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.

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Doughnut Structure


Although most organization charts are constructed in the shape of a pyramid, extending downward from the board of directors or president, some firms have doughnut structure—an organization chart made up of concentric circles that represent top management, staff personnel, and functional areas and that reflect a more flexible structure—people see themselves working in a circle as if around one table. One of the positions is designated chief executive officer, because somebody has to make all those tactical decisions that enable an organization to keep working. The doughnut design is made up of concentric circles, in which the center ring consists of top management. The second ring is composed of important staff personnel, such as legal, personnel, research and development, and electronic data processing, whose services are used by all departments. The third ring consists of managers of functional areas, while remaining rings comprise department and other supervisory managers

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.

Strategic Marketing & Budgeting


A phase in the strategic marketing management process is budgeting. A budget is a formal, quantitative  expression of an organization’s planning and strategy initiatives expressed in financial terms. A well-prepared budget meshes and balances an organization’s financial, production, and marketing resources so that overall organizational goals or objectives are attained.

An organization’s master budget consists of two parts: 1) an operating budget, and 2) a financial budget. The operating budget focuses on an organization’s income statement. Since the operating budget projects future revenue and expenses, it is sometimes referred to as a pro forma income statement or profit plan. The financial budget focuses on the effect that the operating budget and other initiatives (such as capital expenditures) will have on the organization’s cash position.

In addition to the operating and financial budget, many organizations prepare supplemental special budgets, such as an advertising and sales budget, and related reports tied to the master budget. Budgeting is more than an accounting function. It is an essential element of strategic marketing management.

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.

Incorporated Business


When you incorporate, your business becomes its own separate legal entity. The business consists of shareholders who purchase shares in the business and who are responsible for its operation. You can incorporate a one-owner business and own all the shares of that company. The company has a president, and if more than one person is involved, a secretary-treasurer and directors. Stricter control can be maintained with a board of directors, who can make decisions. Outrageous suggestions by one person can be blocked if company policy stipulates that any significant changes must be approved by the board.

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.

Pro Forma Income Statement


Because marketing managers are accountable for the profit impact of their actions, they must translate their strategies and tactics into pro forma, or projected, income statements. A pro forma income statement displays projected revenues, budgeted expenses, and estimated net profit for an organization, product, or service during a specific planning period, usually a year. Pro forma income statements include a sales forecast and a listing of variable and fixed costs that can be programmed or committed.

Pro forma income statements can be prepared in different ways and reflect varying levels of specificity. They have a typical layout consisting of six major categories or line items:

  1. Sales—forecasted unit volume times unit selling price
  2. Cost of goods sold—costs incurred in buying or producing products and services. Generally speaking, these costs are constant per unit within certain volume ranges and vary with total unit volume.
  3. Gross margin (sometimes called gross profit)—represents the remainder after cost of goods sold has been subtracted from sales.
  4. Marketing expenses—generally programmed expenses budgeted to produce sales. Advertising expenses are typically fixed. Sales expenses can be fixed, such as a salesperson’s salary, or variable, such as sales commissions. Freight or delivery expenses are typically constant per unit and vary with total unit volume.
  5. General and administrative expenses—generally, committed fixed costs for the planning period, which cannot be avoided if the organization is to operate. These costs are frequently called overhead.
  6. Net income before (income) taxes (often called net profit before taxes—the remainder after all costs have been subtracted from sales.

A pro forma income statement reflects a marketing manager’s expectations (sales) given criterion inputs (costs). This means that a manager must think specifically about customer response to strategies and tactics and focus attention on the organization’s financial objectives of profitability and growth when preparing a pro forma income statement.

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.

Boolean Logic


When conducting a search, you may end up with too many choices or the wrong results. Some search engines allow you to narrow your search by using Boolean Logic. Boolean Logic consists of three logical operators: AND, OR, and NOT.

AND requires all terms to appear in a record;

OR retrieves records with other term;

NOT excludes terms.

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.

Tapping Unutilized Resources


Throughout the world are resources waiting to be discovered for demands that exist. They may consist of oil, ore, unused equipment, sunken treasure, unemployed labor, or even products that have not been presented effectively or refined. The traditional independent mining prospector is a type of entrepreneur who makes a career of seeking and exploiting such resources. Others discover unused resources with profit potential almost by accident.

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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