thefunnel

Seems like Yes is always the answer, and for pure play on-line companies it’s the obviously true, but is this really the case for B-2-B technology companies? After all, companies don’t exist to have a Web presence, and if the Web is only used as a marketing or sales tool to communicate value (even if it includes e-commerce) then by definition it falls into the category tactical marketing. The various decisions in the Web space or outbound marketing space may strategic in nature, and the Web is probably the best productivity enhancement tool ever, but to the overall business it’s still only a tactic to achieve the revenue, customer service and satisfaction targets, and a tactic is always considered a cost rather than a value builder. So, is there a point for a B-2-B technology business when the Web moves from being tactical and strategic?

Marketing plans sometimes mix up the differences between mission, vision, goal, objective, strategy, strategic intent and tactics. Strategy in particular seems to be problematic.
In its simplest form, a strategy articulates how you’ll achieve your objectives and how your distinct tactics are connected. So for example if your objectives (SMART) are to lose your weight by 10 pounds and run a marathon by September 1^st, your core strategies might be exercise and diet. Simple enough, but it doesn’t really give you enough details to understand if the chosen strategies are even realistic (suitable, acceptable, feasible) to begin with, and exactly how you’ll go about implementing these. Therefore, instead of thinking of strategy as a “fixed thing”, it should be thought as more like a process. If we accept that strategy is a process then we can identify the following phases of a good strategy. Research, segmentation, targeting, competitive analysis, positioning, goal setting, strategy selection, communication of goals, agreement on implementation, performance monitoring, gap analysis, alternative strategies selection, actions and strategy revision. Tightly connected to strategies are core competencies and critical success factors (CSF). Core competencies can be understood as the competencies available in support of a chosen strategy and the CSF’s are the critical few competencies that must be in place to even have a chance for success. There are many types of strategies but in current literature sources it’s often quoted that the key to a successful marketing strategy is focusing, positioning and differentiation, with the objective of focusing organization resources on the opportunities providing the greatest return. The key to a great marketing strategy is often innovation. The more innovative your strategy is, the better the chances are that it will provide you with a short or longer term competitive advantage.

This is the story about a shoe manufacturer who wonders whether a market exists for shoes on a remote island. He first sends an order taker to the island to investigate the market opportunities. The order taker visits the island and reports back.  “The people here don’t wear shoes. There is no market”. 

Unsatisfied with the answer the shoemaker then sends a sales person. The sales person returns and reports.  “People do not wear shoes. There is a tremendous market.” 

Now completely confused the shoemaker sends the marketing person. The marketing person too visits the remote island, returns back and reports out.

“The people here don’t wear shoes. However they have bad feet. I have shown the chief on the island how shoes would help avoid these foot problems. He’s very enthusiastic. He estimates that 70% of his people will buy the shoes at the price of $10 a pair. We probably can sell 5,000 pairs of shoes in the first year, because there’s currently very little competition. Our cost of bringing the shoes to the island and setting up distribution would amount to $6 a pair. We will clear $ 20,000 in the first year, which, given our investment, will give us a rate of return on our investment of 20%, which exceeds our normal ROI of 15%. This is not to mention the high value of our future earnings by entering this market. I recommend that we go ahead.”