STRATEGY PYRAMIDS
by NHKC Capital Resources™
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Strategy Pyramids
First, a word of caution: this topic is intended to help you think about strategy, not to make a marketing plan more difficult. If this framework for analysis doesn't work for you, don't worry about it, just delete it. This is your marketing plan, make it your own and delete what doesn't fit. Imagine a pyramid made of three levels. The top of the pyramid is a single box, which contains a strategy. Strategy is focus, and a strategy is an area of focus of resources. In the middle you have three or so boxes that stand for tactics. On the bottom you have, say, four or five boxes that stand for programs. It would look something like the following: Strategy Definitions don't have to be exact. Strategy is a main focus, which might be focusing on a specific target market, product opportunity, positioning statement, or some other important or fundamental element. You described your main strategy in the previous topic. Tactics are there to implement strategies. For example, if a computer store's strategy is to build longer-term relationships with business customers, then tactics might include increasing networking offerings, training, and support. Programs are specific business activities, each of which has concrete dates and responsibilities, and probably a budget. In the computer store example, programs for the strategy might include upgrade mailings, seminars, installation services, network training, and others, each of which is built on specifics. You don't necessarily do a complete business strategy in a single pyramid. Each fundamental pole of business strategy might be a different pyramid. One important benefit of the strategy pyramid method is integration and alignment. If your strategy is to focus on one thing or another, you should be able to trace that strategy into tactics and, most important, your actual spending priorities and activity priorities. Flip back and forth between your pyramid strategy and your milestones table, and ask yourself if the specifics of your milestones table match the emphasis you put on strategy. As an alternative to the strategy pyramid, you might prefer to use the value proposition framework. Value-based marketing is another conceptual framework. Like the pyramid, it doesn't have to be in your marketing plan at all, but some people find that the framework helps them develop strategy. This framework begins with defining your business offering as a value proposition. The value proposition is benefit offered less price charged, in relative terms. The definition encourages you to think in broad conceptual terms, with emphasis on the real benefit offered, rather than the specific tangible. For example, a national fast food chain probably offers the value of convenience and reliability, probably at a slight price premium (at least when compared to the weaker chains). A prestigious local restaurant, on the other hand, is offering a completely different set of benefits (luxury, elegance, prestige, for example) at a marked price premium. A graphic designer is probably selling benefits related to communication and advertising, not just drawings. Once you have a value proposition defined, then look at your business and your plan in terms of how well you:
For example, if a computer store's value proposition has to do with reliable service for small business, peace of mind, and long-term relationships, then it probably shouldn't be taking out full-page newspaper advertisements promising the lowest prices in town on brand-name hardware. It probably should communicate that proposition with sales literature that emphasizes how the computer store will become a strategic ally of its clients. It might also think twice about how it handles overdue bills from customers, who might really be holding out for more service or better support. Like the pyramid, the framework helps you integrate your planned programs into a logical, whole plan. To continue click here: Marketing Mix.
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