Mullin’s Seven Domains - Business Opportunities - Marketing and Management Models

Mullin’s Seven Domains - Business Opportunities - Marketing and Management Models

Helen Strong

Mullin’s Seven Domains: Purpose

John Mullin’s seven domains model neatly combines strategic marketing and business concepts, bringing out the necessity to consider both internal and external factors when assessing business opportunities. It is the model of choice when conducting a situational analysis as the organization contemplates a move into a new industry or market segment. The model assesses alignment of human capital (skills and motivation) against market demands within a selected industry environment. It encourages the management to consider immediate resources in relation to the long-term sustainability of an industry.

Mullin’s Seven Domains: Structure and Description

The model (Figure 23.1) adds a number of unique factors compared with others that contemplate a situational analysis. These include:

• Consideration of both the industry and particular market that the venture is contemplating entering
• Focus on the robustness of the supply chain
• Identification of the business purpose and how it will be achieved (vision and mission)
• Evaluation of the risk profile of the enterprise
• And finally, the personal factor is taken into account through reflection about the people (team) who are involved with implementation

(© 2003, 2006, 2010, 2013 John W Mullins, the New Business Road Test

Figure 23.1 Seven domains of attractive opportunities

Source: Mullins 2013

Mullin’s Seven Domains: Strategic Implications

The model brings into focus all the elements that are required for evaluation of the environment and factors that may affect the launch of a business venture. It takes into account the needs of venture capitalists and if applied properly will form the foundation of a strong business plan. The essential difference when compared with similar models is that Mullin’s domains has a holistic approach considering the organization, the market, and industry environments when examining factors at play.

Mullin’s Seven Domains: Implementation

The researcher needs to find figures to evaluate the following.

Industry Attractiveness

• Absolute size (gross sales)
• Number, size, and strength of competitors
• Growth rate (long-, medium-, short-term history and projected)
• Type of technology in use
• Barriers to entry (and exit)
• Structure of the market
• How it operates

Market Attractiveness

• Number and type of consumers
• Consider factors from definition of the target market
• Potential period before breakeven
• Gross margins

Sustainable Advantage

• Is the advantage valued by customers? Easily copied? Unique? Not capable of substitution? Then it is sustainable.
• The pace of development and the ethics of competitors need to be assessed to decide if indeed the advantage is sustainable.

Target Market (Using Consumer Research^G)

• Definition
• Functional needs (benefits needed)
• Psychological factors and attitudes
• Segmentation
• Growth trends by segment
• Information seeking habits
• Selection factors
• Buying habits

Supply Chain

• Raw material supply or skilled personnel
• Other suppliers
• Production capacity
• Storage
• Transport, distribution capacity, or both
• Distributors: wholesalers, retailers, or direct
• IT infrastructure and support
• Administration systems
• Purchase and sales systems
• Agreements with respect to market forecasting
• Information sharing

Business Strategy and Risk Profile

• Vision
• Mission statement
• Resources
• Especially, financial capacity
• Legal considerations

Critical Success Factors

• What are they? What will make this venture successful?
• What impacts on them?
• How are they related to the vision and mission?
• What operational goals emerge from meeting them?
• How are you going to measure them?
• Capacity to deliver?
• Capacity for risk?
• Will for risk?

Team

• Are all the skills available?
• Effective working relationships in place
• Roles, responsibilities, and authorities established
• Are the communication systems in place?
• Culture: Does it contribute to achieving the goals and objectives?
• Work ethics: Does everyone subscribe to the same values?
• Dedicated to implementation of the opportunity?

Mullin’s Seven Domains: Conclusions

There is an extremely high failure rate amongst new business ventures. This type of approach optimizes the chances of success by putting in place both Plan A and a backup Plan B. Regardless of the numbers, the entrepreneur needs to constantly challenge the viability of the plan. Will this work? Why? Or why not?

While this model is presented as one for new venture evaluation, it easily assumes the role of a model to be applied during strategic reviews.

References

Ahonen, T.T. 2013. “Around the World With Mobile: Global Insights and Regional Relevance of Mobile Marketing.” Presented at MMA Forum: Mobile’s Role in the Path to Purchase, New York, May 8 – 10. New York: Mobile Marketing Association. Available from: http://www.slideshare.net/vivastream/around-the-world-with-mobile-global-insights-and-regional-relevance-of-mobile-marketing-20847876

Bae, Y.H. 2012. Three Essays on the Customer Satisfaction–Customer Loyalty Association http://ir.uiowa.edu/etd/3255 (accessed July 3, 2013).

