Dashboard and commercial strategy

avatar
Created by
Julie

Cards (73)

  • Commercial strategy refers to the decisions taken by a company and its practices when it comes to commercialising its prodcts or services.
  • The more accurate the mission is the more competitive the company will be.
    It is the core business of a company.
    It often implies maximum competence and implication.
  • Objectives - Different kinds
    1. Managerial: related to the missions entrusted to them (presence at trade fairs, framing of a young rookies...)
    2. Marketrelated: Directly deals with the activity of the company (sales, turnover, customer satisfaction..)
    3. Processrelated: process, manufacturing, distribution...Process compliance (reporting, agenda, order taking...)
    4. Financial: Everything related to money and investments. Profitability, budget optimization...
  • Objectives - They have to be S.M.A.R.T
    S - specific :your goals need to be clear and easily understood
    M - measurable : your goals must be quantifiable.
    A - actionoriented : goals have to involve action otherwise they are just dreams and wishes. When you set your goals, also determine next steps so you know how to start making progress.
    R - realistic : just don't set goals that are physiologically impossible.
    T - timebound : your goals must have a timeline.
  • Marketing approach - 3 steps:
    1. Diagnosis
    2. Recommendations
    3. Action
  • Marketing approach - 3 key principles
    1.Market suitability
    • Ensure that a need does indeed exist and identify its characteristics.
    • Ensure that our offer corresponds to this need.
    2. Offer / promise consistency
    • Consistency of the 4Ps of the mix
    3. Economic realism
    • Optimize resources and means to create, produce and make the offer available.
    • Horizons: ST / MT / LT
  • Strategic diagnosis
    Before deisnging and implementing a CAP, it is necessary to make a diagnosis in order to question:
    • on our strenghts
    • on what can influence us
    • our environment
    • how our environment impact us
  • Strategic diagnosis: SWOT, 2 analysis in 1 tool
    SWOT, 2 analysis in 1 tool
    1.External
    • Market
    • Macro-environment (incl.PESTEL)
    • Micro-environment (incl.PORTER)
    • Offer
    2.Internal
    • Strengths
    • Weaknesses
  • External environment - opportunities / threats
    What is an opportunity? Examples?
    An external event that may (likely) have a positive impact on the business.
  • External environment - opportunities / threats
    What is an threat? Examples?
    A problem caused by an unfavorable trend/disruption in the environment and which, would lead to a deterioration of the competitive position, if lack of an appropriate marketing response.
    The more serious the threat is, the more deeply it will affect the company's profitability and is likely to do so
    2 factors to consider: probability of occurence / impact
  • External environment - opportunities / threats
    What is the macro - environment?
    • Companies need to identify unmet needs and current general trends (economic crisis...) and determine the relevance of an action.
    • A set of variables that the firm cannot control and that may affect the functioning of the firm's market.
    -> How to analyze it? Identify the elements of the PESTEL
  • External environment - opportunities / threats
    What is the microenvironment?
    • Actors close to the company that influence its ability to supply its customers
    • Suppliers, customers, market intermediaries (resellers, logistics companies, financial intermediaries), distributors, the public: possibly influential groups (e.g. consumer associations), analysis of competition.
    • Analysis of consumer behavior
    • Market analysis
    How to analyze it? Measure the intensity of each of the 5(+1) PORTER's forces
  • Market analysis
    • PESTEL
    • PORTER
    • Notions to master
  • External - Macro - Environment
    P - Political
    E - Economic
    S - Social
    T - Technological
    E - Environmental
    L - Legal
  • POLITICAL FACTORS that inlfuence the market
    • Political stability
    • Monetary Policy
    • Fiscal Policy
    • International troubles
    • Country risks
    • Geopolitics
    • Weight of the State
    • Lobbies
    To what extent does your political environment has an effect on your own economy? These factors can have a big influence on the way you run your business. What if you want to set up in another country? You need to meet some political criteria on your market, anticipate their changes and adapt your action plan accordingly.
  • ECONOMIC FACTORS that influence the market
    • Interest rates
    • Inflation
    • Average income per capita
    • Purchasing power
    Economic factors play a major role in HOW you business may be profitable. These factors could be splitted in "macro-economic" and "micro-economic" factors.
    Macro-economic factors are related to the general demand in an economy. The government controls interest rates, taxation policy. Micro-economic factors are related to how people spend their money.
  • SOCIAL FACTORS that influence the market
    • Education
    • Fashion and trends
    • Lifestyle
    • Health
    • Religious aspects
    • Demographic aspects
    Also known as socio-cultural factors, they are related to the beliefs and attitudes among a population.
    These factors inlcude population growth, average age, the importance given to health etc.
    These factors are interesting in the way that they help to understand consumer behaviour and the emotional aspect of consumption.
  • TECHNOLOGICAL FACTORS that influence the market
    • R&D discoveries
    • Support for innovation
    • Technology transfer
    • Mode of production
    • Technological developments
    ....bring major innovation which has a direct impact on your market. THese technological factors affect your business in 3 ways:
    • New ways of producing products and services
    • New ways to distribute them
    • New ways to communicate with your commercial target
  • ENVIRONMENTAL FACTORS that influence the market
    • Weather
    • Climate
    • Clean Energy
    • Recycling
    • Regulation
    • Sustainable development
    Recently taken into account, these factors have become more and more important through various phenomena that create a very legitimate fear:
    lack of certain raw materials, environmental pollution, our resources are limited, carbon footpring, global warming.
  • LEGAL FACTORS that influence the market
    • Standards
    • Regulation
    • Specific legislation
    Related to safety, equal opportunities, advertising, consumer rights, laws, brands...
    It is obvious that your company needs to pay close attention to what it can and cannot do from a legal point of view.
    An international player, has to make sure to respect the specific laws of each state present in an negotiation.
  • To have a genuine strategic thinking using PESTAL, you have to:
    • Measure the real impacts
    • Limit the criterias you list in ach PESTAL category, in, order to avoid the "travel list" effect
    • Prioritize by/establish a hierarchy of, factor or consider the whole of them.
    • For each factor, determine whether its influence is positive or negative on the market.
  • External - Micro-Environment
    5 + 1 PORTER FORCES
    Rivalry among existing firms
    The intensity of this competition depends on the size of the company, market growth, product differentiation...

