Using Six Sigma Marketing

I have been discussing Six Sigma Marketing with Eric Reidenbach of the Six Sigma Marketing Institute and find his approach to the combination of Six Sigma and Marketing quite impressive. He differs from the traditional approach of most organizations when applying Six Sigma to Marketing activities. That approach typically deals with highly structured people and processes entering a world of  highly creative and intuitive people. Eric instead blends a world of data driven and fact-based approach to growing market share by providing targeted product/markets with superior value. It combines the discipline approach of Six Sigma for more efficient use of the abundance of marketing data. This allows marketing to be more effective and provide the data to demonstrate it. The elements of  of Six Sigma Marketing(SSM):

• Customer value is the driving metric
• SSM has a unique set of value tools
• SSM uses a modified DMAIC approach
• Focuses on more efficient and effective marketing results – achieving sales goals at lowest cost
• Important goal is defect reduction – reducing lost customers
• Expands traditional view of marketing to 5Ps, adding processes to the marketing mix

The Six Sigma Marketing Institute uses a modified DMAIC Approach that I outline below:

Define: Identify and prioritize specific product/markets

• Principal tools are the Market Opportunity Analysis which identifies key markets based upon attractiveness of market and ability to compete within that market and the Product/Market Matrix which identifies and prioritizes product/markets based upon greatest economic and strategic returns
  Measure: For each Product Market define value

• Principal tool is the Competitive Value Model which identifies the CTQs and the price/quality tradeoff. It is a market based model that captures the VOM (Voice of the Market). It is the information platform for Six Sigma Marketing.

Analyze: Understand the organization’s value proposition

• Principal tools are the Competitive Value Matrix which identifies the organization’s competitive value proposition relative to their competition (The focus is on value gaps) and the Customer Loyalty Matrix which identifies the loyalty of the organization’s customer base and the bases of that loyalty.
  Improve: Focus on People, Product and Process Issues

• Principal tools are the Cause & Effect Matrix which links specific CTQs to processes and identifies improvement opportunities driven by the voice of the market. (The purpose is to close or open value gaps) and Value Stream Mapping which maps value streams and processes as they exist. The C&E Matrix links to the map to identify where and how to change the existing situation.
  Control: Monitor changes in Value proposition and customer events:

• Principal tools are the Value performance monitoring which monitors the competitive value proposition of the organization on a periodic basis and the Customer event monitor which  monitors quality of specific customer interactions with the organization on an ongoing basis. Identifies defects and the means to improve and change them.

  Eric has taken this a step further in a soon to be released program called the 5 C’s of Driving Market Share that is well suited to both Six Sigma Black Belts and Chief Marketing Officers. His recent eBook Best in Market can also be found on my website which will further outlined this approach to marketing. You can find Eric at www.6sigmarketing.com.

  Related Posts:
  Six Sigma Marketing Lessons from Eric Reidenbach
  Value Stream Marketing eBook Released