Distinctive Capabilities


A close examination of a market-driven firm will reveal two particularly important capabilities: market sensing and customer linking. First, the market-sensing capability concerns how well the organization is equipped to continuously sense changes in its markets and to anticipate customer responses to marketing programs. Market-driven firms spot market changes and react well in advance of their compititors. Second, the customer-linking capability comprises the particular skills, abilities, and processes that an organization has developed to create and manage close customer relationships.

Customer-goods firms demonstrate these capabilities in working with powerful retailers, multifunctional teams in both organizations work together by sharing delivery and product movement information and by jointly planning promotional activity and product changing. While evident in manufacturer-reseller relations in the consumer-goods market, strong customer-linking capabilities are crucial in the business market where close buyer-seller relationships prevail.

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, Lectures, Line of Sight

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Purchasing: Risk Reduction Strategies


Individuals are motivated by a strong desire to reduce the level of risk in purchase decisions. The perceived risk concept includes two components: 1) uncertainty about the outcome of a decision, and 2) the magnitude of consequences associated with making the wrong choice. Research highlights the importance of perceived risk and the purchase type in shaping the structure of the decision-making unit. Individual decision-making is likely to occur in organizational buying for straight rebuys and for modified rebuy situations when the perceived risk is low. In these situations, the purchasing agent may initiate action. Modified rebuys of higher risk and new tasks seem to spawn a group structure.

In confronting “risky” purchase decisions, how do organizational buyers behave? As the risk associated with an organizational purchase decision increases:

  • The buying center will become larger and will comprise members with high levels of organizational status and authority.
  • The information search will be active and a wide variety of information sources will be considered to guide and support an important purchase decision. As the decision process unfolds, personal information sources (for example, discussions with managers at other organizations that have made similar purchasees) become more important.
  • Buying center participants will be motivated to invest greater effort and to deliberate more carefully throughout the purchase process.
  • Sellers who have a proven track record with the firm will be favored. The choice of a familiar supplier helps reduce the perceived risk associated with a purchase.

Rather than price, product quality and after-sale service are typically most important to organizational buyers when they confront “risky” decisions. When introducing new products, entering new markets, or approaching new customers, the marketing strategist should evaluate the impact of alternative strategies on perceived risk.

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

Attitudes: Essential Components


Regardless of exactly how you might feel, the attitudes you express may be recognized as consisting of three major components: an evaluative component, a cognitive component, and a behavioral component. They represent the basic building blocks of the definition of attitudes.

 Attitudes have a great deal to do with how we feel about something. Indeed, this aspect of attitude, its evaluative component, refers to our liking or disliking of ant particular person, item, or event (what might be called the attitude object, or the focus of our attitude). You may, for example, feel positively or negatively toward your boss, the scuplture in the lobby, or the fact that your company just landed a large contract.

 Attitudes involve more than feelings; they also involve knowledge—that is, what you believe to be the case about an attitude object. For example, you might believe that one of your coworkers is paid much more than you, or that your supervisor doesn’t know too much about the job. These beliefs, whether they are completely accurate or totally false, comprise the cognitive component of attitudes.

 As you might imagine, the things you believe about something (e.g.,”my boss is embezzling company funds”) and the way you feel about it (e.g., “I can’t stand working for him”) may have some effect on the way you are predisposed to behave (e.g., “I’m going to look for a new job”). In other words, attitudes also have a behavioral component—a predisposition to act in a certain way. It is important to note that such a predisposition may not actually be predictive of one’s behavior. For example, although you may be interested in taking a new job, you might not actually take one if a better position isn’t available or if there are other aspects of the job you like enough to compensate for the negative feelings. In other words, your intention to behave a certain way may or may not dictate how you actually will behave.

 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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