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Six Sigma for Marketing Processes: An Overview for Marketing Executives, Leaders, and Managers
- By Clyde M. Creveling, Lynne Hambleton, Burke McCarthy
- Published Feb 17, 2006 by Pearson.
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Description
- Copyright 2006
- Edition: 1st
- Book
- ISBN-10: 0-13-199008-X
- ISBN-13: 978-0-13-199008-1
Nearly half of the top one hundred Fortune 500 companies use Six Sigma methodology in some part of their business. These companies have been among the top one hundred for five or more years and consistently report higher revenue and significantly higher profits than competitors. This underscores the impact on the cost side. Now the focus moves to revenue growth. Six Sigma consultant Clyde M. Creveling’s Design for Six Sigma in Technology and Product Development is the standard guide for product commercialization and manufacturing support engineers who want to apply Six Sigma methodology to technology development and product commercialization. Now, in Six Sigma for Marketing Processes, Creveling joins with Lynne Hambleton and Burke McCarthy to show the ways marketing professionals can adapt and apply those same Six Sigma concepts to create a lean marketing workflow built for growth.
This book provides an overview of the way marketing professionals can utilize the value offered by Six Sigma tools, methods, and best practices, within their existing phase-gate processes, as well as the traditional Six Sigma problem-solving approach: define, measure, analyze, improve, control (DMAIC). It provides unique methods for employing Six Sigma to enhance the three marketing processes for enabling a business to attain growth: strategic, tactical, and operational. It goes further to demonstrate the way Six Sigma for marketing and Six Sigma for design can be combined into a unified Six Sigma for growth. In this book, you’ll learn how to apply Six Sigma methodology to
- Develop a lean, efficient marketing workflow designed for growth
- Enhance the three marketing arenas for growth: strategic, tactical, and operational
- Identify leading indicators of growth and become proactive about performance improvement
- Strengthen links between customers, products, and profitability
- Redesign marketing work to streamline workflow and reduce variability
- Assess and mitigate cycle-time risk in any marketing initiative or project
- Leverage DMAIC to solve specific problems and improve existing processes
- Use lean techniques to streamline repeatable processes, such as collateral development and trade-show participation
Preface xv
Acknowledgments xxiii
About the Authors xxv
Chapter 1: Introduction to Six Sigma for Marketing Processes 1
Chapter 2: Measuring Marketing Performance and Risk Accrual Using Scorecards 25
Chapter 3: Six Sigma-Enabled Project Management in Marketing Processes 45
Chapter 4: Six Sigma in the Strategic Marketing Process 63
Chapter 5: Six Sigma in the Tactical Marketing Process 117
Chapter 6: Six Sigma in the Operational Marketing Process 173
Chapter 7: Quick Review of Traditional DMAIC 209
Chapter 8: Future Trends in Six Sigma and Marketing Processes 229
Glossary 235
Index 261
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Introduction to Six Sigma for Marketing Processes
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Table of Contents
Preface xv
Acknowledgments xxiii
About the Authors xxv
Chapter 1: Introduction to Six Sigma for Marketing Processes 1
Chapter 2: Measuring Marketing Performance and Risk Accrual Using Scorecards 25
Chapter 3: Six Sigma-Enabled Project Management in Marketing Processes 45
Chapter 4: Six Sigma in the Strategic Marketing Process 63
Chapter 5: Six Sigma in the Tactical Marketing Process 117
Chapter 6: Six Sigma in the Operational Marketing Process 173
Chapter 7: Quick Review of Traditional DMAIC 209
Chapter 8: Future Trends in Six Sigma and Marketing Processes 229
Glossary 235
Index 261
Preface
What Is In This Book?
This is not a book about marketing theory or basic marketing _principles—we assume you are a marketing professional and know a good bit about marketing science fundamentals. This book is all about Six Sigma for marketing professionals. The kind of Six Sigma we explore is relatively new. It is the form of Six Sigma that focuses on growth—that prevents problems by designing and structuring Six Sigma Sigma-enhanced work within marketing processes. Its boundaries encompass marketing's three process arenas for enabling a business to attain a state of sustainable growth.- Strategic Marketing Process—product or service portfolio renewal
- Tactical Marketing Process—product or service commercialization
- Operational Marketing Process—post-launch product or service line management
This book is reasonably short and is primarily intended as an overview for marketing executives, leaders, and managers. Anyone interested in the way Six Sigma tools, methods, and best practices enhance and enable these three marketing processes can benefit from this book. This book guides the reader in structuring a lean work flow for completing the right marketing tasks using the right tools, methods, and best practices—at the right time within the aforementioned processes. Yes, this book is all about Lean Six Sigma-enabled marketing.
Why We Wrote This Book
Why did we write it? To help take marketing professionals into the same kind of Six Sigma paradigm, work flow, measurement rigor, and lean process discipline that exists in the world of Design for Six Sigma (DFSS). Our first book, Design for Six Sigma in Technology and Product Development (Prentice Hall, 2003), has become a strong _standard for research and development (R&D), product commercialization, and manufacturing support engineers. It is all about what to do and when to do it in the phases of technology development and product commercialization for engineering teams and their leaders. Every time we teach and mentor engineering teams on DFSS, they ask, "Where are the marketing people? Shouldn't they be here working with us as a team as we develop this new product?" The answer of course is always yes. So, a strong, new trend is occurring all over the world. It is a new form of collaborative innovation between those who practice DFSS and those who are beginning to practice Six Sigma for Marketing (SSFM). Two very harmonious bodies of Six Sigma knowledge are aligning and integrating into what we call Six Sigma for Innovation and Growth. In fact, this book is part of an exciting new series from Prentice Hall called the Six Sigma for Innovation and Growth Series: Marketing Processes and Technical Processes.DFSS and SSFM are integrating to form a unified approach for those who are commercializing products together. This book, in part, is "DFSS for Marketing Professionals." We go far beyond simply talking about product commercialization in this book. We set the stage for a comprehensive Six Sigma-enabled work flow for marketing _professionals. That work flow crosses the three process arenas we mentioned earlier—portfolio renewal (strategic in-bound marketing), commercialization (tactical in-bound marketing), and product or service line management (operational out-bound marketing). That is why the logo for this book looks the way it does. Take a moment to reflect on that image and you will see our view of the way marketing work flow is structured in the text.