Barron, P. 2013. Force Field Analysis http://www.change-management-consultant.com/force-field-analysis.html (accessed October 22, 2013).

Bernstein, D. 2011. Value Proposition: A Free Worksheet to Help You Win Arguments in Any Meeting http://www.marketingexperiments.com/blog/general/value-proposition-worksheet.html (accessed July 10, 2013).

Boston Consulting Group. 1973. “The Experience Curve–Reviewed IV.” The Growth Share Matrix or The Product Portfolio, http://www.bcg.com/documents/file13904.pdf (accessed May 25, 2014).

Clayton Christensen Institute. 2012. Disruptive Innovation, http://www.christenseninstitute.org/key-concepts/disruptive-innovation-2/ (accessed July 17, 2013).

Content Marketing Institute, 2011, What is Content Marketing?, Cleveland,

Z Squared Media LLC. Available from: http://contentmarketinginstitute.com/what-is-content-marketing/ (accessed May 19, 2014).

Eslkevin’s Blog. May 16, 2013. Hofstede’s Cultural Dimensions Theory, http://eslkevin.wordpress.com/2013/05/16/hofstedes-cultural-dimensions-theory/ (accessed September 9, 2013).

Fleishman-Hillard and Lepere Analytics. 2013. The Authenticity Gap: Managing Expectations and Experience, http://fleishmanhillard.com/wp-content/uploads/meta/resource-file/2013/authenticity-gap-executive-summary-1367433000.pdf (accessed September 16, 2013).

Fu, B.; and T.P. Labuza. 2000. Shelf Life Testing: Procedures and Prediction Methods for Frozen Foods. St Paul, MN: University of Minnesota. http://www.google.co.za/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&ved=0CEYQFjAF&url=http%3A%2F%2Fwww.researchgate.net%2Fpublication%2F2402471_Shelf_Life_Testing_Procedures_and_Prediction_Methods_for_Frozen_Foods%2Ffile%2F9fcfd50ca4182953af.pdf&ei=G6rSUpTEIOHL0QW6wYGIBA&usg=AFQjCNF8mnmqOlASQwMO3-i2K_dcOMaEsA&bvm=bv.59026428,d.bGQ (accessed January 12, 2014).

Greenberg, M. 2009. Do the Math: An Easy Formula to Forecast Customer Growth, http://venturebeat.com/2009/08/25/do-the-math-an-easy-formula-to-forecast-customer-growth/ (accessed August 18, 2013).

Gunelius, S. 2011. Brand Equity Basics – Part 1: What Is Brand Equity?, http://aytm.com/blog/research-junction/brand-equity-basics-1/ (accessed June 3, 2013).

Jarvis, B. n.d. Conjoint Analysis 101, http://www.pragmaticmarketing.com//resources/conjoint-analysis-101?p=0 (accessed August 18, 2013).

Johnston, J. 2012. How Volvo Construction Uses Digital Marketing to Fuel Sales, http://www.marketingsherpa.com/video/volvo-digital-marketing-fuel-sales (accessed August 20, 2013).

Keaveney, S. April 1995. “Customer Switching Behavior in Service Industries: An Exploratory Study.” Journal of Marketing 56, no. 2, pp. 71–82.

Keller, K.L. 1999. Blending Branding Theory & Practice: Insights & Lessons from Applying the Brand Resonance Model, http://www.docstoc.com/docs/108016293/BLENDING-BRANDING-THEORY-and-PRACTICE (accessed May 25, 2014).

Keller, K.L. 2006. “Measuring Brand Equity.” The Handbook of Marketing Research: Uses, Misuses, and Future Advances, eds. R. Grover; and M. Vriens. Thousand Oaks, CA: Sage publication.

Keller, K.L. 2010. The New Branding Imperatives: Insights for the New Marketing Realities, http://exec.tuck.dartmouth.edu/downloads/350/msi_ff_10-700.pdf

(accessed June 3, 2013).

King, D. 2005. Ge 1300. Introduction To Human Geography Lecture 15. Location of Industry, http://www.csiss.org/classics/archive/lect15.htm (accessed September 12, 2013).

Kirby, J. 2013. A Unique Approach to Marketing Coca-Cola in Hong Kong, http://blogs.hbr.org/hbr/hbreditors/2013/02/a_unique_approach_to_marketing_coca_cola_in_hong_kong.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+harvardbusiness+%28HBR.org%29 (accessed July 15, 2013).

