When Marketing doesn’t Work


Marketing has not measured up to expectations in many companies because management has concentrated on the trappings rather than the substance. When most executives talk about what their companies have done to become more marketing oriented, they usually point to such actions as:

  • Declarations of support from top management in the form of speeches, annual reports, or talks to the investment community.
  • Creation of a marketing organization, including appointment of a marketing head and product or market managers, transfer to marketing of the product development and service functions, establishment of a market research function, salespeople reassigned around markets, advertising function strengthened.
  • Adoption of new administrative mechanisms, such as formal marketing planning approaches, more and better sales information, and revised information systems structured around markets rather than products.
  • Increased marketing expenditures for staffing, training and development, advertising, marketing, research.

The point is not that these actions are useless, but that by themselves they are no guarantee of marketing success. Effective marketing requires a fundamental shift in attitude and values throughout the company so that everyone in every functional area places paramount importance on being responsive to market needs. The steps taken in most companies are not useful because they fail to accomplish this crucial shift in attitude. And without this shift in attitude, the most highly developed marketing operation cannot produce any real results.

Why have so few companies gone beyond the trappings to achieve the change in attitude that ensures substantive marketing? Frequently, one or more of these situations exist:

  • In a surprising number of cases, management does not fully understand the marketing concept as it applies in its situation.
  • In many other cases, management understands the implications of the marketing concept but has not committed itself to the actions and decisions needed to reinforce it.
  • In almost every case, management has failed to install the administrative mechanisms necessary for effective implementation of the concept, especially into the non-marketing function.

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.

 

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The Transformation Process


At the heart of operations management is the transformation process through which inputs (resources such as labor, money, materials, and energy) are converted into outputs (goods, services, and ideas). The transformation process combines inputs in predetermined ways using different equipment, administrative procedures, and technology to create a product. To ensure that this process generates quality products efficiently, operations managers control the process by taking measurements (feedback) at various points in the transformation process and comparing them to previously established standards. If there is any deviation between the actual and desired outputs, the manager may take some sort of corrective action.

Transformation may take place through one or more processes. In a business that manufactures oak furniture, for example, inputs pass through several processes before being turned into the final outputs—furniture that has been designed to meet the desires of customers. The furniture maker must first strip the oak trees of their bark and saw them into appropriate sizes—one step in the transformation process. Next, the firm dries the strips of oak lumber, a second form of transformation. Third, the dried wood is routed into its appropriate shape and made smooth. Fourth, workers, assemble and treat the wood pieces, then stain or varnish the piece of assembled furniture. Finally, the completed piece of furniture is stored until it can be shipped to customers at the appropriate time.

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.

Principals for Defining Privacy Policy


Companies wishing to enact an internal privacy policy or code should consider as a starting point the three concepts that help define information privacy: data collection, data accuracy, and data confidentiality.

Data Collection: the following principles should be adhered to:

  • Data should be collected on individuals only to accomplish a legitimate business objective.
  • Data should be adequate, relevant, and not excessive in relation to the business objective.
  • Data should be obtained in a lawful manner.
  • Individuals must give their consent before data pertaining to them can be gathered. Such consent may be implied from the individual’s actions (e.g., when they apply for credit, insurance, or employment).

Data accuracy: to ensure that misleading information will not be distributed, the following principles apply:

  • Sensitive data gathered on individuals should be verified before it is entered in database.
  • Data should be accurate and, when necessary, kept up to date.
  • The file should be made available so the individual can ensure that the data is correct.
  • If there is disagreement about the accuracy of the data, the individual’s version should be noted and included in any disclosures of the file.

Data Confidentiality: the privacy policy should ensure confidentiality as follows:

  • Computer security procedures should be implemented to provide reasonable assurance against the unauthorized disclosure of data. These procedures should include physical, technical, and administrative security measures.
  • Third parties should not be given access to data without the individual’s knowledge or permission, except as required by law.
  • Disclosures of data, other than the most routine, should be noted and maintained for as long as the data is maintained.
  • Data should not be disclosed for reasons incompatible with the business objective for which it was collected.

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.

Using Administrative Skills


  • Identify the three to five critical success factors that you and your group must accomplish to achieve your goals. Then develop plans to achieve them.
  • Set aside “quiet time” each day for reviewing plans and updating planning activities.
  • To balance attention to detail with broader planning, ask for feedback to ensure that you are not stressing on area over the other.
  • Build your annual department goals and objectives around the strategic plan. Then develop monthly, weekly, and daily plans to accomplish your strategic goals and objectives.
  • Have employees submit an annual work plan for your review. Ask them to include specific objectives, priorities, and time tables. Seek opportunities for assignments, requiring strategic planning.
  • Study the long-range plan for your company or division and  consider its implications for your department.
  • Break large projects into several smaller steps, with deadlines for each step. Ask for feedback regarding the adequacy of your project plan.
  • Set definite deadlines with your manager when taking on tasks.
  • Add more details to your plans.
  • Ask your manager to let you know of instances when your planning could be more effective.
  • Request assignments that require careful planning and attention to detail.
  • After your plan is developed, ask others to identify potential problems. Then determine your contingency plans.
  • Make it a habit to do an environmental scan when doing strategic planning.
  • If your specialty is strategy, use your team and peers to help develop tactics.

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 and Indirect Costs


In manufacturing, “direct costs” refer to costs that are readily traceable to products—for example, direct material and direct labor. The term is also used to identify costs that are traced as incurred to specific functions, to distinguish them from allocated or transferred costs. In distribution the classification of costs as direct or indirect depends on the segment. The more general the segment (sales division in sales territory), the greater the portion of costs directly traceable to it, the more specific the segment (products, customers), the greater the proportion of indirect costs. Direct costs are those costs that can be traced to a business segment. If that segment were eliminated, the costs no longer would be incurred.

Indirect costs, costs such as general administrative expenses, are often allocated  to segments, but this process is arbitrary at best and should be avoided.

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, Line of Sight

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