Kinds of Advertising


Different kinds of advertising are used by various organizations to reach different market targets. Some major categories include:

  • Retail Advertising: advertising to consumers by various retail stores such as supermarkets and shoe stores.
  • Trade Advertising: advertising to wholesalers and retailers by manufacturers to encourage them to carry their products.
  • Industrial Advertising: advertising from manufacturers to other manufacturers. A firm selling motors to automobile companies would use industrial advertising.
  • Institutional Advertising: advertising designed to create an attractive image for an organization rather than for a product.
  • Product Advertising: advertising for a good or service to create interest among consumer, commercial, and industrial buyers.
  • Advocacy Advertising: advertising that supports a particular view of an issue
  • Comparison Advertising: advertising that compares competitive 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.

Business Financial Strategy


Financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action. It can also provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. Financial strategy usually attempts to maximize the financial value of the firm.

The trade-off between advancing the desired debt-to-equity ratio and relying on internal long-term financing via cash flow is a key issue in financial strategy. Many small and medium-sized companies try to avoid all external sources of funds in order to avoid outside entanglements and to keep control of the company within the family. Many believe that only by financing through long-term debt can a corporation use financial leverage to boost earnings per share, thus raising stock price and the overall value of the company. Higher debt levels not only deter takeover by other firms (by making the company less attractive), but also leads to improved productivity and improved cash flows by forcing management to focus on core businesses.

A very popular financial strategy is the leveraged buy out—a company is acquired in a transaction financed largely by debt—usually obtained from a third party, such as an insurance company or an investment banker. Ultimately the debt is paid with money generated from the acquired company’s operations or by sales of its assets. The acquired company, in effect, pays for its own acquisition. Management of the leveraged buy out is then under tremendous pressure to keep the highly leveraged company profitable. Unfortunately the huge amount of debt on the acquired company’s books may actually cause its eventual decline by focusing management’s attention on short-term matters.

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.

Workable Change


For years social scientists have said that humans resist change—and so they do. But they resist only those changes they do not understand, are suspicious of, or consider to be against their interests. Humans embrace change that seems good for them or good for the world they live in and care about.

A new idea or new expectation, in itself, will seldom bring about change. On the other hand, change can be very attractive if it is the product of a new idea or expectation that appears to be in the best interests of the people who are expected to adopt it, if it is accompanied by the means for its fulfillment, and if it results in recognition and approval. To improve an organization, we must introduce good ideas, establish the means for making them work, and provide a visible payoff for the effort involved.

No organization can reach its full potential unless it promotes and enjoys the coordination of productive activities among its members. The more complex the activities of the organization, the more need there is for coordination if the organization is to flourish. No one knows it all anymore. Teamwork is an increasingly critical element in organizational success; fortunately, it is not difficult to achieve. But teamwork must be managed into existence through experiences that are capable of producing teamwork.

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.

Creating a Professional Persona


Your persona is how you appear to your readers. Demonstrating the following characteristics will help you establish an attractive professional persona:

  • Cooperativeness: Make clear that your goal is to solve a problem, not advance your own interests.
  • Moderation: Be moderate in your judgments. The problems you are describing will not likely spell doom for your organization, and the solution you propose will not solve all company’s problems.
  • Fair-mindedness: Acknowledge the strengths of opposing points of view, even as you offer counter-arguments.
  • Modesty: If you fail to acknowledge that you don’t know everything, someone else will be sure to volunteer that insight.

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.

Foreign Licensing


The method of going global through the use of contractual agreements is foreign licensing. Such an agreement grants foreign marketers the right to distribute a firm’s merchandise or use its trademark, patent, or process in a specified geographic area. These arrangements usually set certain time limits, after which agreements are revised or renewed.

Licensing offers several advantages over exporting, including access to local partners’ marketing information and distribution channels and protection from various legal barriers. Because licensing does not require capital outlays, many firms, both small and large, regard it as attractive entry strategy. Like franchising, licensing allows a firm to quickly enter a foreign market with a known product or concept. The arrangement also may provide entry into a market, which government restrictions close to imports or international direct investment.

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.

 

Industrial Competitiveness


The European Management Forum defines industrial competitiveness as “the immediate and future ability of, and opportunities for, entrepreneurs to design, produce and market goods within their respective environments whose price and non-price qualities form a more attractive package than those of competitors.”

The major factors affect competitiveness:

  • The dynamism of the economy measured by criteria such as growth rates, monetary strength, industrial production and per capita performance.
  • Industrial efficacy, which involves direct and indirect employee costs, per capita output, employee motivation, turnover and absenteeism.
  • The dynamics of the market, when efforts to improve competitiveness are increased and better directed to more intensive market forces.
  • Financial dynamism that is the strength and importance of the commercial banking sector, stock and bond markets and their ability to provide capital.
  • Human resources that is the dynamism of the population and the labor force, employment, unemployment, executive quality and motivation.
  • The role of the state in fiscal policies and other regulations.
  • Resources and infrastructure (transport and communications facilities), domestic energy and raw material sources.
  • Outward orientation, the will to promote trade actively, buying and selling goods, service-related investments or any other form of international exchange.
  • Innovative forward orientation which emphasis national research and development efforts, corporate and government attitudes to exploiting new ideas, products and production processes.
  • Socio-political consensus and stability, the degree to which strategies and policies reflect a society’s aspirations.

