLES; some of them, such as MM CLOUDS, MM LABS, MM TWINS, MM LIGHTS, and MM PILLS, will be presented in the following text separately and/or as a part of more complex MM ITINERARIES (PerCORSI). They are often—let us say with a bit of humor—conceptually closer to French technology because of their customized and unique approach to marketing change management for each project, model, and customer. CHAPTER 08 MOLECULAR MARKETING SPARKLING MARKETING CHANGE MANAGEMENT PROCESSES CHARMANTPROCESS CHAMPAGNEPROCESS Trevigiano La Marne MM SPARKLING Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  22. 22. The MM BUBBLE described as MM TWINS has been developed with the aim of supporting the MM BRAINING process and its “sparkling effect.” Two separate meetings are organized: the first one is completely dedicated to divergent, individual, and collective creativity, described in the previous chapter (MM BRAINING) through three steps, Individual Mind Blowing, Collective Mind Blowing and In-spirational Hunting; the following meeting is at least as creative as the first one, but it focuses on divergent marketing innovation and managerial activities and includes phases such Action Potential Framing, Convergent Collaborative Selection, Creative Synaptic Integration, and Loving Design. Between the MM TWINS meetings, an extended time interval is left in order to permit both Outdoor Watching and Incubation. If the break between the two main phases is very short, an additional and completely different group activity (outdoor trip, sports, etc.) is suggested to assure the participants’ mental switch and their thinking enhancement. Generally, a pause lasting one to three weeks is recommended. The MM TWINS format is excellent for top management meetings, strategic planning, strategicbrand management,andstrategic businessdevelopment. The whole group, whose size shouldn’t exceed twenty to twenty-four people, is usually split into three groups that work on complementary topics and in a very short time generate a large number of new ideas (1° meeting) or are able to complete their goal-oriented divergent decision-making process (2° meeting). In parallel, an excellent and very rich idea platform is elaborated for a further (and perhaps even more relaxed) review. An ulterior deployment of MM TWINS is in the open and/or company bottom- up innovation: new marketing and customer-care ideas come more and more frequently from a company’s frontline workers (sales force, contact centers, operations, after-sale services) and the MM TWINS’ informal but structured approach simplifies internal communication and the willingness to participate. Finally, this format, especially for complex and long-lasting projects, could be repeated and/or combined with other MM BUBBLES (i.e., within MM CLOUDS or as a follow-up activity of MM LABS). Furthermore, a vast range of creative techniques that may be chosen for different innovation and management purposes, as well as for training and team building, keeps MM SPARKLING within the MM TWINS format always attractive and flexible for change-management projects. 08.02 MM TWINS MM SPARKLING core team WORKSHOP 1 BREAK WORKSHOP 2 internal people external people Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  23. 23. MM LIGHTS is a suitable training format for incremental innovation projects thataremanagedinamarketwitha“heavytraffic”ofcompetitors.Competitors threaten the company, want to move first and faster, and put it under pressure. Understanding their behavior is essential for the company’s successful and sustainable “driving”: avoiding useless collisions and overcoming competitors in the right moments. The basic methodology deployed in MM LIGHTS is competitive benchmarking: market leaders and direct competitors and/or challenging new-entry companies are analyzed and their business performance is compared with the company’s performance. The results of the gap analysis become consequently the main source for the company’s incremental innovation and improvement. This “classic” benchmarking approach is furthermore enriched by some disruptive innovation methods and techniques, with the aim of accelerating the change and to influence in a more significant way a company’s positioning and leadership. In MM LIGHTS, there are three colors of “traffic lights”, even though slightly changed: •  the red one, which characterizes the first workshop and means “stop!”, “take care!”, “see what is happening around you!” The competitors that have to be studied are selected and benchmarking research is carried out; •  the next workshop is colored blue, which symbolizes “Blue Sky” and “Blue Ocean,” and it is often managed using trans-sectorial benchmarking with leading global companies, searching for strong stimuli and their high- level benchmarks concerning specific solutions and/or processes; •  the green light switches on when the sustainability and feasibility of the proposed improvements are confirmed. These evaluations are both product/service-oriented and people-oriented. The green workshop often launches quick-win projects, too. For complex businesses (i.e., car or pharmaceutical industries), the MM LIGHTS itinerary is a suitable internal communication place as well. With the support of various research and statistical methods, different kinds of benchmarking,focusedonthesameproduct/problem, canbecombinedand new integrated and internally aligned competitive advantages discovered. 