This is the Lean Sales and Marketing Introduction slide deck that is part of the Business901 2-day Workshop. You can view the entire workshop under the Training Content Section on the Business901 website.

2. Make it Count

7. Doodling

8. Lean Thinking
• Identify Value
• Map Value Stream
• Create Flow
• Establish Pull
• Seek Perfection

9. Porter’s Value Chain

10. Map Value Stream
Current
State
Metrics
Value
Add/Non
Future
State
Kaizen

11. Lean 8 Types of Waste
• Defects
• Overproduction
• Transportation
• Waiting
• Inventory
• Motion
• Processing
• Human Potential

12. Lean 10 Wastes of Service
• Duplication
• Lack of Customer Focus
• Motion/Transportation
• Unclear Communication
• Waiting/Delay
• Incorrect Inventory
• Overproduction
• Underutilized Employees
• Variation
• Defects

13. Lean 10 Wastes of Service
Duplication Data entry errors, Lost files, Lost or damages goods
Incorrect Inventory Stock out, Wasting time finding Stuff, Unnecessary copies
Lack of Customer focus Unfriendliness, Rudeness, Poor attention to customer
Overproduction Reports no one will ever read, Processing before time
Unclear communication Incorrect info: Lack of standard data format: Unclear work flow
Motion/Transportation Poor layout, Ineffective filing, Poor ergonomic
Underutilized Employees Inadequate tools, Excessive bureaucracy, Limited authority
Variation Lack of procedures, standard formats, Time not defined:
Waiting/Delay Waiting for approvals, Downtime, Waiting for supplies

14. Is your Value Proposition Superior?
• Operational (Walmart)
• Product (Apple)
• Relational (Nordstrom – M & P)
Customer Value
Handout

15. We make things…
• Better
• Faster
• Cheaper

17. Current State
from
Cmo’s
Perspective

18. STABLE PATTERNS OF GROWTH STRATEGIES
OVERALL; SECTOR DIFFERENCES SIGNIFICANT
Table 2.3. How Firms Will Grow in the Next 12 Months*
18© Christine Moorman
Strategy Aug-10 Feb-11 Aug-11 Feb-12
Organic Growth
69.5% 72.0% 70.2% 70.6%
Growth from
Acquisitions 10.8% 10.6% 11.4% 11.6%
Growth from
Partnerships 13.9% 11.8% 13.5% 12.6%
Growth from
licensing 5.8% 5.6% 5.1% 5.2%
* Percentage of spending across growth strategies
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

19. GROWTH STRATEGIES EXPECTED TO SHIFT TO
PRODUCT/SERVICE DEVELOPMENT & DIVERSIFICATION
Table 2.1. How Growth Spending is Expected to
Change*Existing
Products/
Services
New
Products/
Services
Existing
Markets
Market
Penetration
Strategy
Product/Service
Development
Strategy
New
Markets
Market
Development
Strategy
Diversification
Strategy
* % of spending across growth strategies
19© Christine Moorman
Types of Growth Strategies
Strategy
Actual
Spending in
Past 12
Months
Expected
Spending in
Next 12
Months
Percent
Change
Expected
Market
Penetration
Strategy
56.7% 50.2% -11%
Market
Development
Strategy
15.5% 15.6% +1%
Product/Service
Development
Strategy
19% 23.8% +25%
Diversification
Strategy
8.2% 10.5% +28%
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

20. INTERNATIONAL SALES TO CONTINUE UPWARD
TRAJECTORY IN NEXT 12 MONTHS
Figure 2.1. Percentage of Company Sales Expected to be International in Next 12 Months
© Christine Moorman 20
18.7%
24.7%
32.4%
0%
5%
10%
15%
20%
25%
30%
35%
40%
August
2010
August
2011
February
2012
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

21. CUSTOMER PRIORITIES TO SHIFT FROM
LOW PRICE TO SERVICE
Aug-11 Feb-12 % Change
Low Price 24.1% 16.4% -32.0%
Quality 24.1% 26.3% +9.1%
Innovation 13.7% 10.0% -27.0%
Service 13.7% 21.4% +56.2%
Trust 19.3% 18.9% -2.1%
Brand 6.8% 7.5% +10.3%
© Christine Moorman
Table 1.1. Rank order your Customer’s Top Priority in Next 12 Months
21
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

22. MARKETING SPENDING ON TRADITIONAL ADVERTISING
EXPECTED TO PLUMMET FURTHER (-161%)
Table 3.2. % Change in Marketing Spending in Next 12 Months
22© Christine Moorman
Aug-11 Feb-12 % Change
Traditional advertising* spending 1.3% -0.8% -161.5%
Internet marketing spending 11.2% 12.8% +14.3%
New product introductions 10.4% 8.5% -18.3%
New service introductions 6.6% 4.2% -36.4%
Customer relationship management 6.5% 7.1% +9.2%
Brand building 5.7% 7.2% +26.3%
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
*Refers to media advertising not using the web.

