Marketing Eras


  • Production Era:  Prior to 1925, most firms operating in highly developed economies focused narrowly on production. Manufacturers stressed production of quality products and then looked for people to purchase them.  The production era did not reach its peak until the early part of 20th century.
  • Sales Era: Manufacturers began to increase their emphasis on effective sales forces to find customers for their output. Firms attempted to match their output to the potential number of customers who would want it. Companies with a sales orientation assume that customers will resist purchasing products and services not deemed essential and that the task of personal selling and advertising is to convince them to buy. Although marketing departments began to emerge from shadows of production, finance, and engineering during the sales era, marketing dominated sales and other areas. Selling is thus a component of marketing.
  • Marketing: Personal incomes and consumer demand for products and services dropped rapidly thrusting marketing into a more important role. Organizational survival dictated that managers pay close attention to the markets for their goods and services. The trend ended with the outbreak of World War 11, when rationing and shortages of consumer goods became commonplace. The war years created only a pause in an emerging trend in business: a shift in the focus from products and sales to satisfying customer needs.
  • Relationship: It emerged during the 90s. Organizations carried the marketing era’s customer orientation one step further by focusing on establishing and maintaining relationships. This effort represented a major shift from the traditional concept of marketing as a simple exchange between buyer and seller. Relationship marketing by contrast, involves long-term, value-added relationships developed over time, strategic alliances and partnerships retailers play major roles in relationship marketing.

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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Creative Management Operations


Operations management was a major area of organizational creativity in the era of scientific management during the late 19th and early 20th centuries. It got a recharge in the 1950s and 1960s when mathematics and computer science were utilized through operations research models to schedule production, arrive at optimal inventory levels, and so forth. The superior productivity and quality of Japanese manufacturing induced a further revolution in operations management in the 1970s and 1980s, and management vocabulary was enriched by Just-in-time (JIT), Kanban, Total Quality Management (TQM), quality circles, continuous improvement, and so forth. And yet there is much scope for operations-related creativity.

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.

 

Knowledge Management Strategy


What does it mean for an organization to have a knowledge management strategy? If we think of a corporation as an individual, then a corporation’s knowledge management strategy may be likened to individuals’ strategy to obtain an education and to apply their knowledge and learning to advance their career. If an individual’s education consisted of nothing more than acquiring information (as was largely the case some 50 years ago) he or she would be woefully unprepared to deal with today’s rapidly changing business environment. By the same token, if an organization’s knowledge management strategy focused solely on information flow, it would also be unable to deal with the challenges of doing business in the knowledge era.

Developing a knowledge management involves four basic steps:

  1. Dialogue, discuss, debate and define your objectives;
  2. Formulate a strategy;
  3. Devise the tactics; and
  4. Then act.

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.

 

Five Economic Eras


Economic era is a historic period of time in which the commerce of the time is dominated by, but not exclusively limited to, one particular activity, whether that be hunting and gathering, farming, manufacturing or information processing. We have waded through five economic eras:

  1. Hunting and gathering: primeval, from the dawn of human history
  2. Agricultural: approximately 8,000 BC
  3. Industrial: 1776—the year  the Watt steam engine was invented and Adam Smith’s ideas first appeared
  4. Information: 1946—the year of the first electronic computer, the ENIC
  5. Knowledge: 1994—the year of the release of Netscape.

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.

From Financial Capital to Human Capital


The new corporation differs from the old in both goals and basic assumptions. In the industrial era, when the strategic resource was capital, the goal of the corporation could only have been profits. In the information era, however, the strategic resource is information, knowledge, creativity. There is only one way a corporation can gain access to these valuable commodities—that is, through the people in whom these resources reside.

So the basic assumption of a re-invented company is that people—human capital—are its most important resource. What used to be one of the radicals’ favorite slogans, “People before Profits,” is finding its way into the boardroom and being transformed into a more businesslike but equally humanistic “People and Profits.”

In an information age society, human resources are any organization’s competitive edge.

One expression of the importance of human capital is the new corporate preoccupation with health and fitness. Corporations are treating their human assets with new concern, encouraging their people to stop smoking, lose weight, exercise, and learn to manage stress. What might have been considered an intrusion into one’s personal life in the past is fair game when people are a company’s strategic resource.

The new re-invernted corporations stress inordinate regard for the two most important types of people in an enterprise: employees and customers.

They have discovered that by being both pro-people and pro-profits, a company can earn more than it it had targeted profits as its only goal.

It is not a question of being nice to people. It is simply a recognition that human beings will make or break a 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, Lectures, Line of Sight

Walking and Talking Customer Value


To survive in this value era firms concentrate on improving four key business processes: designing, making, marketing, and supporting. Customer value is maximized when product, order, and experience—which are outcomes of the first three processes—are correct, timely, appropriate, and economical.

We are moving into the value era and firms will no longer survive if they simply focus on price and product features. Several non-price factors are thought to have great influence on customers perceptions of value received: 1) the length of customer lead times; 2) variation from promised delivery dates; 3) condition of product on arrival; 4) sales call and order initiation procedures; 5) credit, billing, and collection procedures; 6) effectiveness of after-sales support; 7) product documentation; 8) product performance; 9) product downtime frequency and duration; and 10) maintenance cost and difficulty.

There are four key business processes responsible for creating better customer value: 1) design—integrating the “voice of the customer” when building the product; 2) making –getting key inputs from suppliers and transforming them into other components or finished products leading to filled customer orders; 3) marketing—transforming sales leads into sales calls, sales orders, service calls, and sales support which lead to completed service transactions; and 4) support—those activities and tasks that serve internal customers.

In addition, the four key business processes must be reengineered and firms should strive for: 1) simplicity—provide the required variety of outputs at low cost and with minimum capital intensity; 2) focus—customer and supplier processes should be treated at the same process; 3) energy—employees should be empowered and also have problemsolving skills; 4) continuity—processes must have extensive improvement and refinement; 5) linearity—subprocesses within each process must be linked together and be customer driven; and 6) dependability—strong customer-supplier relationships assure the success of each process.

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 Bottomless Pit


For many companies the networked enterprise vision became the reality for what appeared to be a bottomless pit into which money was poured with little prospect of achieving the ‘benefits’ that were originally sought. The returns from early investment in IT were problematic. The potion turned those with aspirations to become princesses and fairies into frogs and goblins.

Much of past ‘investment’ in IT has been used to shore up existing ways of working. We have used IT to set our organization in concrete. We have worked hard and spent millions consolidating a bureaucratic form of organization which we are now trying to break down.

IT suppliers, with a mixture of cheek and bravado, have long been in the business of offering solutions to the many problems which their own products have created. They suggest that this or that upgrade may yet turn the lead boots they have supplied into winged slippers.

While overall the introduction of early generations of IT may have had little beneficial impact, it does appear to have widened the gap between the more and less efficient companies. There are ‘winners,’ but for many IT from its origins to the dotcom era has been an ‘honest mirror’ that has confronted them with their own warts and wrinkles.

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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