    The stronger market grows, the less competition there is.

    In terms of product differentiation, the more different the products are, the less intense the competition is.
  • External - Micro-Environment
    5 + 1 PORTER FORCES
    Bargaining powers of buyers 

    The main influence of customers on a market is led by their ability to negotiate and their influence on price and sales' conditions ; this power is more important as they buy in large quantities (terms of payment, associated services) which determines the profitability of the market.
  • External - Micro-Environment
    5 + 1 PORTER FORCES
    Barganing power of suppliers

    The ability of suppliers to impose their conditions on a market, in terms of cost, quality or lead time, has a direct impact on the <room for maneuver> and the profitability of the companies involved in that market; with the added influence of delivery-times, packaging obligation, etc
  • External - Micro-Environment
    5 + 1 PORTER FORCES
    Threat of new entrants
    This threat depends on the barriers that may exist to entering the new market: level of technicality/technology required, level of investment...
    The more the market of the firm is a niche, the less the potential new comers are a threat
  • External - Micro- Environment
    5 + 1 PORTER FORCES
    Threat of substitute products or services

    Substitutes are products which may be an attractive alternative to the existing offer. They can prevent companies from increasing their prices and therefore their profits.
    They drive to the establishment of an equilibrium price and lead to think about the evolutions of the product/service offer.
  • External - Micro- Environment
    5 + 1 PORTER FORCES
    (+1) Regulatory constraints of government
    Policy and legislation shape the way each force operates in the market.
  • External - Micro- Environment
    5 + 1 PORTER FORCES
    Porter's Five Forces Model is a market analysis technique that takes into account the five dimensions on which a company can act to optimize its competitive advantage:
    • Competitor rivalry
    • The threat of new entrants
    • The threat of substitutes
    • Client's barganing power
    • The negotiating power of suppliers
    The role of the State (standards , laws) is often added to this.
  • PORTER's Force Analysis enables the company to:
    • Review its positioning so as not to lose competitiveness and market share.
    • In depth analyze its competitive position in order to be proactive on its market and to anticipate, especially regarding to substitutes. A simple technique to implement and a structured approach.
    • Highlight the precautions to be taken before validating a decision
    • Measure the appropriate investments
    • Determine the monitoring process so that it is not just reactive
  • External-Micro-Environment analysis is also:
    The analysis of the market in terms of:
    • Volume
    • Structure
    • Evolution of sales
    • Consumer and Prescriber Behaviour
    • Distribution channels
    And the analysis of the competition
    • Financial structure
    • Image/Notoriety
    • Strengths/Weaknesses
    • Market share (competitive position)
    • Strategy/point of differentiation
    • Acces to suppliers
  • Market analysis:
    • PESTEL
    • PORTER
    • Notions to master
  • External - Notions to master
    Market:
    • Need (clearly defined)
    • Demand (customers)
    • Suppliers (likely to satisfy the need)
    • Meeting place
    Upstream/Downstream market
    • Upstream = before production because necessary for production (suppliers/producers)
    • Downstream = after production (intermediary, customers, competitors)
  • External - Notions to master
    3 Market structures
    • Many suppliers / many customers = Competitive market
    • Few suppliers /many customers = Oligopoly
    • One suppliers / many customers = Monopoly
    2 Main types of competition
    • Direct = same need / same product / same main market
    • Indirect = same need / substitutable product
    5 Competitve positions
    • Leader -> Pretender (Challenger) -> Follower ->Outsider->Exiting
  • Internal - Questions to ask
    Strenghts
    • What do you do better than others?
    • What makes your company/brand/product different?
    • Do you have strong competitve advantages?
    • Have you a solid repute?
    • Do you have enough experience?
    • Do you have a registered patent, an innovative technology?
  • Internal - Questions to ask
    Weaknesses
    • What do you do less well than your competitors?
    • Do you lack resources?
    • Are you financial/logistical/human resources sufficient?
    • Are your customers loyal to your company/brands?
    • Is the size of your sales force sufficient?
    • Is your communication sufficient to generate demand?
  • Internal -Resources
    Different resources of a company
    • Human resources
    • Material resources
    • Financial resources
    • Intangible resources
    Elements to be put into perspective with regard to
    • Overall performance
    • Brand reputation/image
    • Marketing mix ( coherence of the 4 Ps)
  • Human resources - Quantitative
    • Total number of employees
    • Breakdown of this workforce:
    • Sex
    • Age range
    • Function
    • Department
    • Needs to objective
    Reduction or increase of the workforce?
  • Human resources - Qualitative
    • Competencies:
    • Experience
    • Know-how
    • Level of expertise
    • Staff comfort level
    • Absenteeism rate
    • Turnover rate
    • No. of accidents at work
  • Material resources
    Equipment
    • Type:Buildings /Vehicles/Machines/Tools/Software
    • Age: modern /obsolete
    • Level of security
    • Reliability
    • Flexibility : tailored to needs? Versatile?
    Analyze the impact of material goods on productivity AND on the competitiveness of the company.
  • Financial resources
    • Financing capacity
    • Profitability
    • Results
    • Credit-Worth
    • Debt ratio
    • Part of shareholders' equity
    • Banking partners