Mohan Sawhney on the Seven Core Marketing Processes

Summary

The speaker critiques the traditional four Ps of marketing—Product, Price, Place, and Promotion—arguing that they function as independent silos. Instead, they propose a more integrated, value-centric approach. Marketing is framed as a set of interconnected processes that involve collaborating with customers and partners to create, deliver, and share value. This process-oriented model includes sensing, defining, realizing, delivering, sharing, communicating, and sustaining value. The goal is to drive short-term revenue while building long-term brand strength and customer relationships through continuous improvement and value creation.

Takeaways

• 😀 Marketing has traditionally been defined by the Four Ps: Product, Price, Place, and Promotion.
• 😀 The Four Ps were introduced in the 1960s and are still the foundation of most marketing textbooks and business schools.
• 😀 The Four Ps are viewed as functional silos, which may limit understanding of how they connect to customer value.
• 😀 The speaker proposes an alternative view of marketing as a set of processes rather than functional silos.
• 😀 Marketing should be focused on collaboration with customers and partners to create, deliver, and share value.
• 😀 The short-term goal of marketing is to drive revenues, while the long-term goal is to build brands and customer relationships.
• 😀 There are seven key processes in the new marketing framework: sensing value, defining value, realizing value, delivering value, sharing value, communicating value, and sustaining value.
• 😀 Sensing value involves gathering customer insights to identify opportunities and threats.
• 😀 Defining value is about turning customer insights into a compelling value proposition.
• 😀 Realizing value is the process of transforming the value proposition into a relevant and attractive offering for customers.
• 😀 Delivering value focuses on taking the offering to the marketplace through distribution channels and partnerships.
• 😀 Sharing value addresses the pricing mechanisms and revenue streams that help recapture some of the value created.
• 😀 Communicating value involves articulating the value proposition and building brand awareness through marketing communication.
• 😀 Sustaining value emphasizes the continuous improvement of the customer experience to maintain long-term success.

Q & A

What is the traditional definition of marketing as outlined in the script?

The traditional definition of marketing is based on the 4 Ps: Product, Price, Place, and Promotion. These elements have been used since the 1960s and 70s and are enshrined in most marketing textbooks.

What is the main criticism the speaker has about the 4 Ps approach to marketing?

The speaker criticizes the 4 Ps approach because it treats marketing as a series of independent functional silos without a clear connection between them, and it does not fully incorporate the concept of customer value.

How does the speaker propose to redefine marketing?

The speaker proposes redefining marketing as a set of processes by which companies collaborate with customers and partners to create, deliver, and share value. This approach is more value-centric and process-oriented.

What are the seven processes of marketing according to the speaker?

The seven processes of marketing are: 1) Sensing Value, 2) Defining Value, 3) Realizing Value, 4) Delivering Value, 5) Sharing Value, 6) Communicating Value, and 7) Sustaining Value.

What does the 'Sensing Value' process involve?

The 'Sensing Value' process involves bringing customer insights into the organization and understanding the opportunities and threats in the market environment.

What is the purpose of the 'Defining Value' process in marketing?

The 'Defining Value' process focuses on converting customer insights into a compelling value proposition that resonates with customers and addresses their needs.

How does the 'Realizing Value' process contribute to marketing?

The 'Realizing Value' process involves turning the defined value proposition into an actual offering—product or service—that is relevant and compelling for customers.

What is the goal of the 'Delivering Value' process?

The goal of the 'Delivering Value' process is to bring the offering to the marketplace through distribution channels and partnerships, ensuring that it reaches the right customers.

What does the 'Sharing Value' process focus on in marketing?

The 'Sharing Value' process focuses on determining the appropriate pricing mechanisms and revenue streams, allowing the company to recapture some of the value created by the previous processes.

What role does the 'Communicating Value' process play in marketing?

The 'Communicating Value' process involves articulating the company's value proposition, building the brand, and positioning the company effectively in the marketplace through marketing communication strategies.

How does the 'Sustaining Value' process affect long-term customer relationships?

The 'Sustaining Value' process focuses on continuous improvement of the customer experience, ensuring ongoing customer satisfaction and fostering long-term relationships.

What is the ultimate objective of the marketing processes described in the script?

The ultimate objective of these marketing processes is to drive short-term revenues and, in the long term, to build brands and customer relationships.