Tuesday, March 5, 2013

The marketing value chain

In a presentation I have recently, I cited the phrase from a McKinsey article a couple of years back
"if marketing has one goal, it is to reach consumers at the moments that most influence their decisions"
This is a fairly broad statement to make and on reflection it sounds like it comes from a psychologist and not a technology driven marketing perspective. However, if marketing is to be efficient in it's delivery, it needs to understand where it sits in the decision making process and ultimately what its goal is... to drive further revenue (and therefore business value).

Below is a diagram I have used fairly often to simply show the marketing value chain:

Although it is a pretty obvious process (and typically used in the context of digital marketing) it does tend to focus the role that marketing of any sort should have:
  1. To create the relevant traffic (store visitors, website clicks, etc.) that creates the greatest number of prospects
    Note: Relevancy can mean anything from a greater propensity to buy through to more profitable ones.
  2. So that these people then go on to convert (online, this is typically called a 'goal' and can be anything from an online purchase to a downloaded brochure)
  3. So that this then creates business value for the organisation.
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