Good Pricing Decisions


Pricing decisions draw on many areas of marketing expertise. It requires a comprehensive understanding of the forces that shape the market, including competitive  interactions, technology and consumer psychology. Sometimes these forces interact and are likely to put downward pressure on prices, such as substitutes, technological advances, price-driven competition, customer experience, and changes in internal focus, such as sales forecasts. Customer makes it difficult to raise prices, as repeat customers’ ability to perceive incremental value of a company’s product or service diminishes over time, especially as substitute or competitive products emerge. Increased internal expectations in the form of expected sales increases or new budgets can send prices on a downward spiral. Customer price sensitivity may also serve  to keep prices in check, especially in the presence of available competitive substitutes or among a company’s marginal customers.

Even in a deflationary economy, there are opportunities for keeping prices from dropping or even for raising prices. However, customers must perceive that these enhancements deliver a genuine, meaningful benefit, or they will continue to seek lower cost alternatives.

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.

Indicators of Poor Listening


In the customer service environment, you cannot afford the luxury of failing to listen to your customer. Periodically, you should do a self-check on your listening style to see if you need improvement. If any of the following events occur, you may need to refocus.

  • Customers  specifically request to speak to or be served by someone else.
  • You find yourself missing key details of conversations.
  • You regularly have to ask people to repeat information.
  • You walk away from phone calls or personal encounters not completely knowing what action is required of you.
  • Customers often make statements, such as, “Did you hear what I said?” Are you listening to me?” or “You are not listening.”
  • You find yourself daydreaming or distracted as the customer is speaking.
  • You miss accompanying nonverbal cues sent by the customer as the two of you communicate.

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.

Reinforcement Theory and Learning


Reinforcement theory, also called operant conditioning, is generally associated with the work of B. F. Skinner. In its simplest form, reinforcement theory suggests that behavior is a function of its consequences. Thus, behavior that results in pleasant consequences is more likely to be repeated, and behavior that results in unpleasant consequences is less likely to be repeated.

Reinforcement theory further suggests that in any given situation, people will explore a variety of possible behaviors. Future behavioral choices are affected by the consequences of earlier behaviors. Cognitions also play an important role. Thus, rather than assuming a mechanical stimulus-response linkage suggested by the traditional classical view of learning, contemporary theorists believe that people consciously explore different behaviors and systematically choose those that result in the most desirable outcomes.

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.

Promoting Sales


First stage marketing strategies should focus on sales promotions that will attract immediate customers and selling methods that will ensure repeat business. First stage companies can also benefit from sales and promotion activities, but with a focus on short term rather than long term benefits. Ideas include:

  1. Invite a local newspaper to write an article on some unique aspect of the company.
  2. Invite television reporters to cover a special event sponsored by the company (fund raising drive, a banquet honoring an employee, or the introduction of snappy new product).
  3. Start a charity book collection drive at local schools.
  4. Sponsor a young people’s athletic team.
  5. Sponsor a civic band or float in a local parade.
  6. Donate materials, space, or services to community theater groups.
  7. Sponsor a paper, glass, aluminum, or plastic recycling drive.
  8. Get behind a social cause.
  9. Donate used computers, office equipment, etc., to local schools, hospitals, or welfare agencies.

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.

Direct-mail Marketing: Checklist


  • Is there a perceived need for the product or service?
  • Is it practical?
  • Is it unique?
  • Is the price right for your customers or prospects?
  • Is it a good value?
  • Is the markup sufficient to assure a profit?
  • Is the market large enough? Does the product or service have broad appeal?
  • Are there specific smaller segments of your list that have a strong desire for your product or service?
  • Is it new? Will your customers perceive it as being new?
  • Can it be photographed or illustrated interestingly?
  • Are there sufficient unusual selling features to make your copy sizzle?
  • Is it economical to ship? Is it fragile? Old shaped? Heavy? Bulky?
  • Can it be personalized?
  • Are there any legal problems to overcome?
  • Is it safe to use?
  • Is the supplier reputable?
  • Will backup merchandise be available for fast shipment on reorders?
  • Might returns be too huge?
  • Will refurbishing of returned merchandise be practical?
  • Is it, or can it be, packaged attractively?
  • Are usage instructions clear?
  • How does it compare to competitive products or services?
  • Will it have exclusivity?
  • Will it lend itself to repeat business?
  • Is it consumable, so that there will be repeat orders?
  • Is it faddish? Too short-lived?
  • Is it too seasonal for direct mail selling?
  • Can an add-on to the product make it more distinctive and salable?
  • Will the number of stock keeping units – various sizes and colors – create problems?
  • Does it lend itself to multiple pricing?
  • Is it too readily available in stores?
  • Is it like an old, hot item, so that its success is guaranteed?
  • Is it doomed because similar items have failed?
  • Does your mother, wife, brother, husband, sister, or kid like it?
  • Is direct mail the way to go with it?
  • Does it fill an unfilled niche in the marketplace?

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.

 

Pride through Responsibility


If a person is to feel a sense of power in his job, he must feel a sense of pride—pride in the company, pride in the department or group, and perhaps most important, pride in himself.

Pride creates the desire to succeed; the desire to succeed causes people to dig down deep within themselves and draw upon untapped inner resources. Pride is perhaps the greatest catalyst for getting people to discover and use their own personal power.

One of the best ways to instill pride in people is by giving  them a sense of responsibility; by helping them know that they have an important job to do.

A sense of ownership is what we are trying to create. This sense of ownership must be present if you wish to create an entrepreneurial spirit.

If a person believes the job is lowly and insignificant, if he believes that others look upon the job as relatively unimportant, his performance will usually reflect this belief. On the other hand, if you repeatedly remind him of the importance of his job, he will usually perform the job with a sense of pride and purpose.

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