Simultaneous Production and Consumption


Whereas most goods are produced first, then sold and consumed, most services are sold first and then produced and consumed simultaneously. A restaurant services cannot be provided until they have been sold, and the dining experience is essentially produced and consumed at the same time. Frequently this also means that the customer is present while the service is being produced and thus views and may even take part in the production process. This also means that frequently customers will interact with each other during the service production process and thus may affect each others’ experiences. For example, strangers seated next to each other in an airplane may well affect the nature of the service experience for each other. That passengers understand this fact is clearly apparent in the way business travelers will often go to great lengths to be sure they are not seated next to families with small children. Another outcome of simultaneous production and consumption is that service producers find themselves playing a role as part of the product itself and as an essential ingredient in the service experience for the consumer.

Because services often are produced and consumed at the same time, mass production is difficult if not possible. The quality of service and customer satisfaction will be highly dependent on what happens in “real time,” including actions of employees and the interactions between employees and customers. Similarly, it is not usually possible to gain significant economies of scale through centralization. Usually operations need to be relatively decentralized so that the service can be delivered to the consumer in convenient locations. Also because of simultaneous production and consumption, the customer is involved in and observes the production process and thus may affect (positively or negatively) the outcome of the service transaction.

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.

 

Oligopoly


An oligopoly exists when there are very few businesses selling a product. In an oligopoly, individual businesses have control over their products’ price because each business supplies a large portion of the products sold in the marketplace. Nonetheless, the prices charged by different firms stay fairly close because a price cut or increase by one company will trigger a similar response from another company. In the airline industry, for example, when one airline cuts fares to boost sales, other airlines quickly follow with rate decreases to remain competitive. Oligopolies exist when it is expensive for new firms to enter the marketplace. Not just anyone can acquire enough financial capital to build an automobile production facility or purchase enough airplanes and related resources to build an airline.

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.

Circulars and Brochures


There is not much difference between a circular, a flier, and a brochure. Circulars and fliers are the same, and a brochure is longer and more detailed than either. Dictionaries don’t shed much more light on the subject.

There are several ways to distribute circulars and brochures. They may be mailed alone, mailed as part of a mailing package, placed in mailboxes, slipped under doors, slipped under windshield wipers, handed out at street corners, handed out at trade shows, handed out whenever lots of prospects congregate, handed out to prospects and/or customers, placed in the racks that say, “Take One,” placed on counters for general distribution, or dropped from airplanes. If you are going to distribute many of these, make them circulars, because circulars are less expensive per piece. If your plans for disseminating them are relatively limited, you might opt for the more expensive brochures.

The simplest form of one of these printed pieces is a single sheet of paper, printed on one side. Printing on both sides makes matters a tad more complex. Printing on both sides of two of two pieces of paper – each folded in half – makes a booklet that may be called a brochure. Some brochures run as long as twenty-four pages. When planning to produce such materials, remember that when you fold a sheet of paper in two, you have a total of four pages (two on each side). So generally you must think in terms of four-page units. Brochures are ordinarily four or eight or twelve pages. Some brochures have panels that fold rather than pages that turn. Usually, these are six-panel brochures – three panels on each side.

The format isn’t nearly as important as the content. And the content must be factual information, enlivened with a touch of style and romance. Unlike ads, which must flag a person’s attention, a brochure – or circular –already as that attention. So its primary job is to inform with the intention of selling. Most brochures and some circulars, use artwork. Sometimes this is intended to keep the pace interesting. But most of the time, the purpose is to explain, inform and sell.

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