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Tuesday, May 4, 2010

What happens when the factory goes away?

The other day Seth Godin had a post titled , The factory in the center. He said: Old time factories had a linear layout, because there was just one steam engine driving one drive shaft. Every machine in the shop had to line up under the shaft (connected by a pulley) in order to get power. I really enjoyed the chocolate factory video of Lucy and Ethel that he included with the post. Markeitng Hourglass

I liken that to the Marketing Funnel or Hourglass concept used by so many Info Marketers. When you look at that concept you will see people placing marketing products next to the different stages of the funnel. Each one depicting the opportunities that they have or the marketing action they use in that particular stage. An example is included in a previous post of mine. It is the way I was taught. The marketing funnel concept is just a step by step progression through the marketing process. When you review that concept, does it not seem dated? Is that not just another way of pushing products?

Reviewing many of my own writings from yesteryear (I have always liked that word), I notice the lack of customer pull that I think is required for successful marketing. The products were based on continuing funneling a person through stages to get to the ultimate buying stage. After that, referrals and up-sells are initiated. Though the concept makes it easier to explain, it really serves little purpose in defining what works in today’s marketing and is in fact downright misleading. I use an hourglass as a way of demonstrating a constraint but as an extension of the marketing funnel, I find it misleading as referral strategies should be introduced much earlier and often in the typical marketing cycle. Think about it, how many of your referrals come from customers? Most come from people that you associate with that may never be a customer.

I really prefer looking at marketing in a much more cyclic fashion and somewhat more of an iterative process. Spending time defining your customer needs and how your organization reacts to those needs is the essence of marketing today. This approach can make your marketing more effective and reliable by reducing your marketing variability. Marketing is simply becoming more about problem solving and addressing customer needs, not what I call the caveman approach; “You need to buy this!” Instead I like to use the term Value Stream Marketing!

Back to Seth Godin’s Post: Now it doesn't matter where you sit. Now it doesn't matter whether or not you're adding to the efficiency or productivity of the machine. Now you don't market to sell what you made, you make to satisfy the market. Now, the market and the consumer and idea trump the system.

Suddenly, the power is in a different place, and the organization must change or else the donut collapses.

Is your Marketing Funnel or Hourglass working?

Related Category::

Value Stream Marketing and the Indirect Marketing Concept

Marketing Funnel

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