The Old Marketing Process
Historically, B2B companies have been product-driven: The offering has been limited to core products and product-related services pushed through the value-adding chain to the ultimate demand driver. These companies focused their efforts on creating value for their immediate customers, and depended on those immediate customers to capably create value for downstream customers and, ultimately, the end user/consumer. Often, the objectives of each level in the value-adding chain were at odds with each other, creating a vertical competitive environment even greater than the company’s in-kind interactions with competitors.
For a B2B company to better serve their existing customers and more successfully address the dynamics of appropriate levels in the value-adding chain, the organization must develop a market orientation and marketing competency. Market orientation expands the business potential to participate beyond existing product sell efforts by focusing on the value systems of the value-adding chain and redefining the offering to meet those critical values of the demand drivers.
The New Process—Marketing Innovation
When broken down, the two sources of growth are greater profitability and something new (e.g., a new product or service or new market). Neither path can be taken without sound leadership. Improvements in market engagement deliver profitability or innovation.
When the market is new and the products are new, you end up with radical new ventures and/or new technologies. New product development needs to be driven by facts from the customers. Establish growth ideas or concepts that represent potential opportunities for your business. This includes conceptualizing your opportunity and screening and prioritizing to identify opportunities to validate.
How do you do all of this? Read our latest white paper to learn more.