Identifying Target Market Buyers


Not all consumers are likely to buy all products. Al though a firm must consider all prospective buyers, it must focus its efforts on its target market—the specific group of buyers it intends to reach. Thus not in the target market are less likely prospects, and so efforts to reach them are generally not worth the expense.

The target markets are composed of ultimate consumers—the individuals, households, or families who buy for their personal needs. In contrast buyers in purchasing departments represent other target markets—organizations like business firms, government agencies, and educational institutions. These groups are often called organizational buyers.

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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Forces in the Environments


Environment is the sum of all the forces surrounding and influencing the life and development of the firm. The forces themselves can be classified as external or internal. Management has no direct control over them, though it can exert influences. The external forces are commonly called uncontrollable forces and consist of the following:

  1. Competitive: kinds and numbers of competitors, their locations, and their activities.
  2. Distributive: national and international agencies available for distributing goods and services.
  3. Economic: variables (such as GNP, unit labor cost, and personal consumption expenditure) that influence a firm’s ability to do business.
  4. Socio-economic: characteristics and distribution of the human population.
  5. Financial: variables such as interest rates, inflation rates, and taxation.
  6. Legal: the many kinds of foreign and domestic laws by which international firms must operate.
  7. Physical: elements of nature such as topography, climate, and natural resources.
  8. Political: elements of nations’ political climates such as nationalism, forms of government, and international organizations.
  9. Socio-cultural: elements of culture (such as attitudes, beliefs, and opinions) important to international businesspeople.
  10. Labor: consumption, skills, and attitudes of labor.
  11. Technological: the technical skills and equipment that affects how resources are converted to products.

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.

The Seedbeds of Managers


Good managers are not born; they are made. An organization acquires managers in three ways: promoting employees from within, hiring managers from other organizations, and hiring managers graduating from universities.

Promoting people within the organization into management positions tends to increase motivation by showing employees that those who work hard and are competent can advance in the company. Internal promotion also provides managers who are already familiar with the company’s goals and problems. Promoting from within , however, can lead to problems: it may limit innovation. The new manager may continue the practices and policies of previous managers. Thus, it is vital for companies—even companies committed to promotion from within—to hire outside people from time to time to bring new ideas into the organizations.

Finding managers with the skills, knowledge and experience required to run an organization or department is sometimes is difficult. Specialized executive employment agencies—sometimes called headhunters, recruiting managers, or executive search firms—can help locate candidates from other companies. The downside is that even though outside people can bring fresh ideas to a company, hiring them may cause resentment among existing employees as well as involve greater expense in relocating an individual to another city.

Schools and universities provide a large pool of potential managers, and entry level applicants can be screened for their developmental potential. People with specialized management skills are specially good candidates. Some companies offer special training programs for potential managers just graduating from college.

When exposed to advertising, the consumer is not merely drawing information from the ad but is actively involved in assigning meaning to the advertised 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.

 

Agency Theory


Whenever there is a separation of the owners (principals) and the managers (agents) of a firm, the potential exists for the wishes of the owners to be ignored. This fact, and the recognition that agents are expensive, established the basis for a set of complex but helpful ideas known as agency theory. Whenever owners (or managers) delegate decision-making authority to others, an agency relationship exists between the two parties. Agency relationships, such as those between stakeholders and managers, can be effective as long as managers make investment decisions in ways that are consistent with stakeholders’ interests. However, when the interests of managers diverge from those of owners, then managers’ decisions are more likely to reflect the managers’ preferences than the owners’ preferences.

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.

 

Public Relations (PR)


Public Relations is the management function that evaluates public attitudes, identifies the policies and procedures of an individual or an organization with the public interest, and executes a program of action to earn public understanding and acceptance. In other words a good public relations program has three steps:

  1. Listen to the public: Public relations starts with good marketing research (evaluates public attitudes).
  2. Develops policies and procedures that are in the public interest: One does not earn understanding by bombarding the public with propaganda; one earns understanding by having programs and practices in the public interest.
  3. Inform people of the fact that you are being responsive to their needs: It is not enough to simply have programs that are in the public interest. You have to tell the public about those programs so that they know you are being responsive.

Publicity is one of the major functions of the public relations department. Publicity is any information about an individual, a product, or an organization that is distributed to the public through the media and that is not paid for, or controlled by, the sponsor.

Other activities include:

  • Establishing contact with civic groups, consumer organizations, and other concerned citizens to learn their views of the organization, to answer their questions, and to provide information (or education).
  • Opening lines of communication with customers, suppliers, distributors, retailers, stockholders, government agencies, educators, and community leaders.
  • Conducting studies to find the economic, environmental, and social consequences of organizational practices and to learn how to make a more positive contribution to customers, stakeholders, and society.
  • Providing any assistance needed to adjust the goals, policies, practices, personnel policies, products, and programs of the organization to meet the needs of changing markets.
  • Assisting all members of the firm in developing effective programs of consumer information and education.
  • Sending speakers to schools, clubs, and other such groups to maintain an open dialogue with students and other socially active members of society.
  • Creating incentives for employees to participate in public-affairs activities such as raising funds for charitable groups.
  • Answering consumer and other complaints promptly and correcting whatever it was that caused the complint.
  • Training employees or volunteers to provide prompt, friendly, courteous, and helpful service to anyone who contacts the organization in person, by phone, or written correspondence.
  • Demonstrating to society the organization is listening, reacting, adjusting, and progressing in its attempt to satisfy its diverse publics.
  • Opening two-way communications with employees to generate favorable employee opinion and to motivate employees to speak well of the organization to others.

This is an incomplete description of all the activities and responsibilities of the PR people, but it at least gives some feeling for what they do.

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.

 

Termination of Agency Agreement


  1. Termination by expiration of the specified period in which the agent has to act. The courts say that the agency was for a “reasonable” time if no specific duration was stated in the agency agreement. The meaning of “reasonable time” is construed by the courts on a case-by-case basis, depending on the nature of the agency, the difficulty of accomplishment, and other controlling factors.
  2. Termination by specific agreement to do so between the principal and the agent.
  3. Termination by death or legal incapacity (insanity and so on) of either the principal or the agent. Most courts also hold that bankruptcy of either the principal or the agent terminates the relationship. However, the agent may still dispose of the principal’s property that is being held at the time of the bankruptcy.
  4. Termination through revocation by the principal. The agency contract is one that the principal is allowed to end at any time without giving any reason.
  5. Termination by withdrawal of the agent. This may be done at any time in an agency at will. If the agent is operating under a contract for a specified time of service or until a certain event is accomplished, the agent will be liable of damages to a principal who was not at fault in bringing about the termination.
  6. Termination by loss or destruction of the subject matter or by change of circumstances. The agent’s authority is lost if the subject matter is seriously disabled, lost, or destroyed.
  7. Termination by rescission. The general rules of law concerning rescission apply to agency contract.

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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