Defining a value chain
Each and every transaction involving the business will have significance and this is applicable irrespective of the size and type of business. Also, it is impossible to generalise. Each business will be different and the relativities will alter over time. Some will initially appear more important than others due to size and immediate effect. In addition to rating them, it is vital to identify them and their relationship with each other and the business, with particular emphasis on cause and effect.
A number of the following examples, deliberately chosen to cover a variety of business types may appear simplistic or far-fetched, but are they? Again, cause and effect matters, both in the short and long term.
Cause and effect examples
Huge businesses like, say, supermarket chains think they have all the answers due to the funds they spend on research and by changing the CEO or marketing agency on a regular basis. The buyer is scrutinised for financial performance, but is the importance of small-volume but strategically important lines thought about? How plenty of times does a shopper require to find that several of her favourite products have been deleted before they moves to the competitor? Multiply that by a hundred shoppers times a hundred stores and the effect is no longer irrelevant.
A small manufacturer will probably require to include not the financial backers but also stakeholders that affect purchasing, technical and delivery issues. Fine, but what about the machinists who are not happy that a huge proportion of parts are now sourced from abroad, putting their employment in danger? Unless the business has a clear strategy, explains and assures them of their continued importance and considers their working surroundings and conditions, there is considerable potential for bad publicity on a scale that can quickly spiral out of control. These guys will talk to a spouse who works at the bank, to a union rep, a supplier, a competitor, often in a campaign of negativity and disruption.
Each and every transaction involving the business will have significance and this is applicable irrespective of the size and type of business. Also, it is impossible to generalise. Each business will be different and the relativities will alter over time. Some will initially appear more important than others due to size and immediate effect. In addition to rating them, it is vital to identify them and their relationship with each other and the business, with particular emphasis on cause and effect.
A number of the following examples, deliberately chosen to cover a variety of business types may appear simplistic or far-fetched, but are they? Again, cause and effect matters, both in the short and long term.
Cause and effect examples
Huge businesses like, say, supermarket chains think they have all the answers due to the funds they spend on research and by changing the CEO or marketing agency on a regular basis. The buyer is scrutinised for financial performance, but is the importance of small-volume but strategically important lines thought about? How plenty of times does a shopper require to find that several of her favourite products have been deleted before they moves to the competitor? Multiply that by a hundred shoppers times a hundred stores and the effect is no longer irrelevant.
A small manufacturer will probably require to include not the financial backers but also stakeholders that affect purchasing, technical and delivery issues. Fine, but what about the machinists who are not happy that a huge proportion of parts are now sourced from abroad, putting their employment in danger? Unless the business has a clear strategy, explains and assures them of their continued importance and considers their working surroundings and conditions, there is considerable potential for bad publicity on a scale that can quickly spiral out of control. These guys will talk to a spouse who works at the bank, to a union rep, a supplier, a competitor, often in a campaign of negativity and disruption.
Map the relationships for any business and that chain of stakeholders no longer looks so simple.
Another typical example is the importer/service agent for or more international brands of equipment like, say, machines, instruments, or parts. Most of these businesses need it both ways. They need to supply resellers - mostly tiny retailers, but they usually also need to sell direct to specialists like associations or government and perhaps the general public. The stake-holder mix is actually complex as are the cause and effect scenarios. Breaking the distribution or pricing models of the parent manufacturer is the speedy way to lose the agency. Selling to the public is not likely to ender the agent to a reseller. Trade associations, journal or online reviewers, compliance authorities and so on will need to be able to differentiate between a professional and a consumer version of the product so the communication of product positioning and values is abundantly clear to whoever needs to be assured.
While there is no simple answer that fits all scenarios, the overriding consideration must be to understand the specific characteristics, motivations and information-needs of each stake-holder group, create the worth propositions to which each group will relate, then devise comprehensive communication strategy and delivery.
Message development
A essential requirement for strategy development is the objectivity to reject or revise cherished beliefs based on "we know our business best" and/or "this is the way they do it here" arguments. These must be taken in to account, but they must not interfere with the necessity for modify. The newly defined value propositions, introduced in a matrix that includes and qualifies all stakeholders ought to suffice to persuade the business management of their validity, if the process has involved discussions with chosen stakeholders.
Another typical example is the importer/service agent for or more international brands of equipment like, say, machines, instruments, or parts. Most of these businesses need it both ways. They need to supply resellers - mostly tiny retailers, but they usually also need to sell direct to specialists like associations or government and perhaps the general public. The stake-holder mix is actually complex as are the cause and effect scenarios. Breaking the distribution or pricing models of the parent manufacturer is the speedy way to lose the agency. Selling to the public is not likely to ender the agent to a reseller. Trade associations, journal or online reviewers, compliance authorities and so on will need to be able to differentiate between a professional and a consumer version of the product so the communication of product positioning and values is abundantly clear to whoever needs to be assured.
While there is no simple answer that fits all scenarios, the overriding consideration must be to understand the specific characteristics, motivations and information-needs of each stake-holder group, create the worth propositions to which each group will relate, then devise comprehensive communication strategy and delivery.
Message development
A essential requirement for strategy development is the objectivity to reject or revise cherished beliefs based on "we know our business best" and/or "this is the way they do it here" arguments. These must be taken in to account, but they must not interfere with the necessity for modify. The newly defined value propositions, introduced in a matrix that includes and qualifies all stakeholders ought to suffice to persuade the business management of their validity, if the process has involved discussions with chosen stakeholders.
Communicating with stakeholders
It ought to now be obvious that developing concise and effective communication material is not as simple as it might first have appeared. Those value propositions, complete with supporting product choice guides, specifications, perhaps testimonials, case histories and whatever else is appropriate to the needs of each stake holder group must not only be developed, they must even be devised to suit each and every relevant communication device, These might include or more sites, an intranet or the use of staff and resellers, newsletters, direct mail, marketing for each distribution channel and so on.
Extending the analogy based on the examples above, communications professionals do not manufacture, import or distribute, although their career histories probably include some such involvement. Why therefore ought to industry managers think about they, or their friends and families have appropriate strategic and communication skills? In athe event you need to bark, get a dog.
In huge business, the marketing director and a specialist team will probably have the resources and skills to conduct these tasks, but for smaller businesses, a do-it-yourself approach is unwise, wasting time and regularly causing more harm than lovely.
It ought to now be obvious that developing concise and effective communication material is not as simple as it might first have appeared. Those value propositions, complete with supporting product choice guides, specifications, perhaps testimonials, case histories and whatever else is appropriate to the needs of each stake holder group must not only be developed, they must even be devised to suit each and every relevant communication device, These might include or more sites, an intranet or the use of staff and resellers, newsletters, direct mail, marketing for each distribution channel and so on.
Extending the analogy based on the examples above, communications professionals do not manufacture, import or distribute, although their career histories probably include some such involvement. Why therefore ought to industry managers think about they, or their friends and families have appropriate strategic and communication skills? In athe event you need to bark, get a dog.
In huge business, the marketing director and a specialist team will probably have the resources and skills to conduct these tasks, but for smaller businesses, a do-it-yourself approach is unwise, wasting time and regularly causing more harm than lovely.
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