Extending the Product Life Cycle


Marketers usually try to extend each stage of the life cycles for their products as long as possible. They can often accomplish this goal if they take action early in the maturity stage. Product life cycles can stretch indefinitely as a result of decisions designed to increase the frequency of use by  current customers, increase the number of users for the product, find new uses, or charge package sizes, labels, or product quality.

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.

Employee Privacy


Employee privacy has become a significant issue in many organizations. For example, some organizations have started to implement random drug tests. Background checks on prospective employees have become more comprehensive. And some firms have implemented extraordinary performance assessment devices, including random checks of telephone calls and frequency counts of keyboard strokes for word processing operators. Some people, however, believe that these and related activities are too intrusive and encroach too much into private lives. Thus, a manager in an organization that is following this trend needs to be sensitive to the resentment these practices may create.

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.

 

Post-sale Customer Loyalty


Maintaining the loyalty of major current customers can be crucial for improving a business’s profitability as its markets mature. Loyal customers become more profitable over time. The firm not only avoids the high costs associated with acquiring a new customer, but it typically  benefits because loyal customers a) tend to concentrate their purchases, thus leading to larger volumes and lower selling  and distribution costs, b) provide positive word-of-mouth and customer referrals, and c) may be willing to pay premium prices for the value they receive.

Periodic measurement of customer satisfaction is important, then, because a dissatisfied customer is unlikely to remain loyal to a company over time. Unfortunately, however, the corollary is not always true. Customers who describe themselves as satisfied are not necessarily loyal. Indeed, 60 to 80 percent of customer defectors in most businesses are “satisfied” or “very satisfied” before their defection. In the interim, perhaps, competitors improved their offerings, the customers requirements changed, or other environmental factors shifted. Businesses that measure customer satisfaction should be commended, but urged not to stop there. Satisfaction measures need to be supplemented with examinations of customer behavior, such as measures of the annual retention rate, frequency for purchases, and the percentage of a customer’s total purchases captured by the firm.

Defecting customers should be studied in detail to discover why the firm failed to provide sufficient value to retain their loyalty. Such failures often provide more valuable information than satisfaction measures because they stand out as a clear, understandable message  telling the organization exactly where improvements are needed..

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.

 

Extending the Product Life Cycle


The concept of the product life cycle tells us that a sequence of actions is required to maintain a product’s sales and profits. The goal of the planning is to stretch out the life of the product, thus keeping it profitable longer. The following techniques are often effective in extending a product’s life cycle:

  1. New or extended uses: The sales of rugged four-wheel drive sport utility vehicles, ranging from inexpensive jeeps to Range Rovers, increased dramatically once they became accepted as family automobiles.
  2. b. Reduce price and build volume: Tylenol became a much more successful product after Johnson & Johnson reduced its price.
  3. c. Increased frequency of Use: Trade associations that are connected to the poultry and fish industries have been successful in informing the public that their products are low in cholesterol and should be eaten frequently as part of a healthy diet.
  4. d. Broaden the target market: As the ethical issue, American tobacco firms have successfully enlarged the market for American cigarettes by focusing on Japan. They have also been very successful in expanding the market for tobacco products in Europe and South America.

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.

 

Advertising: Media Reach and Frequency


When advertisers discuss media, they talk of reach and frequency. Reach refers to the number of people who will be exposed to the message. Frequency refers to the number of times each person will be exposed. Although in some endeavors you should strive for reach, in most, frequency will help you even more. Remember, familiarity breeds confidence, and confidence serves as the springboard to sales.

Select a marketing method. Before you select any method of reaching the people you wish to reach, think these thoughts. It is not necessary to say everything to everybody, nor is it possible. If you try to say everything to everybody, you’ll end up saying everything to nobody or nothing to everybody. Instead, you should try you should strive to say everything to everybody. Your marketing message is the “something.” Your target audience is the “somebody.” Just as you take care in selecting what you will say, you should take equal care in selecting to whom it will be said. Saying the right thing to the wrong people is not acceptable. Advertising on television does wonders for your ego, but if your prospective customers don’t watch much television, it is folly.

