The 8 Elements Approach
The framework for developing an integrated commercial strategy.
Why the 8 Elements Approach?
At some point, most companies face entering the next chapter of their business development. Typically, this is initiated by constraints or new opportunities within or outside the company. These usually include new competitors, the need for growth or new investments, but also future opportunities in new market segments or with new products.
At this point, existing commercial strategies no longer fit and, as a result, the current product and brand range, systems, processes, as well as the organisational structure and available resources in marketing, sales and product management are questioned.
An integrated, holistic commercial strategy is required to successfully move into the next chapter of the business.
“The 8 Elements Approach was our framework in the further development of our commercial strategy. As a result, the close linking of marketing, sales and product management has been successful - and we are now well positioned for the next corporate chapter.”
Andreas Richter, Managing Director Omnicare
What is the 8 Elements Approach?
The “8 Elements Approach to Commercial Strategy Development” provides a framework for developing a holistic, integrated strategy. It uniquely combines marketing and sales as well as strategy development and implementation. Developed with practical implementation in mind, the approach nevertheless has a theoretical foundation.
Working consistently through strategy elements 1 to 8 ensures that the strategies build on each other. Individual decisions and the resulting measures are thus derived in a consistent manner.
This prevents individual, tactical marketing and sales initiatives from being implemented on their own without following the overall strategy and the goals behind it. Tactical, short-term measures should be embedded in a long-term strategy and not counteract it. As a result, all of a company's activities can become more efficient and effective.
“We have used the 8 Elements Approach to develop our commercial strategy. We have finally succeeded in combining marketing and sales, we are ready for the next level.”
Ingolf Seifert, Managing Director 3D Interaction Technologies
How is the strategy developed using the approach?
The development starts with a deep analysis of the commercial current state and concludes with a strategy-based implementation planning. The following eight elements are elaborated during the “8 Elements Approach”:
1
Market
Definition of the target market and segments including analysis of market sizes and potential, development scenarios, trends and competitors.
2
Customer
Definition of the target customer including the “ideal customer”, the “customer persona” and their pain points and needs.
3
Objectives
Definition of the vision, mission and the long- and mid-term marketing and sales objectives, and KPIs.
4
Offering: Product, Price, Brand
Definition of the strategic product & services roadmap, the pricing framework as well as the brand identity - based on customer needs.
5
Messages, Channels, Initiatives
Definition of the marketing and sales key messages, channels and activities to effectively approach the target customer persona.
6
Systems & Processes
Definition of the core marketing and sales processes and systems to enable scalable and transparent execution.
7
Organisational Structure
Definition of the suitable future organisational structure to ensure the strategy can be executed effectively.
8
Resources
Definition of the needed resources for the execution of the commercial strategy and the new tasks. This includes budget, time and skill sets needed.