Friday, April 29, 2011

Marketing Reengineering (without Fandango) [1 of 2]

Abstract


This document is something of a casual conversation considering what reengineering is as regards marketing, using an intermediary service provider as an example.



Introduction

The first service this writer should provide his readers is to define terms. The meaning of reengineering here, in the larger conversation of marketing, is operational, and has to do with channels. Channels, being what they are, often considered as aspects of getting an idea, product and/or service into the hands of the consumer (a distribution consideration). However, as one deconstructs all the ramifications, iterations, methods etc. of this process we find trace elements of other concerns. For example, choosing to include a wholesale and retail expression versus simply a retail expression legitimately may prove better or worse financially, depending on the company. It is also true this goes beyond simple finances.

Regarding the marketing consideration (reengineering), the consumer almost never wants to consider any of the rationales or justifications for why they had something less than a superior experience. Today's consumer simply wants to have a superior experience, and move on. Nevertheless, with so many strategic alliances, subcontracting associations and the like, the consumer may find themselves with a less than superior experience, walking away from the wrong company.

Therefore, in the larger scheme of things, marketing reengineering looks at the larger moving pieces of the entire business experience preceding the consumer's experience, and how that culminates as the consumer's experience.



How could an organization reengineer its marketing operation?

Last Christmas this writer's daughter received a movie gift card from her uncle. Prior to this gift card, this family's experience with gift cards had always been one of having it present at the time a purchase occurred. Taking the child to a movie and having the card turned out not to be enough. The communication was that the gift card was only redeemable online (so, already at the cinema, dad was out of pocket).

The next time, sensing understanding of the dynamic, offered was a movie as a reward for a good grade, good behavior or some such. Self-assured, this consumer went online only to find that the gift card was now unredeemable because the movie was 3D. However, the communication made, dad was out of pocket once again.

Scouring the website of this intermediary there was no telephone number whatsoever (for support, complaint, anything).

Dear reader, so as not to leave you hanging, the third time was the charm. However, the point is this intermediary works in association, like a parasite, with particular movie theaters. They seek to subcontract a value add that the theaters may (or may not) have offered in the past themselves (alleviating payroll and paperwork, and no doubt promising their own intention to drive business). At no point did the movie theater itself offer us a less than pleasant experience (except that management, beyond that theaters location, had allowed itself allied with such a mediocre service provider).

If the movie management determined that, even in the face of certain shortfalls, the addition of this intermediary would drive enough volume to eclipse its own lack of communication and customer service, then so be it. However, ultimately management needs to police its own and reassess whether to take the service back in house or reevaluate this intermediary's service from inside and put them on notice. How and when an organization should reengineer its operations usually finds its definition in the fiscal responsibilities of ever adding stakeholder wealth. This cannot however compromise or otherwise diminish the overall point of that which is being provided.

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