08.03 MM LIGHTS MM SPARKLING WORKSHOP 1 WORKSHOP 2 WORKSHOP 3 stop! take care! see what is happening around you! innovate! improve! modify! evaluate! manage! be sustainable! Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  24. 24. Lockwood, T. Design Thinking: Integrating Innovation, Customer Experience, and Brand Value. (New York: Allworth Press, 2010). Nambisan, S., Sawhney, M. The Global Brain: Your Roadmap for Innovating Faster and Smarter in a Networked World. (Upper Saddle River: Wharton School Publishing, 2008). Thackara, J. In The Bubble: Designing in a Complex World. (London and Cambridge: The MIT Press, 2006). Tidd, J., Bessant, J. Managing Innovation: Integrating Technological, Market and Organizational Change. (West Sussex: John Wiley & Sons, 2009). Ulwick, A. What Customers Want: Using outcome-Driven Innovation to Create Breakthrough Products and Services. (USA: McGraw-Hill Companies, Inc., 2005). Verganti, R. Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean. (Boston: Harvard Business Press, 2009). CHAPTER 12 Adair, J. How to Grow Leaders: The Seven Key Principles of Effective Leadership Development. (London and Philadelphia: Kogan Page, 2009). Adair, J. Leadership and Motivation: The Fifty-Fifty Rule and the Eight Key Principles of Motivating Others. (London and Philadelphia: Kogan Page, 2009). Appelo, J. Management 3.0: Leading Agile Developers, Developing Agile Leaders. (Boston: Pearson Education Ltd., 2011). Covey, S.R. The Seven Habits of Highly Effective People: Powerful Lessons in Personal Change. (New York: Free Press, 2004). Deschamps, J. Innovation Leaders: How Senior Executives Stimulate Steer and Sustain Innovation. (San Francisco: Jossey Bass, 2008). Goleman, D. Social Intelligence: The New Science of Human Relationships. (New York: Bantam Book, 2006). Goleman, D., Boyatzis, E., McKee, A. Primal Leadership: Realizing the Power of Emotional Intelligence. (Boston: Harvard Business School Publishing, 2002). Hamel, G. The Future of Management. (Boston: Harvard Business School Publishing, 2007). Kelley, T. The Ten Faces of Innovation: IDEO’s Strategies for Beating the Devil’s Advocate & Driving Creativity Throughout Your Organization. (New York: Currency Doubleday, 2005). Kouzes, J.M., Posner, B.Z. The Leadership Challenge: How to Make Extraordinary Things Happen in Organizations. (San Francisco: Jossey Bass, 2012). Maxwell, C. The Five Levels of Leadership: Proven Steps to Maximize Your Potential. (New York: Center Street, 2011). Nambisan, S., Sawhney, M. The Global Brain: Your Roadmap for Innovating Faster and Smarter in a Networked World. (Upper Saddle River: Wharton School Publishing, 2008). Prahalad, C.K., Krishnan, M.S. The New Age of Innovation: Driving Co-Created Value Through Global Networks. (New York: McGraw-Hill, 2008). Teece, D.J. Dynamic Capabilities and Strategic Management. (New York: Oxford University Press, 2009). Sloane, P. The Leader’s Guide to Lateral Thinking Skills: Unlocking the Creativity and Innovation in You and Your Team. (London, Kogan Page Limited, 2003). INSPIRATIONAL BIBLIOGRAPHY Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview
  25. 25. ABOUT THE AUTHOR CINNAM www.cinnam.com CINNAM is a consulting firm and a creative lab focused on innovation and market leadership, supporting its clients in areas such as strategic business development, marketing, branding, selling, customer servicing, and sustainable growth. CINNAM assists its clients within both process-oriented (i.e., innovation management, marketing modeling, business planning) and people- oriented (i.e., professional training and empowerment, mentoring, change management)projects,interdependent,complementary,andoftencombined together. Our distinguishing competency is the ability to work within complex environmentsandtodevelopinnovativebusinesssolutionsbasedoncreativity and collaborative processes in a very short time. Our aim is to be creative and consistent at the same time: alongside content and management innovation is engineering, efficiency, and performance measurement, respecting people, society, nature, and budgets. ALDEHYDE MOLECULAR BUSINESS SYSTEMS® is a registered trademark that represents CINNAM’s original approach to business modeling and innovation on the international market. ALDEHYDE MOLECULAR BUSINESS SYSTEMS® ensures top performance in processes such as strategic planning, brand leadership, international product launch and life-cycle management, customer experience and relationship management, and others. Business-to-business and business-to consumer companies, both in manufacturing and services, as well as individuals may benefit from the approach. Iveta Merlinova With over twenty years of professional experience in Market Leadership Consulting, she has worked with companies and groups such as CNH, TNT, ENEL, SIRTI, SKY, FIAT, ESTEE’ LAUDER, PELLEGRINI, MIROGLIO, POSTE ITALIANE, UNILEVER, BTICINO, ACER, BRANDED APPAREL, and many others. At the same time, she has collaborated, as a visiting professor, lecturer, and coauthor of academic texts, with several universities and business schools, including Politecnico di Milano (Italy), SUPSI in Lugano (Switzerland), Czech TechnicalUniversityofPrague(CzechRepublic),SlovakUniversityofTechnology in Bratislava (Slovak Republic), and others. merlinova@cinnam.com Available on amazon.com/dp/B00D5YL6WO Available on the iBOOK Store preview preview preview preview

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