Whether you utilize the method properly yourself, and whether you can afford it. When you combine two marketing methods with two other marketing methods, the total is more than two plus two. A synergistic effect is created whereby two plus two starts to equal five and six and seven. And when you combine five marketing methods with five others, your possibilities for success are increased many fold. The more methods of marketing you employ, and the greater your skill at employing and selecting them, the larger the size of your bank balance.

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.

Traits of Team Members


Personal

  • Non-egoistic
  • Integrity
  • Extrovert
  • Unselfish
  • Patience

Social

  • Mutual acceptance
  • Mutual trust
  • Understanding others
  • Standing above social barriers
  • Equality

Professional

  • Knowledge about the assignment
  • Skill to do the job
  • Problem solving ability
  • Conflict managing capability
  • Adopting win-win strategy

Success criteria for teams

  • Group decision making
  • Free flow of communication
  • Harmonious culture
  • Skilled members
  • Intrinsic motivation
  • Creative problem solving
  • Synergic effect

Metrics for team effectiveness measurement

  • Improvement in net income
  • Interdependency level of members
  • Morale of members
  • Frequency of meetings
  • Communication flow

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.

Statistical Analyses


The role of database is to help select names for modeling, implement the results of the modeling process by scoring names and assigning them to the appropriate decile, and selecting names by decile and other criteria for marketing programs. Most companies use statistical analysis for two principal reasons: a) segmentation, and b) predictive modeling.

Segmentation techniques are used to identify and profile groups of customers whose characteristics are similar. If the objective is to segment customers based on their performance, then the procedure is to group people according to their performance characteristics and then develop profiles of each performance group. Typical segmentation variables are performance measures such as recency, frequency, and monetary value of purchases; types of products purchased; or types of promotions responded to.

By linking this data with customer performance data, marketers can analyze who buys what and use the profiles of customers in each segment as a means of finding other customers like them.

Once the segments have been created, individual customers will be assigned to segments and these assignments will be recorded in the database. This makes subsequent selection of individuals for promotion based on the segmentation criteria relatively simple.

Predictive Modeling, based on previous purchase history, based on recency, frequency, and monetary value, models can be developed to predict who is most likely and least likely to purchase at the next opportunity. This scoring model would be used to determine who should be promoted and what they should be promoted with.

Once scoring models have been executed and customers assigned to deciles, this information is recorded in the database so that subsequent selection of customers who have the highest probability of responding to a promotion is easily accomplished.

End users would use a selection menu in which they would indicate which scoring model they wish to use and either a specific cutoff score or a desired number of names to select. The database would then perform the selection and produce an output file to the specific medium. This would either be a file, a magnetic tape, or mailing labels. A file could either be used for further analysis, or in many cases, the file could be combined with a patterned letter file to produce personalized mailings.

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.

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

Erosion Measures


Erosion measures refer to natural remnants of some individual’s or group’s activity that has selectively worn down certain objects. For example, if you are working in a nursing home, you might determine what the most popular activity in that home is by observing where the rugs are most worn. It might be in front of the television set or in front of the windows where people spend time looking out at the street. This could give you a possible measure for evaluating changes in the group’s activities.

 Other erosion measures might include decay and breakage. Active or aggressive physical activity can be inferred from the number of broken items (for example, windows) in a school or ward. The frequency of repair, replacement, or cleaning of certain objects in a setting may be used as an indicator of frequency of usage.

 When using erosion measures be sure that unrelated factors are not the reasons for observed changes. For example, a new junior’s zeal in cleaning may be responsible for changes in the patterns of use as detected by wear and tear on the floor. Similarly, it would help to know the amount of ordinary wear and tear on objects so that any excessive erosion or wear and tear can be related to target behaviors with more assurance.

 The second category of physical traces is accretion measures. These are objects deposited by clients in a given setting or the ordinary debris left by client interaction with or consumption of material. Thus, many of the behavior produces described earlier could be considered as accretion measures. Accretion measures also often focus on analysis of remains or even rubbish.

 Reliability and validity concerns are as important when using physical traces as they are with other measures, and these concerns are especially important when physical traces are being used to make inferences about behaviors.

 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

Previous Older Entries