Channel Evaluation


Channel evaluation is a multidimensional construct and includes both performance measures of the channel and measures of contribution to consumers by th channel. These measures of channel performance have been grouped under three main dimensions also known as 3Es, i.e., Effectiveness, Efficiency, and Equity. Effectiveness is further subdivided into delivery and stimulation.

  • Delivery is defined as a short term measure of how well the channel meets the demand for service outputs placed on it by the consumption sector.
  • Stimulation is defined as a long term, goal oriented measure of how well the channel member stimulate latent demand to reach optimum levels of demand.

Efficiency is further subdivided into productivity and profitability:

  • Productivity is defined as the efficiency with which output is generated from resources and inputs used. In essence, productivity is a measure of physical efficiency.
  • Profitability is a general measure of financial efficiency of channel member, in terms of return on investment, liquidity, leverage, growth patterns in sales and profits, growth potential in sales and profits, market share, average inventory maintained, etc.

Equity is the extent to which marketing channels serve problem-ridden markets and market segments, such a disadvantaged or geographically isolated consumers.

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

Be Inquisitive in Customer Service


Desire quality, efficiency, and precision

  • Focus on the customer’s need for accuracy and efficiency by methodically outlining steps, processes, or details related to a product or service.
  • Communication should be tied into facts, not feelings.
  • Have details and information prepared in advance and be thoroughly familiar with them
  • Approach encounters in a direct, businesslike, low-key manner.
  • Avoid small talk and speaking about yourself.
  • Ask specific open-ended questions about customers’ background or experiences related o the product or service.
  • Present solutions in a sequential fashion stressing advantages, value, quality, reliability and price. Also, be prepared to point out and discuss disadvantages.
  • Have documentation available to substantiate your claims.
  • Don’t pressure customer decisions and follow through on promises.

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

A Line Organization


A line organization is one in which there are direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor. The most obvious example is the army, which has a clear line of authority going from general to colonel to major to lieutenant to sergeant to corporal to private. A private reports to a corporal, the corporal to a sergeant, and so on back up to the generals. A line organization has the advantages of having clearly defined responsibility and authority, of being easy to understand, and of providing one supervisor for each person. The principles of good organizational design are met.

Disadvantages include for being too flexible, of having few specialists or experts to advise people along the line, of having lines of communication that are too long, and of being unable to handle the complex decisions involved in an organization with thousands of sometimes unrelated products and literally tons of paperwork.

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.

Choosing a Forecasting Method


The sales manager faced with a forecasting problem has a dilemma: which forecasting method should be used and how accurate is the forecast likely to be? The dilemma is particularly acute when several methods are tried and the forecasts don’t agree.

Each method has advantages and disadvantages, and the decision of which to use will not always be clear. In a typical company, the decision will more than likely depend on its level of technical sophistication and the exercise of historic sales data. It will also likely depend on the use to which the forecast will be put. A forecasting system designed to estimate production scheduling and inventory requirements may rely on a completely different set of procedures than one designed to plan marketing strategy. One guide a manager might find useful when choosing a forecasting method is what other companies have done.

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.

 

Departmentalization


Departmentalization is the subdivision of work activities into units within the organization. This subdivision allows individual workers to specialize in certain jobs and to become efficient in them. A marketing department may be headed by a marketing vice-president and may include sales, advertising, and market research. A personnel department may include recruitment, training, employee benefits, and industrial relations.

Five major forms of departmentalization exist: product, geography, customer, function and process. A number of different bases for departmentalization may be used within the same company. The decisions on which bases to use are made by balancing the advantages and disadvantages of each. The experience and judgment of top management come into play in such 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.

Disadvantages of Sole Proprietorship


What may be seen as an advantage by one person may turn out to be a disadvantage to another. The goals and talents of the individual owner are the deciding factors. For profitable businesses managed by capable owners, many of the following factors do not cause problems. On the other hand, proprietors starting out with little management experience and little money are likely to encounter many of the disadvantages.

  1. Unlimited Liability: The sole proprietor has unlimited liability in meeting the debts of the business. In other words, if the business cannot pay its creditors, the owner may be forced to use personal, non-business holdings such as a car or a home to pay off the debts. The more wealth an individual has, the greater is the advantage of unlimited liability.
  2. Limited Sources of Funds: Among the relatively few sources of money available to the sole proprietorship are a bank, friends, family, or his or her own funds. The owner’s personal financial condition, then, determines his or her credit standing. Often the only way a sole proprietor can borrow for business purposes is to pledge a car, a house, or other real estate, or other personal assets to guarantee the loan. And if the business fails, the owner may lose the personal assets as well as the business. Publically owned corporations, in contrast, can not only obtain funds from commercial banks but can sell stocks and bonds to the public to raise money. If a public company goes out of business, the owners do not lose personal assets.
  3. Limited Skills: The role proprietor must be able to perform many functions and possess skills in diverse fields such as management, marketing, finance, accounting, bookkeeping, and personnel. Although the owner can rely on specialized professionals to provide advice, he or she must make the final decision in each of these areas.
  4. Lack of Continuity: The life expectancy of a sole proprietorship is directly related to that of the owner and his or her ability to work. The serious illness of the owner could result in failure if competent help cannot be found.
  5. Lack of qualified Employees: It is usually difficult for a small sole proprietorship to match the wages and benefits offered by a large competing corporation because the proprietorship’s level of profits may not be as high. In addition, there is little room for advancement within a sole proprietorship, so the owner may have difficulty attracting and retaining qualified employees.
  6. Taxation: Although it is considered that taxation is an advantage for sole proprietorships, it can also be a disadvantage, depending on the proprietor’s income. Under current tax rates, sole proprietors pay a higher marginal tax rate than do small corporations. The tax often determines whether a sole proprietor chooses to incorporate his or her business.

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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