Closing the Customer Gap


The gaps model says that a service marketer must first close the customer gap between customer perceptions and expectations. To do so, the provider must close the four provider gaps, or discrepancies within the organization that inhibit delivery of quality service. The gaps model focuses on strategies and processes that firms can employ to drive service excellence.

Customer perceptions are subjective assessment of actual service experiences. Customer expectations are the standards or reference points for performance against which service experiences are compared and are often formulated in terms of what a customer believes will or should happen.

The sources of customer expectations consist of marketer-controlled factor (such as pricing, advertising, and sales promises) as well as factors that the marketer has limited ability to affect (innate personal needs, word-of-mouth communications, and competitive offerings). In a perfect world, expectations and perceptions would be identical: customers would perceive that they receive what they thought they would and should. In practice these concepts are often separated by some distance. Broadly, it is the goal of service marketing to bridge this distance.

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.

Quality Insulation and Business Storms


Many companies are facing storms because they still have not learned the lesson. For these slow learners quality is regarded as something they can add to a badly designed, poorly made product to help hold it together until the buyer gets its home. However the key to survival in today’s competitive climate is real quality through every step of production and service. It is essential to the work by the lowest paid individual on the payroll or the chairman of the board. Without quality, things don’t get sent out properly or on time, and huge service departments are working flat out to repair flaws that should never have been allowed into the products in the first place.

 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 Three Types of Strategies


There are three main types of strategies:

  1. The corporate level strategy identifies the portfolio of businesses that in total will comprise the corporation and the ways in which these businesses will relate;
  2. The competitive strategy identifies how to build and strengthen the business’s long-term competitive position in the marketplace; and
  3. The functional strategies identify the basic courses of action that each department will pursue to contribute to the attainment of its goals.

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.

Typical Marketing Mix


Typical Marketing Mix for a given product class is not necessarily right for all situations. Some very profitable marketing mixes depart from the typical—to satisfy some target markets better.

A marketing manager may have to develop a mix that is not special because of various market realities, including special characteristics of the product or target market, the competitive environment, and each firm’s capabilities and limitations.

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.

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.

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.

Efficiency versus Competition


Is big business efficiency more important than preventing competition? Many big companies claim that their large size makes possible many operating economies.  Today’s complex technology, far-flung markets, complicated financial systems, and transnational competition make bigness essential for survival and efficient operation. Placing restrictions on today’s corporate growth just to preserve a competitive ideal formed during the eighteenth and nineteenth centuries seems to make little economic sense. On the other hand, others point out that competition stands at the heart of private enterprise ideology and that small businesses, consumers, and workers should be protected against big business expansion even though it may mean a loss of efficiency.

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.

HR Strategy


Human resource strategies define how a company will manage its people toward the achievement of business objectives—setting priorities for action. Like any strategy, a human resource strategy is a directional plan of action for managing change. It provides a business perspective of actions necessary to gain and sustain competitive advantage through the management of human resources—a focus on priorities in managing people in a changing environment.

Through human resource strategy, managers and human resource staff jointly define and resolve people-related business issues. The planning process adds value by helping managers identify the issues most critical to the organization’s competitiveness and ultimately to its success. It helps management set priorities and define a vision of how it intends to manage its people.

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.

Productivity—the Japanese Way


Economists are forever telling us that we need to increase productivity in order to improve our standard of living. Productivity is one of those concepts that are so loaded with meaning and implications that is very difficult to define, much less explain. Not surprisingly then, improving “it” is one of the most difficult tasks facing business. More to the point, the time for improvement is quickly running out. Industrial performance is being outstripped at a frightening pace by the Japanese. In fact, it has reached the point where their productivity performance is so superior that they can literally pick any product and any market and quickly come to dominate it.

The idea that Japanese are uniquely gifted in only a few related areas has been debunked by their proven successes in industries as diverse as automobiles and semi-conductors. As well, the facile suggestion that the Japanese are somehow culturally inclined to be productive doesn’t wash. Japanese managers have taken over factories in Europe and the US and greatly improved productivity records. Productivity has also been high in their North American plants.

If corporate managers believe that their workers can be as competitive as anyone else in the world, and technically, there’s no valid reason why they can’t be, then they must find better ways to help their employees realize their potential. In that sense, study of Japanese methods is a jumping-off point that can lead to adaptations that will produce unique ways of improving productivity.

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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