Speed and Time


Speed and time measures are very important factors to many customers. The speed with which your company can deliver, whatever it provides, can actually gain you competitive advantage and allow you to offer higher satisfaction, and maybe even demand, or ask a price premium from your customers for that convenience of doing things faster or quicker. However it is not just about the core product, it is also about every single contact or initiation with a customer, from answering the telephone, to replying letters, to the length of a phone call, to how long you’ve been put on hold etc. the customer measures all these factors, largely unconsciously.

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.

Non Price Competition


In spite of the emphasis placed on price in microeconomic theory, marketers often compete on product attributes other than price. You may have noted that price differences between products such as gasoline, men’s haircuts, candy bars, and even major products such as compact cars and private colleges are often small, if there is any price difference at all. Very rarely will you see price used as a major promotional appeal on television. Instead, marketers tend to stress product images and consumer benefits such as comfort, style, convenience, and durability.

Many organizations promote the services that accompany basic products rather than price. The idea is to make a relatively homogeneous product better by offering more service. Quite often the reason marketers emphasize non-price is because prices are so easy to match. Few competitors can match the image of a friendly, responsive, consumer-oriented company.

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.

Online Consumer Marketing


Just as e-commerce is a major function of the Internet, online marketing is an integral component of e-commerce. Online marketing is inherently interactive marketing. While it obviously expands the reach of marketers in connecting with customers, to be effective it must be part of an overall marketing strategy before it can create value for customers. A point to remember is that just as quickly as a firm can rise to become a star in cyberspace, if not launched properly and operated efficiently, it can just as quickly burn out.

Consumers who shop online can point to a number of advantages to online marketing. The benefits online shoppers obtain from Web purchases fall into three categories: lower prices, convenience, and personalization. Marketers should ensure their Web sites offer consumers these basic advantages over traditional shopping in retail stores, by telephone, and by mail. In addition, Websites should be easy to navigate, offer security and privacy, and provide information that consumers can use in making product comparisons and purchase decisions.

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.

Online Retail Selling: Barriers to Success


i.            Increasing consumers’ comfort levels: Online retailers need to improve convenience and value for customers and assist them in overcoming their concerns about security and trust.

ii.            Resolving technological limitations: The ability for online retailers to deliver unique experiences is linked to technology improvements. The internet is still constrained by lack of bandwidth and problems with reliability.

iii.            Rapidly scaling internal operations: Online retailers face the challenges of managing significant growth, internal organizational change and developing and scaling their customer service and fulfillment infrastructure—all while the technology is still evolving.

iv.            Engineering comprehensive convenience: Customers identify many convenience problems with today’s online environment. Among them are the need for customers to reenter personal data on different sites, the vide variation in customer service across sites and the lack of coordination between online and offline retail environments on the part of retailers using both channels.

v.            Resolving channel conflict: many offline retailers believe that there is a risk of cannibalizing sales through existing channels by going online. Many manufacturers fear alienating their existing distribution partners by providing an alternative channel for customers to purchase. These perceived channel conflicts are keeping some traditional retailers and manufacturers from joining the Internet.

vi.            Developing low-cost distribution: Distribution system can be expensive. Online fulfillment systems are still developing and there is a disconnect between what is required and what is currently offered by existing offline systems.

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.

 

Impulse Products


Impulse products are products that are bought quickly—as unplanned purchase—because of a strongly felt need. True impulse products are items that the customer hadn’t planned to buy, decides to buy on sight, may have bought the same way many times before, and wants right now.

This buying behavior is important because it affects place—and the whole marketing mix—for impulse products. If the buyer doesn’t see an impulse product at the right time, the sale may be lost. That’s why retailers put impulse products where they’ll be seen and bought—near checkout counters or in other heavy traffic areas of store. Grocery stores sell gum, candy bars, and magazines this way. And life insurance is sold at airports at convenience booths or vending machines.

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.

 

Micro-Macro Dilemma


Producers and consumers making free choices can cause conflicts and difficulties. This is called the micro-macro dilemma: what is good for some producers and consumers may not be good for society as a whole.

Each year thousands of people are killed with handguns. Yet there are producers who make and sell handguns at a profit. And there are many consumers who feel strongly about their right to own guns. But others argue that handguns are a threat to society. They want handgun sales banned sale of all weapons limited. Should gun producers be allowed to sell guns to consumers who want them?

Such decisions don’t have to involve a matter of life and death to be important. People want the convenience of disposable products and products in easy-to-use, small-serving packages. But these same “convenient” products and packages often lead to pollution of the environment and inefficient use of natural resources. Should future generations be left to pay the consequences of pollution that is the result of “free choice” by today’s consumers?