23. SOCIAL MEDIA SPENDING GROWTH CONTINUES: EXPECTED TO BE
19.5% OF MARKETING BUDGETS IN FIVE YEARS
23© Christine Moorman
Figure 5.1. Social Media Spending as a Percentage of Marketing Budgets Over Time
7.4%
10.8%
19.5%
0%
5%
10%
15%
20%
25%
Current Levels Next 12 Months Next 5 Years
Percentage of
Total Marketing
Budget (%)
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

24. MARKETER OPTIMISM FOR OVERALL U.S. ECONOMY
REBOUNDS TO HIGHEST LEVEL IN 3 YEARS
Figure 1.1. How optimistic are you about the
overall U.S. economy on a 0-100 scale with 0
being the least optimistic and 100 the most
optimistic?
24© Christine Moorman
Figure 1.2. Optimism for U.S. economy by sector
47.7
56.5 57.8
55.6
63.3
52.2
63.4
40
50
60
70
80
90
100
February
2009
August
2009
February
2010
August
2010
February
2011
August
2011
February
2012
Marketer Optimism about Overall Economy
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace
48.0
62.1
54.5
64.1
53.1
63.5
53.3
58.3
45
50
55
60
65
August 2011 February 2012
B2B-Product B2B-Service
B2C-Product B2C-Service

25. Marketing spending increases further to account for
10.4% of overall firm budgets
25
Figure 3.2. How Marketing Budgets Are Changing Over
Time*
© Christine Moorman
8.1%
10.0%
10.4%
2%
4%
6%
8%
10%
12%
14%
16%
February
2011
August
2011
February
2012
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

26. 26© Christine Moorman
Figure 7.1. Marketing Employees as a Percentage of Total Number of Employees
2.4% 2.3%
4.2%
11.0%
0%
2%
4%
6%
8%
10%
12%
August
2009
August
2010
August
2011
February
2012
SIZE OF MARKETING GROUPS DOUBLE DURING
ECONOMIC RECOVERY
AnalyticsLeadershipOrganizationJobsSocial MediaPerformanceSpendingGrowthMarketplace

27. 27© Christine Moorman
General Electric
(Manufacturing)
Google
(Services)
Retail
(McDonald’s)
Procter & Gamble
(Consumer Packaged Goods)
THE 2012 CMO SURVEY AWARD FOR MARKETING
EXCELLENCE – INDUSTRY WINNERS
Participants were asked to nominate a company in response to the question:
Which company in your industry sets the standard for excellence in marketing?

28. THE 2012 CMO SURVEY AWARD FOR MARKETING
EXCELLENCE – OVERALL WINNER
28© Christine Moorman
Participants were asked to nominate a company in response to the question:
Which company across all industries sets the standard for excellence in marketing?
Apple, Inc.

29. HIGHLIGHTS AND INSIGHTS
FEBRUARY 2012
© Christine Moormanwww.cmosurvey.org
This is what Marketers think?

30. McKinsey Quarterly states:
• Adjusting through increased Web expertise and that is
not enough.
• Need to change and coordinate deeper activities based
on these four critical activities:
• Distribute more activities
• More council and partnerships
• Elevate the role of customer insights
• More data rich and analytically intense

31. McKinsey sums it up by saying:
• Major barrier to engagement is organizational vs conceptual
• Growing number of touch points
• Adapt their organizations way customers now behave
• Redefine the traditional marketing organization.
If companies don’t make the transition, they run the risk of being
overtaken by competitors that have mastered the
new era of engagement.

32. We’re all
Marketers NOW!

33. Lean Thinking
• Identify Value
• Map Value Stream
• Create Flow
• Establish Pull
• Seek Perfection

34. Map Value Stream
Current
State
Metrics
Value
Add/Non
Future
State
Kaizen

35. Lean 10 Wastes of Service
• Duplication
• Lack of Customer Focus
• Motion/Transportation
• Unclear Communication
• Waiting/Delay
• Incorrect Inventory
• Overproduction
• Underutilized Employees
• Variation
• Defects

36. We keeP making things…
• Better
• Faster
• Cheaper
Bell Curve

38. Lead

39. Conform

40. Negotiate

41. Value Chain is based on
Supply Driven
Economy

42. The Value Chain Concept is
based on excess Demand and
has made us

43. In love with our
Product/Services?

44. • Distribute more activities
• More council and partnerships
• Elevate the role of customer insights
• More data rich and analytically intense
McKinsey said:

47. 4 Ps
• Product
• Promotion
• Price
• Place
3Cs & V
• Collaboration
• Content
• Value
• Community
Push Innovate Pull

49. Demand

50. Marketing needs a Process
Continuous improvement
is a necessity
Metrics are required
to judge
the rate and degree of improvement

51. The Toyota Way Fieldbook
by Jeffrey Liker and David Meier
Co-authors Jeffrey Liker and David Meir, co-
authors of The Toyota Way Fieldbook created
the pyramid of the Supplier Partnering
Hierarchy of Toyota that consisted of these 7
steps:

52. Kaizen & Learning
Joint Improvement
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Mutual Understanding
7 Step Hierarchy
of Toyota Supplier Partnering

53. • Shared Lessons, PDCA, Cost Reduction
Kaizen & Learning
• VA/VE, Supplier Develop, Study Groups
Joint Improvement
• Data Collect, Common Language, Timely Communications
Information Sharing
• Eng. Excellence, Operation. Excellence, Problem Solving
Compatible Capabilities
• Measures, Feedback, Target Pricing, Cost Mgmt
Control Systems
• Alliance, Interdependence, Parallel Sourcing
Interlocking Structures
• Trust, Respect, Mutual Prosperity, Genchi Genbutsu
Mutual Understanding
Understanding of Hierarchy

54. Kaizen & Learning
Joint Improvement
Information Sharing
Compatible Capabilities
Control Systems
Interlocking Structures
Mutual Understanding
PDCA
PDCA
PDCA
PDCA
PDCA
PDCA
PDCA
Continuously Improve your marketing
Handout

55. Fundamental Lean Thinking
Profound Knowledge is made up of 4 interrelated components:
• Appreciation of a system
• Theory of knowledge
• The psychology of change
• Knowledge about variation

56. Lean Thinking
• Identify Value
• Map Value Stream
• Create Flow
• Establish Pull
• Seek Perfection
Handout

57. Will Lean really work?
Can a Supply
Driven methodology
work in a Demand
Driven World?

58. Q-Storming®

59. Is Lean Sales and Marketing
a good idea?
Pro Con
Where good ideas come from