About the Chapters
The book is laid out in eight chapters. Chapter 1, "Introduction to Six Sigma for Marketing Processes," presents the whole integrated story of Six Sigma in Marketing Processes. It covers the big picture of the way all three marketing process arenas work in harmony. One without the others is insufficient for actively sustaining growth in a business.Chapters 2, "Measuring Marketing Performance and Risk Accrual Using Scorecards," and 3, "Six Sigma-Enabled Project Management in Marketing Processes," work closely together. Chapter 2 is about a system of integrated marketing scorecards that measure risk accrual from tool use to task completion to gate deliverables for any of the three marketing processes. Chapter 3 is a great way to get a project management view of how marketing teams can design and manage their work with a little help from some very useful Six Sigma tools (Monte Carlo Simulations and Project Failure Modes & Effects Analysis FMEA). Chapter 3 can help you lean out your marketing tasks and assess them for cycle-time risk.
Chapters 4," Six Sigma in the Strategic Marketing Process," 5," Six Sigma in the Tactical Marketing Process," and 6," Six Sigma in the Operational Marketing Process," contain more detailed views within each marketing process. The chapters lay out the gate requirements and gate deliverables within phase tasks and the enabling tools, methods, and best practices that help marketing teams complete their critical tasks. They offer a standard work set (a lean term) that can be designed into your marketing processes where you live on a daily basis. These chapters help you design your marketing work so you have efficient work flow and low variability in your summary results. This helps prevent problems and ultimately sustain growth. This is so because what you do adds value and helps assure your business cases reach their full entitlement. When business cases deliver what they promise—you will grow.
Chapter 7, "Quick Review of Traditional DMAIC," provides a brief overview of the important classic Six Sigma problem-solving approach known as Define-Measure-Analyze-Improve-Control (DMAIC).
Chapter 8, "Future Trends in Six Sigma and Marketing Processes," wraps everything up quickly and succinctly. We know marketing professionals are very busy folks, so we try to get the right information to you in a few short chapters so you can help lead your teams to new performance levels as you seek to sustain growth in your business.
A Word About Six Sigma Tools, Methods, and Best Practices
Six Sigma tools, methods, and best practices are in order at the outset of this book. When we discuss the various flows of marketing tasks, we find many opportunities to add value to them with well-known, time-tested combinations from Six Sigma (DMAIC, as well as DFSS). The following list helps set the stage for aligning marketing work with the numerous value-adding tools, methods, and best practices from Six Sigma. Once again, the difference this book is illustrating is the proactive application of the tools, methods, and best practices to prevent problems during marketing work.Traditional tools, methods and best practices from DMAIC and Design for Six Sigma we will adaptively use:
- Project planning, scoping, cycle-time design, and management methods
- Voice of the Customer gathering and processing methods
• Customer identification charts, customer interview guides, and customer interviewing techniques
• Jiro Kawakita (KJ) Voice of the Customer (VOC) structuring, ranking, and validation methods
- Competitive benchmarking studies
- Customer value management tools
• Market-perceived quality profiling
• Key events timelines
• What-who matrix
• Won-Lost Analysis
- Strength-Weakness-Opportunity-Threat (SWOT) Analysis
- Porter's 5 Forces Analysis
- Real-Win-Worth Analysis
- Survey and questionnaire design methods
- Product portfolio architecting methods
- Requirements translation, ranking, and structuring
• Quality Function Deployment (QFD) and the houses of quality
• Concept generation methods - Brainstorming, mind mapping, and TRIZ
- Pugh Concept Evaluation & Selection Process
- Critical Parameter Management
- Process maps, value chain diagrams, customer behavioral dynamics maps, work flow diagrams, critical path cycle-time models
- Cause & Effect Matrices
- Failure Modes & Effects Analysis
- Noise diagramming (sources of variation)
- Basic and inferential statistical data analysis
• Normality Tests, graphical data mining (data distribution characterization), hypothesis testing, t-tests, confidence intervals, sample sizing; ANalysis Of the VAriance (ANOVA), and regression
- Multivariate Statistical Data Analysis
• Factor, discriminate, and cluster analysis
- Measurement System Design & Analysis
- Statistical Process Control
- Capability studies
- Design of transfer functions: analytical math models (Y 5 f(X) from first
principles, as well as empirical data sets from designed experiments)
- Monte Carlo Simulations (DY 5 f(DX))
• Sequential Design of Experiments (including multi-vari studies, full and fractional factorial designs for screening and modeling, conjoint studies, robust design Design of Experiments (DOE) structures)
- Control plans
As you can see with at least 26 tools, methods, and best practices to creatively adapt and apply to marketing tasks within the flow of marketing work across an enterprise, there is a huge opportunity to prevent problems and achieve growth goals as we selectively design our marketing work.
Index
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Updates
Errata
| ErrorLocation | Error | Correction | DateAdded |
|---|---|---|---|
| piii | Capetown | Cape Town | 3/24/2008 |
| piv | Rights and Contracts Department address updated ISBN-13 added |
fixed | 3/24/2008 |
| pxxv | Clyde “Skip” Creveling bio updated | fixed | 3/24/2008 |
| p261 | ymbols | Symbols | 3/24/2008 |