Klepper, S. 1997. “Industry Life Cycles.” Industrial and Corporate Change, Vol 6, No. 1, pp. 145–180.

Kotler, P. 2000. Marketing Management, Millennium Edition. Upper Saddle River, NJ: Prentice-Hall, Inc.

Kugytė, R.; and L. Šliburytė. 2005. “A Standardized Model of Service Provider Selection Criteria for Different Service Types: A Consumer-Oriented Approach.” ISSN 1392-2785 Engineering Economics 43, no. 3.

Kussmaul, M. 2012. Marketing: The Four P’s or the Four C’s, http://www.marketplacemotivations.com/articles/magazine-articles/54-marketing-the-four-p-s-or-the-four-c-s (accessed September 9, 2013).

Lasswell, M. 2004. Lost in Translation Time and Again, Product Names in Foreign Lands Have Come Back to Haunt Even the Most Brilliant of Marketers, http://money.cnn.com/magazines/business2/business2_archive/2004/08/

01/377394/ (accessed September 9, 2013).

Levitt, T. July–August. 1960. “Marketing Myopia.” Harvard Business Review 38, no. 4, pp. 45–56.

McClaren, D. 2013. Nike Takes Gamification to the Next Level with Nike Fuel Missions, http://www.theuksportsnetwork.com/nike-takes-gamification-to-the-next-level-with-nikefuel-missions (accessed July 15, 2013).

McSweeney, B. 2002. Hofstede’s Model of National Cultural Differences and Their Consequences: A Triumph of Faith – a Failure of Analysis, http://www.uk.sagepub.com/managingandorganizations/downloads/Online%20articles/ch05/4%20-%20McSweeney.pdf (accessed September 6, 2013).

MindTools.com. n.d. a. Porter’s Five Forces Assessing the Balance of Power in a Business Situation, http://www.mindtools.com/pages/article/newTMC_08.htm (accessed December 31, 2013).

MindTools.com. n.d. b. Cost-Benefit Analysis, http://www.mindtools.com/pages/article/newTED_08.htm (accessed January 6, 2014).

MSG. n.d. Brand Equity – Meaning and Measuring Brand Equity, http://www.managementstudyguide.com/brand-equity.htm (accessed June 3, 2013).

Mullins, J. 2013. The New Business Road Test: What Entrepreneurs and Executives Should do Before Launching a Lean Start-Up. London: FT Publishing.

Nichols, W. March 2013. “Advertising Analytics 2.0.” Harvard Business Review, 91, no. 3, pp. 60–68.

Olenski, S. 2012. The Engagement Marketing Disconnect Between Consumers and Brands Rages On, http://www.forbes.com/sites/marketshare/2012/11/26/the-engagement-marketing-disconnect-between-consumers-and-brands-rages-on/ (accessed August 19, 2013).

Palmer, D.; S. Lunceford; and A.J. Patton. 2012. The Engagement Economy: How Gamification Is Reshaping Businesses, http://dupress.com/articles/the-engagement-economy-how-gamification-is-reshaping-businesses/ (accessed July 10, 2013).

Parasuraman, A.; V. Zeithaml; and L. Berry. Fall 1985. “A Conceptual Model of Service Quality and Its Implications for Future Research.” Journal of Marketing 49, no. 4, pp. 41–50.

Parnitzke, J. 2013. How to Build a Roadmap – Gap Analysis, http://pragmaticarchitect.wordpress.com/2013/06/11/how-to-build-a-roadmap-gap-analysis/ (accessed August 20, 2013).

Pearson Education. 2013. Culture: The Nature of Culture, http://www.infoplease.com/encyclopedia/society/culture-the-nature-culture.html (accessed September 6, 2013).

Perner, L. 2013. Segmentation, Targeting and Positioning, http://www.consumerpsychologist.com/cb_Segmentation.html (accessed October 7, 2013).

Personal.psu.edu. 2001. Roger’s Diffusion of Innovations, http://www.personal.psu.edu/users/w/x/wxh139/Rogers.htm (accessed October 9, 2013).

Point of Purchase Advertising International (POPAI). 2012. 2012 Shopper Engagement Study Media Topline Report. Chicago: The Global Association for Marketing at Retail, http://www.popai.fr/textes/Shopper_Engagement_Study.pdf (accessed March 11, 2014).

Pulse Group PLC. 2009. Consumer Brand Loyalty in a Recession Final, http://www.slideshare.net/bobchua/consumer-brand-loyalty-in-a-recession-final (accessed August 18, 2013).

