Marketing Innovation

"Business has only two functions - marketing and innovation." (Peter Drucker, 1909 - 2005)
We support companies, NGO´s and brands in design, managing and delivering Marketing Innovation. Whereas Marketing Strategy are services with a priority on strategic change and Marketing Integration is focussed on operational change, Marketing Innovation is about simultaneous strategic and operational change of marketing. Our services address the subsequent questions, enterprises of all kinds and sizes often are confronted with:

Customer Value Management

Companies pursuing multichannel marketing already have a marketing strategy, which puts the customer in the center of their activities. They discovered the need to offer several touchpoints with their target audience, not only in communication, but also in the way they provide and deliver their products and services. This is good for reasons of (medium-term) differentiation or cost leadership. However, it may not be sufficient for long-term success.

The ultimate goal for every company is
long-term survival. To achieve this goal, firms and organizations must get a better understanding of their customers and manage them as a financial asset. Managing the customer as a firm´s asset means allocating resources according to the customer life cycle, and not by product line, brand, distribution channel, or transaction, as it is the case in many companies, especially in firms driven by the development of quarterly share prices.

Customer Value Management is a customer-driven marketing innovation approach, which helps firms to realize growth opportunities by concurrently keeping marketing costs low. It places the customer at the core of the marketing and business activities and seeks to maximize the financial value a firm can gain through customer portfolio and life cycle management. Customer Value Management leads to tailoring marketing investments to a value-adding target audience and cover:

  • Analysis of our clients customers in terms of structure and life cycle
  • Evaluation and introduction of customer databases
  • Development and implementation of customer value measurement and accounting
  • Design and implementation of customer strategies (acquisition, retention, add-on selling) in order to increase customer value
  • Aligning the marketing mix to customer strategies with a focus on internet communication and advertising
  • Change of organizational structures and processes according to customer value strategies and tactics

Co-Creation

Enterprise Web 2.0 technologies enabled a new kind of business strategy development which has evolved in recent years: Co-Creation. Classical strategic thinking and action is based on the assumption that a firm maximizes its share of the created value along the value chain relative to the competitors and other stakeholders. Co-Creative strategy, however, tries to balance the interests of all stakeholders and by maximizing the value of the entire value chain all stakeholders are better off.

By harnessing the "wisdom of crowds" and the
knowledge as well as experience of customers and other stakeholders, Co-Creation is able to bring about new ideas within shorter timeframes than traditional innovation approaches. Furthermore, it redefines the way companies interact with their stakeholders and thereby has a positive impact on customer brand loyalty and employee commitment. Finally, by having candid conversations, establishing shared learning environments, and creating mutual benefits with customers, Co-Creation is a management philosophy that gives companies a real competitive advantage.

Traditionally, firms have been using market research methodologies based on opinions and assumptions. Now, using internet technology, marketing can develop new products by connecting with their key customers and target audience and drive
fact based innovation. STOEHR INTERACTIVE designs and manages co-creation projects applying a 7i methodology:

  • Build and manage platforms for Interaction
  • Inspire a target audience to participate in co-creation
  • Involve key people of the firm in the co-creation process
  • Gain Insight into customer experience
  • Foster generation of breakthrough Ideas
  • Initiate actions on selected ideas
  • Prototype innovative products
Co-Creation is not restricted to innovate marketing. This facilitation-driven approach is applicable for any change management initiative.

Community Platforms

Online Community Platforms are an important technological enabler for implementing Customer Value Management and Co-Creation. For Customer Value Management, operating a customer community provide valuable information regarding the reputation of the company with (target) customers. Co-Creation requires community platforms as a basis for connection, communication, and collaboration.

Alongside the adoption of social networks and companies discovering the need to listen and engage with their target audience, the market for community platforms engaged in Social Business is growing fast. There are a lot of vendors engaged in this fragmented market, many of them providing co-creation and collaboration features. The challenge for companies aiming to build and operate social business applications is
finding and selecting the right platform according to their specific needs and objectives. Furthermore, firms seek not just technology, but strategic advise in building and operating online communities and in synchronization of community platforms with other marketing solutions.

Our Community Platform services are tailored to these needs. As an agency which is operationally involved in digital
communication, we know the vendors of community platforms, their features and strengths. Therefore, we partner with companies, organizations, and brands at an early stage of their purchasing process, and help them to make the right investment decision.
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The 4 A´s

Strategy

We design and implement digital strategies for sustainable growth. more

Web

We develop creative web sites and applications, portals, and online shops. more

Branding

We build brand reputation and communicate brand messages online. more

Sales

We acquire leads and customers and maximize online sales at target ROI. more

During the last years, interactive technologies have shifted the power from supply to demand in many industries. Moreover, brand loyalty is on the decrease and customers have almost perfect information about markets, products and prices. In a nutshell: today, it is the customers who are the most important asset for any firm. Thus, building and cultivating longterm customer relationships is a key task for the whole firm.

Succesful companies and brands are aware of this. They already have compelling marketing and brand strategies or they might have implemented efficient and effective processes and systems along the entire value chain. Without doubt, these are the leaders in their relevant markets.

Despite great strategies and operations, even market leaders are sometimes facing
vulnerable positions and their competitive position is not stable from a long-term perspective. Reasons for this might be manyfold, but symptoms are sometimes a decline of profitable growth, a lack of product innovations and/or shortcomings of corporate strategy execution in day-to-day business.

In todays fragmented global markets with customers and the people serving these customers being the most important asset, old formulas of success do not work anymore. Companies have to reinvent themselves and should challenge their strategic and operational excellence periodically. This requires
  • an extension of the customer perspective to a stakeholder perspective
  • thinking not within existing value chains but in value systems of industries
  • embracing new technologies for real-time collaboration with customers

Thus, firms have to continuously find new ways to
create value for existing customers and provide value propositions for potential customers. Innovation is becoming a core capability. We think that marketing should govern this innovation process and this for three reasons:
  • Marketing connects demand with supply chain processes
  • It has access to information about customers and is responsible for top-line growth
  • Marketing usually has complete information about value creation

The marketing mix approach of companies following marketing innovation are 4 A´s: Attitude, Assets, Audience, Awareness.
  • They seek to establish positive attitudes and deep emotional relationships to their customers and involve them in the product development process. Customers love the products and the company.
  • They do not just set prices. Instead, customers are seen as an asset and these firms are aware about the brand ambassador role of their loyal customer base. Customer life-time value is a well established method in demand chain management.
  • They are not just selling their products and services at certain places, but are communicating messages to an audience which is much bigger than the customer base.
  • They are the best communicators in their market in order to achieve unlimited awareness among their audience.