Strategic Marketing & Budgeting


A phase in the strategic marketing management process is budgeting. A budget is a formal, quantitative  expression of an organization’s planning and strategy initiatives expressed in financial terms. A well-prepared budget meshes and balances an organization’s financial, production, and marketing resources so that overall organizational goals or objectives are attained.

An organization’s master budget consists of two parts: 1) an operating budget, and 2) a financial budget. The operating budget focuses on an organization’s income statement. Since the operating budget projects future revenue and expenses, it is sometimes referred to as a pro forma income statement or profit plan. The financial budget focuses on the effect that the operating budget and other initiatives (such as capital expenditures) will have on the organization’s cash position.

In addition to the operating and financial budget, many organizations prepare supplemental special budgets, such as an advertising and sales budget, and related reports tied to the master budget. Budgeting is more than an accounting function. It is an essential element of strategic marketing management.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Monopoly Regulation


Monopoly is usually considered to lead to economic inefficiency. Excessive monopoly profits are commonly regarded as unfair to consumers. Policies for dealing with monopoly range from laissez faire or toleration at one extreme to “trust-busting” at the other. Another possibility is to put monopolistic enterprises under government ownership, as is commonly done in Europe for railroads and telephone service. Regulation of the monopoly’s price and quantity or quality of service by a government agency is important. In the US regulation is standard practice for privately owned ‘public utilities’ providing goods and services such as electric power, water and gas, telephone, and transportation—usually thought to be natural monopolies.

The standard philosophy of regulation aims at limiting the monopolist to a ‘normal profit.’ Normal profit is supposed to be just adequate to attract needed capital and other resources into the business, but not so high as to represent exploitation of consumers. Normal profit in the accounting sense corresponds to zero economic profit. Zero economic profit characterizes long-run equilibrium in perfect competition. In a sense regulation achieves the result that may occur if competition is possible.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Economic Truths


Although there are few truisms that apply universally in the business world, there are four related economic truths that are valid in every business situation:

  1. Over the long term, it is absolutely essential to be a lower cost supplier or profit margins will erode.
  2. To stay competitive, inflation-adjusted costs of  producing and supplying any product or service must continuously trend downward.
  3. The true cost and profit picture for each discrete product/market segment is often obscured by traditional accounting practice.
  4. Real business winners concentrate as much or more on cash flow and balance sheet strength as they do on reported profits.

These points have always been valid, but they are far more serious today because there is much less margin for error in our more turbulent environment.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Follies of Losers


Losers lose out on repeat business. They use rather than value their existing customers. They haggle over prices and margins, and discourage ‘variations’ from standard offerings that might create ‘extra work’ and cause ‘systems problems.’ They do just enough to fulfill any contracts that are won. They don’t really care about their customers’ businesses and keep ‘outsiders’ at a distance to protect their ‘know-how.’

Losers do little to lock their customers in. they are reluctant to establish online links because of worries about importing viruses. Open book accounting and partnering relationships are also avoided. Not surprisingly, clients seeking a deeper and more intimate relationship look elsewhere.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Constitution of Service Sector


Service sector comprises following services:

Lodging Services

Hotels, rooming houses, and other lodging places

Sporting and recreation camps

Trailering parks and camp sites for transients

Personal Services

Laundries

Childcare

Linen supply

Shoe repair

Diaper service

Funeral homes

Carpet cleaning

Tax preparation

Photographic studios

Beauty shops

Health clubs

Business Services

Accounting

Exterminating

Agencies

Employment agencies

Collection agencies

Computer programming

Commercial photography

R&D labs

Commercial art

Secretarial services

Management services

Window cleaning

Public relations

Consulting

Detective agencies

Equipment rental

Interior design

Automotive Repair Services and Garages

Auto rental

Tire retreading

Truck rental

Exhaust system shops

Parking lots

Car washes

Paint shops

Transmission repair

Motion Picture Industry

Production

Theaters

Distribution

Drive-ins

Amusement and Recreation Services

Dance halls

Race tracks

Orchestras

Golf courses

Pool halls

Amusement parks

Carnivals

Fairs

Ice-skating rinks

Botanical gardens

Circuses

Swimming pools

Health Services

Physicians

Nursery care

Dentists

Medical labs

Chiropractors

Dental labs

Legal Services

Educational Services

Libraries

Correspondence schools

Schools

Data processing schools

Social Services

Child care

Family services

Job training

Non-commercial Museums, Art Galleries, and Botanical & Zoological Gardens

Selected Membership Organizations

Business associations

Civic associations

Financial Services

Banking

Investment firms

Insurance

Real estate agencies

Miscellaneous Repair Services

Radio and television

Welding

Watch

Sharpening

Reuphoistery

Septic tank cleaning

Architectural

Surveying

Engineering

Utilities

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Recognizing Markets


There are two major markets in marketing: the consumer market and the industrial market. The consumer market consists of all the individuals or households who want goods and services for personal consumption or use.

The industrial market consists of all the individuals and organizations that want goods and services to produce other goods and services or to sell, rent, or supply the goods to others. Oil drilling bits, cash registers, display cases, office desks, public accounting audits, and corporate legal advice are examples of industrial goods and services (products).

The important thing to remember is that buyer’s reason for buying and the end use of the product are what determine whether a product is considered a consumer product or an individual product.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Previous Older Entries

Follow

Get every new post delivered to your Inbox.

Join 46 other followers