Build Your Upstream Marketing Capabilities and Activities(1 / 2)

BuildYourUpstreamMarketingCapabilitiesandActivities

Upstreammarketingmeansidentifyingwhichcustomersegmentstofocusonandwhatwillbeneededtowinthecustomeratvariouspricepoints.Veryfewcompanieseverengageinupstreammarketing,whichisagreatwaytogrow.

Mostpeopletendtoignoreupstreammarketingandinsteadgethungupondownstreammarketingactivities—branding,advertising,pro-motions,timelydelivery,customerservice,customerrelationshipmanagement,etc.Whilethesedownstreammarketingactivitiesareimportant,theyaredependantonthequalityofyourupstreammarketing.Untilyoufigureoutindetailwhoyouwanttoselltoandwhatyouwanttosellthem,nothingmuchwillhappen.Upstreammarketingprovidesthebase,anddownstreammarketingthenworkstoincreasedemandforwhatisoffered.

BuildUpstreamMarketingCapabilities

■Startwithamarketmap—abird'seyeviewofhowyouroverallmarketiscurrentlybrokendownintovarioussegments.Thismarketmapcanusewhatevercriteriamakessensetoyou.Agoodmarketmapwillsetoutwhoyourcurrentcustomersare,whattheirneedsareandwhytheypreferyourproductsandservicesoverthoseofferedbyyourcompetitors.

■Addunfilteredinformationaboutwhatcustomersneed—eitherbypersonallygettingsidebysidewithcustomersorbyputtingtogetherquickmarketintelligenceusinginformationgatheredbykeyemployees.Youalsoneedtounderstandeverylinkinthedemandchainsoyoucanunderstandtheneedsofboththepersonwhobuysfromyouandtheenduser,iftheyaretwodifferentpeople.

Inadditiontoknowingyourcustomers,youalsoneedtoanalyzehowcustomersmaketheirpurchasedecision.Ifpossible,participateinthisprocessfirsthand.Becomeawarewhathastobedonetoconvincethedecisionmakerstobuy.Findouthowthisprocesshaschangedovertime,andwhereit'slikelytoheadinthefuture.

■Next,lookathowyoucurrentlysegmentthemarketinfinedetail—becausechangingyourmarketsegmentationwillbethekeytodoingupstreammarketing.Customershavedifferentperceptionsanddifferentneedsthatchangeandevolveovertime.It'simpracticalforacompanytoattempttosatisfytheentiremarketplace,soit'shelpfultobreakthebroadermarketdownintogroupsorsegmentsthathavesimilarcharacteristics.Byresegmentingthemarketplace,youmightfindsegmentsthatyou'renotcurrentlyservingthatcouldbeservedifyoujustmadeafewminoradjustmentstoyouroffering.Everytimeyoumoveintoanewmarketsegment,youhaveanopportunitytoincreasesalesrevenues.Theobjectiveofdoingthisresegmentingistofindwheretoputmoreresourcesinordertogeneratemorerevenue.Resegmentingcanalsobeawaytofigureouthowyoucanspendlessandstillachievethesamesales.