Questions like these are not easy to answer. The basic reason is  that many different people may “have a stake” in the outcomes—and social consequences—of the choices made by individual managers and consumers in a market-directed system.

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.

 

Convenience Stores


Convenience stores are actually mini supermarkets. They carry many of the same food and nonfood items that are sold in supermarkets, but they offer a limited selection of brands. The products are normally packaged in small sizes, to allow shelf space for other items. Convenience stores do not have meat or fresh produce departments. One of the most significant changes in convenience stores has been the addition of gasoline.

Since convenience store prices on non-gasoline items are typically higher than supermarket prices, we should ask why people shop at them. Many shoppers tolerate the higher prices because the total of their convenience store purchases is quite small. They are willing to pay a little extra for the convenience of being able to make purchases quickly and easily. Consumers recognize that they are paying a little more for these products than they would at a supermarket. But most people are not willing to invest the extra time and effort to go to the supermarket to save a few cents on one or two items. In effect, the convenience store retailer charges the consumer a premium for this time savings.

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.

 

Assessing Competitors’ Areas of Strength


  1. Excellence in product design and/or performance (engineering ingenuity)
  2. Low-cost, high-efficiency operating skill in manufacturing and/or in distribution
  3. Leadership in product innovation
  4. Efficiency in customer service
  5. Personal relationships with customers
  6. Efficiency in transportation and logistics
  7. Efficiencies in sales promotion
  8. Merchandising efficiency—high turnover of inventories and/or of capital
  9. Skillful trading in volatile price movement commodities
  10. Ability to influence legislation
  11. Highly efficient, low-cost facilities
  12. Ownership or control of low-cost or service raw materials
  13. Control of intermediate distribution or processing units
  14. Massive availability of capital
  15. Widespread customer acceptance of company brand name (reputation)
  16. Product availability, convenience
  17. Customer loyalty
  18. Dominant market share position
  19. Effectiveness of advertising
  20. Quality salesforce

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

The Basic Needs


When questioning your target audience, it might help to list some of the basic needs people have, and ask them to make check marks by those that pushed their particular buttons. Most people will react to one or more of the following basic needs (known as “appeals” in advertising lingo):

  • Convenience
  • Comfort
  • Love
  • Friendship
  • Security
  • Style
  • Social approval (status)
  • Health and well-being
  • Profit
  • Savings or economy

If you have had the feeling that people patronize you because you offer convenience and economy, you may be surprised to learn, via your questionnaires, that they really give you their business because your work adds to their sense of security.

You can engage in more free research by conscientiously studying the other advertising that is going on in your community—not only that of your competitors but that of everyone else as well. Have frank conversations with your customers. Talk with your competitors. Talk with other businesspeople in your community. You’ll find that their sources will provide you with useful information and won’t charge you one cent for it. Research can help you save a lot of money and earn a lot of money. For research can help you save and earn even more.

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

Managing a Shortage


In the real world, equilibrium prices are always changing. A flood in Brazil may cause the price of coffee to rise; good farming weather in the Midwest will lead to a fall in the price of wheat; advancing technology steadily lowers the price of computers. If enough people are drastically affected by the price change the government may decide to do something about it—whether wisely or unwisely. Rising apartment rents will lead to pressure for rent control, falling wheat prices will lead to pressure for agricultural price supports, and so forth.

When the government controls the price of a good below the market-clearing level, there will be a “shortage.” A shortage is not the same as scarcity. Scarcity simply means that not all desires can be satisfied, and so scarcity is always present. Diamonds are scarce, but there is no shortage—anyone who can pay the price of a diamond can buy one. A shortage exists when goods are not just expensive but unavailable to some people—except perhaps by unlawful means. In a city with rent controls, newcomers may be unable to rent an apartment at all, regardless of their willingness to pay. Thus, faced with a supply shift or demand shift dictating a higher equilibrium price, consumers are bound to lose out one way or the other—either from the higher price if the market adjustment proceeds unimpeded, or from the “shortages” that follow when government interventions keep the price low.

Using the concepts of short-run and long-run supply, let us trace out the consequences of coping with upward pressures on price by imposing a “ceiling.” There are some less visible consequences of price ceiling. Unable to raise price openly, firms may use subtler strategies. They may eliminate discounts or seasonal sales, reduce quality or variety or convenience of their offerings, or concentrate production in product lines that happen to have received a better break from the price-control authorities. Supplies may be sold abroad, leaving even less available for domestic consumers. And of course black markets may arise, providing a wider scope for people specializing in illegal activity. In extreme cases, there may be a breakdown of legitimate trade. In this connection, we can learn much from a previous great inflationary episode associate with World War 11 and its aftermath.

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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