Driving revenue growth

What single factor most affects revenue growth for large enterprises?

COMPETITION, INNOVATION, AND CUSTOMER DEMAND

Each year, most companies make small, incremental improvements in how they find and serve customers.

Some companies, of course, achieve significant breakthroughs. As a result, they win new market share, capture new profit, and beat their competitors.

Competitioninnovation, and changing customer demand only accelerate the rate of change, resulting in the shortening of product lifecycles. Shorter lifecycles represent new challenges for the marketing executive today.

The marketing executive must both conceive a brilliant strategy and execute this strategy with a narrower margin of error.

The figure below depicts a generalized model of the value-creation process—how companies find and serve customers—and the heightened role of the marketing launch.

Value creation entails five basic phases in which a firm innovates, create demand, convert buyers into customers, ensure customer satisfaction and, hopefully, partners with customers in developing the next round of value creation.

Value creation entails five basic phases in which a firm innovates, create demand, convert buyers into customers, ensure customer satisfaction and, hopefully, partners with customers in developing the next round of value creation.

QUARTERLY RESULTS AND THE SUCCESSFUL LAUNCH

The successful launch emphasizes execution—the organizational capacity to produce hundreds or thousands of tactical results with unerring consistency and predictability.

A flawed, ineffective launch leads to several negative consequences: missed quarterly revenue targets and loss of stature among the executive team.

The successful launch not only represents the commitment and passion of able marketing executives and their various teams, it emphasizes well-designed and managed systems.

Consistent, brilliant execution of strategy rests upon human AND technical systems.

INTEGRATION NOW PACES THE TRANSFORMATION OF MARKETING

In the past, integrated marketing meant aligning advertisingpublicity, and point-of-purchase programs to communicate a single, unified voice of a brand—what a firm offers and why a customer should want to buy it.

Not surprisingly, this strategy produced higher sales generally, at a lower cost per sale.

However three recent developments have placed new demands on integrated marketing:

  • Waning effectiveness of mass media to create new consumer demand
  • Massive consolidation of markets
  • Increasing role of the Internet in the buying decisions of customers

The marketing executive now allocates a growing portion of his or her budget to promotions, point-of-purchase programs, and alternative media. This reallocation has made media planning and buying more complex and longer to complete.

Market consolidation means that global enterprises must now execute global marketing launches across multiple channels and multiple geographies, customizing and localizingmarketing materials as required.

The Internet and wireless revolutions have only just begun. As a few firms have demonstrated, smart promotions that target online brand advocacy can produce exponential sales growth.

THE SUCCESSFUL LAUNCH FOR MULTICHANNEL MARKETS

Ever-shortening product lifecycles, when combined with global competition, innovation, and changing customer requirements, make the successful launch even more fraught with danger.

Many companies have, or will soon, exceed their organizational competency to successfully launch new products across multiple markets and channels.

The monographs examines how the marketing executive can harness new technical systems, emphasizing a set of the emerging best practices for managing the successful launch in the era of multichannel markets.

Discussion-starting questions:

  • How important a role do products launches play in your industry?
  • How has media planing and marketing mixes changed in last five years?
  • How factors most hinder better integration of marketing processes?

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