PPM 2

Question 1

Provide detailed discussion on Market and customer intelligence gathering, what framework and questions have to be considered

Answer 1

in the market we look at 2 components

• competitive intelligence
• customer intelligence : it is not about what you think your company is, it is about what customer think your company is.

the insight we need to know on customers:
_ % of purchases
_ big or small customers ?
_ national or international customer?
_ under which circumstances are the products used?

Question 2

describe the concept of economic value modeling ?

Answer 2

_ making an overview of the monetary value of benefits that customers receive

_ start by setting a reference price
_ estimate monetary value of specific benefits
_ estimate monetary value of additional costs
_ do final adjustment
_ set final price

Question 3

what is meant by pocket price waterfall?

Answer 3

_ phenomenon of price erosion
_ pricr erosion comes from variety of discounts provided to customers from different departments
_ going from List price 》invoice price 》 pocket price

Question 4

what are basic financial concepts Pm need to use to defend their business case

Answer 4

_ general cost classification
_ contribution reporting
_financial statement analysis
_ relevant costs
_ economic value modeling and pocket price waterfall

Question 5

what type of costs do pm need to consider

Answer 5

direct costs
indirect costs
relevant and irrelevant
fixed and variable

Question 6

describe customer equity flow charts ?

how can company increase equity ?

Answer 6

first develop a customer value profile :
_ attract new customers with similar profile
_ enhance profitability through existing customers

companies can increase customer equity :
_ attract new customers with high future vale
_ firing low potential customers (increase price and decrease cost)

Question 7

describe basic components of an income (P and L ) statement

Answer 7

sales-cost = gross profit
gross profit - operating expense = net income from operations
net income + other income - other exp = net income before taxes
net income before tax - income tax = NET INCOME

Question 8

explain process of questions that comprise a potential planning framework

Answer 8

to make a plan you need to answer these questions :

where are you now ?
where do u want to be ?
what do you want to accomplish?
how you want to accomplish it?
which  matrics you will use to track results?