Rogers, E.M. 1995. Diffusion of Innovations. 4th ed. New York, NY: The Free Press.

Ryan, M.; A. Sleigh; K.W. Soh; and Z. Li. 2013. Why Gamification is Serious Business, http://www.accenture.com/us-en/outlook/Pages/outlook-journal-2013-why-gamification-is-serious-business.aspx (accessed July 10, 2013).

Sawtooth Software. n.d. What is Conjoint Analysis?, http://www.sawtoothsoftware.com/products/conjoint-choice-analysis/conjoint-analysis-software (accessed August 22, 2013).

Sawtooth Technologies. n.d. Perceptual Mapping, http://www.sawtooth.com/index.php/consulting/overview/perceptual-mapping (accessed August 22, 2013).

Shipham, S.O. 2010. “The MBA Research Process: Some Theoretical Considerations.” Management Today 28, no. 6, pp. 49–50.

Silverman, G. 2000. What to Do When Quantitative and Qualitative Research Contradict Each Other, http://www.quirks.com/articles/a2000/20001201.aspx?searchID=808886082&sort=9 (accessed September 10, 2013).

Smith, P.R. 2011. SOSTAC® Guide to Writing The Perfect Plan, www.prsmith.org; www.facebook.com/prsmithmarketing

Sorenson, L. 2011. 6 Core Benefits of Well-Defined Marketing Personas, http://blog.hubspot.com/blog/tabid/6307/bid/29583/6-Core-Benefits-of-Well-Defined-Marketing-Personas.aspx (accessed September 9, 2013).

Stevens, G. n.d. Product Lifecycle | Do You Know Where Your Business Is?, http://www.beasuccessfulentrepreneur.com/product-lifecycle-do-you-know-where-your-business-is/ (accessed December 31, 2013).

Stinson, J.E.; and W.A. Day. 1990. Developing Competitive Strategy, http://www.ouwb.ohiou.edu/stinson/Developing Strategy.html (accessed July 22, 2013).

Sunshine, J. 2012. 11 Brand Names That Sound Hilarious in a Different Language, http://www.huffingtonpost.com/2012/08/10/lost-in-translation-brands_n_1765812.html#slide=1362544 (accessed December 30, 2013).

Thomas, J.W. 1993. Product Testing, http://www.decisionanalyst.com/publ_art/prodtes1.dai (accessed July 10, 2013).

Thompson, R. n.d. Stakeholder Analysis: Winning Support for Your Projects, http://www.mindtools.com/pages/article/newPPM_07.htm (accessed August 20, 2013).

Wartzman, R. 2009. Authentic Engagement, Truly, http://www.businessweek.com/managing/content/dec2009/ca2009123_747440.htm (accessed October 7, 2013).

Wikimedia Commons. 2007. File:Servqual NL.gif, http://commons.wikimedia.org/wiki/File:Servqual_NL.gif?uselang=en-gb# (accessed January 7, 2014).

Wikipedia. 2012 a. Brand Equity, http://en.wikipedia.org/wiki/Brand_equity (accessed September 12, 2013).

Wikipedia. 2012 b. Ishikawa Diagram, http://en.wikipedia.org/wiki/Ishikawa_diagram (accessed October 7, 2013).

Wong, K.C. 2011. Using an Ishikawa Diagram as a Tool to Assist Memory and Retrieval of Relevant Medical Cases from the Medical Literature, http://www.jmedicalcasereports.com/content/5/1/120 (accessed October 9, 2013).

Zhang, K.Z.K.; C.M.K. Cheung; and M.K.O. Lee. 2012. “Online Service Switching Behavior: The Case of Blog Service Providers.” Journal of Electronic Commerce Research 13, no. 3, http://www.csulb.edu/journals/jecr/issues/20123/paper1.pdf (accessed January 20, 2014).

Zimmermann, A.; and C. Maennling. 2007. Mainstreaming Participation, http://www.fsnnetwork.org/sites/default/files/en-svmp-instrumente-akteuersanalyse.pdf (accessed October 13, 2013).

Additional Sources

Ballou, R.H. 2006. The Evolution and Future of Logistics and Supply Chain Management, http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0103-65132006000300002&lng=en&nrm=iso (accessed September 12, 2013).

Chronostrategy. n.d. ADL Matrix, http://chronostrategy.wikispaces.com/ADL+Matrix (accessed January 5, 2014).

Fruin, M. 2013. Competitive Strategy and Industry Environment, www.cob.sjsu.edu/fruin_m/Spring2013/ppt/chapter6.ppt (accessed July 20, 2013).

