Operational marketing: definition and objectives
Operational marketing refers to the set of techniques and means used to achieve its marketing objectives. It consists of defining the actions to be carried out in order to promote its products and encourage prospects to buy.
Decisions from operational marketing are applied in the short or medium term. They are constantly renewed to keep up with market developments.
Operational marketing and strategic marketing, two complementary practices
It is common to contrast operational marketing with strategic marketing. Indeed, while the former focuses on short-term actions, the latter reflects on the long term. These are two components of a comprehensive strategy and two interrelated practices.
Operational marketing allows the achievement of the objectives set by strategic marketing. The latter therefore refers to the reflection phase, where you will study the market, analyze the opportunities and develop the development strategy.
Operational marketing refers to the stage where you take action. You will therefore apply the decisions resulting from the strategic analysis and determine the means to achieve your objectives.
One is as useful as the other. Without the strategic marketing and the analysis that comes with it, it will be difficult for you to have a strategy that can conquer your target market. Operational marketing will transform these objectives into concrete actions.
Implementation of operational marketing through the marketing mix
Relevant policies will need to make strategic marketing decisions a reality. To do this, use the marketing mix to focus your actions on four axes: product, price, distribution (place), and communication (promotion). We also talk about the 4 P of the marketing mix.
The aim is to define the action plans associated with these four policies. The product policy concerns the methods and techniques defining the characteristics of the product in order to place it on the market.
The pricing policy is to set the price by seeking the balance between possible gross margin and competitiveness. Then it will be necessary to promote the product to attract customers. The communication policy defines the supports and strategies to promote the product on the market. As for the distribution policy, it is the choice of locations and networks aimed at increasing the visibility of the product.
The goal is to make strategic choices in order to better position ourselves in the market, which once again justifies the complementarity between strategic marketing and operational marketing. With upstream studies and market knowledge, you can make better decisions.
As we have seen, the decisions made with operational marketing are applicable in the short term. As you go, you can review them and change your action plans.
Operational marketing tools
Operational means group the devices used to reach customers and achieve the objectives set. The profusion of communication and distribution channels provides a wide choice: television, radio, press, or telephone.
The development of the Internet will also benefit operational marketing. To promote your products, you have digital channels: websites, social media, emails…
Some tools may perform better than others, depending on the habits of your target audience. Understanding how it is consumed will help you choose the right tools to deploy.
Performance indicators to monitor for operational marketing
Evaluation of the actions carried out allows you to assess their effectiveness and the benefits in terms of income. Through this assessment, you can identify weaknesses in your strategy and correct them. To do this, you need to use relevant performance indicators, which should be set according to the purpose of your analysis.
You have the financial indicators, to track the profitability of your investments and your campaigns. And also performance indicators, to evaluate the effectiveness of your marketing techniques and devices.
In terms of profitability, Return on Investment (ROI) is the general indicator to be preferred. It allows reconciliation between the turnover achieved and the cost of marketing actions.
Metrics such as customer acquisition cost, which shows the amount spent to acquire a customer, or the average shopping cart, also help you gauge the profitability of your campaigns.
To track the effectiveness and performance of your strategy, you can use metrics such as the conversion rate for each device or traffic sources, such as on the website or in the store.
These performance indicators should be monitored and monitored regularly, in order to correct your actions and adjust your investments. These assessments are also used to estimate the income of your next campaigns.
An operational marketing plan is required to improve your revenue. The achievement of your goals indeed passes through him. But operational marketing must rely on strategic marketing to determine the direction of your actions. Completed, both contribute to steady growth.