In 2014 we introduced the new marketing value chain, a new framework for marketing that replaced the old “rules and tools” approach. In the old marketing value chain, marketers used best practices and conventional wisdom (the rules) and marketing approaches such as advertising, direct mail and trade shows (the tools) the drive sales, engagement and loyalty. In contrast. the new marketing value chain consists of three links: data-driven insight, quantifiable strategy and the application of creative and technology.
Over the past two years, the importance of data-directed marketing has become even clearer. That value chain is just as applicable today as it was in 2014. This month, we’ll be taking a deep dive into healthcare marketing, and looking closer at the role of strategic planning and the new marketing value chain in healthcare applications. With that in mind, let’s refresh our understanding of the new marketing value chain with a quick look back.
Marketing’s goal has always been predictability, a clear understanding of what inputs drive what outputs, and how to most effectively use resources to achieve the desired result. For this reason, marketers have always worked to quantify and attribute results, but have never before had access to the type of data insights allowed by digital technology.
Because of this, the old marketing value chain emphasized the use of “rules” — the application of best practices and conventional wisdom — and “tools” — advertising, direct mail campaigns, trade shows — in the hopes of generating leads and sales. Some portion of this marketing spend was always wasted, but a lack of data and insight made it difficult to determine which portion was effective and which was waste. Moreover, the old value chain did not account for the dynamic aspects of both marketing conditions and the tools of marketing.
Thanks to digital technology, the game has changed. Reliable data can now inform the entire marketing process, from developing a strategic plan to applying the new era’s “rules and tools.”
The new marketing value chain is all about figuring out why marketing works (or does not work), and applying those data-based findings to consistently improve its performance. Collected data drive the application of insight, strategy and tactics that generate leads, sales, engagement and loyalty. The new value chain teaches marketers not to rely on our instincts but on clear evidence as we make decisions about how and where to message our offerings.
In the healthcare field, as for B2B and B2C companies, these data are invaluable for effective, efficient marketing. Follow our blog throughout the month as we look further at the roles data insights and strategic planning play in healthcare marketing, along with special considerations for those working in this field.
For more on the evolution of marketing from a rules and tools approach to a data-driven process, read our white paper, The New Marketing Value Chain.
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This constant evolution is crazy. Keeping up is not always easy but I cannot wait to see what happens next.