Gartner, Inc. 2011. Gartner Predicts Over 70 Percent of Global 2000 Organisations Will Have at Least One Gamified Application by 2014, http://www.gartner.com/newsroom/id/1844115 (accessed July 15, 2013).

Gurel-Atay, E.; G.-X. Xie; J. Chen; and L.R. Kahle. March 2010. “Changes in Social Values in the United States: 1976-2007 ‘Self-Respect’ Is on the Upswing as ‘A Sense of Belonging’ Becomes Less Important.” Journal of Advertising Research 50, no. 1, pp. 57–67.

Harquail, C.V. 2009. 7 Core Principles for Authentic Engagement, http://authenticorganizations.com/harquail/2009/05/11/7-core-principles-for-authentic-engagement/ (accessed October 6, 2013).

Hugos, M.H. 2011. Essentials of Supply Chain Management, 3rd ed. New York, NY: Wiley.

Kirkpatrick, D. 2011. B2B Gamification: Bold Strategy in Conservative Industry Increased Website Visits 108.5%, http://www.marketingsherpa.com/article/case-study/bold-strategy-in-conservative-industry (accessed July 16, 2013).

Kirkpatrick, D. 2012. Gamification: 6 Tactics for B2B Marketers, http://www.marketingsherpa.com/article/how-to/6-tactics-b2b-marketers (accessed July 10, 2013).

Lee, M. 2007. Book Summary: Crossing the Chasm by Geoffrey Moore, http://bizthoughts.mikelee.org/book-summary-crossing-the-chasm.html (accessed July 23, 2013).

Mullins, J. 2010 a. Markets and Industries: What’s the Difference and Why Does it Matter?, http://www.europeanbusinessreview.com/?p=2366 (accessed August 20, 2013).

Mullins, J. 2010 b. The New Business Road Test: What Entrepreneurs and Executives Should Do Before Writing a Business Plan. 3rd ed. London: Prentice Hall.

ODI. 2009. Planning Tools: Stakeholder Analysis, http://www.odi.org.uk/publications/5257-stakeholder-analysis (accessed August 20, 2013).

Olsen, Z. 2013. Product Adoption Curve Marketing, http://www.bydatabedriven.com/product-adoption-curve-marketing/ (accessed July 19, 2013).

Pressley, M.M. 2008. “Chapter 7: Competitive Strategy and the Industry Environment.” http://college.hmco.com/hjinstruct/powerpt/ch07/sld001.htm (accessed July 22, 2013). (Taken from Hill, C.W.L.; and G.R. Jones. 2008. Strategic Management: An Integrated Approach. Houghton Mifflin Company.)

Saltlane. 2009. Stakeholder Analysis http://www.saltlane.co.uk/Resources/stakeholder%20analysis.HTML (accessed August 20, 2013).

SCOR. 2013. What is SCOR?, http://supply-chain.org/scor (accessed September 15, 2013).

See also: www.newbusinessroadtest.com; www.johnwmullins.com

Supply Chain Management Institute. 2008. The Supply Chain Management Process, http://www.ijlm.org/Our-Relationship-Based-Business-Model.htm (accessed September 9, 2013). (The diagram comes from the book Lambert, D.M. 2008. Supply Chain Management: Processes, Partnerships, Performance, 3rd ed. Ponte Vedra Beach, FL: Supply Chain Management Institute .)

Toy, T. 2013. How To Develop a Killer Marketing Plan, Methods Used, General Rules, Six Key Steps, Business Models And Samples, http://tommytoy.typepad.com/tommy-toy-pbt-consultin/2013/04/how-to-develop-a-killer-marketing-plan-methods-used-general-rules-six-key-steps-business-models-and-samples.html (accessed August 23, 2013).

Walker, D.; A. Shelly; and L. Bourne. 2008. Influence, Stakeholder Mapping and Visualization, www.researchgate.net/publication/24078124_Influence_stakeholder_mapping_and_visualization/file/d912f (accessed August 20, 2013).

Wikipedia. 2013. Hofstede’s Cultural Dimensions Theory, http://en.wikipedia.org/wiki/Hofstede%27s_cultural_dimensions_theory (accessed September 2, 2013).

Willcocks, L.P.; S. Cullin; and M.C. Lacity. 2007. The Outsourcing Enterprise The CEO Guide to Selecting Effective Suppliers, http://www.outsourcingunit.org/publications/Selecting_Effective_Suppliers.pdf (accessed September 15, 2013).