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.

Reforming Personnel Policies


If women are to be treated equally in the workplace, all jobs and occupations must be open to them so that they may compete on the same terms as all others. A company’s recruiters need to seek qualified workers and not assume that women are unqualified. Rates of pay and benefits need to be matched to the work to be done not to the gender of the jobholder. Pay rises for doing a current job well, along with promotions to more attractive jobs, also require equal treatment. Job assignments should be made on the basis of skills, experience, competence, capability, and reliability—in other words, proven ability to get the job done, not whether women have traditionally worked at one task rather than another.

Career ladders, whether short ones going only a few steps or longer ones leading into the higher reaches of corporate authority, should be placed so that both men and  women can climb them as high as their abilities can carry them.

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.

Incentives for Professional Employees


Professional employees are those whose work involves the application of learned knowledge to the solution of the employer’s problems. They include lawyers, doctors, economists, and engineers. Professionals reach their positions through prolonged periods of formal study.

Making incentive pay decisions for professional employees can be challenging. For one thing, firms usually pay professionals well anyway; for another, they’re already driven—by the desire to produce high-caliber work and receive recognition from colleagues. In some cases, offering financial rewards to people like these may actually diminish their intrinsic motivation—not add to it.

However, that’s certainly not to say that professionals don’t want financial incentives, particularly those in high demand jobs like software and systems developers for information technology firms. Many are offering benefits that are highly attractive to professionals, including better vacations, more flexible work hours, equipment for home offices, and improved pension plans.

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 Master Plan


Many people assume that a formal business plan is only for big time businesses. Wrong. A business plan is for anyone who wants to give their enterprise their best possible shot. It is where you detail out all the operational, marketing, and money matters of your business. It is, in essence, a road map. With it, you will better be able to reach your goal. Without it, you run the risk of spending precious time and money traveling in circles or unwittingly wandering into danger zones.

In response to the question, what a business plan is, follow the following”

  • A business plan is written by the home-based business owner with outside help as needed.
  • It is accurate and concise as a result of careful study.
  • It explains how the business will function in the marketplace.
  • It clearly depicts its operational characteristics.
  • It details how it will be financed.
  • It outlines how it will be managed.
  • It is the management and financial “blueprint” for startup and profitable operation.
  • It serves as a prospectus for potential investors and lenders.

A study for “why” of creating it, note:

  • The process of putting the business plan together, including the thought that you put in before writing it, forces you to take the objective, critical, unemotional look at your entire business proposal.
  • The finished written plan is an operational tool, which, when properly used, will help you manage your business and work toward its success.
  • The complete business plan is a means for communicating your ideas to others and provides the basis for financing your business.

While you are to be the author of the document, you shouldn’t hesitate to get professional help when it comes to areas outside your ken, such as accounting, insurance, capital requirements, operational forecasting, and tax and legal requirements. Finally, in response to the question, “When should Business Plan be used?” note:

  • To make crucial startup decisions
  • To reassure lenders and backers
  • To measure operational progress
  • To test planning assumptions
  • As a basis for adjusting forecasts
  • To anticipate ongoing capital and cash requirements
  • As the benchmark for good operational management

If you have been doing your research and homework all along, you probably have most of the raw material for the business plan, so it won’t be such an awesome task.

Business plans differ greatly, depending on the nature and scope of the enterprise. Some elements a person in a retail sales business would need in his or her business plan may be totally irrelevant for your service business. Similarly, business plans vary in length—from five or six pages or a virtual booklet; some are written in an engaging narrative style while others take another approach—just the facts. However, while business plans may differ in style, tone, length, and components, there is some common ground. Below is a list of items that should be in almost every business plan:

  • A summary of the nature of your business and its principal activity with a detailed description of the product(s) or service(s) you will offer.
  • A statement as to the form your business will take (sole proprietorship, partnership, incorporation) and how it will be managed and operated (with information on employees or subcontractors if applicable).
  • A discussion of any extra-ordinary (and potentially problematic) matters revolving around such things as space requirements, production processes, and operating procedures.
  • A discussion of major trends in your trade or profession.
  • A discussion of your competition and the basis on which you will compete.
  • A description of your target market that might include a profile of a typical customer or client.
  • A discussion of your plans for pricing, sales terms, and distribution.
  • A discussion of how you intend to advertise and promote your products or services.
  • A detailed statement of startup and operating costs for at least the first year.
  • A discussion of how your business will be financed.
  • Profit and loss and cash flow statements for at least the first year of business.

If this list has made a business plan seem all the more scary and arduous a task, don’t panic. There are books on the market that will guide you through the process.

A clean attractive business plan is a sine qua non if you will be applying for a loan or looking for investors. But even if the document is for your eyes only, you owe it to yourself to produce a professional-looking document. Since it is your road map, the neater it is the better it will serve you when you refer to it at various stages of your entrepreneurial journey.

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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