ystemic approach to commercial programming and commercial choices Jean-Antoine Moreau https://sites.google.com/site/jammooc/

1. Jean-Antoine Moreau, engineer
Commercial ProgrammingCommercial Programming
Commercial ChoicesCommercial Choices

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Systemic approachSystemic approach

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Management of the each product.
Portfolio for the activity management.
A product-market strategy:
– Analysis of the performance of a product line
– Construction of a representative product configuration
– Recognition operational options

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The forecast of a product line analysis
• Models forecast:
– Sales forecasting
– Market share
– Dominance
• calculation of dominance
• dominance prediction of the brand
– Growth rate of the market share

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systemic approach
Growth rate of the market share
Dominant market share
Area with low growth
Area with strong growth

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systemic approach
Growth rate of the market share
Dominant market share
Area with low growth
Area with strong growth
current sales
sales
forecasting

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systemic approach
Growth rate of the market share
Dominant market share
Area with low growth
Area with strong growth
current sales
sales
forecasting
Sales must
be made

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systemic approach
Growth rate of the market share
Dominant market share
Area with low growth
Area with strong growth
Product live
Product evolution
Product improvement

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systemic approach
Growth rate of the market share
Dominant market share
Area with low growth
Area with strong growth
Removing the product
from the market
Product profitability evolution

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systemic approach
Growth rate of the market share
Dominant market share
Area with low growth
Area with strong growth
Removing the product
from the market
Product live
Product evolution
Product improvement

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different cases of products
• Products with high growth and high growth rate
• Products with high dominance and low growth rate
• Products with low dominance and growth rate
• Products with low dominance and low growth rate

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The graphical representation of products
• Axis current performance
• Axis future performance
• Variables:
– dominance
– rate of growth
– sales

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Options of the Product Manager
• The growth rate of the market share
• Dominance
• Sales
• Time
• The life cycle of the product

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The features of different products

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• Prospect and qualified products
• Star qualified products
• Qualified products and the locomotives' products
• The fastest growing products
• The remodelables products
• Products sentenced
• The produts breathless

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Cases and evolution graphs
Product sales growth rate dominance
prospect
Start
loco
rapid growth
remodelable
sentenced
breathless

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Cases with logical operators
Product sales growth rate dominance
prospect 1 1 0
Start 1 0 1
loco 1 0 0
rapid growth 0 1 1
remodelable 0 1 0
sentenced 0 0 1
breathless 0 0 0

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Optimization of the marketing
effort and endeavour.
When a product of the maturity of its life cycle
• It is necessary to streamline and restructure
existing resources; because the sales level may
deteriorate in the near future

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Diagnostic Elements
• characteristics
– commercial,
– technical,
– environment.

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Diagnostic Elements
• characteristics
– commercial,
– technical,
– environment.
• The demands imposed by
the competition
• Impacts related to
concurrency.

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Diagnostic Elements
• characteristics and performances
– commercial,
– technical,
– environmental
request
competition
economic
monetary
social
cultural
lifestyles
environment

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commercial optimization
program
• it involves the simultaneous definition of all trade
variables,
• and good cost control
• knowledge of the rate of profit, and market share
• and also to have a methodological evaluation process

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Method of pricing
• Methods based on costs and profitability
• Method to estimate the selling price, from the
neutral point
• Method to estimate the selling price from a profit
target
• Method based on the attitude and behavior of the
client from the price

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Assumptions related to the
perception of price
• for examples:
– above a price, the buyer consider the product as
too expensive given its budget.
– above a price, the buyer consider the product as
too expensive given the use it makes of the
product.
– below a price, the buyer will issue doubts about
the quality of the product

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discriminatory pricing
• according to purchasing power
– The prices are even lower when the quantities
purchased are important
• depending on the product version
by the geographic location
• depending on the time of sale
risk of speculation

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Substitutable products
• they are not completely distinguishable
• they can become complementary products
 we need to know the elasticity of substitution.

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Complementary products
• they constitute elements of a single set
– examples:
• car
– seats
– wheels
• stereo
– speaker
– mp3 player
• they represent the operation of this assembly.

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Development of the marketing effort
• Resource allocation model modeling
– Define the assumptions and the data
– Define the management rules
– Define the decision rules
– Define the objectives
• profit
• market expansion
• Provide a review of the model and its improvement
by a series of iterations

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Improvement of the model
• Taking into account, the objective and expectations.
• Use optimization of the marketing mix
• Taking into account, the constraints
• Consideration of the motivation of sellers
• Taking into account, the rules of management sales force

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Productivity of the sellers
• Potential measurement
• Measure of actual sales
• Measure seller performance
• Measuring the seller's motivation
• Calculating productivity
• Analysis of the relationship
• Profitability analysis of the seller
• Calculating the rate of return
• Optimization of the sales force
 Improved profitability