Ever wondered how well you’re developing your market share compared to your competitors? It’s an important question to ask, and one we take very seriously. There’s a heated debate among Six Sigma practitioners at the moment. That is, how best can we apply Six Sigma to the marketing industry? Opinions tend to fall on either of two sides.
The first suggests a direct application is best, without any additional work to adapt Six Sigma ideas to satisfy specific needs. Theirs is a one size fits all philosophy. On the other hand, however, we have those who believe in tailoring Six Sigma to suit the business. We find that the first approach can drive cost-reduction, while the second is best for improving marketing efficiency and effectiveness. But how do they work? Today, you can learn how you can improve your relative market share with Six Sigma.
Direct Six Sigma Implementation
Many practitioners believe we should implement Six Sigma methodology on a project by project basis. This can be highly beneficial for marketing activities like sales, promotion, and distribution. Furthermore, by promoting cost-reduction, you can make your marketing activities more efficient. Marketing is full of undefined creative actions offer huge potential for cost savings. The best way to achieve this is by applying a rigorous improvement approach to make these actions more structured and disciplined. Tools like DMAIC and traditional improvement projects work wonders here. The more work you put in, the more effective and value-enhancing these activities become. Similarly, using this Six Sigma approach will radically improve top-line revenues as well as relative market share.
Tailoring Six Sigma to Improve Market Share
Some believe a custom-tailored DMAIC approach to Six Sigma implementation is best. The object of this is to increase relative market share. This approach is fact-oriented and targets specific areas with superior value. Firstly, you must identify the specific product or market opportunities best for your organization’s growth. Six Sigma practitioners evaluate these areas with metrics for current market share and market growth rate. You can also utilize competitive intensity to assess your organization’s key market opportunities better. The Define stage of DMAIC is of particular importance here as it diverges from Six Sigma’s typical project-based approaches.
Benefits of Six Sigma Marketing and DMAIC: Measure and Control
Six Sigma Marketing is a comprehensive strategy to increase your market share. Using DMAIC, it eschews a project-by-project approach. Instead of simply reducing costs of marketing activities, it aims to make your marketing’s more effective and more efficient. Creating a value model for each targeted product or market can help you understand the voice of the market (VoM).
Similarly, all your operational and strategic enterprises should take a VoM approach. By replacing your activity plans, intuitions and predictions, VoM will provide a sense of direction to improve relative market share. Value is the most significant indicator for top-line revenue growth, and SSM uses superior value creation/delivery to drive growth for your target markets or products.
Moreover, by implementing effective monitoring systems, you can ensure your competitive value propositions satisfy expectations. This control effort is an important practice as it focuses on strategic value proposition as well as monitoring specific transactions like sales. Similarly, it allows you to identify potential areas where process issues require improvement.
No responses / comments so far.